Information about the zoning requirements adopted by Arizona cities.

Marana Commission OKs Dispensary Permit

Arizona Daily Star:  “Marana’s Planning Commission voted 5-2 in favor of approving a conditional use permit for the first application the town has received from a company looking to set up a medical marijuana dispensary and growing operation.  Commissioner Jeffrey Adragna and board Chairman Norman Fogel voted against issuing the permit at the commission’s April 27 meeting.  A company called Progressive Herbal Care applied for the permit, hoping to set up shop in 3,000 square feet at 6248 N. Travel Center Drive.”

By |2012-08-18T09:40:30-07:00May 5th, 2011|Stories & Articles, Zoning|Comments Off on Marana Commission OKs Dispensary Permit

Medical-marijuana Zoning Rules Pinch Dispensaries

Arizona Republic:  “Because of restrictive zoning rules, most medical-marijuana sites will be situated in industrial areas, far from prying eyes, foot traffic and passing cars. Cities made every effort to create distance between the marijuana operations and homes, schools, churches, parks and other similar facilities.  As a result, even though medical-marijuana locations are allowed in zoning categories that cover most shopping areas, the distancing rules pose a serious hurdle.”

This story has an interesting table that summarizes the zoning applications in several large Arizona cities.

By |2011-05-01T07:35:42-07:00May 1st, 2011|Zoning|Comments Off on Medical-marijuana Zoning Rules Pinch Dispensaries

Scottsdale OKs Its First Medical-marijuana Dispensary

Arizona Republic:  “The City Council has approved Scottsdale’s first permit for a medical-marijuana dispensary.  The Virtue Center, 7301 E. Evans Road, in the Scottsdale Airpark, would supply medical marijuana and provide consultations to patients. The planned 1,500-square-foot dispensary is northeast of Thunderbird and Scottsdale roads in north Scottsdale.”

By |2012-08-18T10:09:53-07:00April 29th, 2011|Stories & Articles, Zoning|Comments Off on Scottsdale OKs Its First Medical-marijuana Dispensary

Tempe OKs Medical Marijuana Dispensary Sites

Arizona Republic:  “Tempe’s central Valley location and proximity to the nation’s largest university campus at 58,371 students has turned the 41-square mile city into a magnet for medical-marijuana entrepreneurs.  Although the state has only approved Tempe for two medical marijuana dispensaries, the city’s zoning department has received 48 applications.”  See the addresses approved by Tempe for dispensaries to date.

By |2012-08-18T10:16:40-07:00April 29th, 2011|Stories & Articles, Zoning|Comments Off on Tempe OKs Medical Marijuana Dispensary Sites

Paradise Valley Panel Backs Permit for Medical Pot Dispensary

Arizona Republic:  “The Paradise Valley Planning Commission has recommended approval of a special-use permit for a proposed medical marijuana dispensary in town.  Mountain View Medical Center, on the southeastern corner of Tatum and Shea boulevards, is one step closer to having a tenant that can legally dispense marijuana.”

By |2012-08-18T09:44:06-07:00April 27th, 2011|Stories & Articles, Zoning|Comments Off on Paradise Valley Panel Backs Permit for Medical Pot Dispensary

Medical-marijuana Permit Appeal in Phoenix Postponed

Arizona Republic:  “The first and so far only appeal of a use permit for a medical-marijuana dispensary has been postponed. The permit was granted to applicants Michelle Gilmore and Joseph Butler over the objections of Stephen Earl, a zoning attorney who represented Ping”

By |2012-08-18T10:02:14-07:00April 24th, 2011|Stories & Articles, Zoning|Comments Off on Medical-marijuana Permit Appeal in Phoenix Postponed

Fountain Hills Faces Medical-marijuana Challenge

Arizona Republic:  “A business consultant whose zoning-verification request for a medical-marijuana dispensary was denied by Fountain Hills is threatening legal action to challenge the “reasonableness” of its zoning restrictions.  Ingrid Jolya, a member/manager of Phoenix-based ETD Systems, submitted an application for two suites in the strip center at 17005 E. Colony Drive. . . . There have been three denied and one has been issued . . . . The ordinance is so restrictive that there are only two possible locations for a medical-marijuana dispensary, a public storage area and a vacant lot”

This is an example of how the cities rather than Arizona Department of Health Services are now able because of the change made to the rules on April 14, 2011, to determine who gets a medical marijuana dispensary in their jurisdictions.  Without a comfort letter from the city, a prospective dispensary owner cannot file an application for a dispensary license.

