COUNCIL OKS MEDICAL MARIJUANA REGULATIONS

Callox, LLC, Attorney Says Clients Upset With Restrictions In
Ordinance

Although it was met with some opposition Monday, the Canon City
Council approved an ordinance establishing regulations for the
licensure of medical marijuana facilities on first reading and an
ordinance imposing a temporary moratorium on new medical marijuana
dispensaries on second reading.

During the discussion, Lauren Maytin, an attorney in Pitkin County
representing Callox, LLC, said her clients had purchased a piece of
property in the central business district with the purpose of setting
up a medical marijuana facility.

However, the zoning still is under consideration.

"They submitted an application to do business in your city," she
said. "That packet includes a letter (from the city)."

The application in question is one for a city sales-tax license and
has been responded to by staff, which indicated to the applicant that
the staff was not in the position to process that application last
Friday, said City Attorney John Havens.

When the zoning ordinance comes to the council, the members can
decide whether to allow medical marijuana facilities in various zone
districts.

Originally, the council determined the two places most appropriate
would be central business and commercial and has since reconsidered
its position.

After reiterating what had happened since February, including a
120-day moratorium on medical marijuana facilities, Maytin said, the
General Government Committee had recommended against approving a
citywide ban on medical marijuana facilities.

"They had staff prepare an ordinance restricting medical marijuana
facilities in general commercial and industrial despite the city
contemplating having them in central business district," Maytin said.

During this time, Callox purchased a building on Main Street with the
idea of setting up a medical marijuana facility.

After looking at the requirements for being in a business zone, "it
fit perfectly; a medical clinic, which it is; a professional
building, which it is; a retail taxable (product), which it does and
the availability of off street parking, which it has," Maytin said.

She said the council is right to discuss the possibility of potential
challenges to the ordinances.

"It's really important not to alienate the sick or seriously
debilitating persons by making their medications (unavailable),"
Maytin said. "With all these positive attributes on Main Street, it
did lead my clients to a contract for purchase," she said.

If the city should decide to enter the ordinance with zone
restrictions, she said she could perceive several actions that might
arise.

"My clients do stand to lose a lot of money with the loss of the
building," Maytin said. "I will suggest that none of these challenges
are necessary ... and quite frankly, they were only discussed as a
last resort."

She suggested the council consider a variance to allow her clients to
pursue the medical marijuana facility at that location.

After her discussion, Mayor Tony Greer asked for advice from Havens,
who said the council did not want to try the case during the council
meeting.

"But you're being threatened with a lawsuit, based on interpretation
of what you've done prior to now," Havens said. "I will remind this
council there has been no determination with respect to whether it
intends to allow any new medical marijuana center or other form of a
facility within the city. This process we've been going through for
several months is drawing toward its conclusion."

He said the realtor who signed the contract as the broker was aware
of the issues the council had discussed.

"On the seventh of June, you entered in and passed on first reading a
second moratorium ordinance to create a situation where you gave
yourself additional time to get finished with this process," Havens
said.

He said in his opinion, the city could use the pending ordinance to
fight the lawsuit.

"This is a threatening lawsuit, and probably has no direct bearing to
what we're doing," Havens said. "There's certainly reasons to
consider it (when it is on the agenda)."

Prior to the vote, Councilman Kevin Grantham said there are a lot of
reasons to vote for and against the ordinance.

"I've known several people who used marijuana, which was essential,"
he said. "They needed it."

But still, he said he could not vote for the ordinance.

"I'm still not convinced that these storefronts were what the
amendment intended," Grantham said.

After several more minutes of discussion, the council approved the
ordinance to establish rules and regulations for medical marijuana
facilities by a 4-1 vote.