OAKLAND COPS BEGIN WEEDING OUT POT CLUBS

Unlicensed Medical Marijuana Dispensaries Face Closure

OAKLAND -- Police have begun citing operators of unlicensed medical
marijuana outlets, and neighboring cities are feeling the effects of
the crackdown, officials said Friday.

One unlicensed dispenser -- Dragonfly Alternative Healing Clinic at
1727 Telegraph Ave. -- has been cited twice since the enforcement
started Thursday at the direction of the city administrator's office.

Repeated violations could lead to further sanctions, including
permanent shutdown through public nuisance ordinances, officials said.

"The city established only a few sites to be permitted, and we're
seeking compliance with the ordinance," said Deputy Chief of Police
Pete Dunbar.

The City Council decided in May to limit the number of medical
marijuana dispensaries to four, putting an end to the proliferation of
pot clubs in an area of uptown nicknamed "Oaksterdam." At the time,
five established clubs were operating there, with others nearby.

The city has issued three business licenses but not yet the fourth.
California Advocate Relief Exchange, or CARE, is the only club in the
Oaksterdam triangle between 17th and 19th streets and Telegraph Avenue
and Broadway to get a license. The Dragonfly, initially denied a
permit, is waiting to hear whether it will

be granted the fourth license.

The new regulations went into effect June 1 and unlicensed clubs
received letters warning them they had to shut down. At the time,
Dragonfly owner Ken Estes vowed to defy the order. But after meeting
with city officials, he closed down a few days later and remained
shuttered until last week, when repeated pleas from medical marijuana
patients prompted him to reopen, he said.

"We agreed to close while (city officials) were working on the permit,
but after a month of broken promises, we reopened a week ago," Estes
said. "We're going to stay open because the patients are the reason we
are here fighting this. The patients shouldn't suffer while the city
tries to figure out this problem."

According to police, Patricia White, 56, of Vallejo, chief operations
officer at Dragonfly, was first cited about 2:15 p.m. Thursday for
violating the city's ordinance requiring a proper permit to dispense
marijuana.

Two officers first questioned a 17-year-old Orinda resident they saw
leave the clinic. The youth had a valid cannabis buyer's club card and
admitted to buying $50 worth of "Purple Maui" marijuana, police said.

The youth told the officers he uses marijuana to cope with migraine
headaches, insomnia and stress. After photographing the marijuana,
police returned it to the youth before going to the clinic.

White gave the officers a tour of the clinic, which features a "menu"
of the types of marijuana available for sale, the amounts and the
prices. Prices ranged from $11 for a gram of "soma skunk" to $345 for
an ounce of "purple skunk," police said.

Signs posted inside the club tell customers to be courteous of
neighbors and the surrounding areas, don't litter and don't smoke
marijuana in their cars or parking lots. A sign also warns it is
illegal for clients to resell any medical marijuana they purchase at
the clinic.

While at the clinic, officers said they saw customers enter, show
their cannabis buyer's cards and place orders.

Dragonfly, which police said claimed to serve 350 to 500 patients
daily, was denied a permit by the city following hearings on April 22
and May 14. White told officers that city officials failed to return
repeated phone calls to negotiate a resolution over the permit.

Assistant City Administrator Cheryl Thompson confirmed Friday that the
club is one of a few being considered for the fourth permit, but a
decision has not been made.

Councilmember Nancy Nadel (Downtown-West Oakland) said Friday that
although she originally favored having more than four licensed clubs,
now that four is the law, the clubs need to abide by the rules.

"I wanted to have more than four, but I don't want people to be
operating outside of the law," Nadel said.

Last month, the owner of two licensed dispensaries in Hayward said
Oakland's new law had sent many new patients her way in search of the
medicinal herb.

And the Emeryville City Council on July 20 temporarily banned medical
marijuana outlets after one of Oakland's spurned clubs -- The Green
Door -- came calling and the city realized it doesn't have a way to
regulate the outlets, said City Attorney Michael Biddle.

The ban will last 45 days, giving the city time to review issues
related to zoning, permitting and licensing such establishments,
Biddle said. The ban could be extended with the council's approval.

"We don't have a definition for that type of use activity," Biddle
said. "We have to take (location of) schools into consideration and
also rules regarding licensing the people who would be running these
dispensaries."