See “Three IEDs in DHS’ Actual Final Rules Detonate & Blow Many Would-Be Arizona Medical Marijuana Dispensaries Away.”

By |2012-08-18T09:33:10-07:00April 16th, 2011|Stories & Articles, Zoning|Comments Off on Fountain Hills Faces Medical-marijuana Challenge

Tucson to Get 10 Medical Marijuana Dispensaries

KOLD News:  “Hundreds of patients applied Thursday for permission to buy medical marijuana, but there’s still no place to buy it.  And it won’t be easy to open one, the requirements are strict.  If you’re interested, before you even submit your application you’d better be able to prove that you have $150,000 in your bank account. . . . So far, 19 applications have been submitted to the city’s [Tucson] zoning office, and 14 of them have been approved.”

By |2012-08-18T10:19:57-07:00April 16th, 2011|Stories & Articles, Zoning|Comments Off on Tucson to Get 10 Medical Marijuana Dispensaries

Push is on to Secure Dispensary Locations

Arizona Daily Star:  “The competition for locations that meet the city’s [Tucson] zoning requirements has been fierce . . . . the rules don’t require any verification from the jurisdiction itself in the application.  But that may change, said Tom Salow, rules administrator with the Arizona Department of Health Services.  By Thursday, the state may require applicants to provide documentation from the municipality that their address meets zoning requirements, Salow said. The state also will likely require verification that the operator has permission from the property owner to run a dispensary at that site, Salow said.”

By |2012-08-18T10:19:11-07:00April 14th, 2011|Stories & Articles, Zoning|Comments Off on Push is on to Secure Dispensary Locations

Paradise Valley Panel puts off Pot-dispensary Application

Arizona Republic:  “After a marathon meeting Tuesday night, the Paradise Valley Planning Commission unanimously decided that it needs more information before it can allow the Town Council to review the first special-use permit application to dispense medical marijuana.  A small but vocal group’s main concerns during the 5 1/2-hour meeting were security and applicant Mountain View Medical Center’s proximity to a residential area near Tatum and Shea boulevards.”

By |2012-08-18T09:44:24-07:00April 9th, 2011|Stories & Articles, Zoning|Comments Off on Paradise Valley Panel puts off Pot-dispensary Application

DHS Rules will Limit Gilbert Medical-marijuana Sites

Arizona Republic:  “Two groups competing to become Gilbert’s first medical-marijuana dispensary unveiled their plans to the Planning Commission this week and both could get a use-permit early next month.  Sonoran Star Remedies and Beleaf, Inc. hope to set up in Gilbert’s northwestern corridor, where most of the town’s industrial parks are. Gilbert prohibits dispensaries outside of industrial districts.”

By |2012-08-18T09:34:39-07:00April 9th, 2011|Stories & Articles, Zoning|Comments Off on DHS Rules will Limit Gilbert Medical-marijuana Sites

Chandler gets First Request to Grow Marijuana

Arizona Republic:  “A week after the Arizona Department of Health Services released its final rules for the voter-approved medical marijuana program, a Phoenix man is seeking city permission to build Chandler’s first marijuana-growing operation.  William Myer and his Arizona Organix wants a permit to cultivate marijuana in an industrial park building at 6730 W. Chicago St.”

By |2012-08-18T09:28:38-07:00April 6th, 2011|Zoning|Comments Off on Chandler gets First Request to Grow Marijuana

Group Closes in on Dispensary Location Outside Sierra Vista

Sierra Vista Herald:  “After being unable to find a suitable location that meets Sierra Vista’s recently passed zoning restrictions, a group of area businessmen are seeking to establish a medical marijuana dispensary adjacent to a retirement community nestled just outside of the city limits off of Highway 90. “

By |2015-04-06T18:50:22-07:00March 27th, 2011|Stories & Articles, Zoning|Comments Off on Group Closes in on Dispensary Location Outside Sierra Vista

Scottsdale Panel Recommends First Marijuana Dispensary Site

Arizona Republic:  “The first conditional-use permit for a medical-marijuana dispensary in Scottsdale gained the Planning Commission’s support Wednesday, but some members said approval ‘puts the cart before the horse.’  By a 3-2 vote, the commission recommended City Council approval of a permit for the Virtue Center, at 7301 E. Evans Road, in the Scottsdale Airpark. . . . ‘It’s all speculative, no one knows if they’re going to get a license’,”

By |2012-08-18T10:10:03-07:00March 26th, 2011|Stories & Articles, Zoning|Comments Off on Scottsdale Panel Recommends First Marijuana Dispensary Site

Paradise Valley asked to OK Permit for Marijuana Dispensary

Arizona Republic:  “Paradise Valley has received its first permit request to dispense medical marijuana in the town.  Mountain View Medical Center recently submitted a special-use permit application to operate a dispensary at the medical complex at the southeastern corner of Tatum and Shea boulevards.”

