MAYOR VOICES OPPOSITION TO MARIJUANA DISPENSARY ORDINANCE

When a divided Orchard City town board votes Dec. 15 on whether to
allow medical marijuana in town, the mayor won't be sitting on the sidelines.

Orchard City Mayor Don Suppes informed the town trustees at a work
session on Nov. 3 that he would not be able to support an ordinance
licensing a medical marijuana dispensary and an off-site commercial
marijuana growing operation.

In his opposition, Suppes cited dispensary owner Jay Deason's unpaid
taxes, recent foreclosure, and a tax lien sale involving property he
recently owned in town. Deason's legal entanglements involve the
former Hi Quality fruit packing shed on Fruitgrowers Road.

Deason's marijuana dispensary operation is located on Hwy. 65 at 2100
Road, a property he does not own but rents.

Deason is trying to get a license from the town board for his
dispensary and also for an off-site marijuana growing operation in town.

If the town board splits in a tie vote on Dec. 15 over granting
Deason's dispensary a monopoly business franchise for medical
marijuana, Suppes said he will not break the tie in favor of the
license because of Deason's tax problems.

"If he can't even pay his property taxes, how is he going to pay our
fees?" Suppes said referring to the stiff application, licensing, and
inspection fees the town would impose on the business if trustees
vote to legalize it.

The mayor's opposition involves recent transactions involving a
property that Deason has owned. Foreclosure proceedings were
commenced Nov. 23, 2009, on a commercial warehouse property owned by
Deason at 21168-80 Fruitgrowers Road in Orchard City. Records show
that Deason bought the property from Hi Quality Packing, Inc, in 2007
for $290,000.

On Oct. 28 the property went through foreclosure on an outstanding
note of $290,000. A treasurer's deed was issued to the note holder,
W.R. Duderstadt of Goliat, Texas, a relative of Deason's. County
assessor records show the property, including a 22,000-square-foot
building and 3.6 acres of land, having a current market value of $361,413.

Suppes also referred to 2009 past due property taxes of $5,250, plus
interest and fees. The property tax debt was sold to a Grand Junction
investor on Nov. 4 at the county's annual tax lien sale.

As of late last week, the tax bill, accruing interest of 10 percent
annually, was still owed to the tax lien investor and had not been paid.

At the Orchard City Trustees Nov. 3 work session, Suppes said he had
been told that arrangements were being made to clear the outstanding
tax debt, and that Deason was in Texas working on the details which
were expected to be concluded soon.

At their Nov. 10 regular meeting, the Orchard City Trustees heard
first reading of a proposed ordinance for licensing Deason's
dispensary and growing operation. Deason was not present for the
meeting, but his wife Catherine was. She explained that her husband's
absence was due to his being in Texas on business.