FOUNTAIN HILLS FACES MEDICAL-MARIJUANA CHALLENGE

A business consultant whose zoning-verification request for a
medical-marijuana dispensary was denied by Fountain Hills is
threatening legal action to challenge the "reasonableness" of its
zoning restrictions.

Ingrid Jolya, a member/manager of Phoenix-based ETD Systems,
submitted an application for two suites in the strip center at 17005
E. Colony Drive.

Only one medical-marijuana dispensary will be allowed within the
town, and that would be in a commercial-zoning district that includes
the area along Colony Drive off Saguaro Boulevard.

Jolya's application, along with two others, were denied by Bob
Rodgers, the town's senior planner, because the locations are too
close to North Chapel Community Bible Church, at 16929 E. Enterprise Drive.

Jolya submitted the application on behalf of an Arizona-based
business group that includes one physician. She would not identify her clients.

Rodgers has verified that one application, submitted by Chandler
resident Josh Levine, meets all town zoning requirements. Levine's
medical-marijuana dispensary would be at 16935 E. Colony Drive, at
Panorama Drive.

Attorney Jeffrey Kaufman was retained to represent ETD Systems and
has sent a letter to Town Attorney Andrew McGuire asking the town to
reconsider its denial of Jolya and others' applications.

"If they knew that (the church) was there, the church has been in
there the last several months, then why would they allocate that area
for dispensaries?" Jolya said. "Why would you put it there knowing
there was no place to go? It's the only area, it's not like Phoenix
with multiple sites."

The town believes it has adopted reasonable zoning regulations, McGuire said.

"There have been three denied and one has been issued, so clearly
it's not impossible," he said. "There are other applicants still
actively working to get approval who may be approved. We'll know as
soon as their processes are done."

In the letter, Kaufman said 16929 E. Enterprise is a "commercial,
multi-purpose office building in which North Chapel apparently
maintains administrative offices." The office building houses several
businesses, he said.

Jolya and Kaufman maintain that the location is not a church because
North Chapel holds its services at another location.

"North Chapel is but one of many tenants in the commercial office
building," he said in the letter. "Church services are not held in
the administrative office, but are held at nearby Messinger Mortuary."

Marlo Hardy, manager of Messinger Fountain Hills Mortuary, at 12065
N. Saguaro Boulevard, confirmed that North Chapel uses that facility
for its Sunday worship services.

Dan Scruggs, pastor of North Chapel, said numerous church functions,
including Bible studies and worship services, take place Monday
through Saturday at the Enterprise Drive location. He also said the
church encompasses most of the office building.

"There's more here for our congregation than for our administration," he said.

The zoning ordinance states the suitable distance for a dispensary is
500 feet from a "place of worship," McGuire said.

The ordinance is so restrictive that there are only two possible
locations for a medical-marijuana dispensary, a public storage area
and a vacant lot, Jolya said.

"The voters said that they wanted this, it's in place and this is the
way they're (town) able to exclude them," she said.

The Town Council should have known that applications would be denied
based on the contention that an office building leased by a church
for administrative purposes, and located in the middle of designated
area, is considered a church, Kaufman said.

Kaufman's letter asks for a response within 10 days.

Jolya said her clients already have pinpointed a location in Phoenix
for a medical-marijuana dispensary and are looking at a location in Sedona.

"They're actually, at this point, deciding whether they want to
continue in Fountain Hills," she said.