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Residents urge audit of MEDC grant accounting; local business asks for cannabis licensing-window change

December 16, 2025 | Adrian, Lenawee County, Michigan


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Residents urge audit of MEDC grant accounting; local business asks for cannabis licensing-window change
An unidentified attendee told the commission Dec. 15 that the UHY audit of MEDC-related projects did not show interest earnings on a disbursed $7.5 million tranche administered by Lenawee Now and asked whether interest income had been recorded elsewhere.

“My rough math shows that should be about $400,000 in interest earnings,” the commenter said, and asked the city to request clarification from UHY and Lenawee Now and to consider commissioning an independent audit for additional pending grant funds (the commenter referenced another $6.5 million tied to a tunnel project). The commenter also raised a concern about an administrative fee they said Lenawee Now is collecting (the commenter cited roughly $155,150) and asked whether interest income and fees were being handled in accordance with the grant agreement; no official response from Lenawee Now or UHY was recorded at the meeting.

Eric Kennedy, who identified himself as a co‑owner of Highwire, asked the commission to allow local cannabis businesses to obtain medical licenses outside the current local application window so they could avoid a 24% wholesale tax disadvantage that takes effect Jan. 1. Kennedy said waiving the application window would help local businesses compete with neighboring communities and urged the commission to consider the change.

Why it matters: the unidentified commenter framed the request as a transparency and compliance issue tied to large grant dollars. The commission did not take formal action on either request during the meeting; commissioners indicated they would follow up where appropriate.

Next steps: the commenter asked the city and MEDC partners to clarify how interest earnings have been recorded and to confirm how administrative fees are being used; commissioners will determine any next steps after staff review.

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Scribe from Workplace AI
Scribe from Workplace AI