A Cook County judge ruled Thursday that a temporary restraining order delaying a medical marijuana cultivation center in north central Illinois can remain in place.
Circuit Court Judge Kathleen Kennedy also ordered Cresco Labs to post a bond of $200,000 to compensate for any harm caused if delays are later found to be improperly granted.
Cresco Labs was the top-scoring company and the winner in the licensing competition for a center in Kankakee that would serve Ford, Iroquois and Kankakee counties. The company also has obtained a state license for a growing center in Joliet.
A company called PM Rx, claims the Illinois Department of Agriculture broke its rules when awarding permits, and it should have received the state license for the downstate center.
The case, one of at least four legal proceedings entangling Illinois’ marijuana pilot program, involves questions about a secret selection process and whether unsuccessful businesses will ever know why their applications failed to win permits.
The Illinois medical marijuana law shields the applications from public disclosure, which has kept PM Rx unable to directly cite problems with the government’s evaluation of applications. But Gov. Bruce Rauner’s office has said problems in the process under his predecessor had created a “risk of substantial and costly litigation” to the state when licenses were issued Feb. 2 for growing centers and dispensaries.
Citing the governor’s concerns, PM Rx persuaded the judge to pause the process. PM Rx also noted the state’s troubles completing FBI background checks of applicants and called into question the background of Cresco’s lead grower.
PM Rx also raised doubts about whether Cresco, which won three state licenses for growing centers, had enough money to get its business off the ground.
Attorneys for the Agriculture Department and Cresco refuted the claims, saying Cresco has met all of its financial obligations and passed background checks.
“They argue we’re searching for financing. So what? We’re allowed to,” Cresco Labs’ attorney Steve Levy said in court Wednesday.
Levy had argued that his client wasn’t properly notified about the lawsuit. He said Cresco Labs wasn’t able to argue its case against the temporary restraining order granted two weeks ago. Kennedy’s order halted the Illinois Department of Agriculture from issuing a permit to Cresco for its Kankakee operation.
In allowing the order to stand Thursday, the judge noted that Cresco will be able to make its arguments as the case progresses.
Separately Thursday, the Illinois Appellate Court denied the Agriculture Department’s appeal of the same temporary restraining order.
