IRON MOUNTAIN — Applications for adult use marijuana facilities will be due shortly before Christmas in Iron Mountain as the city prepares for recreational sales sometime in 2020.

With its adult-use ordinance taking effect Wednesday, the city is allowing just two licenses each for growing, processing and provisioning. An amendment, though, may be considered to allow up to five licenses each for growing and processing — mirroring a change adopted by the city council Monday for medical marijuana.

For now, the city is committed to having just two dispensaries within its borders for both medical and adult-use marijuana.

Under a state referendum that legalized marijuana for adult recreational use, local governments can completely prohibit or limit the number of marijuana establishments within their boundaries. Roughly 70 percent of communities have, for now, instituted bans on recreational business, according to MLive.com.

Iron Mountain will accept applications for 45 days, starting Wednesday, for recreational facility applications that will be scored under an 85-point rubric approved by the council. The chart emphasizes the applicant’s total investment, ability to operate and neighborhood and economic impact within a range of scoring categories.

Under a previous rubric for medical marijuana facilities, two downstate businesses were awarded provisional licenses for growing, processing and dispensing. That system was based on yes or no answers but if similar applications come in for recreational facilities, the new rubric likely favors the same applicants.

By state rule, medical and recreational can occupy the same facility provided the products are kept separate.

During citizen’s time, Brad Butler of Niagara, Wis., part-owner of a business denied a medical dispensary license in Iron Mountain, urged the council to allow a third license for both medical and recreational sales. Three local applicants who missed out on a sales license could pool their efforts for a $1 million facility on South U.S. 2, he said.

Council member Bill Revord said the proposal first must be weighed through the application and scoring process, while council member Juan Saldana suggested the city make the proposed venture possible right away.

The council faces a dilemma in expanding licenses because it doesn’t want to jeopardize the major investments planned by the top-scoring businesses, council member Kyle Blomquist said.

The city has issued provisional licenses for medical marijuana facilities to Macomb-based RIZE, which has promised a $5 million facility and 60 to 90 jobs, and Attitude Wellness of Evart, which plans a $2.18 million facility and 20 jobs.

Both are expected to apply for recreational licenses as well, but a change in the sales market will affect the viability of those projects, Blomquist said.

In fact, a RIZE employee told the council its investors are awaiting city decisions on marijuana licensing before proceeding.

City Attorney Gerald Pirkola said cities across the state are struggling to adopt regulations that offer clarity and fairness for businesses wanting to get into marijuana industry. “There’s holes in any approach,” he said. “We’re not alone.”

In its medical marijuana application, RIZE proposed a facility for processing, growing and sales at a now-vacant building at 1580 N. Stephenson Ave., about a quarter-mile south of Industrial Drive and North Lake Antoine Road. Attitude Wellness plans a growing and processing facility on the west side of Hydraulic Falls Road between Stephenson Avenue and Breitung Cutoff Road. Its provisioning center will be at 117 and 119 S. Stephenson Ave., just south of East Fleshiem Street, where structures are to be rehabilitated.

The medical marijuana amendment adopted Monday will allow additional licenses for growing and processing, potentially allowing five individual growers in the city to have up to 4,500 plants each, or a city-wide maximum of 22,500 plants.

Under the change, growers may stack up to three Class C state growing licenses — allowing up to 1,500 plants per license — without further city approval. The number of plants at a site can range from fewer than 500 to as many as 4,500, depending on the licenses.

The license expansion opens the door for growing and processing facilities planned by local investors on the 100 block of East Smith Street and on the 1500 and 1800 blocks of North Stephenson Avenue. It’s not yet known, however, if businesses will follow through on growing operations if they can’t operate dispensaries.

Marijuana businesses must be vetted and licensed through the state. Michigan’s Marijuana Regulatory Agency began receiving applications for adult recreational use facilities Friday.