Jacob Redmond
Well-Known Member
Joe Brennan faces a lot of the same worries as all businesspeople – sourcing inventory, regulatory headaches, competitors popping up like weeds.
But those weeds give Brennan a whole new set of worries. His business? Mindright, a medical marijuana dispensary in Detroit.
Brennan said he has tried to do everything legitimately. But he is in an industry that is known for angering neighbors, accused of promoting drug abuse and inviting heavy scrutiny as dispensaries proliferate in the city.
Before opening earlier this year, he obtained a city license for a retail-medical sales business, bought insurance, hired a security guard and made sure his marijuana products were tested for purity. "We want to be completely professional," he said.
Now the U.S. Marines veteran fears his dispensary, across from the Grosse Pointe border, might be shuttered because of a proposed Detroit zoning ordinance that would impose specific regulations on the city's more than 150 medical marijuana dispensaries.
One of the restrictions is that a dispensary cannot be within 1,000 feet of a liquor store; Mindright is next door to one.
"We're finding we might get zoned out," he said. "My employees left their jobs to work for me. People like me who are (running their business) right should get a fair shake."
Michigan is among 23 states that have legalized medical marijuana. Colorado, Washington, Oregon, Alaska and the District of Columbia also legalized recreational marijuana.
That could be in Michigan's future as well. Marijuana activists are confident legalization of small amounts of recreational marijuana for adults 21 and older will be on the ballot for voters next fall.
It may not be a shoo-in. Ohio voters rejected legalization of recreational marijuana by a 2-to-1 ratio in the Nov. 3 election.
For now, the issue of dispensaries, their lack of regulation and the effects on nearby neighborhoods are hot issues in Detroit and many of its suburbs.
The Detroit City Planning Commission recently held two public hearings to get citizen feedback on the proposed ordinance. The first hearing, in late October, drew more than 300 people and resulted in 70 people sharing their opinions with the commission; a second hearing, in early November, resulted in about 35 residents commenting.
While many favored the zoning ordinance because it could close down some of the dispensaries in their neighborhoods, dispensary owners and cancer patients defended them.
Written submissions included 60 letters in favor and 100 letters in opposition. Two petitions with 130 signatures in support of the ordinance were also received, according to planning commission minutes.
At that meeting, the Planning Commission recommended approval of the zoning ordinance to the Detroit City Council. It went to the Planning and Economic Development Standing Committee of the council for review. Another meeting has been scheduled for this week. That committee meets every Thursday.
There is no timetable yet on when the City Council will begin its review of the ordinance, said DeAndree Watson, policy analyst for Councilman James Tate's office, in an email.
Selling in a legal gray area
Visits to dispensaries around the city show similar setups.
Customers are buzzed in and greeted by a security guard. The subtle smell of marijuana wafts out the front door when it's opened. The odor lingers in the lounge/waiting room, but no marijuana products are visible. They are shelved in a closed-door room.
Proprietors consistently ask for a medical marijuana card and, without one, say they do not allow visitors beyond the waiting room. (Despite repeated requests, this reporter could not gain entry for research purposes.)
Dispensary façades are often in garish shades of green, and they sport pointedly slang names such as The House of Dank, The Reef, the Grass Station and The Green Mile.
Nick*, manager of Starbuds, a dispensary on Eight Mile Road in Detroit that is part of a franchise out of Colorado, said dispensaries operate like any specialty retailer. (*Many of those who work in Detroit dispensaries did not want their last names used in the story.)
He said his center does not sell edibles (food such as brownies made with marijuana or its oils) or concentrates (pressed water hash or CO2 oil that is ingested). He believes there is a degree of risk with edibles and concentrates because they are ingested. However, Starbuds does carry cannabis oil cartridges, which contain THC and are smoked like e-cigarettes.
"I hate how they (the anti-marijuana faction) portray people who smoke weed. We're nonviolent, good people," he said.
Nick and other dispensary manager/owners interviewed accused banks of discriminating. "They find out and just close down your bank accounts," Nick said. "They consider us high risk."
But banks are federally regulated institutions, so they must follow federal law, which says marijuana is illegal.
