Commerce

Medical Marijuana Brought More Than $10 Million in Tax Revenue to Md. in FY 2019

January 15, 2020 by Maryland Reporter Leave a Comment

Medical marijuana produced more than $10 million in tax revenue for Maryland in FY 2019 – exceeding the amount of money the industry brought to state coffers during the previous two fiscal years combined, according to data provided by the Maryland Medical Cannabis Commission.

The latest numbers cover the period that ended on June 30, 2019. The total estimated revenue for medical marijuana for that fiscal year is $10,371,437. State expenditures for the fiscal year were $5,608,806.

In FY 2018 medical cannabis brought $3,508,494 to Maryland in tax revenue. State expenditures were $4,389,767. In FY 2017, the industry brought $4,234,017 in revenue to the state, while expenditures were $2,540,331.

Cannabis companies in Maryland made an estimated $96 million in the 12-month period from Dec. 1, 2017 to Nov. 30, 2018, according to the commission.

During the same period Illinois cannabis companies made $36.3 million, Massachusetts cannabis companies made between $25-35 million and New York cannabis companies made between $5-15 million, according to data from those respective states.

Maryland has an estimated 87 licensed cannabis shops, according to a spreadsheet provided by the commission. The majority are located in major population centers such as Baltimore City, Baltimore County, Howard County and Montgomery County.

The majority of prescriptions were written for chronic pain, severe pain, PTSD, severe or persistent muscle spasms and severe nausea.

Mitch Trellis, managing partner of Remedy, a medical marijuana dispensary in Columbia, said the hurdles to opening a cannabis shop in Maryland “are many and numerous.”

Remedy, a medical marijuana dispensary, is located in a nondescript strip mall in Columbia. The shop opened in 2017. (MarylandReporter.com photo)

Trellis said he began a working group in April 2014 but was not able to open his shop until the end of 2017. He said the application process alone took about 18 months.

“It took us close to four years to basically get to open.”

But Trellis said the wait was worth it.

“We’re the Number 1 store in the state by both sales and by patients served.”

Trellis said he has 32 employees and serves more than 2,000 customers per week. However, he admits that the cannabis industry in Maryland is tough.

“It is the most competitive state in America. There are more stores per square mile than anywhere else in America.”

Banking is a major hurdle for cannabis shop owners. Marijuana is illegal under federal law and banks are national and sometimes even multi-national entities. Because of this, most banks are not willing to accept deposits from cannabis shops because the federal government could revoke their FDIC (Federal Deposit Insurance Corporation) charter. If a bank’s charter is revoked, its deposits would no longer be federally insured.

Severn Bank in Annapolis is one of the few banks in Maryland that accepts deposits from cannabis shops. Trellis said Remedy deposits its money there.

“They’ve been very forward and very innovative in their processes and in their programs, and they’ve done a great job,” he explained.

Kevin Shin, co-founder and CEO of Grove Group Management, a financial firm based in New York City that invests in cannabis, said Maryland’s medical marijuana industry is lucrative.

Shin said the number of medical marijuana users in the state increased 20% from 2018 to 2019. He explained what that means for the industry.

“National conglomerates are trying to consolidate licenses making larger brands, so smaller operators have to work smart since there are enough sales to survive in the growth market. Sustaining sales and growing the medical consumer base will be key for dispensaries. Sales and distribution for processors and growers.”

But like Trellis, Shin said the hurdles are many.

“The typical hurdles of high capital requirements and operating costs while managing sales and margins will always be constant. You need financial discipline, a strong management team, and foresight to keep contingency funds for regulation changes that are bound to come.”

Shin said lack of diversity among cannabis shop owners is a problem in Maryland.

“In the first round, only one license was awarded to an African American-owned group and the commission has gone through leadership changes. Minorities including women need better representation as the state program evolves which will evolve.”

Eleven states have legalized recreational marijuana use. They are Maine, Illinois, Colorado, California, Alaska, Vermont, Oregon, Nevada, Michigan, Massachusetts, and Washington.

Fifteen states have decriminalized marijuana use. In 2014, Maryland followed that path by passing a law that makes possession of 10 grams or less punishable by a fine and a mandatory drug education program.

