Too Early for Psilocybin Real Estate Decisions?
The clock is ticking on the launch of Oregon’s psilocybin program in 2023. One key decision facing entrepreneurs entering this new industry is where to locate their new business. Unfortunately, now may not be the best time to buy that property or sign a lease.
What is Holding Psilocybin Real Estate Back?
Uncertainty still exists because Measure 109 allows for future changes in the law which could dramatically effect where a psilocybin business may legally operate. For instance, an Oregon county has the ability to pass an ordinance prohibiting psilocybin businesses within county limits and bring the ordinance up for a vote in the next statewide election. Under M109, a psilocybin business cannot be in a residential zone within an incorporated city or town, and service centers cannot be located within 1000 feet of a school (500 feet for some schools). While this language provides some guidance, Oregon cities and counties may enact local laws affecting the “time, place and manner” of a psilocybin businesses operation. Many cannabis companies were burned by these local laws in 2016 when the cannabis market launched. These cannabis companies purchased property or signed long-term leases in 2015, but local jurisdictions later enacted regulations which prohibited the cannabis business from operating at their site.
How to Start Some Research
Here are some tools we use at the firm to assist our clients in beginning to vet properties. These websites should be used only for preliminary research on possible site locations.
1. To determine whether the property is located within the limits of an incorporated City or Town.
Follow these steps for an initial review.
- Go to https://www.randymajors.org/
- Click on “Map Tools” in the ribbon at the top of the page and select “City Limits”
- Enter property address in the search bar located at the top of the map
- Click “Show US Townships” located at the bottom left of map to show both City and Town Limits
2. Determine whether the property is located within 1000 feet of a school
- Go to https://pdx.maps.arcgis.com/
- Select ArcGIS World Geocoding Service and enter the address
- Anything green/surrounded by blue is a school
- Google search can be a backup search method if the line is very close, and measurements need to be taken.
Over the next few months, local jurisdictions will begin to think about their views on a M109 and psilocybin businesses. After the November 2022 election, the landscape will begin to clear and hopefully psilocybin entrepreneurs will get more clarity about where they can legally operate and their psilocybin real estate decisions.
You can contact Bradley Blommer at firstname.lastname@example.org or 503-488-5424.