<\/p>\n
A former Department of Homeland Security law enforcement officer warns the black market for marijuana could explode locally if Cortez fails to regulate recreational sales.<\/p>\n
\u201cThe cartels are not going to go anywhere where there\u2019s a ton of recreational weed floating around,\u201d said Garrett Smith, who served as a federal law enforcement officer for five years.<\/p>\n
\u201cIf the city doesn\u2019t regulate retail marijuana, then the black market will expand,\u201d he said. \u201cThe cartels will target this area. That\u2019s not good for the kids. That\u2019s not good for the community.\u201d<\/p>\n
The City Council will consider Ordinance No. 1192, Series 2014, at its regular meeting on Tuesday, Aug. 12. Held at City Hall, the meeting starts at 7:30 p.m. If adopted, the 17-page draft ordinance would allow licensed recreational marijuana sales.<\/p>\n
If the measure fails, Smith said it would not keep marijuana out of the city.<\/p>\n
\u201cMarijuana is already here,\u201d said Smith. \u201cMore regulation would be better than less regulation or no regulation.\u201d<\/p>\n
City Manager Shane Hale explained a public hearing was not officially listed as an agenda item when the ordinance was presented to city leaders on Tuesday, but he said the city would accept public comments. He added officials wanted to hear from residents on the issue, so they could make the best possible decision.<\/p>\n
\u201cThe City Council will take any testimony from anyone who wants to speak,\u201d said Hale.<\/p>\n
A public hearing is set for Aug. 26.<\/p>\n
Today, Smith owns and operates The Herbal Alternative, a medical marijuana business on Lebanon Road. He was praised when approved as a medical marijuana purveyor by a Colorado Marijuana Enforcement Division investigator in 2012.<\/p>\n
\u201c(Garrett Smith) clearly represents the type of quality operator we are looking for in this new industry,\u201d wrote state investigator James Nash.<\/p>\n
With the state\u2019s accolade, Smith said he was frustrated that city officials failed to seek advice or opinions from either state regulators or industry professionals like him when drafting its retail marijuana ordinance.<\/p>\n
\u201cIt drives me crazy,\u201d he said.<\/p>\n
Smith said he approached municipal leaders on numerous occasions requesting to address the city council. Without expert input, Smith claimed the city has approached the retail marijuana issue with a \u201clack of knowledge and understanding.\u201d<\/p>\n
\u201cI wish the industry leaders would have been included in the city\u2019s conversations,\u201d said Smith. \u201cWe could have helped set to rest a lot of their concerns.\u201d<\/p>\n
The city\u2019s proposed recreational marijuana ordinance would prohibit manufacturing of hash oil within city limits. Smith said he didn\u2019t oppose the ban, but added extracting THC to produce hash oil was not the same as infusing THC to manufacture a brownie, for example.<\/p>\n
\u201cThe extraction process is the dangerous aspect,\u201d said Smith. \u201cIt requires a civil engineered designed laboratory. The infusion process is not dangerous. It only requires a commercial grade kitchen.\u201d<\/p>\n
According to a memo from City Attorney Mike Green, seven regulatory changes have been proposed since city leaders were first presented with the ordinance last month, including a ban on manufacturing marijuana products.<\/p>\n
\u201cThe city will not issue approval for retail marijuana products manufacturing licenses,\u201d Green wrote. \u201cThere will only be three classes of state licenses allowed; retail marijuana store, retail marijuana cultivation facility and retail marijuana testing facility.\u201d<\/p>\n
Smith said he was disappointed to learn that the city was considering a ban on manufacturing marijuana-infused products. He is licensed by the city to produce medical marijuana infused products.<\/p>\n
\u201cWhether you manufacture infused products for medical or retail, the process is the same,\u201d he said.<\/p>\n
According to his analysis of Green\u2019s memo, Smith said the ban would essentially prohibit local gangapreneurs from producing medical or retail marijuana products such as brownies, cookies and lotions.<\/p>\n
\u201cThere\u2019s a lot of consumer demand for these type of products,\u201d Smith said. \u201cWe could easily see our revenues double, probably more.\u201d<\/p>\n
Last month, The Herbal Alternative launched a construction project to double the footprint of its medical marijuana dispensary in order to help meet growing customer needs. The company\u2019s sales have grown by 300 percent over the past two years, said Smith.<\/p>\n
The city council will also consider a $7,000 fee simply to apply for a retail marijuana license from the city. According to Hale, staff recommended the increased fee to cover costs associated with building, police and fire inspections. The current medical marijuana-licensing fee is $1,000.<\/p>\n
\u201cTo increase the fee seven times just to sell to a different market is excessive,\u201d said Smith.<\/p>\n
The Herbal Alternative employs 11 people, all making at least $12 per hour, according to Smith. All potential employees must pass a 10-year federal background check.<\/p>\n