Streator council approves craft marijuana facility at former peanut butter factory

Co-CEO says Llerem LLC needed an industrial setting to meet its needs

Llerem LLC seeks use of the former peanut butter factory in Streator for a medical marijuana facility.

Llerem LLC wanted to find a way to keep jobs in Streator.

The Streator City Council assured Llerem will have that chance, approving at Wednesday’s council meeting a special use permit for Llerem to operate a craft marijuana growing facility at 118 Iowa Ave., the former peanut butter factory.

Llerem is seeking only to grow marijuana, it would not be able to operate as a dispensary.

Llerem was previously approved in Streator and by the state of Illinois for a craft marijuana growing facility at John and Joe’s, 1105 W. Main St.

Paul Magelli, co-CEO of Llerem, said Wednesday the Main Street site is no longer viable for the project because of the inflated cost of the project post-COVID. He said the company was looking for an existing building to meet its needs, such as providing at least 5,000 amps of power.

“We were looking for an industrial setting and we were happy to find one in Streator,” Magelli said.

The peanut butter factory closed in 2022 and it was bought by Rick Wilkinson, who also uses the facility. Llerem would use about 25,000 square feet at the south end of the factory. It may employ about 10 people.

Magelli said the site will be secure, requiring a badge and fingerprints just to enter. Once operational, Llerem will have to meet several requirements issued by the state. It also will be bio secure with employees wearing gloves, masks and suits to handle the product. The odor will be controlled by several mitigations, Magelli said. Mayor Tara Bedei said that was one of the questions she received about the proposed operation.

A craft grower is a smaller operation that cannot sell marijuana out of its own business. It can only sell to other growers and cultivation centers, which can then distribute to dispensaries. A craft grower may cultivate, dry, cure and package marijuana and perform other necessary activities to make it available for sale at a dispensing organization or use at a processor.

“We’ve been working on this project for five years,” Magelli said. “We’re delighted to stay in Streator.”