OAKLAND OKs PLAN FOR FOUR POT FACILITIES

The Ordinance Calls for the City to Closely Supervise the New Operations

Oakland's City Council approved an ordinance late Tuesday night that
could make it the first city in the state to permit industrial
marijuana production, a groundbreaking decision that is likely to
spur the increased commercialization of a crop now largely grown in
hidden gardens.

"This is a monumental step forward," said Dale Gieringer, an Oakland
resident and the longtime head of California NORML, which backs the
legalization of marijuana. "It really means moving into the era of
industrial-scale operations, and Oakland means to do it big."

Oakland will award permits to allow four potentially enormous pot
factories, which will operate under close city supervision. The plan
puts Oakland at the forefront of California cities and counties that
are weighing how to control marijuana cultivation. Berkeley,
Oakland's neighbor, is the only other California city to take a
similar step, asking voters in November to approve six industrial operations.

Oakland has long taken a cutting-edge approach to marijuana, but this
ordinance is a leap into the unknown. The city's own attorney advised
in a confidential memo that it was not legal under state law, and
federal drug agents continue to bust growers despite the Obama
administration's hands-off policy on medical marijuana.

The 5-2 vote came after two hours of testy debate between pot growers
who argued that the proposal could destroy their livelihoods and
would-be marijuana businessmen who said it could turn Oakland into
the Silicon Valley of weed by creating a fertile environment for entrepreneurs.

The council decided to accommodate these growers, who supply some of
the $28 million in marijuana sold in the city's four dispensaries,
promising to develop a plan to include them before permits are
awarded next year for the four large-scale operations.

Hundreds of applicants, from veteran growers to well-funded
entrepreneurs with no previous interest in marijuana, are expected to
compete for the four slots.

Jesse Lyons said he and some other medium-size growers are talking
about banding together to apply for one of the permits. "We want to
be as above-board as possible," he said.