MEDICAL MARIJUANA DISPENSARIES POPPING UP AROUND GENESEE COUNTY

Officials Unsure How to Regulate Businesses

GENESEE COUNTY, Michigan - Often with little to no warning,
businesses that sell medical marijuana can - and are - opening in
neighborhoods throughout Genesee County.

A shocked Flint city councilman recently even found one in a former
police mini-station.

Flint Councilman Michael Sarginson was shocked to discover he had at
least two marijuana-related businesses in his 8th Ward, which covers
the southwest portion of the city, that opened without his knowledge
- - including the one in the former mini-station on Corunna Road.

"At the very least, can we get the mini-station sign down?" Sarginson
asked Wednesday during the city council meeting. The sign was taken
down Thursday.

In Burton, resident Bob Gill was surprised to hear a dispensary is on
Dort Highway, about a block from his home.

"I had no idea they had marijuana over there," Gill said.

Only one dispensary has been formally approved to open - The Barn on
Bristol Road in Burton expected to open in March or April. Yet, The
Flint Journal confirmed at least five other dispensaries already are
operating in Genesee County.

And, the website potlocator.com lists as many as eight dispensaries
in the county.

Along with the Burton location, one is somewhere in Grand Blanc
Township near the Oakland County line and four are in the city of
Flint, including Michigan Safe Transfer in the former police
mini-station. The others are on Ballenger Highway, downtown on Water
Street and on South Dort Highway tucked behind a fast-food restaurant.

The dispensaries are hard to identify, rarely noticeable from the
road. People at one wouldn't even divulge its exact location when
contacted by phone.

Sometimes even the local police don't know about the existence of the
stores. Neither do township and city officials, or even neighbors.

Grand Blanc Police Lt. Stephen Hill was surprised to learn last week
from a reporter about a website listing "Exit 106 Grand Blanc" as the
delivery location for dispensary Medical Mitten.

"I have not heard of that. I would like to see that," he said.

Hill said he has heard a lot of talk that the current law is not
clear, with local governments having their own take on the businesses.

A man answering the phone at the business declined to comment.

Local government officials have been struggling to figure out how to
regulate medical marijuana and businesses associated with it since
the state's medical marijuana constitutional amendment passed in 2008.

As of late last year, about half of local communities have chosen not
to take action. A quarter of local communities had temporary moratoriums.

Federal law still prohibits the possession or use of marijuana for
any purposes.

Benjamin Horner chose to open a dispensary in Flint because of a
February 2007 proposal on medical marijuana passed by 62 percent of
city voters, which showed him the "progressive and open-minded"
nature of the city and its residents.

He owns Michigan Organic Solutions on South Dort Highway. There, four
immature, pencil-thin marijuana plants in black pots sit atop a desk
in an office and strains of marijuana with names like "Weird Al" and
"Strawberry Cough" are stored in sealed glass jars on a display case.

Horner, who also is a card-carrying medical marijuana patient, opened
his business on Dort in August 2010 after leaving the restaurant
industry in Detroit.

"There's a great opportunity economically to get into a new, growing
market," he said, adding the business is going to make a profit but
that its other purpose is to "provide care for patients" suffering
from ailments such as cancer, multiple sclerosis and Hepatitis C.

The business has eight employees.

Horner said he got a merchant license from the city of Flint. He said
the business is 100 percent legitimate and transparent to avoid any
possible issues with law enforcement.

Genesee County Sheriff Robert Pickell said while he believes
dispensaries are legal under state guidelines, law enforcement is not
sure how to handle them.

"The laws are so in the gray area that we almost feel immobilized
from doing anything," Pickell said. "We have a delicate balance here
between the right of an individual and the rights of society."

Pickell said authorities across the state "are looking for direction
on this and I think prosecutors and lawyers are trying to work their
way through this thing."

Burton last week gave formal approval to its first dispensary - and
the only formal approval given to any dispensary - after setting up
an ordinance requiring dispensaries, growing facilities and
compassion clubs to be a certain distance from schools and churches,
and located within industrial districts.

Burton city attorney Rick Austin said the city will treat
dispensaries as "a drug store" providing medicine to patients. If law
enforcement steps in on a local, state or federal level, it's their
choice, said Austin.

A Dryden dispensary faced three raids by Lapeer County sheriff's
officers in 2010, eventually being labeled a "public nuisance" and
padlocked in late September.

Lapeer County Prosecutor Byron Konschuh said it appears owners at the
location were providing marijuana to people who were not patients,
but no charges have been sought in the case.

"In my opinion, the dispensaries are not authorized under the (state)
referendum," Konschuh said.

The state's law specifies caregivers and patients providing or using
medical marijuana not for medical purposes could face up to two years
in prison and a fine of up to $2,000.

With more locations appearing in the state, Konschuh said,
"Unfortunately, these places become attractive nuisances with thieves."

Genesee County prosecuting attorney David Leyton said in a 2009 Flint
Journal story the state's medical marijuana law doesn't provide
information on distribution, "which puts me in a difficult position,
as it does law enforcement."

"How anyone gets it in the first place is really a problem," he said
then. "Federal law still makes all of this a crime."

In Flint, officials now are researching the law to decide how to
regulate the businesses, city officials said last week. The issue is
expected to come before the council within the next two weeks.

Locations in Flint must go through a license approval via the clerk's
office, said Flint councilman Scott Kincaid.

City Clerk Inez Brown said the city is not issuing licenses to
marijuana businesses at this time, at least not knowingly.

Nick Panessidi, owner of Michigan Safe Transfer in the former
mini-station, said more safeguards are needed on dispensaries, but
the direction needs to come not from local governments.

"It has to be regulated, but I'm willing to let the state do the
regulations, not city to city," he said. "Let the state define the guidelines."

Neighbor Leah Knowlton said she hasn't noticed any problems in the
area since the opening of Michigan Safe Transfer.

"I didn't even know it was there. ... It's not like they are going to
sit outside and smoke it. That would probably draw some attention,"
Knowlton said.

"It's been so many different businesses since it's been the mini
police station. It's kind of ironic. It's special. Only in America."