Pubdate: Wed, 02 Jun 2004
Source: Oakland Tribune, The (CA)
Copyright: 2004 MediaNews Group, Inc. and ANG Newspapers
Contact:  http://www.oaklandtribune.com/
Details: http://www.mapinc.org/media/314
Author: Laura Counts, Staff Writer
Bookmark: http://www.mapinc.org/mmj.htm (Cannabis - Medicinal)
Bookmark: http://www.mapinc.org/find?115 (Cannabis - California)

MEDICAL MARIJUANA MERCHANT DEFIES OAKLAND ORDER TO CLOSE

Others Might Go Underground, As City's New Rule Gets Mixed Reaction From 
Consumers, Business Owners

OAKLAND -- Medical marijuana patients who packed into the Dragonfly 
Holistic Solutions dispensary on Telegraph Avenue on Tuesday seemed unaware 
the business had been told by the city to shut down.

They said they were seeking the most potent medicine in town -- a strain of 
marijuana called "Barney Purple" -- and didn't like hearing that new city 
rules will limit them to four city-sanctioned establishments.

"If you enjoy feeling pain-free, this is the place to be," said Sullivan 
Wallace of Oakland, who says he has a cannabis prescription to fight 
chronic pain and anxiety.

Seven existing dispensaries and one proposed club had applied for the four 
business permits available. After a series of hearings and several delays, 
the clubs were notified Friday afternoon whether they made the cut.

Those that received licenses will have to pay a $20,000 annual fee. Those 
that did not were supposed to close Tuesday.

Dragonfly did not make it, but owner Ken Estes said he will continue to 
operate in defiance of city rules until he is arrested.

He planned a protest outside the dispensary Tuesday morning, but the only 
signs of one emerged when the doors to the club opened 15 minutes late.

"There is some kind of discrimination going on behind the scenes," Estes 
said. "Or else the city is out of touch with the patients, because we are 
the preferred club. When we opened, we forced prices down and brought in 
higher quality (than the other clubs)."

Other club owners, including some who were issued permits, criticized the 
city's process as arbitrary and complained that three days wasn't enough 
notice for them or the employees on their payrolls.

Still, no one except Estes continued business as usual. One dispensary 
owner contended there are clubs that did not even apply for a city permit 
and may try to operate under the radar.

"There are some who chose not to pay $300 and sign a confession," said 
Richard Lee, owner of the Bulldog Cafe, who got a permit for his cafe on 
Broadway but not for his small SR71 Cafe on 17th Street, according to the 
city manager's office.

Even though Lee received a permit, he contended the process was arbitrary 
and the four-club limit does not make sense. He plans to move to a larger 
location to serve the additional customers the closures will bring.

"This thing is getting too big for them to say there can only be four 
clubs. There are too many people who appreciate getting marijuana in a 
civilized way," said Lee, one of the backers of an initiative now 
collecting signatures for the November ballot that would all but 
decriminalize adult use of marijuana in Oakland.

Sparky Rose, operator of Compassionate Access on Telegraph -- which also 
was approved -- said he serves 7,000 patients and is expecting more. He 
plans to soon move to a larger location nearby.

"It was difficult to gauge what was important to the city when we were 
presenting ourselves. There wasn't a lot of transparency in the process," 
Rose said, adding that everyone was asked for the same information. "They 
should have extended the deadline, because a lot of clubs have a lot of 
employees and a holiday weekend isn't much notice."

The city inspected the clubs for code violations, checked for any 
complaints against them, and asked for information ranging from number of 
patients to products to prices.

In the end, according to a letter from the city's Administrative Hearing 
Officer Larry Carroll to Estes, the city seemed to put more stock on who 
had operated the longest. The three clubs issued permits in the "uptown" 
area had operated between two and five years, though the fourth club on 
West Grand is a relative newcomer.

The Lemon Drop Coffeeshop on Telegraph is one of the more established clubs 
in the area, nicknamed "Oaksterdam," but it did not receive a permit. Owner 
Mark Belote said the well-stocked coffee shop will continue to sell its 
mochas and pastries, gelatos and cakes, but stop pot sales.

"I want to do everything legally. I've always been honest with them, so 
we'll see what happens," he said. "I have an eight-year lease here, so the 
cafe will stay open."

Karry Carr of The Green Door dispensary on Webster Street said he fully 
expected to get a permit. The building met all code requirements and there 
were no complaints against the club. It opened last October with the 
blessing of the city, even stating it was a cannabis dispensary on its 
business license. The city renewed its license in February.

The Green Door is now seeking an injunction to stay open until it can get a 
court hearing. Its owners contend the application process was fraudulent.

Under the new rules, denial of permits cannot be appealed, Carroll said. 
The final determination was made by City Administrator Deborah Edgerly, who 
could not be reached for comment Tuesday.

As for those that continue to operate in violation, Carroll said, "the city 
is considering its options."

Carroll said he will send final warning letters and may give them a short 
grace period. However, he noted, "all of those operating without permits 
are outside of the city's low policing priority with regards to medical 
marijuana, so the police could take action."

The city will review the new rules in six months. Jeff Jones, director of 
the Oakland Cannabis Buyers' Cooperative -- which issues identification 
cards but does not dispense -- said he has been advising clubs to follow 
the rules.

"The city is our friend, and we are in this together. They are doing what 
they feel they need to do," Jones said. "I think the best practice is to 
close down quietly, and we'll spend the next six months lobbying to 
increase the limit."

E-mail Laura Counts at  ---
MAP posted-by: Jo-D