Butte County cannabis company braces forward

A green house structure at the site of Black Hills Bud.
A green house structure at the site of Black Hills Bud.(KOTA/KEVN)
Published: Jun. 1, 2022 at 8:41 AM CDT|Updated: Jun. 1, 2022 at 10:06 AM CDT
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RAPID CITY, S.D. (KOTA) - Where can a cannabis business be located in Butte County?

That’s a question still to be answered a year and a half after voters approved medical marijuana in the state.

Right outside of Newell in Butte County, there is an uncovered greenhouse surrounded by a fence, neighboring a house that was once a foster home. Ed and Calvin Reilly, along with Calvin’s daughter, and the residents of the former foster home are the owners of Black Hills Bud, a cannabis business.

Initially, there was concern about the proximity of the facility to the foster home, but that lessened since there are no longer foster children there. According to notes from the May 24 Butte County Commission meeting, the Department of Social Services does not see an issue either. However, the commission heard the first reading of a potential amendment to the medical cannabis ordinance. Currently, the ordinance says “no medical cannabis establishment may operate within one thousand feet of a public or private school, including in-home daycare establishments”. The ordinance change would expand that a medical cannabis establishment may not operate within one thousand feet from any residence, religious institution, public park, licensed or certified in-home daycare, or licensed in-home foster care. At this point, the owners of Black Hills Bud are not worried. The second reading is scheduled for June 10.

“You know it’s not this fly by the seat of your pants and hope everything comes out. I mean the type of security systems we have to have are comparable to what they use for casinos. Also, it’s...everything is on camera, everything is recorded,” said Calvin Reilly.

Reilly said that the initial application fee is relatively low, but what is hiding behind the curtain is much more, “But once that application is accepted and goes through there is an additional fee that is every bit as hefty as they said in the beginning. I mean, you know it’s $30,000 for us to get licensed.”

Black Hills Bud has its cultivation and dispensary licenses that have both been approved by the state and now the company is waiting on its certificate of compliance before it can continue the growing process.

“We’re on track up until the point that we plant,” said Ed Reilly.

Calvin Reilly says, “Working with the county commission up until the point of getting our certificate of operation, our license to operate it has been really pretty smooth.”

The wait to receive the certificate has held up their plan to start cultivation in just a few weeks. Calvin Reilly says, “We don’t know, I mean they should have issued it. We’ve complied with everything there is to comply”

Calvin says, “Being a new industry, you’re going to have a lot of multiple opinions, attitudes, and challenges and hopefully we can meet all of those because we are just a couple of regular guys, it’s not like we are some experts on how this is supposed to go.”

The two said they have seen some opposition from a small group of people in the county but have a positive outlook for the new business.

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