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HATFIELD — TreeWorks LLC will officially be able to continue business in Hatfield after the founders of the cannabis company were able to strike a deal with the town.

During its Feb. 6 meeting, the Hatfield Select Board officially agreed to renew the business’s Host Community Agreement for another five years two months after showing hesitancy to do so.

TreeWorks also agreed to a $40,000 settlement with Hatfield, money that is planned to be used for a capital project in town.

“We definitely want a good business like theirs,” said Select Board Chair Diana Szynal. “This was really and truly a good faith offer by TreeWorks.”

The two agreements come two months after the town was initially hesitant to renew TreeWorks’ contract because they argued that the cannabis company had failed to meet the terms of the original agreement, which was instituted a little over five years ago.

According to the agreement, it was expected that TreeWorks would provide their financial documents to the town, pay a small percentage of their profits to the town and offering an education component to Hatfield students.

“None of those [conditions] have been met,” Szynal said at the time. “Good businesspeople honor agreements that were entered into in good faith, and I have a problem with this.”

MacKae Freeland, the executive director and co-founder of TreeWorks, said during a November 2023 Select Board meeting that TreeWorks has done its best to help the community in any way they can. He said TreeWorks did in fact cover their community service hours last year and were on their way to fulfill their hours in 2023 after working with the Food Bank of Western Massachusetts before it relocated to Chicopee.

In response to the education component of the agreement, Freeland said the company would be happy to educate the public in any way they can.

The Select Board ultimately decided to extend the discussion so the town and TreeWorks can work out the logistics and figure out a way forward.

During the Feb. 6 Select Board meeting, Szynal explained that there were changes in the state legislation that affected the company’s previous host community agreement.

“We entered into a host community agreement, both parties in good faith, there were changes in the legislation that came along that changed things, even retroactively,” Szynal said. “So, we tried to find a way to have the first agreement partially recognized, but then move forward with the new one because it was just time to do a new host community agreement.”

The changes in legislation made it so the financial component of the host community agreement is not enforceable.

According to the Select Board, TreeWorks will execute quarterly payments throughout 2024 to pay off the $40,000 settlement.

“I feel strongly that we are prepared to fulfill the agreement as agreed upon and continue to offer medicinal products to the community, and jobs, and keep a good standing with the town,” said TreeWorks co-founder Milo Childs Campolo.

The cannabis company, which officially opened in 2020, makes cannabis products for dispensaries. Many of its products include tinctures, chocolates, live rosin and gummies.

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