"Federal law says we can't have anything to do with a transaction of controlled substances," said a major U.S. bank spokesperson who asked not to be identified. "So it's a bit of a pickle."
Jon, manager of the Detroit Strain Station in southwest Detroit, knows all about the industry's conundrums. He is looking forward to the day when the industry is regulated "because now it is out of control."
He said his dispensary was opened a month ago by a group of partners who were medical marijuana growers. "We feel we have a better chance of getting a city license for the store if we do it before licensing becomes mandatory," he said.
The City Council in early October passed companion legislation to the proposed zoning ordinance stating marijuana dispensaries must have a city license or be shut down. Right now, licenses are not required.
Detroit Strain offers patients 40 kinds of marijuana versus the 12 to 20 varieties of most dispensaries, which Jon said gives the business a competitive advantage. It grows some of the weed it sells and sources the rest from outside growers.
Jon said about 80 percent of his patients come from the Downriver suburbs, which "is why I have such a safe environment. You have to get through four doors before you get into the dispensary. Patients feel safe here."
He said owners and managers can make a living in this business, but he would not elaborate. There is no special taxation on medical marijuana yet, though there is talk of it, and owners worry that steep taxes on dispensaries could have an adverse effect on their bottom line.
David, manager of Cloud9Relief, also on Eight Mile Road in Detroit, said he runs the center like "a secure doctor's office," with a fenced parking lot, a guard who buzzes people in, and a waiting area with a bulletproof window for patients to check in.
"With this, it is safer for us and our patients," he said. "All the dispensaries have safety for employees and patients because there are no set guidelines or rules for this business."
Different laws at different levels of government mean that the dispensaries, although tolerated by the city of Detroit, are operating in a legal gray area.
First Lt. Mike Shaw, public information officer for the Michigan State Police, doesn't see it that way. "Marijuana and medical marijuana are illegal in the state," he said. "The court ruled dispensaries are illegal."
Seven years of medical pot
Sixty-three percent of Michigan voters passed Proposal 1, known as the Michigan Medical Marihuana Act, in 2008. The law says that state residents with qualifying medical conditions can apply for an ID card and a spot on the state registry.
Qualified patients may possess less than 2.5 ounces of usable marijuana plants kept in an enclosed, locked facility. Registered caregivers may possess up to 2.5 ounces and 12 plants for each qualified patient under their care.
Shaw said he knows cities such as Detroit have decriminalized pot, but "if we come across a dispensary, we will shut it down. We don't enforce local ordinances because they are superseded by state law."
In 2012, Detroiters voted to decriminalize marijuana use when adults 21 and older are in possession of less than an ounce on private property, which has helped fuel the rapid expansion of dispensaries. Other Michigan cities such as Ferndale and Ann Arbor did the same thing in recent years.
Shaw said state police in Detroit focus on patrolling the city's freeways and the 9th District, which has a particularly high crime rate, he said. If state police see a person walking down the street in Detroit smoking marijuana, "we would bust the person. It's cut-and-dry for us."
Matthew Abel, a Detroit-based criminal defense attorney with the Cannabis Counsel and an activist for changes in marijuana laws, disagreed. "It is legal to have a place where a caregiver can transfer medical marijuana to their patients," he said.
Zoning questions
Abel said there is still fear around the topic of medical marijuana. If the proposed city zoning ordinance passes as is, many dispensaries in the city will have to close.
"I think it should be set up that distance restrictions should only apply to schools and libraries," Abel said.
"And if we are including zones around churches, they need to be tax-exempt ecumenical properties not just a storefront church."
He added that under any circumstances, dispensaries should not be within 1,000 feet of a school. "They never should have opened there in the first place," he said.
Abel said the dispensary business presents a huge economic opportunity.
"This can be an economic engine if done properly," he said. "The sooner Detroit gets on board, these centers can work to everyone's advantage. We need to make it so people can happily live with it in their community."
David of Cloud9Relief is confident laws will get established that will stabilize the industry.
"These dispensaries employ lots of people, fill lots of vacant space in plaza locations and have not caused an increase in violence or crime," he said.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Zoned Out? Marijuana Dispensaries Worry About Legal Future
Author: Marti Benedetti
Contact: Contact Page
Photo Credit: Marti Benedetti
Website: Crain's Detroit Business
But those weeds give Brennan a whole new set of worries. His business? Mindright, a medical marijuana dispensary in Detroit.
