Pubdate: Thu, 26 Jul 2012
Source: Ventura County Reporter (CA)
Copyright: 2012 Southland Publishing, Inc.
Contact:  http://www.vcreporter.com/
Details: http://www.mapinc.org/media/2952
Author: Shane Cohn

MEDICAL MARIJUANA SOCIAL CLUB DENIED

Local Cooperative Files Complaint Against Ventura Regarding Business Permit

Going into its third year of operation, the Ojai-based Shangri La 
Care Cooperative Inc. has been mentoring and teaching members about 
growing marijuana, organic herbs and vegetables.

Members of the cooperative who "do not have the mobility or cannot 
grow their own fresh, organic food for the table and herbs for their 
health needs" have access to one another's crops, according to 
Shangri La's website.

Adhering to the state's legal medical marijuana programs under Prop. 
215 and SB420, "We've had no problem in Ojai operating as a private 
horticultural social club," said Jeff Kroll, who operates the 
private, nonprofit business.

But there are problems, now that the cooperative wants to expand its 
growing business and open a storefront in the city of Ventura.

Shangri La was denied a business license by the city and has filed a 
complaint with the Ventura County Superior Court about the city's 
"unwritten de facto ban on medical marijuana dispensaries."

The complaint states that the city's medical marijuana moratorium is 
unconstitutional, pre-empted by state law, and requests that the 
court issue a permanent injunction against the city, mandating that 
it issue a business license to Shangri La.

On Aug. 31, 2011, Kroll applied for a business license that 
identified Shangri La as a "horticultural social club" under the 
business description section. The complaint alleges that city staff 
inserted the words "medical marijuana dispensary" after it was 
learned that Shangri La would also be providing cannabis.

About two weeks later the city denied the business license 
application because "the request to open a medical marijuana 
dispensary does not appear to fall within any of the existing use 
types classified by the city's zoning ordinance."

But the downtown location on Figueroa Street, from which Shangri La 
intends to operate, is zoned for medical and retail services, and 
perfectly suits the cooperative's business, said Shangri La's 
attorney, James Devine of Leiderman Devine LLP.

The city said in the business license denial that there is an 
administrative remedy available under the zoning ordinance that the 
cooperative must pursue before its appeal. In other words, Devine 
said, Shangri La would have to have to apply for a conditional use 
permit to operate in that zone.

"It's not a conditional use," said Devine. "You (the city) already 
permit this use in the zone. That is where the dispute arises. That 
is the crux of the legal issue. . . . These are uses permitted in 
this building - medical, retail and social gathering."

Devine added that the CUP process can present unlimited expenses for 
the applicant.

"All the things that the city defines as activities that stem from 
being a horticultural social club are permitted in the zone, so why 
do they need to give the city money to do that?" said Devine.

Even if his client went through the entire CUP process, ultimately, 
based on the history of medical marijuana agenda items, it would be 
shot down by the City Council, Devine figured.

"I don't think this Council will ever approve one (dispensary)," said 
Councilwoman Christy Weir. "They're more trouble than they're worth. 
Santa Barbara discovered that."

The city of Santa Barbara adopted its medical marijuana dispensaries 
ordinance about two years ago, and a litany of legal issues has 
followed. Two months ago, federal agents working with local 
authorities raided the area dispensaries, successfully shutting them 
all down, or at least forcing them into clandestine operations.

Devine estimated there about 50 collectives operating in Ventura, and 
close to 150 in the county.

Since the Santa Barbara crackdown, Kroll said, he's received 
approximately 500 phone calls from upset Santa Barbara and Ventura 
residents inquiring about his cooperative.

But Weir insists this current Council won't budge on the issue.

"The feds have found the reason they're cracking down in California 
is because the dispensaries are being misused," said Weir. "True 
intent of a cooperative is not happening. It's illegal big business."

Even though Shangri La has 99 voting members and years of accurate 
bookkeeping, Devine said, he knows what he's up against with the 
current City Council, which is why he is willing to take the case to 
the California Supreme Court.

"The Council has no interest in following state law," said Devine. 
"They are more interested in protecting their own jobs, their 
self-interest and the people - the 4,500 people or so out of 100,000 
in this city who voted them in. I don't have belief or trust in City 
Council to review the Shangri La application unbiasedly or impartially."

When California passed Prop. 215 in 1996, legalizing medical 
marijuana for qualified patients, 51 percent of Ventura County 
residents voted in favor of the bill.

"It wasn't me that decided this lawsuit," said Kroll. "It was 
unanimous by our (Shangri La) voters. If an organization is going to 
stay in 100 percent compliance of law, and to work with local 
authorities, it's going to be us."

Since Shangri La does currently operate its business in Ojai, the 
cooperative is not suing for financial damages; only, said Kroll, 
"for an order directing the city's business license department to 
issue a business tax certificate for Shangri La to operate its 
horticultural social club." 
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MAP posted-by: Jay Bergstrom