Concrete action on legalization is not expected during this legislative session. However, two bills have been filed related to cannabis. The House bill would prohibit medical marijuana users from being denied the right to purchase, own, possess or a carry a firearm. The Senate bill would allow an income tax subtraction modification for the expenses medical cannabis growers incur.

Last year the general assembly established a working group to study legalization for adult users.

Maryland’s medical marijuana program was established by the assembly in 2012. However, the program did not become operational until December 2017.

William Tilburg, executive director of the Maryland Medical Cannabis Commission, did not respond to a request by MarylandReporter.com for comment by the deadline for this story, nor did a spokesperson for Comptroller Peter Franchot.

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By Bryan Renbaum

Shore Arts: MSO Selects Winner of Elizabeth Loker Competition

January 13, 2020 by Steve Parks 1 Comment

The winner of the Mid-Atlantic Symphony Orchestra’s inaugural Elizabeth Loker Concerto Competition is Joseph McNure, a 22-year-old graduate student in music at the University of Maryland College Park, whose instrument of choice is the alto saxophone.

Joseph McNure

McNure was awarded $2,000 and a three-concert reprise in March of the winning performance of Paul Creston’s Concerto for Alto Saxophone, along with the full orchestra performing Mozart’s Symphony No. 33. The Creston concerto was a bold choice, composed by an Italian-American born to Sicilian immigrant parents in 1905. Creston died in 1985, and although he was a prolific composer whose work was widely performed through the 1950s, he was better known as a teacher in his later years. McNure interpreted the piece in an original classical jazz format, ranging from frantic piercing to quieter riffs that seemed to evoke familiar refrains you think you know but can’t quite place.

McNure, a Virginia Beach native, was the last of six finalists to perform Thursday night, January 9, at the Avalon Theatre in Easton. Six competitors were selected among about 40 applicants who were judged in December based on audio performances submitted to an MSO team. The team led by Terry Ewell, graduate director of music at Towson University, also consisted of Dane Krich, the orchestra’s general manager, and Julian Benichou, its music director. Ewell and Benichou were judges of the final round of the competition, while Krich emceed the evening’s proceedings.

While McNure said he was “thrilled” to win the competition, he’s been a winner before—capturing top honors in the University of Maryland Concerto Competition last fall.

Second-place was won by Joshua Lauretig, 25, who performed the oboe solo of Vivaldi’s Concerto in C Major. Honorable mention went to 12-year-old Sophia Lin of Longfellow Middle School in Virginia, performing Mozart’s Piano Concerto No. 17 in G Major. The other contestants were saxophonist Tae Ho Twang playing Alexander Glazunov’s Concerto in E-flat Major and cellists Yejin Hong and Eunghee Cho, both of whom performed, separately, Dvorak’s Cello Concerto.

In the awards presentation, Maestro Benichou noted that music competitions are not to be compared to athletic battles in that each contestant in music is out to play one’s best rather than to defeat fellow musicians. In solo competitions, he said, “We don’t learn music so much as learn about ourselves.”

Benichou also paid tribute to the competition’s namesake, the late Elizabeth Loker, longtime Easton supporter of the orchestra who bequeathed a gift to the MSO in her will.

As the winner of this first annual Elizabeth Loker Concerto Competition, Joseph McNure, will perform his triumphant Paul Creston piece with the orchestra, also performing the Mozart symphony, on March 5 at the Easton Church of God, March 7 at Ocean View Church of Christ, Ocean View, Delaware, and March 8 at the Community Church in Ocean Pines, Maryland. Tickets: $45, 888-846-8600.

Steve Parks is a retired journalist, arts writer and editor now living in Easton

John Hines Promoted to Electric Department Manager

January 12, 2020 by Spy Desk 1 Comment

John E. Hines III, P.E.

Easton Utilities named John E. Hines III, P.E., as the Electric Department Manager. In this position, John is responsible for all aspects of the operation for the safe generation and delivery of power from transmission through distribution to the customer. “I am honored to be chosen as the next leader of this department comprised of knowledgeable, dedicated individuals focused on providing safe and reliable service to our community,” stated Hines.