Brennan said he has tried to do everything legitimately. But he is in an industry that is known for angering neighbors, accused of promoting drug abuse and inviting heavy scrutiny as dispensaries proliferate in the city.
Before opening earlier this year, he obtained a city license for a retail-medical sales business, bought insurance, hired a security guard and made sure his marijuana products were tested for purity. "We want to be completely professional," he said.
Now the U.S. Marines veteran fears his dispensary, across from the Grosse Pointe border, might be shuttered because of a proposed Detroit zoning ordinance that would impose specific regulations on the city's more than 150 medical marijuana dispensaries.
One of the restrictions is that a dispensary cannot be within 1,000 feet of a liquor store; Mindright is next door to one.
"We're finding we might get zoned out," he said. "My employees left their jobs to work for me. People like me who are (running their business) right should get a fair shake."
Michigan is among 23 states that have legalized medical marijuana. Colorado, Washington, Oregon, Alaska and the District of Columbia also legalized recreational marijuana.
That could be in Michigan's future as well. Marijuana activists are confident legalization of small amounts of recreational marijuana for adults 21 and older will be on the ballot for voters next fall.
It may not be a shoo-in. Ohio voters rejected legalization of recreational marijuana by a 2-to-1 ratio in the Nov. 3 election.
For now, the issue of dispensaries, their lack of regulation and the effects on nearby neighborhoods are hot issues in Detroit and many of its suburbs.
The Detroit City Planning Commission recently held two public hearings to get citizen feedback on the proposed ordinance. The first hearing, in late October, drew more than 300 people and resulted in 70 people sharing their opinions with the commission; a second hearing, in early November, resulted in about 35 residents commenting.
While many favored the zoning ordinance because it could close down some of the dispensaries in their neighborhoods, dispensary owners and cancer patients defended them.
Written submissions included 60 letters in favor and 100 letters in opposition. Two petitions with 130 signatures in support of the ordinance were also received, according to planning commission minutes.
At that meeting, the Planning Commission recommended approval of the zoning ordinance to the Detroit City Council. It went to the Planning and Economic Development Standing Committee of the council for review. Another meeting has been scheduled for this week. That committee meets every Thursday.
There is no timetable yet on when the City Council will begin its review of the ordinance, said DeAndree Watson, policy analyst for Councilman James Tate's office, in an email.
Selling in a legal gray area
Visits to dispensaries around the city show similar setups.
Customers are buzzed in and greeted by a security guard. The subtle smell of marijuana wafts out the front door when it's opened. The odor lingers in the lounge/waiting room, but no marijuana products are visible. They are shelved in a closed-door room.
Proprietors consistently ask for a medical marijuana card and, without one, say they do not allow visitors beyond the waiting room. (Despite repeated requests, this reporter could not gain entry for research purposes.)
Dispensary façades are often in garish shades of green, and they sport pointedly slang names such as The House of Dank, The Reef, the Grass Station and The Green Mile.
Nick*, manager of Starbuds, a dispensary on Eight Mile Road in Detroit that is part of a franchise out of Colorado, said dispensaries operate like any specialty retailer. (*Many of those who work in Detroit dispensaries did not want their last names used in the story.)
He said his center does not sell edibles (food such as brownies made with marijuana or its oils) or concentrates (pressed water hash or CO2 oil that is ingested). He believes there is a degree of risk with edibles and concentrates because they are ingested. However, Starbuds does carry cannabis oil cartridges, which contain THC and are smoked like e-cigarettes.
"I hate how they (the anti-marijuana faction) portray people who smoke weed. We're nonviolent, good people," he said.
Nick and other dispensary manager/owners interviewed accused banks of discriminating. "They find out and just close down your bank accounts," Nick said. "They consider us high risk."
But banks are federally regulated institutions, so they must follow federal law, which says marijuana is illegal.
"Federal law says we can't have anything to do with a transaction of controlled substances," said a major U.S. bank spokesperson who asked not to be identified. "So it's a bit of a pickle."
