Pubdate: Thu, 03 Dec 2015 Source: San Diego Union Tribune (CA) Copyright: 2015 Union-Tribune Publishing Co. Contact: http://www.utsandiego.com/ Details: http://www.mapinc.org/media/386 Note: Seldom prints LTEs from outside it's circulation area. Author: Joshua Stewart MED POT SHOP HIT WITH $1.8M FINE SAN DIEGO - A Pacific Beach medical marijuana dispensary has been hit with a $1.8 million penalty for operating outside of San Diego's zoning regulations, incurring by far the largest fine against a dispensary in city history. That more than doubles the total amount of dispensary-related judgments the city has collected to date. On Nov. 20, Superior Court Judge Timothy Taylor ruled against SoCal Holistic Health Inc. and the company's president, Ryan Murphy. Besides the $1.835 million penalty for operating illegally, Taylor also issued a permanent injunction against the dispensary and its president, prohibiting them from having a dispensary anywhere within city limits. "The judges are sending a message, and so are we: Marijuana dispensaries can either follow the law or they will pay a high price for their actions," City Attorney Jan Goldsmith said in a statement Wednesday. The dispensary will also have to reimburse the city's code enforcement division $1,065 in investigation costs and pay a currently undetermined amount of litigation costs. A spokesman for the City Attorney's Office said the dispensary waived its right to appeal. Messages to SoCal Holistic Health's lawyers were not returned, and Murphy did not return a phone message left with a clerk at the Pacific Beach store at 1150 Garnet Ave. On social media, the dispensary was promoting deliveries of medical marijuana vaporizer cartridges that just arrived to the store's stock. Penalties like this send a message to dispensaries that the city will work with some businesses, but it wants regulations and permitting processes followed, said Chris Boudreau, a board member for the Alliance for Responsible Medicinal Access, a cannabis businesses trade association. But because of the lengthy permitting process to open a medical marijuana dispensary, and frustration with the way the city has handled the industry in the past, this case is unlikely to change the city's medical marijuana landscape, Boudreau said. "The city definitely sends a fearful message with this win, but when looking at the atmosphere over the past few years, I don't know if this is really going to change the perspective of those rogue operators who feel they should proceed with a clandestine operation behind the city's back," he said. Police Chief Shelley Zimmerman said the penalty shows that cooperation between law enforcement and the city's lawyers can effectively control dispensaries that don't follow regulations. "This illustrates why San Diego's method for closing illegal marijuana dispensaries has proven so successful," Zimmerman said in a statement. The penalty against SoCal Holistic Health comes as the city's medical marijuana industry shifts from dispensaries that skirted regulations and faced government crackdowns, to ones that meet a long list of conditions and satisfy various legal requirements before they're awarded a city permit and can open their doors as legitimate businesses. Last year the City Council passed an ordinance authorizing as many as 36 dispensaries in San Diego, with no more than four in each of the nine council districts. Land-use regulations limit dispensaries to commercial and industrial zones and require at least 1,000 feet between any two dispensaries, as well as between dispensaries and schools, playgrounds, libraries, childcare facilities and youth centers, parks and churches. The law also requires dispensary owners to get conditional use permits and pay fees ranging from $8,000 to $24,000. The permits are good for five years. So far, three dispensaries have opened with the city's blessings. The most recent, Southwest Patient Group, opened in November in San Ysidro, and follows permitted dispensaries that opened in Otay Mesa and the Midway District in March and August, respectively. Others have received permits and are expected to open soon. "Every business has to comply with zoning laws." Goldsmith said. "You can't open a dog kennel or a dry cleaner anywhere you like, and neither can you open a marijuana dispensary in neighborhoods where city zoning laws forbid them. My office will continue to close these illegal dispensaries and see that their operators face stiff consequences." A total of 290 illegal dispensaries have been closed through enforcement action since September 2011, the City Attorney's Office said. All of these came to the office's attention through citizen complaints to the Development Services Department's Code Enforcement Division, and other illegal dispensaries are believed to be scattered around San Diego. The City Attorney's Office is trying to close them as well, spokesman Gerry Braun said. The city attorney first took action against SoCal Holistic Health in December 2014, and the business was ordered closed in February. Despite this, it remained open. Before this case, the biggest penalty was against John Nobel, a landlord who leased properties to illegal dispensaries. In December 2014, he agreed to pay a $250,000 fine. The City Attorney's Office said it estimates the city has been awarded $3.5 million in judgments. The money goes toward city code enforcement efforts. - --- MAP posted-by: Jay Bergstrom