One week after opening near the busiest intersection in downtown
Hollister, a medical marijuana dispensary is preparing for a legal
battle with officials who claim Purple Cross Rx is operating in
violation of zoning codes.
One week after opening near the busiest intersection in downtown Hollister, a medical marijuana dispensary is preparing for a legal battle with Hollister officials who claim Purple Cross Rx is operating in violation of zoning codes.
From the perspective of the dispensary’s director, Hollister resident Scott McPhail, the nonprofit is a vital caregiver that provides a service permitted by the state. It is located between Third and Fourth streets at 335 San Benito Street, two floors above The Ink Shop tattoo parlor.
City officials, however, said earlier this week they planned to serve both McPhail and his landlord, Greg Dolan, with an order to shut down the dispensary within 30 days or face penalties potentially including $1,000-per-day fines.
The city, said Code Enforcement Director Mike Chambless, believes a pot dispensary is not an approved use in the commercially-zoned district. McPhail and his lawyer contend nonprofits such as Purple Cross are permitted in the area.
“Once a property goes into non-compliance, no permits or licenses can be issued at that property,” said Chambless, indicating that other businesses in the building, ranging from a hair salon to real estate companies, could not renew their business licenses when they expire once the order is issued to the property owner.
“We are zoned for this,” countered McPhail. “Nonprofits belong in commercial zones.”
McPhail said he has been “active in the movement” to support the doctor-approved distribution of medical marijuana, though his idea to open a dispensary came just within the past two months.
“The idea came about when [President Barack] Obama told attorney generals to leave medical dispensaries alone. He told the DEA and the Feds not to waste our money on them and go after the cartels,” McPhail said. “What was holding this movement back was the fear of federal prosecution.”
Since the president’s order, medical marijuana dispensaries have sprung up around the Central Coast, including in Gilroy, with others already opened or in the works.
“This battle has played out elsewhere, and the dispensaries have always prevailed. If the president says it’s all right [for dispensaries to operate], what gives the mayor the right to say they can’t?” McPhail said, referring to Hollister Mayor Victor Gomez, who opposes Purple Cross Rx operating in the city.
Gomez, a Papa Murphy’s franchise owner, said the city has explained to McPhail that he is in violation of city code because it forbids anything that is counter to federal law. In this case, the sale of marijuana, even for medical purposes, is also against city code. However, Gomez acknowledges that the legalities may not be cleared up until a decision is made on a pending state appeals court case in Southern California considering whether cities and counties can prohibit medical marijuana dispensaries.
“I’m not at this time comfortable with expending the taxpayers’ money when it comes to going after these guys in court mainly because of that situation that’s going on down in Anaheim,” Gomez said. “That case there is really going to make a difference in how we deal with dispensaries statewide. It’s pointless for me to tell these guys to get out of here if the state’s going to come in and say we don’t have that authority.”
Despite that, Gomez said he expects cooperation from local landlords willing to rent to dispensaries. Purple Cross originally planned to open in an industrial park near the airport at 2300 Technology Parkway, but that landlord decided against renting to the dispensary once the city expressed its concerns.
“We want to work with [building owner Greg Dolan] and he should want to work with us. My desire is for Greg to terminate the lease with Purple Cross and be in accordance with our zoning code,” Gomez said. “Then, we’ll do this the right way.”
Dolan said he has a month-to-month lease agreement with Purple Cross because he “expected a backlash.”
“I did my research. These people already rented from me and I read their proposal to the city, which looked all good to me,” Dolan said. “They provided security – everything is being done above-board. I’ve gotten to know them personally over the past year and I never judge a book by its cover.
“The rent has been there on time every month. They keep the place clean. I needed the spaces rented out, so it was attractive to me, but I wasn’t going to jump into anything blind. I was paranoid that it could be a free-for-all mess, but I’m pleasantly surprised at how efficient they are.”
Armed security guards man the back entrance to the building and are also stationed inside the third-floor lobby shared by the dispensary, real estate firms and the record company. Only people holding doctor-approved medical marijuana cards are allowed inside the dispensary, where patients much register and have their card checked two more times before being allowed to purchase prescription-sized bottles of cannabis with cash.
Dolan, who said that security was so tight he couldn’t immediately get into his own building recently, said that he expected scrutiny of his tenant’s dispensary and was “waiting for the citation” from the city code enforcer.
“I’ve got six kids and I’m not going to get a bad name for running a free-for-all marijuana shop in Hollister,” he said, praising Purple Cross’ intention to donate 5 percent of gross revenues to local community organizations. “So far we’ve been very impressed. I haven’t had one complaint. Matter of fact, I’m very surprised by that.”
For the full story, see the Pinnacle on Friday.
