OH: Cleveland Heights City Council Scraps Moratorium On Medical Dispensaries

Katelyn Baker

Well-Known Member
Cleveland Heights, Ohio -- While the prospect of any medical marijuana farms in the city appears unlikely, there has been interest from at least one investor in opening a dispensary here.

It's all very preliminary at this point, including the scope of state regulations still being developed since medical marijuana was legalized in June.

Since municipalities will have at least six months -- and likely longer -- to determine whether additional local restrictions or outright bans should be imposed, City Council agreed Monday to hold off on a one-year moratorium for dispensaries.

"At this point, everybody is on board with us working through the details without a moratorium in place," City Manager Tanisha Briley said after council's discussion. "And, if it looks like we need one, we will come back to you."

A proposed moratorium had been pulled off an earlier Cleveland Heights City Council agenda in favor of further discussion, preceded by a Dec. 8 memo from Assistant City Law Director Elizabeth Wells Rothenberg.

While some council members sought legal direction on the issue, "we think it's important that the Law Department does not recommend policy," Rothenberg said Monday, adding that Ohio has passed one of the strictest laws in the nation.

City Law Director Jim Juliano said that the main reason being given for enacting a one-year moratorium would be to stop an applicant from gaining "grandfather clause" rights and protection, especially from a zoning standpoint.

This allows a business approved under previous zoning standards to continue to operate even after new restrictions and codes are put in place.

"I'm not saying that's persuasive, but it is one reason," Juliano told council, noting that conditional use permits, once granted, can become difficult to revoke.

Councilwoman Melissa Yasinow said that the state legislature passed the medical marijuana law in order to avoid further citizens' ballot initiatives to legalize cannabis.

And it's still not clear how someone sets up a dispensary, with guidelines still being worked out in Columbus for the 18 farms that will be allowed for cultivation, before lawmakers move on to the middle step, processing or "extraction."

Local officials really don't see any chance of a medical marijuana dispensary operating in Cleveland Heights until 2018.

That hasn't prevented one potential investor from contacting City Business Development Manager Brian Anderson several times about Cleveland Heights being on a "short list" of potential locations for a store.

"He indicated that cities are already being scouted for future locations," Rothenberg noted in her Dec. 8 memo.

"He further stated that cities with moratoriums, even temporary ones that would expire before medical marijuana hits the market, are not being considered for the first phase of dispensaries."

Councilman Michael Ungar said he has "'zero sense' of how much money we're talking about" in terms of potential revenues for the city as well as the city's costs for regulating and protecting a local medical marijuana business.

"I'd say none of us do," Briley stated. "Although some cities are using this as a strategy for economic recovery."

Mayor Cheryl Stephens believes that there is more money likely to be made in growing cannabis than dispensing it. And Cleveland Heights does not appear to have the necessary acreage set forth by the state.

Anderson and City Economic Development Director Tim Boland have been asked to conduct a financial impact analysis. Meanwhile, area cities like Lakewood and Rocky River have passed moratoriums or temporary bans.

Councilman Kahlil Seren sees little need for additional restrictions at this point.

"The State of Ohio did not pass something so lenient that Cleveland Heights has to be a heavy in this," Seren said.

He also does not favor a lot of taxes and licensing fees being tacked on much beyond defraying additional costs to the city.

"This is not recreational," Seren noted. "This is medical marijuana, for people with very different situations. This isn't a sin tax."

Instead of a prescription, doctors would issue a recommendation or "license" to patients for marijuana, and dispensaries could be established is any of nine commercial districts -- as long as they're 500 feet away from any church, school, library, park or playground.

Council agreed that the main concern should revolve around safety and security, since dispensaries would be a cash-only business.

In that regard, the best means of local regulation might be through Police Chief Annette Mecklenburg, who would also have the authority to revoke a license in a relatively swift manner.

The city would want to eliminate threats of armed robberies, as well as "smash and grabs" where thieves break into a business afterhours, Yasinow noted.

"But I really have no interest in managing anybody's security issues if there's no economic upside to this," Ungar said of any added costs to the city.

Stephens said that Fire Chief Dave Freeman should also be involved in the licensing process, given the possibility of accidental consumption by children, which has happened occasionally in other states.

While those instances are a concern, Seren pointed out that "people are dying in Ohio because they're hooked on opioids (prescription narcotics, as well as heroin). People generally aren't overdosing on marijuana."

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Full Article: Cleveland Heights City Council Scraps Moratorium On Medical Marijuana Dispensaries
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