POT DISPENSARIES APPLY FOR LICENSES IN PALM SPRINGS

With Cathedral City on track to be the sixth city in the Coachella
Valley to pass a ban on medical marijuana dispensaries, attention and
anticipation are focusing on Palm Springs, which in March became the
first in the valley -- and Riverside County -- to pass a law allowing
dispensaries.

The new ordinance is the result of three years of soul searching and
legal debates by city officials, who, in the meantime, turned a
benign eye on first two, then a small flood of dispensaries that
opened in violation of a moratorium passed in 2006.

An estimated seven were operating in March, now down to five.

But under the new law, which went into effect in April, Palm Springs
will issue only two permits, probably later this year, setting the
stage for a spirited competition and, possibly, further legal battles
as the city moves to close down illegal operations.

City Attorney Doug Holland said he has filed papers to get
injunctions against three of the five, but did not give names or details.

"The idea is to hopefully have that process completed by the time the
council will be approving the permitted coops and collectives, so the
coops and collectives can open," Holland said.

In the meantime, the city is about two months into a 90-day period
during which it is accepting applications for the two licenses. After
an early July deadline, officials have 30 days to review the
applications before sending their recommendations to the City Council.

To qualify, dispensaries must first meet a list of requirements, from
being legally organized as nonprofit collectives to being located in
areas of the city zoned for industrial use and passing criminal
background checks to be run on employees.

They also have to pay an application fee of $7,500 to cover the
city's administrative costs.

So far, Craig Ewing, director of planning, has received two
applications, he reported.

CannaHelp: Owner Stacy Hochanadel originally opened this dispensary
on El Paseo in Palm Desert in 2005, sparking a two-year battle with
that city, which ended when his lease ran out in 2007. After
reopening in Palm Springs last year, Hochanadel closed his doors
again when the dispensary ordinance passed in March, a move
calculated to increase his chances of getting one of the city licenses.

Organic Solutions: Another displaced dispensary, this time from
Desert Hot Springs, where owner Jim Camper opened briefly in 2007 but
closed after only a few weeks due to threatened legal action by the
city. Like Hochanadel, Camper is playing a waiting game with Palm
Springs, holding off on opening his business in the hope of getting
one of the legal licenses.

Of the five dispensaries still in operation, some, such as the West
Valley Patients Association in North Palm Springs, are staying mum on
their plans.

But, even if Hochanadel and Camper remain the only two applicants,
neither is guaranteed a license, said Ewing.

"It's the council's decision whether to grant the license," he said.