MEDILEAF CLOSES DOORS IN GILROY

MediLeaf patrons were met with a simple, but effective sign Monday at
the Gilroy medical marijuana dispensary: "Temporarily closed. Please
visit our other locations and receive an additional 10% off."

MediLeaf, which opened in November and has dispensaries in Willow Glen
and San Jose, remained open up until last week but closed Monday
following a July 29 prohibitory injunction stopping operations at the
city's only nonmobile medical marijuana dispensary at First Street and
Westwood Drive.

"This is what the city was seeking," said City Administrator Tom
Haglund.

The city recently served each of the defendants with Santa Clara
County Judge Kevin McKenney's order, said Haglund.

Andy Faber, who represents the city of Gilroy in this case, had been
working with MediLeaf's attorney to reach an "amicable shutdown,"
after the county's superior court ruling, Haglund added.

The dispensary remained open Friday but was no longer taking new
members, staff members said. MediLeaf's San Jose locations continue to
take new members and the collective has more than 6,000 total, said
Batzi Kurburovich, one of MediLeaf's directors.

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.

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

At about 1 p.m. Monday, an employee sat at a small table outside the
dispensary, collecting signatures of those in support of keeping the
dispensary open. The employee, who would not give her name, said more
than a dozen people had stopped by to sign the petition within the
past hour.

"We have no intention of violating any court orders but are exploring
all legal options available to us," said Kurburovich.

He added in a written statement that MediLeaf has "provided convenient
and safe access to medicine, it has created jobs, paid taxes, filled
vacant space, reduced illicit transactions, cleaned up and added
security to the Plaza strip mall, brought business to Gilroy, donated
to the Gilroy Community, donated medicine to less fortunate
patient/members and donated money and food to local homeless
individuals."

MediLeaf's attorney was out of his office Monday and could not be
reached. He did, however, file a notice of appeal on MediLeaf's behalf
the day after the judgment was filed, according to court documents.

"We'll see what happens with that," Haglund said.

Though their sign said that they were "temporarily" closed, it is
unclear if MediLeaf will try to reopen. If they do, the city has the
option to take them back to court for violating a court order, Faber
said.

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.

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.

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