Since Missouri legalized cannabis in 2022, the industry has become one of the most profitable in the state, exceeding initially projected revenues. In just 4 years, Missouri has issued 68 licenses for marijuana cultivation facilities. Design, construction, and management of these facilities are complex and require maintenance of and adherence to strict conditions in order to successfully grow the product. This article will give an overview of the challenges that the construction industry faces when building cannabis cultivation facilities.
The first hurdle to overcome is the licensing and permitting for grow facilities, a highly regulated and scrutinized industry compared to other businesses. In 2025, the Missouri Supreme Court held that the state is not required to allow applicants to fix procedural defects in their licensure applications during the scoring process. A criticism of the scoring is that it uses “intentionally vague language”, making it difficult for applicants to navigate the application process. Hundreds of applicants have been denied licenses on procedural grounds without recourse to later amend their applications. Licensees also have to comply with a “seed to sale” tracking system, as well as make sure they only use THC regulated within the licensing system. Further, licensees must prove they are the majority owner and operator of the business, which can become challenging with outside investors.
Before a cultivation facility can be built, consideration must be given to the strict zoning requirements to locate such a facility. Typically, zoning will require a minimum distance from schools, daycares, and churches. Additionally, these facilities are often restricted to specific properly identified industrial or commercial zoning districts. Local governments will usually determine these zoning requirements, and they are the first layer of approvals needed once a license has been issued.
Cultivation facilities also require highly specialized mechanical and lighting systems in order to successfully grow the product. Flaws in these systems can impact company profits due to potential loss of crops, failure to meet anticipated harvest numbers, or other “damaged” products. These facilities require specialized heating, ventilation, air conditioning, and dehumidification systems that can precisely control the internal environment. Additionally, these facilities require specific types of lighting, depending on the types of plants and expected harvests. Common lighting systems, including specialized LED “grow lighting,” include high-intensity discharge lights and fluorescent lights. Design firms need to know and understand the strict parameters these facilities will require, work with their clients to ensure the right specifications are included in their design documents, and ensure that, if elements are “delegated design” to other design-build subcontractors or material suppliers, the designer of record understands the capabilities of the products supplied.
Contractors must take into consideration the type of lighting needed based on the stage of growth the plant is in, the scale of the facility, and energy efficiency. Further, contractors must evaluate the type of flooring. Flooring in cannabis facilities needs to be non-porous, such as epoxy. Typical concrete flooring is porous and can absorb moisture that promotes the growth of bacteria and mold, which in turn affects crop yield. Porous flooring also harbors chemicals from fertilizer, which can affect human and environmental health. Finally, cannabis facilities are usually required to have robust security systems in place, which is another factor that needs to be taken into consideration when building a grow facility.
These are all important considerations for contractors and designers to keep in mind when building or designing marijuana cultivation facilities. Problems that may arise with heating, ventilation, air conditioning, dehumidification, lighting, flooring, or security can cause significant profit loss. Owners, in turn, may look to the contractors and designers for these losses. While design and construction are important elements of these claims, there is a point where the owner’s operations could play a part in yield loss or inability to run a profitable operation, and extensive discovery on their level of experience, seeds used, cultivation protocols, and other operational issues could lead to the real root cause of the problems. Liability exposure can be prevented or minimized by having a holistic understanding of the industry.
More insights into this rapidly “growing” industry to come!