John joined Easton Utilities in 2004 and has held several positions within the electric department. In this role, he replaces Arnie Boughner who retired from Easton Utilities in early January as the Electric Department Manager for over 17 years. John will now oversee six divisions that operate and maintain the power plants, substations and distribution infrastructure along with the vehicle fleet for all of Easton Utilities. “We are fortunate to have John on our team as he has demonstrated his commitment to safety and reliability during his 15+ years with Easton Utilities,” said Hugh E. Grunden, president and CEO of Easton Utilities.

Prior to joining Easton Utilities, John held various roles as an Electrical Engineer and Project Manager for companies in the mid-Atlantic region. He holds a BS in Electrical Engineering from The Pennsylvania State University and is a Registered Professional Engineer in the State of Maryland. With a passion for boating and sailboat racing, John has been an active member of the Miles River Yacht Club since 2005 serving in various leadership positions, including Commodore. He resides in Easton with his wife and two daughters.

Easton Utilities is a community-owned, not-for-profit utility and telecommunications company operating the Electric, Natural Gas, Water, Wastewater, Cable Television, and Internet services for the Town of Easton and portions of the surrounding area. Visit eastonutilities.com for more information.

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Qlarant Announces Acquisition of IT Development Firm

January 5, 2020 by Spy Desk

Qlarant announced today the acquisition of Studio Codeworks, an information technology company located in Silver Spring, Maryland. The acquisition is an integral part of Qlarant’s strategic plan to grow product lines, expand their commercial market, and build its skilled and passionate workforce. Led by Will Mapp III, Studio Codeworks has been actively working with Qlarant over the past 3 years on program design and development.

By combining resources, Qlarant and Studio Codeworks will continue to lead the development of innovative programs that work to resolve risk and fight fraud, waste, and abuse in major industries and federal/state agencies. The Qlarant Board of Directors approved the acquisition and the agreement closed Tuesday, December 31, 2019.

“We have been working closely with this team for some time now, and we are familiar with the skillsets and knowledge base of each staff member,” says Dr. Ron Forsythe Jr., CEO of Qlarant. “Studio Codeworks has provided Qlarant with insight, technology skills, and a strong commitment to our programs — along with a passion for finding solutions to complex problems. We believe the work ethic and attitudes of this team will be a positive addition to our existing culture.”

Qlarant has nine offices throughout the United States including its headquarters in Easton, Md. The existing staff of Studio Codeworks will maintain their location in Silver Spring, Md. Will Mapp III will lead the Technology Research and Development Department for Qlarant and his team will include the associates formerly of Studio Codeworks. No other staffing or organizational changes will be made at this time. Will Mapp III will report directly to Ron Forsythe, Jr., CEO.

“As someone from the Eastern Shore, I am very excited to join Qlarant’s team. Qlarant is a great and storied company doing phenomenal work in

Health Services,” says Will Mapp III. “Qlarant’s commitment to quality and Studio’s commitment to technical excellence present a fantastic opportunity to extend the reach of improving people’s lives and benefitting mankind.”

About Qlarant: Qlarant is a not-for-profit, nationally respected leader in fighting fraud, waste, and abuse—improving program quality, and optimizing performance. The company uses subject matter experts and innovative data science and technology to help organizations see risks, solve problems, and seize opportunities. Solutions are customized for state, federal, and commercial agencies across the nation. The Qlarant Foundation— the mission arm of the organization—has provided over $5 Million in grants to charities throughout Maryland and Washington, D.C. Qlarant employs nearly 500 people and has a 45-year record of accomplishment improving the performance of some of the Nation’s most important programs. Qlarant is a licensed AgileCxO Transformation Partner.

If you would like more information, please contact Pat Boos at 410.819.3553/ boosp@qlarant.com or visit the website www.qlarant.com

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SCORE Mid-Shore Offering Business Mentoring Sessions at TCFL

January 4, 2020 by Spy Desk

The SCORE Mid Shore Chapter is offering free business mentoring mini sessions at the Talbot County Free Library in Easton on the second Wednesday of every month from 11am to 2pm (lobby area). The next mentoring opportunity is January 8, 2020. Future sessions will continue with same time and location.