By |2012-08-18T09:43:34-07:00March 26th, 2011|Stories & Articles, Zoning|Comments Off on Paradise Valley asked to OK Permit for Marijuana Dispensary

Benson Preparing for Medical Marijuana

San Pedro Valley News-Sun:  “With the Arizona Department of Health (ADHS) nearing the end of the study that will officially legalize medical marijuana by April, Arizona cities and counties are quickly working to approve zoning regulations.  The Benson City Council and Planning & Zoning Commission held a joint session last week, discussing how to move forward with regulating medical marijuana distribution and use inside city limits.”

By |2015-04-06T18:50:22-07:00March 25th, 2011|Zoning|Comments Off on Benson Preparing for Medical Marijuana

5 Groups in Scottsdale Seek Medical Marijuana Permits

Arizona Republic:  “Scottsdale will consider granting use permits for five non-profit groups hoping to open medical marijuana dispensaries in the city.”  See the article for the names and locations of the sites.

By |2012-08-18T10:10:15-07:00March 24th, 2011|Stories & Articles, Zoning|Comments Off on 5 Groups in Scottsdale Seek Medical Marijuana Permits

Phoenix Medical Marijuana Locations Reflect Restrictive Zoning

Arizona Republic:  “The first five medical marijuana dispensaries approved in Phoenix are confined to office and industrial parks, an early indication that Phoenix’s new zoning rules for the dispensaries are so restrictive that few, if any, outlets will be located anywhere near the people who need them.  Because of distance requirements from homes, churches, schools and parks, some real-estate attorneys believe there is virtually no retail site throughout the city that would meet the requirements.”

By |2012-08-18T10:00:01-07:00March 23rd, 2011|Stories & Articles, Zoning|Comments Off on Phoenix Medical Marijuana Locations Reflect Restrictive Zoning

Would Be Dispensaries Struggle to Lease a Dispensary Site

My DHS Wish

I continue to talk to many people who are having a very hard time finding a location to operate their Arizona medical marijuana dispensary.   The Arizona Department of Health Services has inadvertently created a nightmarish situation for would-be dispensary owners who do not own the real property on which to operate a dispensary.  The DHS rules coupled with very restrictive city zoning ordinances and many landlords who simply do not want to lease to a medical marijuana dispensary result in many more prospective dispensary tenants than available properly zoned dispensary sites.  A lot of people have told me that they believe that one or more big money outfits are going around Arizona tying up potential sites with the goal of reducing the number of prospective dispensaries that apply for a dispensary license.

A large number of nonprofit entities are all fighting to tie up a small number of properly zoned and available sites throughout Arizona.  This means that there will not be very many dispensary applications filed by the application deadline.  It is a supply and demand problem.  The demand among would-be dispensaries is high and the supply of properly zoned sites with willing landlords is low.  Econ 101 teaches that when demand exceeds supply, the cost of the item (rent) goes up.  Higher rents mean higher prices passed on to patients.  One of DHS’ goals should be to keep the patients cost of medical marijuana down, not be the cause of patients paying higher prices to purchase their medicine.

The current rules and restrictive city zoning ordinances create a bizzaro world where nonprofits that do not have a license to operate an Arizona medical marijuana dispensary are entering into leases and applying for zoning with cities and they will never get a dispensary license.  For many would be dispensaries it is a total waste of time and money, not to mention a waste of the cash-strapped cities’ time and money.

DHS should clarify in the final version of the rules that would be dispensaries need only to affirm on their applications for a dispensary license that their dispensary and grow locations comply with applicable zoning ordinances without the need to actually apply for or receive a city use permit.  The rules should also allow the winners of a license to change the location of their dispensaries and grow facilities after obtaining a dispensary registration certificate, but before obtaining the final dispensary license.  This would allow a dispensary to change locations after obtaining a dispensary registration certificate if the city denies the zoning use permit or any other problem arises with the site location stated in the initial dispensary application.

DHS:  Please amend the rules to solve this terrible problem that will reduce the number of actual dispensaries, increase the number of patients who grow their own and cause higher rents to be passed on to patients.

