Boulder considers medical marijuana regulations

Boulder had just seven medical marijuana-based businesses at the end of August.

At the end of October, the city had granted business licenses to another 30, and just within the last week, it had received another 15 applications.

In the face of an apparent green rush, the Boulder City Council on Tuesday will consider whether to adopt a moratorium on new cannabis-related businesses and whether and how to further regulate dispensaries and related businesses.

The Planning Board on Thursday recommended not imposing a moratorium and instead using some interim regulations to prevent problems until permanent regulations can be adopted.

Those interim regulations include not locating a marijuana-based business within 1,000 feet of a school, not opening more than three dispensaries within 1,000 feet of each other and restricting marijuana-based businesses in residential areas.

Officials have not shown support for an outright ban on dispensaries, like Broomfield, Superior and other Colorado towns have done, but there have been worries about everything from safety at dispensaries and over-saturation in areas like University Hill to the amount of electricity needed for large grow operations.

The businesses range from straight retail operations where customers walk in, buy pot and leave, to wellness centers that offer a range of services like massage and meditation. There are also three growing operations licensed as greenhouses or nurseries.

Dozens of would-be dispensary owners have inquired about opening shop near the University of Colorado campus, prompting the University Hill Commercial Area Management Commission to send a letter to the city asking for intervention.

"When you see that sort of velocity in that sort of industry, it's worth taking a look at why that is," said William Shrum, manager of Shipping on the Hill and a member of the commission.

Shrum stressed that he does not oppose the medical use of marijuana and doesn't object to having dispensaries on the Hill. But he does think having too much of one kind of business would be bad for the economic environment. And because dispensaries are so profitable, dispensaries can afford to pay above-market rents, potentially raising rents for everyone, Shrum said.

The high level of interest in locations close to CU also raises questions about whether all of the use is medical, he said.

Councilman Macon Cowles raised environmental concerns about having too many dispensaries and grow operations in Boulder in an e-mail to the city's Hotline, a public e-mail group between City Council members and city staff. He asked whether the amount of electricity used in grow operations might make it more difficult for the city to meet its Climate Action Plan goals and whether it might become harder to buy locally produced food if crop land is converted to medical marijuana production.

He also solicited testimony from business groups about how medical marijuana might affect the economic climate in Boulder -- from commercial rents to tourism.

Reached by phone, Cowles said he doesn't think it's appropriate to talk about the matter publicly before Tuesday's meeting.

Councilman Ken Wilson, who lives on University Hill, said he has concerns about where dispensaries are getting their marijuana from.

"How are they getting a legal supply?" he asked. "I'm not saying it's legal or illegal. I don't know. But it's not clear whether people have the right to grow for dispensaries, and that might have implications for the neighborhood."

Despite his concerns, Wilson said he thought the Planning Board's recommendations sound reasonable.

Dispensary owner Ryan Hartman, of Boulder Wellness Center on Arapahoe Avenue, said regulations should focus on protecting patients by making sure scales are accurate and basic health standards -- like not sealing joints with saliva -- are met. He said worries about safety and underage buyers are unfounded

"No one has ever come in with a fake ID," he said. "We've had one known robbery of a dispensary in Boulder, while I've read about dozens of bank robberies, liquor store heists and gas station hold-ups."

He said he would like to see regulations for growing operations so he can be sure the marijuana he buys is from legal grows dedicated to medical use and that it comes from Colorado.

Hartman said he was impressed with the interest and care the Planning Board brought to the discussion and hopes the City Council takes a similar approach.

While a majority of City Council members have expressed support for some regulations around dispensaries and related businesses, both Cowles, in an e-mail, and Wilson said they aren't sure a moratorium is necessary while the city studies the issue.

And Community Planning Director David Driskell said city planners' recommendations will echo those of the Planning Board, including backing off a proposed moratorium.

Laura Kriho of the Boulder-based advocacy group Cannabis Therapy Institute said that will be in the best interests of patients and the city of Boulder.

"What a moratorium would do is freeze the current situation in place and protect some of the bad actors who would be weeded out by market forces," she said.

Contact Camera Staff Writer Erica Meltzer at 303-473-1355 or meltzere@dailycamera.com.