SCORE Mid-Shore is a resource of the US Small Business Administration and is America’s premier small business mentoring organization. SCORE Mid-Shore provides confidential and free business mentoring to the emerging and existing small business community of Easton and surrounding counties. The Chapter is dedicated to educating entrepreneurs and assisting small businesses to achieve their goals.

No appointment is required for the free library sessions and are held on a drop-in basis. Submit your business questions to the SCORE Mid-Shore representative on duty. Additional meetings with SCORE Mid-Shore are free of charge and can be scheduled at the site with the mentor. Further free mentoring is also available by calling 877-572-0735 for a session at the local SCORE location at 101 Marlboro Ave., Suite 53 in Easton.

Visit the SCORE Mid-Shore website at “midshore.score.org.” Check out our mentors and try one of our webinars.

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Easton’s Challenge with Retail’s Empty Little Boxes: A Chat with Discover Easton’s Ross Benincasa

January 3, 2020 by Dave Wheelan

There are a few reasons why Easton residents experience certain anxiety when they see vacant storefronts in and around the historic district. The first is sentimental. These abandoned shops, which fall into the 3,000 to 10,000 square feet range, such as Ben Franklin, the News Center, Earth Origins Market, and Safeway were greatly beloved by their customers. The simple sight of these now deserted sites causes an understandable sadness with those missing products or former employees.

The second is more particular. No one likes to see empty storefronts since it seems to send a message about a town’s vitality, or lack thereof. And while it may be true that almost every town in America is also facing a dramatically changing retail world, when it’s your town, one is inclined to take it very personally.

That is one of the reasons that the Spy recently spoke to the Town of Easton’s Ross Benincasa. Beyond directly managing the town’s significant “Discover Easton” campaign of events and marketing, Ross routinely plays a critical role in the town’s economic development strategies, including daily contact with commercial real estate brokers and future store owners.

In his Spy chat, Ross talks about Easton’s “little box” challenge that could ease some minds worried about a retail Armageddon in the near future. Beyond citing that Easton’s vacancy rate is not of line with historical patterns, Ross highlights a new level of innovation with commercial real estate that finds new uses for these old favorite places. He also takes about the relationship between retail and the lack of housing for younger residents who are increasingly making up the largest percentage of consumers in the country.

This video is approximately seven minutes in length.

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Food Friday: Sick as a Dog

January 3, 2020 by Jean Sanders

It has become a holiday ritual that is almost as predictable as the ball dropping in Times Square on New Year’s Eve. The holidays end, and one of us gets sick. It was my turn this year. We had a fine and festive Christmas with the young marrieds, cooked and ate and repeated the process surely more than three times a day, if my snug waistbands are any true indicator of the epicurean pleasures we experienced. And now the holidays are over, and we have all of 2020 to consider – Leap Year and all.

I guess we partied a little too hearty. My cold has mushroomed into massive congestion, sneezing and coughing. There are multiple Kleenex boxes in every room of the house. I am not a pleasant sight, just a noisy series of barking coughs and wet sniffles.

Imagine what the our homecoming was like for poor Luke the wonder dog, newly sprung from the kennel, as he tied the apron bow, and got out the cookbooks so he could make some chicken soup to hurry my healing process. He’s such a good dog. This is a reminder to be kind to our faithful companions! And since we can’t teach an old dog new tricks, luckily for us, Luke knows his way around the kitchen. These are the words that he dictated to me, as he stood on the stool, chopping vegetables and measuring out cups of rice, listening to The Splendid Table, where he has garnered a surprising breadth of culinary knowledge.

“A word to the wise: you are going to need chicken soup sooner or later this winter. And, no, it will never taste as good as your mother’s. It will ward off the flu, and will ease the aches and pains of that miserable head cold. And soon, you will feel right as rain.” (I wonder if it is only Luke who is partial to clichés or if all dogs are prone, like food writers?)

I can see Maurice Sendak will hovering behind Luke, proudly, as he measures out the rice. And soon we will be slipping on the sliding ice, sipping our own chicken soup with rice. Maybe Luke will end up with Max and the Wild Things, stirring soup on a well-drawn pen and ink stove.

