Pubdate: Fri, 01 Apr 2016
Source: Fresno Bee, The (CA)
Copyright: 2016 The Fresno Bee
Contact:  http://www.fresnobee.com/
Details: http://www.mapinc.org/media/161
Note: Does not publish letters from outside their circulation area.
Author: Rory Appleton

COALINGA COUNCIL TO VOTE ON MEDICAL MARIJUANA CULTIVATION AT FORMER PRISON

Council Will Also Decide Whether to Add Medical Cannabis 
Dispensaries, Taxes to Ballot

Issues May Not Be Officially Voted on for Up to Six Months, City Attorney Says

Sides Discuss Medical Cannabis

After three hours of proposals and fierce debate, the Coalinga City 
Council directed its staff Wednesday evening to prepare an official 
ordinance to allow commercial medical marijuana cultivation at 
Claremont Custody Center.

The vote passed 4-1, with Councilman Ron Lander opposing.

The council also voted 4-1, with Councilman Steve Raine opposing, to 
ask the staff to draft a ballot measure that would let Coalinga 
voters decide whether to allow medical cannabis dispensaries within the city.

The council unanimously approved a measure to draft a ballot 
initiative that would allow the city to tax any of these operations, 
should they become legal.

Coalinga's path to medical marijuana dispensaries and cultivation 
initially appeared to be simple but has since grown murky.

In January, the Coalinga City Council voted unanimously to allow 
medical cannabis dispensaries, cultivation and deliveries. The 
council said the decision was primarily a financial one, but several 
members expressed an interest in helping local patients get access to 
medical marijuana. Most drive over an hour to the nearest legal 
dispensary in Goshen or buy it from people selling out of their homes or cars.

In February, more than 100 residents blasted the council's decision 
at its monthly meeting. Fresno County Sheriff Margaret Mims was 
joined by the local school and parks and recreation boards, as well 
as a smattering of local religious leaders and community members, in 
opposing the new ordinances. After fierce debate, the council backed 
off. It set up the March 30 workshop as a way to educate the 
community on medical marijuana, as well as allow for more discussion 
on the subject, before making a decision.

That didn't stop the city from further weighing its options, however.

Mayor Ron Ramsay and City Manager Marissa Trejo fielded the proposal 
from Southern California-based Ocean Grown Extracts to cultivate 
medical marijuana at the former prison, which would bring in at least 
55 jobs in the first year.

The council appeared to be in favor of the proposal and invited 
company President Casey Dalton-Schutt back to Coalinga to negotiate a 
deal and promote the plan to residents at Wednesday's workshop.

About 75 people crowded into Coalinga City Hall on Wednesday night to 
hear about these issues and others surrounding medical marijuana. The 
night began with two scheduled presentations.

HdL Companies official David McPherson addressed the council. HdL 
specializes in auditing and offering financial advice to around 160 
cities in California  including Coalinga.

McPherson read from a long list of credentials, including being the 
first city administrator in America to tax and regulate medical 
marijuana while working with the city of Oakland.

He advised the council on how to write the language of any potential 
medical marijuana ordinances. These included using a square footage 
tax for cultivation operations and a gross receipt tax on 
dispensaries, which allow for maximum revenue.

McPherson also dropped a bombshell on the meeting.

When asked about possible revenues, McPherson was cagey about 
providing raw numbers.

Lander asked him about Adelanto, a city in San Bernardino County that 
recently allowed commercial cultivation.

"I read in the Orange County Register that they (Adelanto) currently 
have six cultivations moving forward," Lander said.

"Twenty-six," McPherson interjected. His company also represents Adelanto.

"I've heard the revenue would be more than their general fund," 
Councilman Nathan Vosburg said.

"That's about right," McPherson said, causing a gasp from several 
councilmen and about half of the audience.

McPherson also discussed a sticky issue surrounding medical marijuana 
- - cash handling. Because such operations are illegal under federal 
law, some believe that cultivations and dispensaries cannot use 
federally regulated banks.

"This is the question I've been asked about most in the last six 
years," he said. "Cash is a problem  I've known that ever since a 
cultivator gave me a million dollars in a backpack once."

He said that some banks have gotten around this by certifying 
individual operations to bank with them.

Dalton-Schutt jumped in next.

"We won't be showing up with backpacks full of cash," she said, 
drawing a laugh from the crowd. "We write checks."

Dalton-Schutt then gave a presentation outlining the specifics of her plan.

She stressed that Ocean Grown deals only in manufacturing a product.

"We are not in business with dispensaries or doctors," Dalton-Schutt said.

She explained that every seed they plant has a bar code on it that is 
tracked throughout cultivation, manufacture and delivery. The 
packages sent out are locked and can only be opened by the receiving 
dispensary not the delivery driver or other employees.

Dalton-Schutt said that Ocean Grown plans to purchase Claremont and 
would assume full liability for any problems with federal officials. 
Should it be raided  which she and McPherson believe to be extremely 
unlikely  the city would not incur a financial loss.

She added that Claremont was an ideal location. Many security 
measures - razor-wire fences, gates, security checkpoints, 
surveillance - are already in place. Coalinga itself is right off 
Interstate 5 and centrally located between San Francisco and Los 
Angeles, she said.

Dalton-Schutt said that if the city allows cultivation and moves 
forward with the Claremont sale, she could be up and running within 
nine months.

Coalinga police Chief Michael Salvador, who prepared a lengthy report 
opposing the medical cannabis measures in January, appeared to have 
had a slight change of heart.

"My mission is to keep the citizens safe, and I believe I can do that 
if the council moves forward with Ocean Grown," Salvador said.

Salvador said early meetings with Ocean Grown have gone well.

"Over the last 90 days, I've gotten my AA in medical marijuana," he 
said, drawing a laugh from the crowd. "And I am working on my bachelor's."

Mims, who failed to convince the Fresno County Board of Supervisors 
to take immediate action against the Coalinga ordinances, spoke at 
the workshop in opposition to the plan.

"If it sounds too good to be true, it probably is," she said. "I urge 
you to fact-check everything you've heard. These are salesmen, and 
what you've heard tonight was a sales pitch."

Mims told the council that the city's faith-based organizations 
remain opposed to the measures. She left before the votes took place.

A representative for the Coalinga-Huron Unified School District also 
reaffirmed the board's opposition to all medical marijuana.

Mary Raine, wife of the councilman, addressed the crowd after Mims.

"There are members of my family for whom medical marijuana has been a 
lifesaver," she said. "I've been fact-checking and reading everything 
my husband does. I'm a member of the faith community, and I am 
recommending this."

Coalinga City Attorney David Wolfe said the measures approved 
Wednesday could take as long as six months to draft. However, 
negotiations with Ocean Grown will continue without an ordinance in place.
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MAP posted-by: Jay Bergstrom