The Westchester Business Journal reported that the planning board in the Town of Wawarsing in Ulster County has approved plans for Valley Agriceuticals LLC, whose parent company is Cresco Labs (OTC: CRLBF), to build 380,000-square-foot marijuana cultivation, manufacturing and distribution facility. The Business Journal said it was advised that passage of the approval resolution means that the developer can move forward with building the project. Once completed, the facility could end up employing over 300 people and Cresco has said it could be a $50 million investment for them.
In 2019, Cresco Labs Inc.(CSE: CL) (OTCQX: CRLBF) closed its acquisition of Gloucester Street Capital, LLC, the parent entity of Valley Agriceuticals, LLC via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of that acquisition, Cresco Labs holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. New York has legalized adult-use cannabis sales, but the program has not yet gotten underway.
According to the report, the facility will be built on a site covering 90.7 acres with 84.1 acres within the Town of Wawarsing and 6.6 acres in the Village of Ellenville. The site formerly was used as a manufacturing facility by the Schrade Knife company and Avnet Channel Master electronic components. Several cities in the country have given the green light to adult-use cannabis sales once the program is underway. They include Ellenville, Kingston, Lloyd, New Paltz, Rochester, Tuxedo, the town of Ulster, and the town of Warwick.
The article stated that the company says it intends to grow marijuana plants, produce marijuana products, and distribute those products from the facility. Cresco has 50 operational retail locations, 28 cultivation, and production facilities, and wholesales to over 1,000 dispensaries. The company had originally planned a large facility in the town Walkill in Orange County, but has changed its plans. The article also said that the facility would use about 98,000 gallons of water a day and its plans call for modifying two existing municipal lines to supply the plant’s water needs.