Luke recommends:
Homemade Chicken Stock

Ingredients
1 deboned chicken carcass, including skin
OR 1 whole chicken (do not give the poor dog a bone, no matter how eloquent he is, or how mournfully he looks at you)
6 quarts water
6 garlic cloves, smashed
2 carrots, roughly chopped
3 celery stalks, roughly chopped
1 small onion, chopped
1 tablespoon butter
4 black peppercorns
1 bay leaf
Salt

1. Use a large stock pot, and add butter and chicken over medium heat. Brown them a little bit.
2. Add all the rest of the ingredients, and bring to a boil.
3. Boil for 3 minutes, then turn heat down to low.
4. Cover, and simmer for about 3-4 hours, stirring every once in a while.
5. Once it’s a golden color, strain and let cool. Put in the refrigerator overnight, then skim the fat off the top.

Chicken Soup (not completely homemade – but sometimes a dog is on deadline and life has to go on)

Olive oil
Half an onion, minced
2 carrots, finely diced
Bay leaf
A sprig of fresh thyme, or a few shakes of dried
2 quarts chicken stock
1 cup uncooked, long grain rice (or, if you are a noodle family, have your wicked way with them)
2 cups shredded, cooked chicken
1. Heat the olive oil in the bottom of a large, heavy-bottomed skillet.
2. Add onion and carrot, and sauté until soft, 5-7 minutes.
3. Add bay leaf, thyme, and chicken broth, and bring to a boil.
4. Reduce to a simmer and add rice and chicken.
5. Let soup bubble, stirring occasionally, until the rice is cooked through, about 15-20 minutes.

Note from Luke:
This will be much better than Lipton’s Chicken Noodle dried-powder and freeze-dried chicken bits! And certainly better than Campbell’s. Have you ever looked at those pinkish chicken nubbins? Well, you were probably feverish and anything warm was going to do the trick.

And now, thanks to Luke, you have a nice, comforting stash of stock in your freezer, and you are ready for that rainy, sneezy, sniffling, no-good, terrible day. I remember the glory days, back in elementary school, when I could stay home, bundled up on the sofa with a blanket, a pillow, a box of Kleenex and jelly glass of ginger ale with a bent paper straw. I reveled in spending a feverish day napping in front of the black and white TV. If you are lucky when you succumb to this year’s stay-home-from-school cold maybe Bewitched and The Dick Van Dyke Show will be on YouTube someplace. Or you can catch up with Season Three of The Crown!

Luke has taken good care of me. Mr. Friday has gone back to the serenity of his office, and I am tottering around the house starting to take the Christmas decorations down. But later this afternoon, Luke and I are going to curl up on the sofa, catching up on the Christmas movies we were too busy to watch last week. Happy New Year!

“If you are a dog and your owner suggests that you wear a sweater suggest that he wear a tail.”
-Fran Lebowitz

Easton Utilities Brings Water Service to Hyde Park

December 23, 2019 by Spy Desk

Today Easton Utilities commenced providing water service to the Hyde Park community. Easton Utilities water system has always provided clean, safe drinking water in abundant supply. “We are very excited about this opportunity to bring our quality water and exceptional customer service to this neighborhood,” said Paul L. Moffett, Water Department Manager for Easton Utilities.

The new water service will be provided to the existing dwelling units, office and community building. “The residents of our community are delighted to have this valuable service from Easton Utilities and we look forward to the benefits this adds to our development,” stated James Sonday, Hyde Park owner’s representative. Prior to being connected to the town water system, residents were served by Hyde Park’s on-site well system.

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Qlarant President and Cambridge Resident Recognized at December 10 Ceremony

December 14, 2019 by Spy Desk

Sandy Love, President Qlarant Integrity Solutions

Leadership Maryland announced today that Sandy Love, President of Qlarant, has completed the professional development program dedicated to building a better Maryland by harnessing the strength of its local business and community leaders. Leadership Maryland honored Ms. Love, a resident of Cambridge, and the entire Class of 2019 at its 27^th annual graduation ceremony held December 10 at the Lord Baltimore Hotel.

Ms. Love was one of 50 applicants chosen by committee to complete Leadership Maryland’s eight-month hands-on learning program focused on the state’s most vital social, economic and environmental issues.

