Federal court strikes down pot shop appeal to open

Would-be operators of a marijuana dispensary at Evaline and Jos. Campau lost their federal court appeal to open their business.

By Charles Sercombe
Hamtramck city officials are celebrating a legal victory over preventing a would-be marijuana dispensary from opening.
The company Naturale & Company filed a federal lawsuit against the city to be allowed to open a dispensary at the former site of Hamtramck Coney Island, at Evaline and Jos. Campau.
The operators believed they had the go-ahead to open from former city clerk August Gitschlag, who the plaintiffs said had made assurances that the company would be exempt from any city council decision that would limit licenses for dispensaries to the existing four currently in operation.
At the time, the company signed an affidavit saying it was proceeding at its own risk, and was not guaranteed any approval.
The United States Court of Appeals for the Sixth Circuit struck down the appeal.
The all-Muslim city council passed the restriction on the number of marijuana outlets that can operate here, with the support of former mayor Amer Ghalib. That was based on an outcry from conservative Muslim community members that the businesses attract crime, lead to underage marijuana use and that they viewed it as immoral.
There have been no reports of crime or violence happening at the dispensaries, which also have their own security guards on premises. There have also been no reports of youths getting their hands on marijuana products from the dispensaries.
The council agreed to that restriction despite the approximate $200,000 that each dispensary pays yearly to the city in the form of taxes and state fees.
Michigan’s tax revenue from dispensaries equals over $300 million each year, which is shared among communities that allow them to operate.
City Attorney Odey Meroueh celebrated the victory in a press release, saying:
“This ruling protects every applicant who follows the rules. The licensing process exists for a reason. The City Council, not any individual employee, decides who is eligible to operate a cannabis business in Hamtramck.
“The Sixth Circuit’s decision confirms that no informal side deal can override the ordinance, and that anyone who proceeds without a properly issued license does so at their own risk.”
The attorney for the company, Kevin Ernst, did not return a call for comment.
The building where the dispensary was going to be located is now up for lease.
Posted May 22, 2026