Pubdate: Wed, 29 Jul 2015
Source: Arizona Republic (Phoenix, AZ)
Copyright: 2015 The Arizona Republic
Contact: http://www.azcentral.com/arizonarepublic/opinions/sendaletter.html
Website: http://www.azcentral.com/arizonarepublic/
Details: http://www.mapinc.org/media/24
Author: Parker Leavitt

ROOM FOR GROWTH IN SCOTTSDALE

Three Medical-Marijuana Companies Hope to Tap into City's Wealth of Patients

Three medical-marijuana companies are eyeing the Scottsdale Airpark 
for new dispensary locations as they look to tap into one of 
Arizona's highest concentrations of patients authorized to use the drug.

Two proposed dispensaries are on the south side of the airport's 
runways, while a third is planned near the Scottsdale Quarter office 
and shopping complex, according to city records. The latter has 
already been approved for a permit, while a City Council vote is 
likely coming for the others.

Nearly five years have passed since Arizona voters legalized using 
marijuana for medical conditions like cancer, seizures and chronic 
pain, and the program continues to grow steadily.

When Scottsdale's first marijuana dispensary opened in 2013 near Via 
de Ventura and Pima Road, there were about 1,700 authorized patients 
in the city. Two years later, that has grown to nearly 3,600, 
according to the Arizona Department of Health Services.

Scottsdale's two Community Health Analysis Areas (CHAAs) - created by 
the state to track the medical-marijuana program - are both among the 
state's top 10 for the number of active patients.

Voters approved a statewide medical-marijuana program in November 
2010, and the state began awarding dispensary licenses in 2012. In 
addition to state approval, dispensaries must comply with local 
zoning codes, which can regulate operation hours and enforce 
separation requirements from residential neighborhoods and schools.

Scottsdale requires would-be dispensary operators to apply for a 
conditional-use permit, and they can only be approved for office, 
industrial and medical campus zoning districts, city planner Greg 
Bloemberg said.

The Scottsdale City Council on July 1 awarded a permit for Green Sky 
Patient Center, which could become the city's second operating 
dispensary. The company had filed plans to open a 2,700square-foot 
facility at 7320 E. Butherus Dr., near Scottsdale Quarter.

On the other side of the airport, Pure Bliss Premium Medibles wants 
to expand its infusion bakery with a 1,500square-foot retail 
dispensary at 7655 E. Evans Road. The company also grows marijuana at 
the site in an industrial park away from major retail areas.

The Scottsdale City Council initially rejected a permit for the Pure 
Bliss kitchen in November 2013, before changing its mind two months 
later. The kitchen is closed to the public and sells to other 
dispensaries in the state. A new permit for the retail dispensary 
would allow Pure Bliss to sell directly to patients.

Marijuana "edibles" have evolved far beyond the stereotypical "pot 
brownies." An infusion kitchen in Tucson, for example, offers an 
extensive menu with juices, hot sauce, cookies, popcorn and chocolate 
bars. Pure Bliss did not respond to requests for more information on 
the company's Scottsdale plans.

A third company, called Scottsdale Dispensary, has applied to move 
its existing dispensary from Mayer - a community of 1,400 people near 
Prescott - into the Scottsdale Airpark as well.

Although state regulations initially only allowed one marijuana 
dispensary per CHAA district, the rules also permit a company to move 
locations after three years, Phoenix attorney Richard Keyt said. That 
could lead to multiple dispensaries operating in the same district, he said.

The proposed Scottsdale Dispensary has held a state certificate for 
the Mayer area since 2012 but could move as soon as August, according 
to city documents. The company plans to operate at14980 N. 78th Way, 
near Gateway Scottsdale Church in the Airpark.

Both companies' plans are still subject to review by Scottsdale's 
Planning Commission and approval from the City Council.

Statewide, there are now more than 76,000 active card-holders who can 
use medical marijuana, according the DHS. About two-thirds are men, 
and about a quarter of them are 18 to 30 years old.

The most common medical condition among patients is chronic pain, 
with about three-quarters citing that as their sole condition, 
according to DHS. Cancer was second with about 2.7 percent, followed 
by hepatitis C.

Keyt, who has done legal work for more than 10 dispensaries, said the 
medical-marijuana industry faces serious challenges but is likely to 
continue growing.

While several other states have legalized marijuana either for 
medical or recreational use, the federal government still considers 
it illegal. That creates problems in banking and taxes that could put 
some dispensaries out of business, Keyt said.

Dispensaries are not allowed to open bank accounts and therefore must 
operate as cash businesses, which can be problematic, Keyt said. 
There's also a section of tax code that could preclude them from 
taking business-related deductions, he said.

Additionally, the state does not publish a list of licensed 
dispensaries, but rather considers it confidential information based 
on the voter-approved law, Keyt said. As a result, some have 
misrepresented themselves in court and before city boards as valid 
dispensary operators even though they don't have the license, he said.

"It would be wonderful for the public if DHS would not only publish a 
list of licensed dispensaries but maybe have a system to allow people 
to file complaints," Keyt said.

For the most part, those running the industry tend to be honest and 
hardworking, Keyt said.

"They usually have a serious belief that medical marjiuana can help 
people who have certain problems," Keyt said. "I've had doctors tell 
me that. These people have invested a lot of money ... they're 
serious about trying to do the right thing."

[sidebar]

Medical-marijuana patients around the Valley

These 10 "Community Health Analysis Areas" designated by the Arizona 
Department of Health Services have the highest number of 
medical-marijuana patients in the state, according to a June report.

1. Paradise Valley Village, Phoenix: 2,348 patients

2. North Mountain, Phoenix: 2,095 patients

3. Deer Valley, Phoenix: 2,059 patients

4. Camelback East: 1,915 patients

5. North Scottsdale: 1,904 patients

6. Chandler SE: 1,885 patients

7. Peoria: 1,776 patients

8. East Gilbert: 1,705 patients

9. South Scottsdale: 1,682 patients

10. East Mesa: 1633 patients
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MAP posted-by: Jay Bergstrom