Jon, manager of the Detroit Strain Station in southwest Detroit, knows all about the industry's conundrums. He is looking forward to the day when the industry is regulated "because now it is out of control."
He said his dispensary was opened a month ago by a group of partners who were medical marijuana growers. "We feel we have a better chance of getting a city license for the store if we do it before licensing becomes mandatory," he said.
The City Council in early October passed companion legislation to the proposed zoning ordinance stating marijuana dispensaries must have a city license or be shut down. Right now, licenses are not required.
Detroit Strain offers patients 40 kinds of marijuana versus the 12 to 20 varieties of most dispensaries, which Jon said gives the business a competitive advantage. It grows some of the weed it sells and sources the rest from outside growers.
Jon said about 80 percent of his patients come from the Downriver suburbs, which "is why I have such a safe environment. You have to get through four doors before you get into the dispensary. Patients feel safe here."
He said owners and managers can make a living in this business, but he would not elaborate. There is no special taxation on medical marijuana yet, though there is talk of it, and owners worry that steep taxes on dispensaries could have an adverse effect on their bottom line.
David, manager of Cloud9Relief, also on Eight Mile Road in Detroit, said he runs the center like "a secure doctor's office," with a fenced parking lot, a guard who buzzes people in, and a waiting area with a bulletproof window for patients to check in.
"With this, it is safer for us and our patients," he said. "All the dispensaries have safety for employees and patients because there are no set guidelines or rules for this business."
Different laws at different levels of government mean that the dispensaries, although tolerated by the city of Detroit, are operating in a legal gray area.
First Lt. Mike Shaw, public information officer for the Michigan State Police, doesn't see it that way. "Marijuana and medical marijuana are illegal in the state," he said. "The court ruled dispensaries are illegal."
Seven years of medical pot
Sixty-three percent of Michigan voters passed Proposal 1, known as the Michigan Medical Marihuana Act, in 2008. The law says that state residents with qualifying medical conditions can apply for an ID card and a spot on the state registry.
Qualified patients may possess less than 2.5 ounces of usable marijuana plants kept in an enclosed, locked facility. Registered caregivers may possess up to 2.5 ounces and 12 plants for each qualified patient under their care.
Shaw said he knows cities such as Detroit have decriminalized pot, but "if we come across a dispensary, we will shut it down. We don't enforce local ordinances because they are superseded by state law."
In 2012, Detroiters voted to decriminalize marijuana use when adults 21 and older are in possession of less than an ounce on private property, which has helped fuel the rapid expansion of dispensaries. Other Michigan cities such as Ferndale and Ann Arbor did the same thing in recent years.
Shaw said state police in Detroit focus on patrolling the city's freeways and the 9th District, which has a particularly high crime rate, he said. If state police see a person walking down the street in Detroit smoking marijuana, "we would bust the person. It's cut-and-dry for us."
Matthew Abel, a Detroit-based criminal defense attorney with the Cannabis Counsel and an activist for changes in marijuana laws, disagreed. "It is legal to have a place where a caregiver can transfer medical marijuana to their patients," he said.
Zoning questions
Abel said there is still fear around the topic of medical marijuana. If the proposed city zoning ordinance passes as is, many dispensaries in the city will have to close.
"I think it should be set up that distance restrictions should only apply to schools and libraries," Abel said.
"And if we are including zones around churches, they need to be tax-exempt ecumenical properties not just a storefront church."
He added that under any circumstances, dispensaries should not be within 1,000 feet of a school. "They never should have opened there in the first place," he said.
Abel said the dispensary business presents a huge economic opportunity.
"This can be an economic engine if done properly," he said. "The sooner Detroit gets on board, these centers can work to everyone's advantage. We need to make it so people can happily live with it in their community."
David of Cloud9Relief is confident laws will get established that will stabilize the industry.
"These dispensaries employ lots of people, fill lots of vacant space in plaza locations and have not caused an increase in violence or crime," he said.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Zoned Out? Marijuana Dispensaries Worry About Legal Future
Author: Marti Benedetti
Contact: Contact Page
Photo Credit: Marti Benedetti
Website: Crain's Detroit Business
