First adult-use cannabis dispensary set to open in Lake Zurich
Construction is complete, and after a long wait the former TGI Friday’s restaurant is opening as the first adult-use cannabis dispensary in Lake Zurich.
And, in short order, a familiar Quonset hut a few blocks southeast on Route 12 will be demolished to clear the way for construction of what will be the village’s second dispensary, with a possible spring opening.
That’s welcome news for village officials, who in November 2021 approved a special use with Botavi Wellness LLC to convert the TGIF property at 676 S. Rand Road (Route 12) for a Bloc dispensary.
Construction delays, regulatory hurdles and other matters have stalled the project, but Bloc just received final approval from the Illinois Department of Financial & Professional Regulation and planned a soft opening for Tuesday.
Bloc and the Dutchess Cannabis dispensary, approved by the village board to replace the former Hawkeye Automotive at 909 S. Rand Road, will be the first dispensaries in town.
Dutchess has signed a 10-year lease for a spot west of the Deerpath Commons shopping center formerly occupied by Hawkeye — a tire dealer and repair shop. The building shell is expected to be complete by early December, with interior build out to follow.
“It's taking a site that is an eyesore and making it visually attractive,” village Trustee Jake Marx said last month before the special use approval with Rubino Ventures LLC, represented by Jason Sfire, whose JAS Management LLC owns the shopping center.
Lake Zurich has enacted a 3% tax on cannabis sales, the maximum allowed by state law, and the take from dispensaries is expected to be significant. Bloc, for example, is expected to generate $250,000 to $300,000 in annual sales tax.
“The village is looking forward to a new revenue stream that can be used to fund capital projects that do not have a designated funding source,” said Michael Duebner, assistant village manager.
“There is considerable variability as more dispensaries are opening up. We will have to see,” he added.
However, getting to this point has taken awhile and frustrated village officials.
By November 2023, Bloc had not made progress toward opening and risked the expiration of its special-use permit, according to the village. The permit was extended for six months and then again with conditions, including twice-weekly status updates.
In recognition of the village’s willingness to work through the delays, the company offered — and a split village board last month narrowly approved — a two-year revenue-sharing agreement.
The agreement, beginning Oct. 1, calls for the village to receive 24 monthly payments of $4,250, for a total of $102,000, which is in addition to whatever sales tax is generated.
“I have serious concerns about getting into business with them long term,” Trustee Marc Spacone said before the vote. “Here we are at the 11th hour and now they’re throwing cash at us.”
Mayor Tom Poynton broke the tie for a 4-3 approval.
“I’m going to trust that this is a good agreement,” he said. “They’ve had some challenges. Who hasn’t?”
Bloc dispensary is a brand created by Justice Grown, which operates dispensaries in four states, according to Alexzandra Fields, president of Justice Cannabis Co. Bloc operates the Lake Zurich location for a minority, veteran and female-owned licensee, she said.
Bloc also operates a dispensary in Palatine and plans 10 locations across Illinois.
Operating a dispensary in Lake Zurich requires a special-use permit after a public hearing before the village’s advisory planning and zoning commission, with final approval by the village board.
Proposals by other would-be operators have surfaced but haven’t proceeded to that point.