WELLNESS CENTER FIGHTS TO STAY OPEN

County Commissioners Seek Judgement

Dr. Eric Hatch made a business decision when he moved to Highlands
Ranch with his family two years ago. The only difference between he
and most other businessmen was his main product line.

He rented a retail space, made tenant improvements and invested much
if his life savings into his health clinic. In August 2008, he opened
Hatch Wellness Center, a shop behind King Soopers at University
Boulevard and Highlands Ranch Parkway that provides, among
chiropractic and acupuncture services, medical marijuana.

Now he is fighting to stay open as Douglas County tries to decide
whether to allow existing dispensaries after voters in unincorporated
areas of the county chose to prohibit the medical marijuana shops
during the November election. The Board of Douglas County
Commissioners is scheduled to decide Jan. 11, after press deadline,
what to do with Hatch Wellness Center, as well as dispensaries in
Castle Pines and Franktown.

"I thought we would be grandfathered in," said Hatch, a certified
chiropractor who decided to expand his services after a federal
decision to not encroach on state medical marijuana rights.

The move was a lucrative one. Even with the proliferation of shops -
both legitimate and dubious operations - throughout Denver, Hatch has
managed to build a solid business model around cannibis. It now
accounts for 90 percent of the revenues at his Highlands Ranch
location; he and wife Carmen also own a dispensary in Colorado Springs.

Hatch insists he has done everything by the book and followed all of
the new rules, no matter how cumbersome. One new regulation requires
medical marijuana shops to grow 70 percent of their product. Hatch
likened it to making King Soopers raise cattle just to sell beef. But
he has complied and a warehouse in Pueblo, monitored by a
closed-circuit camera system, produces nearly all of his marijuana.

Before he was given the opportunity to become a caregiver, Hatch was
subjected to a background check. He also had to fork over tax
statements from the last five years, and paid $8,750 per shop in fees
to the state last year.

Hatch said he tries to focus on patients who have real medical issues.

"We've done a good job of making this a place for people who are
sick," he said, although they will sell to anyone holding a medical
marijuana card.

However, his clientele is not a bunch of kids. The average age of his
1,800-plus customers is 40.

Hatch says he has been welcomed by the community and local police,
who give him safety tips when they stop by. The center was robbed
last year; Hatch said it was a wake-up call to beef up security.

Ssome residents are still unsure about the message the dispensaries
send to children.

"We're telling our kids not to smoke pot, but there is a place right
up the street that sells it to their parents," said Karen Lowe, a
mother of three from Highlands Ranch. "It sends mixed signals. I can
see how kids might be confused about the issue."

Hatch, a father of two, says he understands the concerns from
parents, but they should learn about the medicinal benefits of
marijuana before discussing the issue with their children.

Still, there are strong feelings of opposition within the community.

"I don't think this is something that belongs in a place like
Highlands Ranch," Lowe said.

Hatch has maintained a good relationship with Douglas County, which
invited him to seminars about running a medical marijuana store in the county.

However, he and other shops are prepared to file a class-action
lawsuit against the county if the commissioners vote Jan. 11 to close
down existing dispensaries, which Hatch says were not addressed in
the ballot questioned posed to voters. He is not very confident the
decision will be made in his favor.

"It's just that I don't think all along they've ever wanted it,"
Hatch said. "I appeared and they didn't know what to do about it.
They've tolerated it all this time."

Closing dispensaries that operate under legal guidelines would push
the industry back underground and force patients to return to a
dangerous black market, he said.

Despite the high costs, Hatch says he is willing to comply with the
constant changes in laws governing medical marijuana establishments.

Douglas County voters approved measures prohibiting medical marijuana
dispensaries in their areas in November. Douglas County, Lone Tree
and Castle Pines all put the medical marijuana question to voters
this year, and roughly 61 percent of the 70,300 votes cast by those
in unincorporated Douglas County were in favor of prohibiting the businesses.

Out of the nearly 4,230 votes cast in Lone Tree, more than 68 percent
were opposed to medical marijuana shops and cultivation facilities in
the city. Approximately 80 percent of the 4,600 votes counted in
Castle Pines were in favor of prohibition.

UPDATE

Douglas County officials will leave the fate of three medical
marijuana dispensaries in the hands of a judge.

County attorney Lance Ingalls advised the Board of Douglas County
Commissioners to seek clarification on the issue that has left
dispensary owners in Highlands Ranch, Castle Pines and Franktown
wondering whether they will be able to stay open after July 1.
Several residents attended a meeting Jan. 11 and claimed that the
medical marijuana ballot question posed to voters in unincorporated
Douglas County in November did not specifically address the existing centers.

Commissioner Jack Hilbert said the issue "may end up in many courts"
because of differing opinions. Some say the ballot question prohibits
all dispensaries, new and old, and commissioner Jill Repella said the
county could face a lawsuit from voters if existing centers are
allowed to remain open. However, the dispensary supporters say the
county vote does not hold up against state statutes, as well as
constitutional Amendment 20, and infringes on the rights of business owners.

Ingalls said a declaratory judgement, in which a judge weighs all of
the facts and interprets legal language contained in regulatory
documents, would be the fastest way to resolve the issue. No date has
been set for a hearing.