Ron Strider
Well-Known Member
South Floridians could have to pay more than other Floridians for medical marijuana after the state awards five new grower licenses in the next week.
None of the new licenses are likely to be issued to South Florida, where many of the qualified patients live.
Zachary Davis, a lawyer for Keith St. Germain nursery in Homestead, said delivery costs mean South Florida could pay more for medical marijuana.
“You can transport it down here, but that’s gonna have a real cost,” he said. “And there’s security issues in transportation as well.”
The only grower located in the southeast region is Miami’s Costa Farms.
Right now, prices range from about $74 to $90 for a 600mg cartridge of marijuana extract meant to fit into a vape pen. Costs can vary depending on seller.
George Scorsis, CEO of Liberty Health Services, which has contracted to grow marijuana at Chestnut Hill Tree Farm in Alachua, counters that economies of scale will allow big growers elsewhere to drive down costs statewide.
“Our competitive advantage is that no one can grow at the cost structure we can grow,” he said. “Yes, there’s a one time start-up cost in terms of our facilities, but all of us have built into our structure. As we scale up, you’ll continue to see cost structures remain stable, if not drop or reduce.”
Would-be marijuana growers in South Florida concede that, between delivery and growers’ ability to open dispensaries anywhere in the state, patient access won’t be an issue despite no new growers in the state’s most populous region. Thirty percent of Floridians live in Miami-Dade, Broward and Palm Beach counties.
“Right from the get-go, we will have four dispenasary-type models in the state,” Scorsis said. “With those four alone, I will be able to service anyone in Florida within a 24-hour window because deliveries are permitted.”
It’s the job opportunities and potential transportation costs baked into the price of marijuana that supporters point to as reasons for the state to give another license to a grower in South Florida.
Rural areas here are “places that could definitely use a big production facility,” Davis said.
Florida currently has seven growers — five that came in under a 2014 law legalizing low-THC, non-euphoric medical marijuana, and two more that successfully sued the state over the selection process.
Under the medical marijuana law passed in this year’s legislative session, which implemented a constitutional amendment passed by voters in November, five new growers licenses are to be issued by the state by Aug. 1, another five in October and from then on another four for every 100,000 patients who qualify for medical marijuana.
But the five issued by August must be within one point on the five-point grading system that got the first five growers their licenses — a system that has already been successfully sued by other growers twice. And the five growers that are within a point of the original five winners are all from outside southeast Florida.
Liberty Health Services, a subsidiary of the Canadian medical marijuana giant Aphria, made the unusual move of buying up the complete medical marijuana operation of Chestnut Hill Tree Farm, one of the original five growers.
It will soon boast 400,000 square feet of marijuana plants, making Liberty the single largest producer of marijuana in the state, according to Scorsis.
“Once I have 400,000 square feet, I will be bringing 300 new jobs to the community, including those from science backgrounds, those from ag backgrounds, administrative — good paying jobs,” Scorsis said.
Keith St. Germain finished second in the southeast region when the Department of Health first gave out licenses. But because it did not finish within one point of the winner, Costa Farms, it likely won’t be considered when the new batch of licenses goes out in the next few days.
But Costa is one of the largest nurseries in the world. Keith St. Germain finished with a relatively good score despite finishing far behind Costa. And that means that nurseries in other areas of the state with lower scores will be getting grower licenses ahead of the Homestead nursery.
“It’s just beyond frustrating,” Davis said.
Still, with cost and employment arguments in place — and with an eye toward the potential profits that come with entering the marijuana industry — lawyers for Keith St. Germain have raised the possibility of suing the state over the issuance of licenses.
In a letter to Chrisitan Bax, the director of the Health Department’s Office of Medical Marijuana Use, dated June 22, they noted three public policy reasons for awarding a license in South Florida:
-- One of the largest regions in the state demographically should not have just one [grower].
-- More “shovel ready” growing facilities are good for patients.
-- Additional litigation should be avoided.
On that last point, the letter states, “While it is not the preference of [Keith St. Germain Nursery] to commence litigation, it remains committed to assessing and pursuing all available options in all appropriate venues to secure a [grower’s license] on August 1.”
“When it’s something that is local, you have more sense of ownership and loyalty and more trust in the product that gets produced in your back yard,” Davis said. “Keith St. Germain’s been there for [well over] 30 years and he’s going to be an integral part of it.”
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: South Floridians could pay more for medical marijuana - Sun Sentinel
Author: Nam Y Huh
Contact: Contact Us - Sun Sentinel
Photo Credit: Thinkstock
Website: Broward & Palm Beach News, Sports - Sun Sentinel
None of the new licenses are likely to be issued to South Florida, where many of the qualified patients live.