“As this year’s Leadership Maryland cohort completes its program, their journey as a graduate of our state’s finest organization of professionals begins,” said Leadership Maryland Board Chairman Dr. Memo F. Diriker ‘12, director of BEACON at Salisbury University. “Over the past eight months they have learned about our state, the critical issues it faces, and above all, themselves. On behalf of the Board, I congratulate each of them for completing this defining milestone and I look forward to seeing them apply these lessons to accomplish great things for our state.”

Leadership Maryland is open to senior-level executives with significant achievements in either their careers and/or their communities.

“This has been a tremendous experience,” says Ms. Love. “Qlarant has been a supporter of this program for many years and I have been inspired by the program”.

Ideal Leadership Maryland members have a desire to learn more about Maryland’s most critical issues and a personal commitment to be a force for positive change in their organizations, their communities, and their state.

About Leadership Maryland

Leadership Maryland is a professional development program dedicated to building a better Maryland by harnessing the strength of its local business and community leaders. Each year, as many as 52 diverse and accomplished executives from Maryland’s public and private sectors are selected to come together as a class for an eight-month hands-on learning program focused on the state’s most vital social, economic and environmental issues. The first Leadership Maryland class graduated in 1993, and the organization’s alumni network now consists of more than 1,100 leaders from all industries and regions of the state. To learn more, please call Leadership Maryland at 410-841-2101 or visit www.LeadershipMD.org or email Info@LeadershipMD.org.

About Qlarant:

Qlarant is a not-for-profit, nationally respected leader in fighting fraud, waste, and abuse—improving program quality, and optimizing performance. The company uses subject matter experts and innovative data science and technology to help organizations see risks, solve problems, and seize opportunities. Solutions are customized for state and federal agencies as well as commercial industries across the nation. The Qlarant Foundation— the mission arm of the organization—provides grants to services provided in underserved communities. Qlarant employs nearly 500 people and has a 45-year record of accomplishment improving the performance of some of the Nation’s most important programs. Qlarant is a licensed AgileCxO Transformation Partner.

If you would like more information, please contact Pat Boos at 410.819.3553/ boosp@qlarant.com or visit the website www.qlarant.com

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Maryland 2.0: Trappe has Found an Angel in Tom Mitchell

December 10, 2019 by Dave Wheelan

Angel investors come in every shape and size but rarely do they come in the form of Tom Mitchell and Trappe, Maryland.

This small rural community some ten miles south of Easton off of Route 50 has a current population of 1,000 people, give or take. While it has had moments of prosperity, including the introduction of Mitchum’s fine dining restaurant (now closed) a few years ago, it finds itself most of the time getting lost as beachgoers drive by heading for Cambridge and Salisbury.

But for Tom Mitchell, Trappe has never been about the best possible return on investment. For him, it comes from a particular love of the community but also a unique devotion to his wife, Maria.

For the last ten years, Maria has battled Alzheimer’s Disease while Tom continued his successful career as an entrepreneur in several industries. Maria, who is 100% Greek, was always counted on to be the heart and soul of the Mitchell home, and Tom was eager to find a way to keep his wife’s passion for great food and natural warmth alive as she battles this cruel illness.

And so, without any experience in the restaurant business, other than his natural appetite and fondness for tasty libations, Tom embarked on a simple plan to turn the abandoned Mitchum’s back into a major center for fine dining. Using Maria’s favorite recipes, and his skill of making sound real estate deals, Mitchell found himself the owner of Momma Maria’s Bistro last April.

But, like all good stories, it didn’t just end with a tremendous new restaurant. As Tom started to invest in downtown Trappe, he saw an exceptional opportunity for even more investment. Quickly he took over the former bank building across the street to start Coffee Trappe, and has since purchased with at least five other commercial properties all within a stone’s throw away from Mamma Maria’s front door.

In short order, a restaurant project has now grown into a town project. Tom saw this as a way to keep Trappe’s small-town feel at a time when the population should grow significantly with the addition of the Lakeside community (which will eventually have five unique neighborhoods ) on the other side of Route 50.

The Spy has plans to cover the unique success story of Momma Maria’s as a new and hugely popular fine dining establishment under the management of chef Michael Quattrucci early next year but took our opportunity to talk to Tom about how one person, with passion and emotional investment, can truly save a little town.

This video is approximately five minutes in length. For more information about Momma Maria’s please go here.

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