Michigan Cannabis Retail Market Update – December 2025
Michigan’s retail market is heating up this month with major zoning wins and emerging market signals. Ann Arbor just slashed its school buffer from 1,000 feet to 100 feet citywide – a massive expansion of retail-eligible sites. Meanwhile, Marengo Township is discussing marijuana overlay districts for the first time since opting out in 2018, potentially opening Calhoun County’s first rural retail market. Pontiac continues its steady march forward with another preliminary approval.
🆕 NEW MARKETS OPENING THIS MONTH:
- Marengo Township – First cannabis zoning discussion since 2018 opt-out
Top Headlines This Month
- 🆕 Marengo Township considers ending 7-year retail ban
- Ann Arbor slashes school buffer from 1,000ft to 100ft
- Pinckney advances first retail permit since August expiration
- Pontiac approves preliminary site plan for Oz Dispensary
- Federal hemp-THC ban reshapes Michigan retail landscape
🆕 Marengo Township – New Market Alert – Planning Commission Reviews Marijuana Overlay Districts
The Setup:
Marengo Township’s Planning Commission discussed marijuana overlay districts during their December 3, 2025 master plan review – the first formal cannabis zoning consideration since the township opted out in 2018. The meeting included public comment periods and zoning language review for cannabis-related uses.
The Impact:
This represents the first crack in Calhoun County’s rural retail prohibition. Marengo Township (Albion area) has maintained a complete ban for seven years with zero dispensaries operating. If the Planning Commission advances overlay districts through the master plan process, it triggers zoning changes that could enable retail applications – opening an entirely new market in a county with limited rural access.
The Opportunity:
Ground-floor opportunity in newly opening market. Marengo’s population and proximity to Albion create underserved demand with no nearby competition. First movers secure prime sites before zoning finalizes and applications open. The township’s master plan timeline will dictate when retail becomes possible – monitor Planning Commission follow-up meetings closely.
Strategic Angle:
Connect with Marengo Township planning staff now to understand overlay district timelines and site criteria. Early relationship-building positions you ahead of competing applicants when the application window opens. For insights on navigating newly opening markets like this across the state, explore opportunities in Michigan cannabis retail markets.
🏛️ Ann Arbor – City Council Slashes Dispensary-School Buffer to 100 Feet Citywide
The Setup:
Ann Arbor City Council unanimously approved a permanent zoning amendment on November 18, 2025, reducing the required distance between cannabis dispensaries and K-12 schools from 1,000 feet to 100 feet. The change took effect immediately and applies to all current and future retail locations citywide.
The Impact:
This is one of Michigan’s most retailer-friendly buffer reductions. Ann Arbor just opened massive new territory for dispensary sites – areas previously off-limits due to school proximity are now fair game. Two existing dispensaries near Doughty Montessori School (250 feet) and Research Park Drive (750 feet) are now fully compliant. Expect increased competition for newly eligible sites as operators rush to capitalize on expanded zoning.
The Opportunity:
Retailers can now target high-traffic corridors and commercial districts previously blocked by school buffers. The 900-foot reduction unlocks dense residential areas, university-adjacent zones, and mixed-use developments. Site selection teams should immediately reassess Ann Arbor for locations that were non-compliant under the old 1,000-foot rule but now qualify.
Strategic Angle:
Run updated buffer analyses using the 100-foot standard before year-end. Prime sites near the university and downtown core will move fast – early lease negotiations give you first pick of newly compliant real estate.
🏪 Pinckney – Village Council Reviews Essence Pinckney Retail Permit Application
The Setup:
Pinckney Village Council reviewed a Special Land Use Permit for ESSENCE PINCKNEY, an adult-use retailer proposed for 1268 E Michigan 36, on November 17, 2025. The application follows the expiration of Pinckney’s only adult-use retailer license in August and revised application criteria adopted in October.
