The Oneida Indian Nation announced Monday it will start new construction in October on a 50,000 sq. ft cannabis cultivation and production facility. The facility is in compliance with the 2013 Settlement Agreement between the Nation and the State of New York, according to a statement.

The center will be fully operated by the Nation with the facility set to be built on Hill Road in Verona. Retail locations for the products will be exclusively located on Nation lands, and will be announced at a later date, according to the release.

The Nation said its cannabis initiative is "in furtherance of its commitment to diversify its economic base and create separate revenue streams to support its vital government programs and services for the Oneida people, such as health care, education, public safety, and cultural preservation. It is also a reaffirmation of the Nation’s reinvestment efforts in the region and its commitment to creating new employment opportunities for its workforce and the community."

Despite the new business on its land, the Oneida Nation said that the consumption of marijuana at any of its casinos, hotels, bars, restaurants and entertainment venues will remain prohibited. 

"As more and more states across the country enter into the cannabis business, including neighboring states and other tribal nations, it is important that the Oneida people not be left out from taking advantage of this economic opportunity," said Ray Halbritter, Oneida Indian Nation representative and Oneida Nation Enterprises CEO. "We are excited about this new venture and are confident based on our expertise and proven track record within other highly regulated industries that we will be able to set the standard for developing a safe and successful adult recreational cannabis business on Oneida Indian Nation lands.”