Cannabis company seeks to turn former Overtime Steakhouse into medical marijuana dispensary

Cannabis company seeks to turn former Overtime Steakhouse into medical marijuana dispensary

MITCHELL — The former Overtime Steakhouse building that housed Mitchell restaurants and bars for decades could become a medical marijuana business in the near future.

After being denied the opening of a dispensary at the corner of Fifth Avenue and Main Street in April, Genesis Farms – a cannabis company in South Dakota – aims to bring downtown Mitchell’s first marijuana dispensary in a new location inside the Overtime building.

On Monday, an application for a conditional use permit to operate a cannabis dispensary in the building at 716 N. Rowley St. fell on the Mitchell City Council office. If the conditional use permit is approved by council at the Nov. 7 meeting, the old overtime building would become the fourth dispensary to clear all city regulations.

The company decided to locate its first dispensary in downtown Mitchell more than a year ago after the city opened the application window. Emmett Reistroffer, who runs Genesis Farms, previously spoke about the benefits of opening a dispensary downtown — an area that isn’t saturated with dispensaries.

“We are very much a retail store. So we’re in the downtown central business district,” Reistroffer said at a meeting of the Planning and Zoning Commission. “We wanted to go downtown because this southern area is very saturated.”

Genesis Farms’ first attempt to open a Main Street dispensary was shot down in April, but Reistroffer said he wasn’t giving up on tapping into Mitchell’s market. The waiver for the corner of Fifth Avenue and the Main Street building was denied due to the proximity of a church and the opposition of a few nearby property owners to the proposed downtown dispensary. Under the city’s zoning codes for cannabis establishments, a dispensary cannot be within 300 feet of a religious institution or 1,000 feet of another dispensary.

In addition to Mitchell, Genesis Farms has obtained dispensary licenses in several major cities in South Dakota, including Sioux Falls, Rapid City and Yankton. Genesis Farms opened the first dispensary in Sioux Falls in September.

Before being denied variance in April, Reistroffer spoke of the challenges of finding another location despite the growing number of vacant buildings on Main Street.

“I’m doing my best to find another location, but it’s been very difficult because the costs for those locations are high,” Reistroffer said. “We won’t give up if we don’t get it. I still want to do business here, and we take security measures very seriously. »

Overtime closed shortly after the COVID-19 pandemic took its toll on the restaurant, which also caused staffing issues, the former owner told Republic Mitchell in 2020. The building 5,600 square feet sat vacant for over a year while listed on the market. Davison County property records show the most recent sale of the building was for $125,000 through a warranty deed.

With no churches within 300 feet or nearby dispensaries, the former Overtime property appears to have a much better chance of gaining approval from Genesis Farms.

The three dispensaries that have been approved by the council are all located along the south side of Mitchell. The old Overtime building would become Mitchell’s first downtown dispensary.

Donald Livesay Jr., a Mitchell businessman, is also in the same boat as Genesis Farms after its proposed location on the south side of town was denied a waiver due to the property being less than 1 000 feet from another dispensary, the old Runnings Building. Livesay Jr. still has a secure license, but it hasn’t offered a new location yet. Currently, the city’s cap of five dispensary licenses is taken into account, while a cultivation license has also been approved.

While there are a trio of Mitchell dispensaries approved by the city to operate, none have opened yet. Once the city approves the operation of cannabis businesses, the state must also approve, which slowed the process for Mitchell’s dispensaries.

Despite the slow process, City Attorney Justin Johnson said a few clinics are getting closer to opening.

As of Oct. 17, there were just over 3,900 medical marijuana cards issued to residents of South Dakota, according to state Department of Health records.

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