Pubdate: Fri, 03 Jan 2014
Source: Oklahoman, The (OK)
Copyright: 2014 The Oklahoma Publishing Co.
Contact: http://www.newsok.com/voices/guidelines
Website: http://newsok.com/
Details: http://www.mapinc.org/media/318
Author: Megan Schrader, The Gazette (Colorado Springs, Colo.)

COLORADO POT STORES STRUGGLE TO MEET CUSTOMERS' DEMAND

DENVER - 3D Cannabis Center owner Toni Fox thought she had enough
marijuana to last through February when she opened her doors Jan. 1
for recreational pot sales.

Now she will close Monday and Tuesday she said, to re-evaluate her
supply.

She served 450 customers Jan. 1 and turned away 60. She had been
serving 25 clients a day for the past three years while her store was
restricted to medical marijuana sales, she said.

"We are going to run out," she said midday Thursday, the second day of
legal marijuana sales for recreational use. "It's insane. This weekend
will be just as crazy. If there is a mad rush, we'll be out by Monday."

Fox has a harvest ready to be trimmed, she said. And she will hire
temporary staffers from Hemp Temps, a Denver-based staffing company
that specializes in growing, trimming and bud-tending.

But she guessed the supply shortage is the same story at all of
Denver's 18 stores and Pueblo's two stores that opened this week with
long lines of customers - more than half from out of the state -
waiting one or two hours to make history by ending marijuana
prohibition in the state.

Now, she said, marijuana store owners will all be scrambling to find
wholesale distributors, especially on marijuana-infused products like
edibles and beverages. But, she's not complaining.

"It's awesome, she said. "I wish more stores could have
opened."

News of people traveling across state lines to purchase pot forced the
Wyoming Highway Patrol to issue a release with a stern warning: "Don't
bring your Colorado-purchased marijuana into Wyoming."

The release reminded readers that possession of one ounce or less
carries a punishment of 12-months imprisonment and a $1,000 fine.

Growing industry

The National Cannabis Industry Association is projecting $400 million
in sales in 2014. But not all municipalities are jumping on the bandwagon.

There is no telling how much Colorado Springs is losing in sales tax
revenue from pot sales for recreational use, said Tom Binnings, an
economist with Springs-based Summit Economics.

The Colorado Springs City Council voted 5-4 in July to opt out of
sales despite the city's voters approving Amendment 64, the state law
that allows municipalities to regulate recreational marijuana sales.
Under Amendment 64, people 21 and older can possess up to an ounce of
pot. And last legislative session, lawmakers hammered out the details
of marijuana regulation that covered everything from packaging and
labeling to background checks for business owners and a complex
licensing process.

"It's a challenge for an economist to study any new market that has
not existed before," Binnings said. "It's a wonderful market
experiment. It will provide interesting data for researchers in the
future to look at what happens when a market that is illegal and
becomes legal."

Colorado Springs City Council member Val Snider said he might
reconsider his "no" vote on retail sales once he sees the long-term
effects of recreational marijuana sales. Snider was the surprise swing
vote that denied sales in the Springs.

"We have not had a chance to see how it might affect law enforcement
and drug counseling or rehab," Snider said. "Once we get more data
from Denver and Pueblo County that have gotten a chance to assess it,
then yes, let's re-look at this as a city."

Mark Slaugh, owner of iComply, which helps marijuana store owners stay
in compliance with state regulations, said Colorado Springs is missing
a great moneymaking opportunity.

Denver store owners estimated that at least 50 percent of Wednesday's
sales went to out-of-state buyers. Those are the precious tourism
dollars Colorado Springs is pining for, he said.

Colorado Springs has about 80 medical marijuana dispensaries, and in
2012 the city collected $989,351 in sales and use tax on medical
marijuana - about a 40 percent increase over 2011.

Slaugh estimated demand for recreational pot would be 3 to 4 times
that of medical marijuana.

But considering the lines Wednesday at the Denver and Pueblo stores,
demand could be 5 times as much, he said.

Council member Jill Gaebler, who favors recreational marijuana sales,
said the council should put the issue on the ballot.

"That would be the right thing to do at this point," she
said.

Other cities

Manitou Springs Mayor Marc Snyder said the Manitou City Council is
paying close attention to Denver and Pueblo. The council will get its
first glimpse of a proposed ordinance Jan. 7, the day two new council
members who favor retail marijuana sales in Manitou will be sworn in.
The city could be ready to accept applications Jan. 26, Snyder said.

The council will use its "conditional use permit" process, which will
allow more control over the store operations, Snyder said. The first
store could be open by spring.

"If they are not compliant with any of the conditions, we bring them
right in for an immediate hearing and say, 'what's going on?' " Snyder
said.

Early estimates predict Manitou Springs could see about $169,000 in
sales tax collections during the first year.

Two retail stores would be allowed in Manitou, but outside of the
historic downtown area.

Maggie's Farm, which was approved by Manitou Springs City Council for
a medical marijuana store in October, will have first dibs at a retail
permit. Maggie's general manager Gary Kring said he saw the long lines
of people waiting at the Denver stores and didn't really think about
the money his store would make in Manitou Springs.

"What went through my mind is 'wow, we really are a part of making
history,' " he said.

Snyder said he worries about a run on Manitou Springs if it's the only
city in El Paso and Teller counties to allow retail sales.

"I'm glad we are not in this first wave," he said. "I really want to
see what the fallout is, if any."  
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MAP posted-by: Jo-D