ROCHESTER – The town of Rochester has signed its first agreement with a retail cannabis company.

Megan’s Organic Market, a marijuana retail company based in San Luis Obispo, Calif., plans to open their operation on an undeveloped lot in the Rochester Crossroads development, directly adjacent to Interstate 495 near the Wareham line.

Megan’s Organic Market reported in their proposal to the town that they “have entered into an agreement with the owner to develop this property and lease a 3,000 square foot retail building.”

Rochester Commons has not yet begun construction, making the date of the cannabis operation’s opening in the town unclear.

The Rochester branch of the business, Megan’s Organic Market Rochester LLC, is owned in part by two Massachusetts residents.

Ten percent is owned by Rebecca Levesque, a marketing executive from Freetown, and five percent is owned by Kenneth Steen of Steen Realty and Development Corporation in Dartmouth, also the developer for Rochester Crossroads.

The remaining 85% is owned by Megan’s Organic Market shareholders, who are based in California.

Megan’s Organic Market stated in their proposal that they will establish a “community fund” and will commit 1% of net sales to support it quarterly.

They also plan to establish a Community Advisory Board consisting of Rochester residents, consulting with the town when seeking members, who will discuss the best use of funds. This is in addition to the 3% community impact fee that the town can collect from their total sales.

“The agreement looks good to me. It's very professional and organized,” said Select Board member Woody Hartley.

However, the host community agreement, which set the terms between the town and the business, was only the first step.

Now, Megan’s Organic Market will need to finish applying to permits through the state to acquire a license, said Town Counsel Blair Bailey.