The Impact:
Pinckney has been without an active adult-use retailer since August – this application could fill that gap. The Planning Commission recommended the Council request additional documentation before approval, including updated CRA prequalification, enhanced landscaping, elimination of the drive-through window, and retailer-specific odor and security plans. The village is clearly processing applications, but scrutiny is high.
The Opportunity:
Pinckney’s single-retailer gap creates immediate demand for whoever wins approval. The village’s updated application criteria and detailed permit requirements signal a structured but active licensing environment. Applicants should expect thorough review – the Essence Pinckney application faced requests for landscaping upgrades, shared-use agreement revisions, and exterior design changes.
Strategic Angle:
If you’re eyeing Pinckney, prepare comprehensive site plans and regulatory documentation upfront. The village wants CRA prequalification, detailed security and odor control plans, and architectural designs that match community character – address these before submission to avoid delays.
🏛️ Pontiac – Planning Commission Approves Preliminary Site Plan for Oz Dispensary
The Setup:
Pontiac Planning Commission unanimously approved a preliminary special exception permit and site plan for an adult-use retailer (Oz Dispensary) at 962 Cesar E Chavez Avenue on December 3, 2025. The site meets required buffers (1,000 feet to schools, 500 feet to childcare/parks/religious uses) and is located in the C-3 Quarter Commercial district within the Cesar Chavez adult-use overlay.
The Impact:
Pontiac continues to actively process and approve adult-use applications – this is the second approval this quarter. The preliminary approval is conditional and requires final submittals (corrected elevations, glazing calculations, photometric plan, dumpster surround materials, pole heights, mechanical screening) before final Planning Commission sign-off. This reflects Pontiac’s established, functioning retail framework.
The Opportunity:
Pontiac’s overlay districts and defined buffer requirements create predictable approval pathways for qualified applicants. The city’s active 2025 application processing and recent approvals signal ongoing market expansion. Retailers should focus on meeting buffer requirements, selecting sites within designated overlays, and submitting complete site plans to avoid back-and-forth.
Strategic Angle:
Reach out to Pontiac Planning Division (planning@pontiac.mi.us) before submitting to confirm overlay eligibility and buffer compliance. Preliminary approvals move quickly when site plans are complete – lock in your final documentation now to avoid Q1 2026 delays.
⚠️ Federal Hemp-THC Ban Reshapes Michigan Retail Landscape
The Setup:
A newly enacted federal resolution bans nearly all intoxicating hemp-derived THC products by imposing a 0.4mg THC cap, effective November 13, 2026. The resolution closes the hemp loophole that allowed delta-8, delta-10, and similar products to compete with licensed cannabis retailers.
The Impact:
Michigan retailers who relied on hemp-derived products face significant disruption. The 0.4mg cap eliminates most intoxicating hemp products from the market, removing competition from gas stations, smoke shops, and unlicensed sellers. This creates an opportunity for licensed dispensaries to capture customers who previously bought hemp-THC products outside the regulated market. State lawmakers are considering policy responses.
The Opportunity:
Licensed retailers gain a competitive advantage as the hemp-THC market disappears. Expect customer migration from unlicensed sellers to regulated dispensaries. Retailers should prepare marketing campaigns targeting former hemp-THC buyers, emphasizing product safety, testing standards, and regulatory compliance. This is a market consolidation moment favoring licensed operators.
Strategic Angle:
Reach out to hemp-THC customers in your market before November 2026. Educate them on the federal ban and offer loyalty programs or first-time customer discounts. Capture this customer base now before competitors do. Understanding these shifts is critical for operators across all cannabis retail markets.
The Bottom Line
December brings a potential new market in Marengo Township, massive zoning wins in Ann Arbor, and steady retail expansion in Pontiac and Pinckney. The federal hemp-THC ban reshapes Michigan’s competitive landscape starting late 2026, favoring licensed operators. Watch Marengo’s Planning Commission closely for follow-up zoning actions and lock in Ann Arbor site assessments before newly eligible locations disappear.
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