E.L. DISPENSARY REGULATIONS ON HOLD

The East Lansing City Council Punts on Regulating Medical Marijuana
Dispensaries ... Sort Of

The East Lansing City Council voted unanimously Tuesday night to take
another month to discuss possible medical marijuana dispensary
regulations in the city, thus extending a moratorium on the
businesses for another 90 days.

However, the Council - which had been deliberating over three
possible business regulation ordinances - threw out two potential
means of regulating.

Proposed ordinances 1245A, 1245B and 1245C offer three different ways
to regulate medical marijuana in East Lansing. "A" would have allowed
home-based businesses to operate, but not commercial storefronts. "C"
would allow commercial storefronts in certain zones but not
home-based businesses. "B" would have banned both forms of business.

After a public hearing on the proposed ordinances, the five voting
members - including Mayor Vic Loomis and Mayor Pro-Tem Diane
Goddeeris - voted unanimously to throw out proposed ordinances A and B.

While the Council voted to take another month to discuss C and extend
the moratorium on businesses, it appears that it's not a matter of if
East Lansing will have dispensaries, but when.

"The best course would be to dispose of 1245A and B," Councilman
Nathan Triplett said, based on feedback from the public and a
recommendation from the city Planning Commission.

Goddeeris said that while the Council extended the moratorium,
throwing out the other two versions is good progress.

"We are making progress. I'm sorry people don't see that out there," she said.

The East Lansing Planning Commission recommended last month that the
Council adopt 1245C. However, the proposed ordinance has had quite an
evolution since it was first introduced months ago.

The latest version of 1245C would allow commercial entities to
operate only within B-4 zoning districts, or "restricted office
business" areas. B-4 zones dot the city and are generally limited to
office buildings and banks. Downtown East Lansing around Grand River
and Albert avenues includes no B-4 zoning. However, Goddeeris said
the largest amount of commercial properties in the city is in B-4 zones.

Businesses would need an annual license from the city clerk to
operate. Those fees will be determined by the City Council in the future.

The proposed 16-page ordinance defines dispensaries as "two or more
primary caregivers growing medical marihuana in the same building,
structure or lot, storing medical marijuana in the same building,
structure or lot, or delivering, transferring, or providing
qualifying patients with Medical Marihuana out of the same building or lot."

Dispensaries can't be within 500 feet of each other and also must be
at least 1,000 feet from schools or childcare centers. Stores must
also be equipped with surveillance cameras. The ordinance also
specifically bans drive-through dispensaries.

Councilman Roger Peters said he doesn't like all aspects of 1245C,
"but that's the direction I'm going," he said, referring to
regulating commercial businesses.

Before the Council's vote, nine citizens - not all East Lansing
residents - spoke during public comment. Three men representing the
Pinecrest Neighborhood Association and one East Lansing resident
supported a moratorium extension, while the other five supported
regulating commercial storefronts.

"This is an example of public policy gone mad," Donald Power said in
reference to the 2008 ballot proposal approved by 63 percent of
Michigan voters. Power supports the 90-day moratorium extension.
"There are several legal challenges out there (related to
dispensaries) - let's see where they go."

Three of five citizens who supported the commercial regulation
ordinance had concerns about the B-4 only zoning provision in the
latest draft of 1245C. They feel dispensaries should be allowed in
more areas of the city, including downtown.

Jonathan Beagley, a Michigan State University student representing
the group Students for Sensible Drug Policy, supports 1245C but
thinks the B-4 zoning only would be prohibitive. "We are concerned
the B-4 zoning district will not allow for safe access," he said.

Jeff Hank, a Division Street resident, echoed Beagley.

"B-4 zoning is exclusive. You're going to invite litigation by doing
that," Hank said. However, he urged the Council to adopt the
ordinance allowing storefronts. "We have to stop the black market
here. Take a stand. Be progressive."

The Council will revisit the proposed ordinance at its March 15
meeting. The Council can also vote to lift the 90-day moratorium if
it decides to adopt 1245C within 90 days.