COURT APPROVES ORDER TO SHUT DOWN MEDILEAF IN GILROY

The staff at Gilroy's only nonmobile medical marijuana dispensary
face an uncertain future after being served with an order last week
to shut it down.

Superior Court Judge Kevin McKenney approved a prohibitory injunction
July 29 that prohibits MediLeaf from operating a dispensary at its
location at 1321-B First Street in the same shopping center as Togo's
and First Street Coffee Exchange.

MediLeaf, which opened in November, continues to remain open but is
no longer taking new members, staff members say.

"All of us here are not knowing what's going on," said Justin
Wendelendt, who works at the front counter of the dispensary. "We're
just sitting ducks."

City Administrator Tom Haglund and Andy Faber, who represents the
city of Gilroy in the case, could not be reached for comment Friday
on what step the city would take next.

However, Councilman Perry Woodward said a prohibitory injunction
indicates the dispensary can be shut down even if MediLeaf appeals the matter.

Woodward, who is an attorney, wondered whether MediLeaf would seek to
move to another location in Gilroy, operate a mobile dispensary in
town or make deliveries to Gilroy from its two other locations in San Jose.

Woodward, along with council members Craig Gartman and Peter
Arellano, was among the council dissenters who voted against closing
the dispensary.

"It's not that I thought a medical marijuana dispensary was a great
thing for Gilroy, I just didn't think there was any practical way to
stop it," Woodward said Friday.

Gilroy City Councilman Dion Bracco, who has consistently voted in
favor of closing MediLeaf, said he had not been aware of the order.
However, it sounded like a good thing, he said.

"I'm glad to hear it," he said. "This isn't really about MediLeaf. It
has to do with a business opening without proper approvals."

The injunction came after McKenney issued an eight-page order July 20
upholding the city's decision to prohibit medical marijuana
dispensaries within the city and determined MediLeaf was operating illegally.

MediLeaf directors could not be reached for comment Friday morning.

Previously, Superior Court Judge Kevin Murphy had allowed MediLeaf to
remain open while litigation was pending, rejecting the city's
request for a preliminary junction on Dec. 15.

The City of Gilroy filed suit against MediLeaf shortly after the
dispensary opened Nov. 9. As of May 31, the city had spent $102,861
on litigation related to the matter. However, the city has not
released more recent information on legal costs. Woodward estimated
that the city had spent at least $150,000.

"We'll see what happens next," Woodward said.