HOLLISTER-BASED POT CLUB IN LOS BANOS CLOSES SHOP

The medicinal marijuana dispensary that set up shop in Los Banos this
past summer is gone.

In the past week, Hollister-based Purple Cross Rx removed its
furniture and supplies from the suite it was renting at 225 N. Mercey
Springs Road. City Attorney William Vaughn said it appears the
eviction process may have concluded.

"I don't know whether they reached a settlement. All I know is there
were no other court proceedings that were calendared," Vaughn said.

Purple Cross Rx came to Los Banos in July despite an ordinance that
prohibits such businesses in city limits.

The city's first response to the dispensary was to fine the
nonprofit's volunteers multiple times each week for operating without
a business license and violating the medical marijuana ban. However,
in addition to those sanctions, the city threatened to fine Richard
Scagliotti, the owner of the suite the dispensary is renting, $500
per day until Purple Cross Rx was evicted.

Scagliotti chose to avoid the fines by trying to meet the city's request.

Police Chief Gary Brizzee, who wrote the ordinance banning medical
marijuana, said if the business opens anywhere else in Los Banos his
department will be tougher on those involved.

"We will be more aggressive with fining the property owner," Brizzee said.

In the past, Purple Cross Rx has left one location in a city, only to
show up in another area of town.

Scott McPhail opened Purple Cross Rx in Hollister in December 2009.
Stephanie Atigh, Hollister's city attorney, filed an injunction
against Purple Cross Rx in April of 2010. Before the case could go
much further, a note was found on the dispensary's door saying it was
moving to Los Banos. Hollister dropped its complaint before realizing
McPhail had opened another facility near the city's airport.

Despite McPhail saying in August that Los Banos had no right to ban
something the state says is legal, Brizzee rejected the idea that his
ordinance was the reason the dispensary arrived in town.

"I don't assume that they only came to Los Banos because our
ordinance prohibited it. They came here to make money," Brizzee said.

Mayor Mike Villalta expressed satisfaction that the dispensary is no
longer operating in Los Banos.

"It was an illegal business to begin with. It's good that it's closed
down," Villalta said.

McPhail did not return repeated phone calls requesting comment on this issue.