Zachary Davis, a lawyer for Keith St. Germain nursery in Homestead, said delivery costs mean South Florida could pay more for medical marijuana.
“You can transport it down here, but that’s gonna have a real cost,” he said. “And there’s security issues in transportation as well.”
The only grower located in the southeast region is Miami’s Costa Farms.
Right now, prices range from about $74 to $90 for a 600mg cartridge of marijuana extract meant to fit into a vape pen. Costs can vary depending on seller.
George Scorsis, CEO of Liberty Health Services, which has contracted to grow marijuana at Chestnut Hill Tree Farm in Alachua, counters that economies of scale will allow big growers elsewhere to drive down costs statewide.
“Our competitive advantage is that no one can grow at the cost structure we can grow,” he said. “Yes, there’s a one time start-up cost in terms of our facilities, but all of us have built into our structure. As we scale up, you’ll continue to see cost structures remain stable, if not drop or reduce.”
Would-be marijuana growers in South Florida concede that, between delivery and growers’ ability to open dispensaries anywhere in the state, patient access won’t be an issue despite no new growers in the state’s most populous region. Thirty percent of Floridians live in Miami-Dade, Broward and Palm Beach counties.
“Right from the get-go, we will have four dispenasary-type models in the state,” Scorsis said. “With those four alone, I will be able to service anyone in Florida within a 24-hour window because deliveries are permitted.”
It’s the job opportunities and potential transportation costs baked into the price of marijuana that supporters point to as reasons for the state to give another license to a grower in South Florida.
Rural areas here are “places that could definitely use a big production facility,” Davis said.
Florida currently has seven growers — five that came in under a 2014 law legalizing low-THC, non-euphoric medical marijuana, and two more that successfully sued the state over the selection process.
Under the medical marijuana law passed in this year’s legislative session, which implemented a constitutional amendment passed by voters in November, five new growers licenses are to be issued by the state by Aug. 1, another five in October and from then on another four for every 100,000 patients who qualify for medical marijuana.
But the five issued by August must be within one point on the five-point grading system that got the first five growers their licenses — a system that has already been successfully sued by other growers twice. And the five growers that are within a point of the original five winners are all from outside southeast Florida.
Liberty Health Services, a subsidiary of the Canadian medical marijuana giant Aphria, made the unusual move of buying up the complete medical marijuana operation of Chestnut Hill Tree Farm, one of the original five growers.
It will soon boast 400,000 square feet of marijuana plants, making Liberty the single largest producer of marijuana in the state, according to Scorsis.
“Once I have 400,000 square feet, I will be bringing 300 new jobs to the community, including those from science backgrounds, those from ag backgrounds, administrative — good paying jobs,” Scorsis said.
Keith St. Germain finished second in the southeast region when the Department of Health first gave out licenses. But because it did not finish within one point of the winner, Costa Farms, it likely won’t be considered when the new batch of licenses goes out in the next few days.
But Costa is one of the largest nurseries in the world. Keith St. Germain finished with a relatively good score despite finishing far behind Costa. And that means that nurseries in other areas of the state with lower scores will be getting grower licenses ahead of the Homestead nursery.
“It’s just beyond frustrating,” Davis said.
Still, with cost and employment arguments in place — and with an eye toward the potential profits that come with entering the marijuana industry — lawyers for Keith St. Germain have raised the possibility of suing the state over the issuance of licenses.
In a letter to Chrisitan Bax, the director of the Health Department’s Office of Medical Marijuana Use, dated June 22, they noted three public policy reasons for awarding a license in South Florida:
-- One of the largest regions in the state demographically should not have just one [grower].
-- More “shovel ready” growing facilities are good for patients.
-- Additional litigation should be avoided.
On that last point, the letter states, “While it is not the preference of [Keith St. Germain Nursery] to commence litigation, it remains committed to assessing and pursuing all available options in all appropriate venues to secure a [grower’s license] on August 1.”
“When it’s something that is local, you have more sense of ownership and loyalty and more trust in the product that gets produced in your back yard,” Davis said. “Keith St. Germain’s been there for [well over] 30 years and he’s going to be an integral part of it.”
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: South Floridians could pay more for medical marijuana - Sun Sentinel
Author: Nam Y Huh
Contact: Contact Us - Sun Sentinel
Photo Credit: Thinkstock
Website: Broward & Palm Beach News, Sports - Sun Sentinel