See “Phoenix Medical Marijuana Locations Reflect Restrictive Zoning.”

By |2011-03-23T07:43:30-07:00March 22nd, 2011|DHS Rules, Legal Issues, Real Estate Issues, Zoning|Comments Off on Would Be Dispensaries Struggle to Lease a Dispensary Site

First Phoenix Medical Marijuana Permits Issued

Arizona Republic:  “A Phoenix hearing officer on Thursday considered nine requests for medical marijuana permits – six for dispensaries and three for cultivation. The nine applicants were the first to come before the city.”  Only six of the nine applicants received city approval.   Read the locations, applicants and city decision.

By |2012-08-18T10:00:22-07:00March 22nd, 2011|Zoning|Comments Off on First Phoenix Medical Marijuana Permits Issued

Somerton Tries to Discourage Marijuana Dispensaries

Yuma Sun:  “If the mayor has his way, establishments that sell medicinal marijuana will face such stiff regulations that they’ll think twice about set up shop in the city.  ‘The more stringent the better,’ Mayor Martin Porchas said, summing up his views about a proposed ordinance regulating the establishments.”

By |2015-04-06T18:50:21-07:00March 20th, 2011|Stories & Articles, Zoning|Comments Off on Somerton Tries to Discourage Marijuana Dispensaries

Star Valley Can’t Get Its Act Together on Dispensary Zoning so It Won’t Allow Any

Payson Roundup:  “Unable to construct a medical marijuana zoning ordinance, the Star Valley Town Council Tuesday put a moratorium on issuing dispensary and grow field licenses. . . . if the town followed Payson’s ordinance there would likely leave no room for one in Star Valley”

By |2017-02-12T07:38:37-07:00March 18th, 2011|Stories & Articles, Zoning|Comments Off on Star Valley Can’t Get Its Act Together on Dispensary Zoning so It Won’t Allow Any

The Part Local Zoning Plays in the AZ DHS Rules

Sonoran Star Remedies:  “Whoa, hold on there, cowboy!!! . . . There are severe ramifications to having DHS backpedal on the requirement (January 31 draft rules) to have each dispensary be in compliance with local zoning restrictions. I suggest that we take a step back and consider what it would mean to strip away the rights of local municipalities to determine and drive their own zoning process.”

This interesting blog post is apparently in response to “Alan Sobol Adds the Rose Law Group to His List that Includes DHS, MPP & AzMMA” that discusses Alan Sobol’s March 14, 2011, letter to Arizona Department of Health Services Director Will Humble in which he complains about the uncertainty and problems caused by the DHS rules and city zoning ordinances.  The author disagrees with Alan Sobol and suggests that the cities should be able to pick who gets a dispensary license rather than DHS.

By |2015-04-06T18:50:20-07:00March 15th, 2011|DHS Rules, Stories & Articles, Zoning|Comments Off on The Part Local Zoning Plays in the AZ DHS Rules

Alan Sobol Adds the Rose Law Group to His List that Includes DHS, MPP & AzMMA

Alan Sobol’s latest letter to Arizona Department of Health Services Director Will Humble is dated March 14, 2011, and it contains some explosive allegations.  In the letter Mr. Sobol complains about the zoning nightmare created by DHS rules and the cities of Arizona.  He correctly claims that it is the cities of Arizona who are effectively making the decision on who will ultimately get a dispensary license rather than DHS. Here are some choice statements from Mr. Sobol’s letter:

“Although the AZDHS rules are ambiguous and do not specifically require Zoning approval at the first stage of the application process, nevertheless, the Rose Law group has been aggressively pursuing Zoning Approval for their clients. Do they know something that nobody else does? Is Mr. Humble’s final rules going to interpret the current ambiguous rules to mean that you do indeed need ZONING APPROVAL? It is hard to imagine that a State Agency could not have done a better job promulgating their rules, if that was truly their intention.”

“We hereby demand that Mr. Humble immediately clarify his position regarding Zoning Approval with respect to the initial Application process; Is Zoning Approval a requirement or NOT? If zoning approval is a requirement we further demand that the Health Department extend the time for applicants to submit their Dispensary applications. The extended time should be sufficient for all applicants to seek and obtain local Zoning Approval, in any event no less than 60 additional days.”

“we adamantly oppose the requirement that Applicants obtain Zoning approval prior to submission of the initial application. If the Health department requires such zoning approval they are in fact deferring their authority under Title 36 to select the Dispensary licensees to local zoning boards. Under this scenario the Health Department could only consider applicants who were approved by local zoning boards, precluding all others.”

