MARIJUANA BUSINESS STAYS

Medical Marijuana Centers Don't Fall to Boom-Bust Cycle or State
Regs

The first medical marijuana dispensary opened in Cortez in October
2009, and five more followed in quick succession last summer. A year
later, one dispensary has closed (Southwest Colorado Caregivers), but
other shop owners report business is steady.

"I can't complain thus far," said Kirsten Krzysztofiak, who along with
husband Dave, owns Herbal Alternative, the first dispensary that
opened in Cortez.

Other dispensary owners also acknowledge that medical marijuana sales
are constant, even with all the strict regulations imposed by the
state of Colorado.

"It's really for the benefit of the patient," Beacon Wellness owner
Paul Coffey said, adding that the state's terminology for dispensaries
is now medical marijuana "centers."

New Colorado laws that recently went into effect don't seem to be
affecting most of the centers in Cortez. Among them is the requirement
that all centers grow at least 70 percent of the marijuana they sell.
Coffey said that it could be argued that the law could make it an
awkward situation for any business that sold ingestible products, such
as requiring grocery stores to grow 70 percent of the food they sell.
He understands the reasoning behind the fact that the law cuts out the
middleman and keeps prices lower and said the law is there ultimately
for the patient's benefit.

Another new law insists all centers have video surveillance in
specific locations inside and outside the stores. Beacon Wellness and
Herbal Alternative already had video in place when they opened, as did
True Earth. Brandi Barattini, manager of True Earth, agrees that
surveillance is needed, but as far as a few other requirements, the
state seems to be "a little nit-picky" determining what kinds of locks
they have on their doors and the size of labels on the medications.
She believes that change will be the norm for a while.

"I think that if there's something that they put in place and it's not
really working or helpful, I think (the state) will change it. We're
all in the learning process at this point," Barattini said.

Coffey agrees that some of the requirements are "a little extreme,"
but he believes that the majority of the regulations are simply
"Business 101" - how to run a business.

"It's very, very basic when you look at what (the state) is asking
from us," Coffey said. "When you compare it to the gambling industry
or liquor, it's all very similar."

While some are wary of the medical marijuana business in general,
Coffey hopes the new laws will change people's perspective.

"(The new regulations) has given us a lot of the credibility that
we've needed in the industry to let people know we are honest,
respectable businessmen here trying to do a good thing for the
patients," he said.

The additional sales tax revenue the centers bring to city coffers
also doesn't hurt. According to Kathi Moss, finance director for
Cortez, in 2010 city sales tax revenues from medical marijuana centers
was $27,842 with four of the five centers only in operation halfway
through the year. This year the amount seems likely to double as tax
revenues from January to June were $26,239.

The medical marijuana centers in Cortez that were contacted all report
they have regular clientele and even develop relationships with some.

"I know almost every single person that comes into my store,"
Barattini said. "I know their family stories. Over the past year, I've
grown to know them and they've grown to know me."

Krzysztofiak said that the only complaint she's heard in her store is
the two-week wait to get a medical marijuana card.

A surprising fact that Krzysztofiak acknowledged is how the state is
making the application and renewal fee more affordable for some
patients. If a person is receiving some form of government assistance,
they don't have to pay the $90 fee to get a medical marijuana card. As
long as a person can show a copy of a food stamp or Social Security
award letter and have a prescription from a doctor, the state provides
the card free.

"It kind of contradicts certain things, which I find comical, but if
it helps patients then that's what they need, especially in the
economy right now," Krzysztofiak said, noting that she's seen some
patients who normally would spend a little more on their medication
have to cut back.

All in all, medical marijuana centers don't seem to be going anywhere
as long as the laws don't change and people still want the plant for
medicinal purposes.

"Patients in general are just very happy that they are able to come to
a facility and be able to shop and get medication that's for them."
Coffey said.