The City of New Bedford has reached a deal to allow a medical marijuana cultivation/production facility to operate in the city.

Mayor Jon Mitchell's office announced on Thursday that a Host Community Agreement has been successfully negotiated with ARL Healthcare, Inc. of Newton, Massachusetts to operate a facility at 167 John Vertente Blvd. in the New Bedford Industrial Park.

As part of the deal ARL will not exercise its exemption from local taxes to the city, will make annual payments to the City to offset social impacts, public safety and other municipal costs associated with the facility. The provisions of the Agreement call for the City to receive, at a minimum, $425,000 in the first five years, with the potential for payments to significantly exceed this amount with payments may reach as much as $300,000 annually, once the facility is fully operational.

ARL will also work to implement vendor and employment goals that benefit local residents and small businesses .

Other conditions of the agreement include ARL meeting certain criteria such as operating as a cultivation/production-only facility. It will not operate as a dispensary, and will not dispense products for the retail market.

The facility will be located in an isolated industrial area that is far removed from neighborhoods and schools.

It must be operated by "a highly professional, robustly financed entity that will implement a strong facility security plan."

While saying they reached agreement on these conditions Mayor Mitchell also said that there are "a number of outstanding issues remain in need of attention."

As required by law, the Agreement is being submitted to the New Bedford City Council for approval.

ARL must then also get approval for the certificate necessary to operate the facility from the Massachusetts Department of Public Health.