I agree with each of the three statements made above.

Rule R9-17-303.B.5 says the application for a dispensary license must be accompanied by:

“A sworn statement signed and dated by the individual or individuals in R9-17-301 certifying that the dispensary is in compliance with local zoning restrictions

Unfortunately the zoning rules do not explain what it means for “the dispensary is in compliance with local zoning restrictions.” There are two schools of thought on the meaning:

  1. The applicant can make the zoning affirmation if the dispensary site is properly zoned and not too close to a prohibited structure or area.
  2. The applicant can make the zoning affirmation if the application has filed the necessary paperwork with the city and obtained whatever magical city zoning paperwork is required to ultimately operate a medical marijuana dispensary at the site such as a use permit, a variance or a note from the mayor’s mommy saying she really really likes one of the owners of the applicant (I made up the last item).

Ryan Hurley, a zoning attorney with the Rose Law Group was a speaker at a March 3, 2011, seminar sponsored by the State Bar of Arizona.  Ryan said he thought Rule R9-17-303.B.5 meant choice #2.  After the seminar I asked Tom Salow of the DHS if he agreed with Ryan Hurley about the zoning affirmation and he said no – he interpreted the rule to mean choice #1.  Unfortunately it is no legal significance what either Ryan Hurley or Tom Salow think the rule means.  What is important is WHAT DOES THIS RULE ACTUALLY MEAN?  See “Must My Dispensary Obtain a Conditional Use Permit from the City before it can File an Application for an Arizona Medical Marijuana Dispensary License?

DHS needs to clairfy the meaning of the rule.  I hope that the third and hopefully final draft of the rules due March 28, 2011, will clarify this point and make it clear that the applicant need only affirm that its site is properly zoned and not too close to a prohibited structure or area.  It is just stupid and a waste of everybody’s resources for multiple applicants for the one license within a CHAA to go through the actual zoning process and get city zoning approval before the applicant wins the lottery.

Mr. Sobol makes a valid point that the current chaos created by the DHS rules, the CHAAs and local zoning is in effect allowing the zoning authorities to determine who can apply for a license for an Arizona medical marijuana dispensary.  The cities are the gate keepers who decide who gets a site and who doesn’t.  If the rules mean that an applicant for a dispensary license must get city zoning approval before being able to affirm that the site zoning is groovy then the cities are, in fact, selecting which would-be dispensaries will get a dispensary license within their jurisdictions.  This is contrary to Arizona’s medical marijuana laws, which require that DHS determine who gets a dispensary license.

I suggest all would-be dispensaries and their owners to send a letter to Arizona Department of Health Services Director Will Humble and ask him to change the rules to clarify that the affirmation of zoning means only that the site is properly zoned and not too close to a prohibited structure or area.  Send your letter to Will Humble, Director, Arizona Department of Health Services, 150 N. 18th Avenue, Phoenix, AZ 85007.

By |2014-01-05T10:02:10-07:00March 14th, 2011|Legal Issues, Stories & Articles, Zoning|Comments Off on Alan Sobol Adds the Rose Law Group to His List that Includes DHS, MPP & AzMMA

Scottsdale gets another Marijuana Dispensary Request

Arizona Republic:  “A former NASCAR driver and two businessmen are seeking [Scottsdale] city approval for a medical-marijuana dispensary near Via de Ventura and Pima Road.  The Kush Clinic LLC has filed for a use permit to operate the dispensary in a 3,300-square-foot building at 8729 E. Manzanita Drive”

By |2012-08-18T10:12:41-07:00March 12th, 2011|Stories & Articles, Zoning|Comments Off on Scottsdale gets another Marijuana Dispensary Request

Phoenix to Consider 1st Requests for Medical-marijuana Dispensaries

Arizona Republic:  “The rush is on to open medical-marijuana dispensaries.  On Thursday, a Phoenix hearing officer will consider nine requests for use permits to open medical-marijuana operations.  Eight of the applications are for dispensaries and one is for cultivation.”

Wow!  After all this time only eight dispensary zoning applications for Arizona’s largest city.  DHS:  Take note.  Your rules and the CHAAs coupled with city zoning is making it impossible for would-be dispensaries to find a site to operate an Arizona medical marijuana dispensary.

By |2012-08-18T10:00:34-07:00March 9th, 2011|Stories & Articles, Zoning|Comments Off on Phoenix to Consider 1st Requests for Medical-marijuana Dispensaries
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