FISHERMAN'S WHARF BID TESTS NEW POT CLUB LAWS

MEDICAL MARIJUANA IN SAN FRANCISCO:

Businesses, Residents Organize Against Entrepreneur's Proposal to Open
Medicinal Weed Outlet in Midst of City's Top-Drawing Tourist Attraction

At a busy intersection near Fisherman's Wharf, on a corner where the
city's tourist hub bumps up against the quiet residential streets of
Russian Hill, a recently stubbed marijuana roach lies in the gutter.

It's just one roach among the cigarette butts and other litter on the
street. But a new pot club attempting to open up nearby has local
residents putting up stiff opposition, fearing it's only going to get
worse -- a lot worse.

"It's tough, because people think we're objecting to marijuana usage
as a whole, and we're very supportive of medicinal marijuana," said
Ryan Chamberlain, a nearby resident and a member of San Francisco SOS,
a civic group organized around quality-of-life issues. "Our problem is
the way that medicinal marijuana clubs are being managed. They bring
people that abuse the system."

The Green Cross, proposed to open at 2701 Leavenworth St., is the
first pot club in San Francisco to face the city's new permit process,
which was approved by the Board of Supervisors last year in an attempt
to better regulate the business of medical marijuana.

Though it is still illegal on a national level, and federal agents
have said they will go after growers, sellers and users -- and have
done so -- medical marijuana has been legal under California law for
10 years.

The aim of San Francisco's new permit regulations is to curb the
abuses that pot clubs' neighbors have frequently cited: customers
buying drugs they intend to use not for medical conditions but to
resell on the street; illegal drug use in nearby parks and alleys; and
increases in overall crime. Pot clubs have also drawn complaints of
increased traffic and noise.

The regulations would force pot club owners to take more
responsibility for their customers and work with planners to develop
security plans and customer guidelines, city planners said. Aside from
the Green Cross, at least four additional pot clubs have submitted
applications for permits in San Francisco. Currently, 30 to 40 pot
clubs operate in the city -- no one knows exactly how many -- all of
which must apply for permits no later than June next year.

Kevin Reed, owner of the Green Cross, still has a way to go in the
permitting process -- his first formal Planning Commission hearing is
scheduled for Thursday -- and already he's up against serious
opposition from neighborhood businesses and residents. At an
informational meeting last month, 100 neighbors turned out, mostly to
criticize Reed's attempt to open the club, and residents have
organized e-mail lists and letter-writing campaigns to rally forces.

Neighbors' primary concerns are over potential increases in traffic
and crime, and fears that a pot club would draw illegal drug users to
the area. They also point out that three schools are within walking
distance, although all are far enough away that the club meets
regulation requirements that pot clubs be at least 1,000 feet from
schools.

Additionally, neighbors -- primarily nearby business owners -- believe
a pot club just doesn't fit into the Fisherman's Wharf neighborhood or
the residential areas beyond.

"We're trying to plan this area, to upgrade it, to make it charming.
Fisherman's Wharf is the No. 1 visitor attraction in the city, and we
need to preserve it," said Chris Martin, director of the waterfront's
Cannery complex, which is just a block from the proposed club. "To us,
this issue is kind of like having a Home Depot in your area. It's kind
of like having a McDonald's on the corner. We'd oppose any of those."

The Fisherman's Wharf site would be Reed's second attempt at running
the Green Cross. He closed his first establishment, in the Mission
District, last year after neighbors complained of a rise in crime and
noise.

Reed said police never proved that crime increased because of his
business, but said he's all for increased regulations, and has
listened to his potential neighbors in Fisherman's Wharf. He plans to
install security cameras in and around his business and hire guards to
patrol the street in front of his store. He won't allow smoking on the
premises.

"If you don't allow patients access to medication in an environment
that is professional and regulated, you're sending them to a crack
dealer on the street. Then the patients suffer from the reality of the
'not-in-my-backyard' guys," Reed said. "What we really need to
concentrate on is finding ways of regulating it and taxing it and
allowing it to help our society."

Chamberlain and other neighbors have said they appreciate the efforts
Reed is making to ensure the security of his shop, but they doubt it
will be enough.

"Kevin Reed has been very nice, he seems to be very responsible and I
think he's a great entrepreneur. But there are elements outside of his
control," Chamberlain said. "You can't control your customers to that
degree. You can't follow them all the way home, and you can't get into
every nook and cranny of their lives and make sure they're being
responsible. It's a bigger problem than Kevin Reed can rectify."

[sidebar]

POT CLUB REGULATIONS

The Planning Commission will review the application and consider
zoning and traffic issues and hold public hearings.

The Police Department will perform criminal background checks on
owners and managers and review security plans.

The Fire Department will review fire safety plans.

The Building Inspection Department will look at access for the
disabled and issue structural permits.

The Public Health Department will issue the actual use permit after
getting approval from other departments, considering health code
issues, and holding a public hearing.

The Health Department also will inspect the club twice a
year.