ESCANABA — A consent judgement for a case between the former Delft theater, which had been hosting cannabis events, and the City of Escanaba was reached after both parties “engaged in discussions to resolve these issues amicably,” according to a district court filing. All fines from the city were dismissed.

One of the terms of the ruling is that the Delft — which is permitted to continue operations as an event venue — shall no longer hold cannabis events unless licenses are obtained or rules are changed.

James Peterson of the Delft said that he expects the state’s Cannabis Regulatory Agency (CRA) to release updated guidance this summer that will show that cannabis use at private events is allowed. When and if that occurs, the Delft and city officials must “meet in good faith” to adjust the terms of the judgment before the Delft can resume its previous business model and again allow people using the building to consume marijuana inside.

The Delft is a historic building at 907 Ludington Street that had been vacant for the better part of a decade before the current owners — the Petersons, originally from Sheboygan, Wis. and a silent investor — formed Delft Property Management, LLC and bought the place in 2022. They set about restoring the old theater, and successfully opened as an event venue in 2023. One of the draws for people renting the space was that the Delft allowed marijuana consumption inside.

During the spring and summer of 2024, however, issues with the city began. The Planning and Zoning Department — then headed by an official who has since resigned — issued citations to Delft Property Management, claiming that the building was being used in ways that were not compliant with the zoning ordinance.

Reports state that the investigation began because of complaints about the walk-up food take-out window, Bellanasi, that had been operating at the front of the Delft. Tickets were then issued on two charges — the operation of both an unpermitted carry-out restaurant and a designated consumption lounge. The argument from the city was that neither were allowed in Escanaba’s Central Commercial (E-3) District, and that the business had not obtained necessary licenses from the state for the latter.

Peterson was adamant that the city was mistaken about private events and that the Delft’s business model was within the law; however, the venue reportedly ceased its marijuana events when the legal action began in order to be compliant with the city until the issues were resolved.

A resolution, at least for the time being, was entered in March 2025. Both parties (the city attorney and Delft Property Management) agreed to the following terms:

1. “Delft will not operate a drive-thru restaurant window on the property unless it first obtains all required approvals from the city.”

While zoning allows for “restaurants” in the E-3 district, drive-through windows require a special land use permit. However, the restaurant had been a walk-up, not drive-through, and Bellanasi had closed before the case even went to court. The fines associated with the restaurant charge were the first to be dismissed.

2. The venue “will not operate a cannabis establishment of any kind, including a designated consumption establishment or temporary cannabis event, without first obtaining the required licenses from (LARA) and the City of Escanaba.”

There are several different types of cannabis establishments outlined by the Michigan Regulation and Taxation of Marihuana Act (MRTMA), such as growers, event organizers, microbusinesses, retailers, processors, safety compliance facilities and more. The CRA oversees regulations.

3. If MRTMA or rules from the CRA emerge to state that city approval is not required for a cannabis establishment and that local zoning is irrelevant, then the Delft and the City will meet to discuss amending item 2 of the judgment.

4. All fines issued to the Delft — which had stemmed from 130 tickets for civil infractions from the zoning department — were waived.

5. The 94th District Court retains jurisdiction over the matter to enforce the terms of the agreement.