The City Council is gearing up for a legal battle against a new
medical marijuana dispensary that continued to sell cannabis last
week despite a cease and desist order.
The City Council is gearing up for a legal battle against a new medical marijuana dispensary that continued to sell cannabis last week despite a cease and desist order. Councilman Perry Woodward, who is an attorney, said fighting the dispensary could cost the city $300,000 to $600,000.
The council was set to discuss legal ramifications of shutting down MediLeaf – which opened at 1321-B First St. on Nov. 9 to the surprise of city officials – in a closed session Monday night. Woodward said Monday morning that it likely would take a court order to enforce the city’s cease and desist order. Residents and outsiders on both sides of the issue planned to turn out to the council meeting, which also included a period for public comment.
The council last month rejected an ordinance that would have allowed the dispensary to operate, effectively making any dispensaries in Gilroy illegal. On Wednesday, two days after MediLeaf opened, Sgt. Kurt Ashley served it with a cease and desist order that cites the dispensary for operating without a business license, operating in a district that was not zoned for a dispensary and violating federal law.
MediLeaf representatives said they received legal advice stating they can operate without a business license because they are a nonprofit. However, nonprofits must also go through a licensing process, though nonprofits are not required to pay fees, City Attorney Linda Callon said.
Councilman Bob Dillon initially said he had hoped the city could lock the doors of the facility, but he has since learned that is not an option.
Instead, before the meeting Monday, he readied himself for a court case with the dispensary co-directors – Batzi Kuburovich and Neil Forrest – and wanted to make certain the city sought to recoup legal expenses and fees in any lawsuit. This did not happen in 2004, when the city won a suit against local residents who sued over a perceived lack of affordable housing, he said.
However, Woodward said he did not think the city would have the legal grounds to recover legal costs in this particular instance.
Woodward expressed frustration that the city opted not to put an ordinance in place that clarified the city’s stance on dispensaries, even if council members opposed MediLeaf.
James Sucher, a San Francisco resident who described himself as a “patient advocate,” said that as many as 40 members had plans to attend the meeting. The dispensary now has more than 250 members, Kuburovich said.
A post on The Grow Report, a pro-marijuana Web site, urged dispensary supporters to e-mail council members. The post was signed by someone who used the moniker “Mad Dog,” called Dillon a “douche bag,” and linked to a Web site registered to Los Angeles resident and MediLeaf general manager Eric Madigan. Madigan said he did not write the post, but that someone who he would not name had logged onto his account to write it.
Many people had come out in support of the dispensary during the past week, and he said he hoped the council would change their minds on the matter after “seeing the face of Gilroy residents who need this service.”
“I gotta be optimistic,” Madigan said.
However, Mayor Al Pinheiro said the merits of the dispensary itself are now a moot issue for him.
“This is no longer about a 4-3 vote on the council,” Mayor Al Pinheiro said. “That should no longer matter. We as a council voted no.”
Meanwhile, Councilman Craig Gartman said last week that he would be interested to hear the city attorney’s interpretation of city code.
The council had a difficult decision ahead, as litigation could be costly, and the results of a legal battle are unknown, Woodward said. While a similar case of a dispensary challenging the City of Claremont’s right to ban dispensaries was decided in favor of the city earlier this year, that case took place in a different district court of appeals and might not have bearing in Gilroy’s district, Woodward said.
“I don’t want the city to spend money on this, but at the same time, we don’t want to send the message to the community that we’re not going to enforce the rules,” he said.
