HUGE INDOOR MEDICAL MARIJUANA GROW PROPOSED AT CHICO AIRPORT

CHICO -- In this economy, it may be good news to some that an
enterprising venture is interested in one of Chico's largest vacant buildings.

But others are concerned over the proposal for 1100 Marauder St. -- a
600,000-square-foot indoor hydroponic medical marijuana grow that
would be the largest in the nation.

The building at the Chico Municipal Airport Industrial Park, once
occupied by clothing distributor Koret, is being eyed by Plant
Properties Management, LLC.

The Los Angeles-based company has hopes of creating a business model
in Chico unparalleled in the medical marijuana industry.

Jason Oh, 36, founding partner of the venture, said the
"state-of-the-art facility" would lease space to local collectives,
allow them to grow medical marijuana in a highly controlled and
secure space, and then test the drug for quality, package it and
track it for taxation purposes.

The entire operation would be monitored around the clock by security
officials. No distribution of marijuana would occur on-site.

Oh's plans for Chico are unprecedented.

The city of Oakland recently approved large-scale indoor marijuana
production in a landmark decision, but proposed operations there
would fill a maximum of 100,000 square feet.

"Chico would be the largest facility in the country," Oh said. "It
would definitely be groundbreaking."

The company is reportedly looking into operating a similar, albeit
smaller, operation in Los Angeles.

Oh said Plant Properties Management's main objective is to ensure
quality medicine for ailing individuals. He said he aims to work
within existing law, even with the November ballot initiative to
legalize recreational marijuana use.

"Our business model is intended to be a solution to problems in the
industry," Oh said. "It is intended to regulate medical marijuana,
the way it should be."

Oh anticipates his plan would create 250 to 500 jobs in Chico, with
the city to see increased tax revenue.

Chico City Councilor Andy Holcombe said that is a possibility he can
rally behind.

"If it actually creates jobs and tax revenue, it sounds like a
promising business, just like any other business," Holcombe said.
"From a jobs and business standpoint, in principle, it sounds like a
good idea. Why not be part of the medical marijuana cluster that's
developing in California? Assuming it's a legal use, it could be
beneficial to our community."

The question of legality, however, is one that is contested.

Oh maintains the business is "legal in every way."

"We're just leasing space in a controlled environment," he said.

Butte County District Attorney Mike Ramsey and Chico Police Chief
Mike Maloney disagree.

Ramsey said based on the information he was provided, the facility
would not be a legal operation.

Although Proposition 215 allows for the cultivation of marijuana for
medical purposes, it does not give the green light to mass marijuana
production.

Maloney said it is "ridiculous" to think otherwise.

"There is nowhere in the law that provides for what they're
proposing," Maloney said.

There is also no provision in the city's zoning regulations for the venture.

The Koret building, which was vacated in 2007 by the clothing
business, is in an area zoned airport manufacturing.

With zoning laws prohibiting any use that is not explicitly stated,
city interim Planning Services Director Mark Wolfe said the type of
operation Oh is seeking to create would be prohibited.

Wolfe also pointed out that the medical marijuana ordinance currently
under city consideration -- which aims to regulate the cultivation,
processing and distribution of medical marijuana -- would still
impede Oh's plans.

The ordinance only allows dispensaries to operate in light
manufacturing and industrial zones, as well as general manufacturing
and industrial zones within the city.

Oh contends the ordinance, which comes before the city Planning
Commission in September, applies to dispensaries, which his proposed
plan is not.

Even so, he is requesting the city include airport manufacturing
areas in the ordinance, to better accommodate his proposal and serve
a need he sees in the community.

"There's a huge demand for this," Oh said. "The industry is just
completely out of control. This would implement a solution."

But it's a solution that at least one local collective opposes.

Max Del Real, a cannabis lobbyist and spokesman for Chico's Citizen
Collective, a nonprofit collective at the forefront of city medical
marijuana regulation discussions, said Oh's proposal is "absolutely
ludicrous" and "audacious."

"It's wrong on so many fronts," Del Real said. "First off, anything
out of Los Angeles is not a good thing. Los Angeles, right now, is
not a model city in terms of effective medical marijuana regulation.
Los Angeles, if anything, is what we don't want to become."

"This just lends itself to what we have been asking the city for nine
months," Del Real said. "Chico needs a medical cannabis ordinance to
protect herself from outside entities. If anything, this is a wake-up
call for Chico to work with those people that are of our community."

Chico City Manager Dave Burkland is also opposed to welcoming the
business into Chico.

Burkland recently met with a number of individuals associated with
the enterprise at their request.

He was not sold on the facility's merits.

"Frankly, we discouraged it," Burkland said. "This is not something
we would support from a city staff level. I don't think it's
appropriate for our city and I don't think it's the best use of that building."

But there are no other businesses lining up to utilize the building,
as evidenced by the property's current standing.

Building owners Steve E. and Julie E. Brown have defaulted on a loan
with an unpaid balance of $8.5 million on the structure, according to
a legal notice published Thursday in the Enterprise-Record.

The notice says the building is to be sold at a trustee's sale on
Sept. 2 on the steps of the Butte County Courthouse. That action
could be delayed or canceled if the situation is financially resolved.

Oh would not comment on whether his company plans to buy or lease the
building, saying the details are under negotiation.

He did say bringing in an interested business that will fill that
unoccupied space, create hundreds of jobs and boost the city's
struggling economy is a smart move.

"Taxes help a city function," Oh said. "With the recession, the city
is seeing lower tax revenue. We could fill that void."

Ultimately, however, Oh said Plant Properties Management is a
business and as such, needs to be profitable.

He noted as much as he would like to see Chico rise to become a
leader in the medical marijuana movement, if the facility faces
significant hurdles, it might have to look elsewhere.

And based on the city's initial response to the proposal, the budding
venture could be snuffed out in Chico before ever lifting off.

"We're not going to come in a city if the police chief or district
attorney is going to kick our doors down," Oh said. "We want the
city's blessing."