Pubdate: Mon, 28 Jun 2010
Source: Providence Journal, The (RI)
Copyright: 2010 The Providence Journal Company
Contact:  http://www.projo.com/
Details: http://www.mapinc.org/media/352
Author: W. Zachary Malinowski
Bookmark: http://www.mapinc.org/topic/dispensaries
Bookmark: http://www.mapinc.org/find?253 (Cannabis - Medicinal - U.S.)

STORE IN PROVIDENCE WOULD GROW, PACKAGE AND SELL MEDICAL MARIJUANA

PROVIDENCE, R.I. -- The old warehouse complex in the Valley 
neighborhood has been many things to many people over the past 150 
years. It was once home to the James Hanley Brewing Co., and Harry 
Houdini, the renowned escape artist, paid a visit and successfully 
broke free from a locked beer cask.

In recent years, the fortress-like site has served as the Capitol 
Records Center, a storage facility for reams of archived state documents.

Now, the two vacant buildings at 431 Harris Ave. may soon take on a 
new historic significance: A group of investors is contending to turn 
it into the state's first medical marijuana store. They would name it 
the Thomas C. Slater Compassion Center, after the late Providence 
state representative who championed the legalization of medical 
marijuana, to grow and applicants interested in operating a 
compassion center in Rhode Island under rules developed by the 
Department of Health. There are applications for other centers in 
Providence as well as for marijuana retail sites in Pawtucket, 
Portsmouth, the Warwick/Cranston area and northern Rhode Island. 
Several applicants have yet to secure an exact location while one did 
not respond to a request seeking a tour of its proposed facility. 
Another declined the offer, while Slater officials agreed to meet 
with a Journal reporter and photographer.

On Tuesday, the Health Department, which solicited the compassion 
center proposals, has scheduled a hearing in the Cannon Building, 3 
Capitol Hill, Room 104, for the public to air its concerns or support 
for the various proposals.

The hearing begins at 10 a.m. Key issues are expected to be the 
location and the proposed security measures for the centers.

The Health Department plans to select up to three applicants by Aug. 1.

If the Slater Compassion Center is chosen, Gerald J. McGraw Jr., the 
investor group's president, and Chris Reilly, the group's spokesman, 
said that, by November, they can transform the 75,000-square-foot 
center into a thriving all-service marijuana outlet.

"We will be a good corporate citizen, and we will contribute jobs to 
the economy," Reilly said.

McGraw said that the center would train and hire up to 75 employees 
for security, cultivation, storage, sales and a variety of other 
services that the center would offer such as yoga, Reiki and hypnotherapy.

Only licensed medical marijuana users, who must be at least 18 years 
old, would be allowed on the grounds, and they would be the only ones 
who could take advantage of the other programs.

A business plan filed with the Health Department, part of the 
application process for all prospective operators, projects that the 
Slater Center's revenues will top $510,000 this year, and that those 
numbers are expected to grow nearly sixfold to $2.9 million by 2012.

Plans for the Slater Center are modeled after the Harborside Health 
Center, a well-established medical marijuana business in northern 
California with 46,000 registered patients and offices in Oakland and 
San Jose. McGraw has hired Harborside's parent company, CannBe, and 
several of its top officials to help his team launch the marijuana 
center in Rhode Island.

Medical marijuana has become a big business in the West. There are 
more than 200,000 licensed medical marijuana users in California and 
more than 80,000 in Colorado. Since last fall, the number of 
dispensaries selling marijuana in Colorado has surged from 70 to more 
than 1,100.

Both states also have imposed a sales tax on the drug. Rhode Island, 
one of only six states that have approved medical marijuana 
dispensaries, along with the District of Columbia, has yet to 
consider such a proposal for the 1,800 patients registered under the 
burgeoning program.

About 25 new patients a month are getting medical marijuana licenses 
from the Health Department to deal with medical conditions that have 
been reviewed by physicians. Rhode Island has had a medical marijuana 
program since 2006.

Thomas M. Underhill, a retired state police lieutenant and a vice 
president at APG Security in Cranston, would be in charge of a 
sophisticated security system at the Slater Center.

Licensed patients would enter the grounds of the center by passing 
through a security gate on Harris Avenue. Once inside, valet service 
would be available for the infirm, and the patients would go to a 
4,000-square-foot. satellite building that would serve as the 
compassion center. There, customers would be able to buy various 
strains of marijuana at prices ranging from $25 to $51 for an eighth 
of an ounce.

An ounce would cost anywhere from $450 to $550.

Under state law, a patient cannot be sold more than 2.5 ounces of 
marijuana during a 15-day period.

Among the possible strains that would be grown and sold at the Slater 
Center are Strawberry Cough, New York City Diesel, Chem Dawg and Mr. 
Nice. The various strains are designed to provide relief for a 
variety of maladies including chronic pain, muscle spasms, nausea, 
mood disorders and anxiety.

The center may sell up to 25 different strains in the on-site store 
that would feature glass and wood cases similar to those a customer 
might find at a jewelry store. Slater officials said that state law 
prohibits customers from smoking the marijuana on the grounds of a 
compassion center.

The larger, adjacent warehouse is where the marijuana would be grown, 
packaged and stored. McGraw, the center's president, said the product 
in the store would be moved to the warehouse each night.

The compassion center would be open for business 7 days a week from 
10 a.m. to 7 p.m.

The warehouse would be the primary hub of activity. On the second 
floor, there are two expansive rooms that would be used to grow the 
marijuana. It is unclear how many customers the Slater Center would 
serve, but McGraw is hoping for about 600 to start.

The more customers that choose to buy marijuana from a center, the 
more marijuana its operators would be allowed to grow. As of last 
week, there were 1,790 licensed patients in the state's medical 
marijuana program. They may now get their marijuana only from among 
the state's more than 1,300 licensed individual growers.

Once the first compassion center opens, licensed patients would have 
the option of going there or continuing to deal with individual growers.

McGraw, who runs J&J Electric, in Warwick, said that he has a 
purchase and sale agreement in hand to buy the warehouse complex, 
provided that the state grants his group a license to open.

[sidebar]

KEY POINTS

Marijuana Across the U.S.

States with operating medical marijuana dispensaries: California, 
Colorado, New Mexico.

States that have approved the opening of dispensaries: Rhode Island, 
Maine and New Jersey, and the District of Columbia.
- ---
MAP posted-by: Richard Lake