ZONING ISSUE GETS STICKY

Council Introduces Bill To Prevent Zoning Loophole That Could Allow
Dispensaries In Residential Areas

The Denver City Council yesterday introduced a bill aimed at closing
a new zoning code loophole that could allow medical marijuana
dispensaries in residential areas.

The amendment aims at clearing up the city's new zoning code as it
applies to the city's medical marijuana ordinance so that
dispensaries banned under the city's old zoning code in residential
areas can't open under the city's new code if the zoning changes to
non-residential.

The special afternoon meeting yesterday included a public hearing on
the new zoning code, which Council members began debating on final
reading yesterday. During the hearing, one local dispensary owner
accused the Council of targeting his medical marijuana center
specifically with the amendment that would prohibit dispensaries from
opening in areas of the city previously zoned residential.

Altitude Organic Medicine in the Highlands is experiencing this
problem from the front line. After opening in November 2009, AOM will
likely have to shut its doors because of a combination of rules set
under the city's medical marijuana ordinance, the old zoning code,
and the amendment introduced yesterday. The Council must still give
the amendment final approval, but that is likely to happen next week.

Brian Cook, owner of the successful 900-patient Altitude Organic
Medicine dispensary at 1716 Boulder St., opened his doors at the
location based on the advice of counsel. Advisers informed him that
the area was zoned R-MU-30, making it a residential mixed-use zone,
which attorneys believed made the area eligible for a dispensary
because of its mixed-use status.

City officials, however, disagreed, and in March denied Altitude
Organic Medicine a dispensary license because they believed the area
was zoned as a "primary residential zone district." Cook and his
supporters believed the area was zoned mixed, and therefore also
"encourages consumer retail."

All this confusion could have changed for Cook and his supporters
with the adoption of the new zoning code. The new code zones Cook's
area as a commercial mixed-use zone, where his dispensary would have
been eligible to operate.

Forced to close?

But by moving forward with the amendment, City Council is prohibiting
Cook from enjoying the new zoning status that would have allowed him
to keep his dispensary open and obtain a dispensary license. City
officials have already denied the license once, and therefore Cook
will most likely have to close his doors to his 900 patients.
Ordinance prohibits people who have been denied a license the ability
to reapply for a dispensary license in another location of the city.

Also, a statewide moratorium on all new dispensaries takes effect
July 1st, so Cook would only have a week to make his move --
something that is completely unrealistic in the business world.

The amendment introduced by Council yesterday also brings the city
into compliance with the statewide moratorium. City officials will
not be collecting dispensary permits for one year beginning July 1st.

Cook simply doesn't understand why city officials are targeting him
and his business. He points out that another dispensary is in the
process of opening just 700 feet away from his current dispensary in
the Highlands. He says if the city approves that permit, then it
will prove hypocrisy. He says the city should at least offer a
grandfather clause, such as how it grandfathered in dispensaries
located near schools and other dispensaries.

Cook also points out that the city refuses to pick up his trash for
free because it says he is located in a business zone. Denver offers
free trash removal to residents, but not to businesses in the area.

"Which is it, Denver?" asks Cook. "Are we a business or a
residence"

"It targets us in a legal use commercial zone and says we can't
operate here," Cook continued. "It's really just unbelievable."

Cook owed 'just compensation'?

The dispensary owner believes the city owes him what is known as
"just compensation" for forcing him out of business. In the meantime,
Cook is going to meet with attorneys and city officials to try and
work out an agreement. He may have his attorneys file an injunction
and lawsuit to try and stop the closure.

"It is not fair, nor legal in any way we read it," said Cook. "It's
just mind-boggling the resistance we've encountered. We're legal, we
have 900 patients, we've done everything legally, I've done
everything as hard-working as possible, put everything in this -- we
can't sell, we have to lose everything."