Madison Heights city manager says cannabis licenses boosted property tax base and one-time donations to public safety

Madison Heights — City Manager Marsh told the City Council on July 14 that the city’s approach to licensing adult-use cannabis businesses has led to redevelopment of underused properties, increased taxable value and one-time community donations that have funded public-safety equipment and community programs.

Marsh said the city included investment in real and personal property, community support and responsible business practices as part of licensing evaluations. ‘‘This approach has led to substantial increases in these developed property values and in turn taxable revenues,’’ Marsh said, noting before-and-after property improvements tied to licenses.

The presentation said the city’s property-tax base increased by about $520,963 annually from properties redeveloped for cannabis businesses, with approximately $165,000 flowing to the city each year and the remainder distributed to other taxing jurisdictions. Marsh said state-distributed taxes tied to the businesses amount to about $175,000 and…