Bloom Medicinals of MO – Cultivation 1, LLC (BMMC1) has requested that O’Fallon issue its taxable industrial revenue bonds in the maximum amount of $9 million, for the purpose of acquiring an approximately 5.57-acre parcel on South Cool Springs Industrial Drive (Lot 2), constructing an approximately 40,000-square-foot facility, and acquiring and installing certain special equipment related to the cultivation of medical cannabis.
The industrial revenue bonds would be payable solely out of payments, revenues and receipts derived from the lease of the property by the city to BMMC1. The bonds would be strictly a financing mechanism and all of the bonds would be purchased by the company. No city funds would be used to pay the bonds and the city would have no financial obligation whatsoever with respect to the bonds.
On March 11, 2021, the council had approved Resolution 03-11-2021H, stating the intent to issue such bonds for this purpose. At its July 8 meeting, the council gave a first reading to Bill No. 7328, that would authorize issuing $9 million of taxable industrial revenue bonds.
The cost for purchasing the site and construction of the building is estimated to be $3.6 million. The purchase of specialized equipment purchase and its installation is estimated to be $4.9 million. A half-million contingency is proposed, thus bringing the total bonds to $9 million.
The site currently is vacant with no building improvements and is assessed “commercial.” Last year, the site generated a total of $122.04 in taxes for all taxing districts combined.
Upon approval of the bonds, BMMC1 will immediately invest $9 million in new capital investment and hire 40 full-time and 10 part-time workers, company officials have said.
When the state of Missouri approved medical marijuana, specific types of facilities were defined as permissible. These include cultivation, dispensary, infused product manufacturing, laboratory testing, seed to sale, and transportation. Each type has state-specified licensing and operational requirements for site and building security, parking, etc.