MEDICAL MARIJUANA: COLLECTIVE INC. TO OPEN MONDAY IN TC

Product Will Not Be Grown on Site

TRAVERSE CITY - A medical marijuana collective in the heart of
downtown could test uncharted waters of a new city ordinance. And
city officials promise more vigilance after they discovered a man who
launched the operation has a recent felony conviction.

Collective Inc. recently generated buzz when it installed a large
marijuana-leaf-adorned sign outside its State Street storefront. The
operation, set for a grand opening Monday, aims to be the city's
first "full-service" marijuana collective, an off-shoot of a
2-year-old, voter-approved state ballot initiative.

"We want to keep it high class," said Scott Selbig, one of Collective
Inc.'s three co-owners. "We're going to keep it so that Traverse City
likes us."

Marijuana won't be grown at the site, Selbig said, though certified
patients will be able to meet with state-approved caregivers there to
obtain the substance. Grow lamps, pipes and other supplies will be
available for purchase, and Selbig expects a doctor will be on hand
part-time to certify potential patients.

The Michigan Medical Marijuana act, approved in 2008, allows patients
to possess up to 2.5 ounces of marijuana and 12 plants. It also
allows designated caregivers to grow and distribute plants to up to
five patients.

The act doesn't specify where or when patients and caregivers can
grow or exchange marijuana, so municipalities across the state were
left to decide for themselves. Traverse City in August adopted an
ordinance patterned after similar measures approved in downstate cities.

The local ordinance, among other things, permits collectives in most
commercial districts of the city. Marijuana can change hands at such
locations, but can't be grown there.

Original Owner Is a Felon

Selbig and two other downstate residents recently purchased the
collective from Lansing-area resident Damon Granger, who on Oct. 14
pleaded guilty in Genesee County to a felony charge of manufacturing
marijuana. The city's ordinance prevents convicted felons from owning
or operating medical marijuana collectives.

Granger, when asked why he sold the collective, said it was
"liability." None of the new owners -- Selbig, Angela Janovich and
Nicole Martin -- have felony records, police said.

Traverse City police Capt. Brian Heffner said the city will try to
keep a close eye on collectives.

"We will continue to investigate reports of individuals who are in
violation of our ordinance," he said.

Granger approached the city about the collective in July, Heffner
said. Genesee County Circuit Court records show the felony charge
already was pending by that time.

David Weston, the city's zoning administrator, said the city will
monitor Collective Inc. and other operations that open in city
limits, especially in regards to ownership. The city in the future
likely will ask prospective owners or operators to specify in writing
whether or not they have felony convictions.

"Obviously, it's a new ordinance, and this is our first" collective,
he said. "Our intent is to monitor them ... and make sure they're
meeting the conditions of the ordinance."

Traverse City police Capt. Steve Morgan said his department will keep
tabs on the new operation. Even though collectives are legitimate, he
heard they sometimes attract unsavory activity.

"What we've heard from larger cities is that crime in the area around
marijuana collectives goes up," he said. "We're concerned about that,
and if we see that begin to occur it will be an issue for us."

Selbig said he hopes police will realize his operation doesn't pose a threat.

"I think that any of the police officers that want to come talk to
us, I wish they would," he said. "We're family oriented people, and
we want to bring the face of (medical marijuana) up, not down."

Backlash Prevention Needed

Michael E. Thue, a local medical marijuana patient, believes
"discretion still has to be used" by medical marijuana users and
advocates to avoid a community backlash. But he said local groups
make a strong effort to police themselves so everything is done on
the "up and up."

"I can understand the concern, because it happened in southern
Michigan," he said of crime spikes near collectives. "But the clubs
up here have been really good about security, checking all the
appropriate documents."

The city's regulations also allow certified patients and caregivers
to grow limited amounts of marijuana in residential districts across
the city, despite opposition from those who were concerned such
activity could degrade neighborhoods.

Morgan said he suspects there will be a "learning curve" once
incidents start popping up in residential or commercial districts.
His chief concern is determining whether people who say they are
certified as patients truly are eligible to obtain and use marijuana.

"I think the main thing for us is going to be identifying them as
being card-carrying" patients, he said.

Patients are issued ID cards, but such items can be forged. Some also
contend that even asking a patient to show an ID card could be a
violation of rights and protections afforded under the Health
Insurance Portability and Accountability Act, or HIPAA.

City attorney Karrie Zeits said she's keeping an eye on developments
with the medical marijuana act and how its applied across the state
in an effort to prepare for local quarrels.

"I've been monitoring developments in the law that have occurred in
regards to the act itself that are starting to put some meat on the
bones of the act," she said. "If problems arise, certainly we'll take
a look at it."