NEDC Wins Settlement Worth $2.5 Million in Medical Marijuana Lawsuits

For Immediate Release

Newport Economic Development Commission

Newport, Arkansas

director@newportaredc.org

The Newport Economic Development Commission won a settlement with a value of $2,518,015.00 yesterday in two separate lawsuits concerning the relocation of a medical marijuana cultivator previously located in Newport, Arkansas. In November of 2020, the Arkansas Medical Marijuana Commission approved a transfer of Natural State Wellness, LLC’s license to Good Day Farms, LLC. At that same meeting, the Commission also approved a transfer of location, allowing the facility to move from Newport, Arkansas to Pine Bluff, Arkansas. Jon Chadwell, Executive Director of the Newport Economic Development Commission made a formal request to the Arkansas Medical Marijuana Commission to reverse the decision to move the facility. That request was denied.

In April of 2021, Attorney David Couch, a Newport native, filed a lawsuit for plaintiffs the Newport Economic Development Commission; the City of Newport; the Newport Charitable Foundation and the Newport-Jackson County Industrial Development Bond Board against the Arkansas Medical Marijuana Commission; the Arkansas Alcoholic Beverage Control Division; Good Day Farm, LLC; Natural State Wellness, LLC and Harvest Health and Recreation, Inc. in Circuit Court of Jackson County. The suit was to recoup economic damages caused by the relocation of the facility.

That lawsuit was followed by another lawsuit in October of 2021 by Couch for the Newport-Jackson County Industrial Development Bond Board to recapture possession of the property sold to Natural State Wellness with all improvements, including the building constructed on the property by Natural State Wellness. The lawsuit against the property owner BLRS was moved to federal court.

On February 22, 2023, a mediation process was held with Couch and Chadwell representing the plaintiffs and individuals and attorneys representing Harvest Health and Recreation, Inc. and Good Day Farms, LLC. Through the process, the defendants agreed to a settlement which returned the building and land to the Newport-Jackson County Industrial Development Bond Board, awarded $1,000,000 in cash restitution to the community and covered the legal fees and costs. The total value of the settlement is $2,518,015.00 which is being paid through a negotiated agreement between Harvest Health and Recreation, Inc. and Good Day Farms, LLC and a transfer of property from BRLS to the Newport-Jackson County Industrial Development Bond Board.

“We feel vindicated to receive this settlement from Harvest Health and Good Day Farms on behalf of Newport,” stated Jon Chadwell. “We have many exceptional businesses in Newport that are significant partners in growing the community. However, when a business does not live up to its commitments, we feel obligated to take action behalf of the community.” Newport Mayor Derrick Ratliffe said, “The City of Newport has established a very pro-business environment and we are excited to have this building back under local control so we can use it to recruit another company to our community.” This settlement brings an end to the two-year process of seeking restitution for Newport and Jackson County.