The Hollister City Council reversed itself Dec. 18 when it approved a resolution to allow Euphoric Life Inc. to obtain a cannabis use permit and a development agreement for it to operate a medical cannabis manufacturing facility on the much contested Industrial Drive. The location, 807 Industrial Drive, is directly next door to the building at 817 Industrial Drive, which had been purchased for over $2 million, that the city council had previously denied permits.
Councilman Karson Klauer had to once again recuse himself from the discussion because of a possible conflict-of-interest related to a family member having owned the property, he said. Staff told the council that the application met all of the city’s provisions of the medical cannabis ordinance.
According to city documents, Euphoric Life Inc. would use a patient-centered production model to provide quality and affordable medicinal cannabis infused and extracted products, or patches, to a network of medically qualified patients.
Out of the approximately 9,000 square feet of space in the building, the original plan called for 4,800 square feet that would be devoted to cultivation, and another 1,740 square feet for manufacturing. The remaining space would be used for a drying room, trim, water and nutrient room, product vault and front office space.
Marlee Smith, with Pinnacles Strategy, which is owned by former councilman Victor Gomez and represents Euphoric Life, spoke in favor of both the cultivation and manufacturing permit requests.
“The uses proposed by Euphoric Life at this location are 100 percent consistent with those allowed uses under industrial zoning and uses adopted by the medical cannabis ordinance,” she said. “Specifically, the proposed manufacturing vision is unlike any other. The jobs created by this use are needed in the community and will help drive economic development, keeping residents local and off of Highway 25.”
Dr. N. Parveen Sharma, a local ophthalmologist, said for some time she has been against the use of marijuana and she did not vote for its legalization. She said medical marijuana is a sensitive subject to her. She said she has not encouraged any of her patients to use medical marijuana to treat their glaucoma. She described the use of medical marijuana as an epidemic and said those who use it for extended periods of time often lose track of how much they use and the only thing for sure is that they have become addicted.
Sharma does, however, support the use of a patch as an alternative delivery system of CBD, or cannabidiol, to relieve pain. She said the applicant, Dr. Ahmad R. Rafii, a chiropractor in San Jose, showed her the unique nanotechnology that delivers the CBD without the patient becoming addicted, but enhances the delivery of the drug through the skin into the blood stream, and then into the nervous system.
Ross Mirkarimi introduced himself as a twice-elected supervisor for San Francisco, as well as the elected sheriff of the City and County of San Francisco. He went on to say that in 2005, he legislated the first medical cannabis dispensary regulatory framework for San Francisco. (Mirkarimi was suspended from office pending an ethics investigation and pleaded guilty to one misdemeanor count of false imprisonment, according to the San Francisco Chronicle.)
“With lessons learned I’m proud of what we did and what California has done,” he said. “Now, 40 states have elected to enable access to medical cannabis. It is exactly the right decision where this country is going, which is why, in my capacity now that I’d like to affiliate with smart companies like Euphoric Life who has endeavored to advance the technology that has blossomed on a private and public level in helping people suffering with catastrophic and chronic illnesses.”
He suggested that the technology that Euphoric Life was presenting to the council for consideration was right for investment.
“From the civic perspective, we should allow that investment to occur,” he said, “but be smart and mindful about it. This isn’t former hippies. These are people from a clinician and bioscience perspective that want to advance this industry. We do not want to subvert it by casting fear mongering or suggesting it is anything but what it really is. What it really is is an answer that this country and this state needs to catch up.”
Dr. Cammon Arrington said he read the letter that Dr. Rafii had sent to businesses located on Industrial Drive and pointed out a few things he thought interesting. For one, he said the letter stated that Rafii purchased the property “at the behest of the city.” He also thought the idea of nanotechnology was worthy of consideration, but questioned the research.
“I haven’t heard anything about peer review or anything about FDA,” he said. “It sounds like it’s all internal. I have a problem with things that go around the traditional drug discovery and research pathway.”
He pointed out the application stated there was no intention for a dispensary, but wondered if once established could it become one. He also challenged an earlier claim by Mirkarimi that the facility would be secure in the light of so many children going to the gym across the street from the proposed facility.
Gary Cameron reminded the council that he was not a lobbyist paid to be there, nor did he have any financial interest in the marijuana industry, or he did not have any property for sale. He said his sole interest was to preserve the environment of the city. He also took a moment to recall the robbery at Purple Cross RX.
“They had security, they had security guards, dogs, chain linked fences, razor wire, alarms, and cameras and a half million dollars’ worth of marijuana was taken as the suspect wields a knife and the security guard fires his gun,” Cameron said. “It only takes one person working inside a marijuana operation to notify outside people that a crop is mature for harvest to have this type of incident occur. We should ask ourselves if we want to put this type of business next to our families and children. It’s all for money to the people in the marijuana industry and the few property owners and real estate agents and supposed tax revenue with little consideration to the social cost and the hazards to public safety.”
Cameron said the issue is not how many people voted for recreational marijuana. He said it would be an issue, though, if the vote was put to the citizens of Hollister asking them if they want a marijuana operation next to their businesses or homes.
Lisa Rovella, owner of Rovella’s Gym, has opposed a marijuana business across the street at 817 Industrial Drive from her business ever since learning that it was being considered. She said children and families have been coming to her business for 25 years. She said the patch technology proposed by Dr. Rafii might be the lesser of evils, but she still does not want the marijuana business located on Industrial Drive. Sue Whitehead said she opposes the application, not because of what the business will produce, but where it will be situated. She said the council had already turned down applications for the building next door and nothing has changed along the street as far as other businesses and a nearby school. She said one incident could cause a lockdown in an instant.
“I think this is going to backfire and explode unless you make the right decision, and I pray you make the right decision,” she said. “How we can possibly give them a permit when we’ve turned down next door. It’s the same thing. It doesn’t make sense.”
City council denies four appeals.
Jack Kirk said he had met with Dr. Rafii to discuss his product. Kirk found it to be interesting science, but still felt the building the doctor wants to work from is in the wrong location.
“You disapproved some other operations at 817 Industrial Drive and I think if you approve this one it would probably give them an opportunity to come back,” Kirk said. “I’m not trying to make Mr. Rafii mad, but that building was previously owned by the Klauer family and it’s under investigation right now for conflict-of-interest—”
Mayor Velazquez interrupted Kirk and told him to talk about the applicant being considered.
“There was a $5 million gross business (Green Tripe) in that location when they bought that, and sent that business to Gilroy,” Kirk continued. “I hate to see some of those other businesses on Industrial Drive leave also. No one has a problem with Mr. Rafii’s invention if it were in a different location.”
Businesses protest marijuana dispensary.
[Kirk told BenitoLink Dec. 27 that the California Fair Practices Commission (FPPC) is investigating Klauer. BenitoLink contacted FPPC and found that the complaint was filed by Gary Cameron, who stated: “Karson Klauer as the City of Hollister Vice-Mayor and Councilperson may have used his office to financially enrich his family, friends and co-workers. His failure to recuse himself from participating in the drafting of the City of Hollister Marijuana Ordinance and subsequent revisions to the ordinance while having a real or perceived personal conflict of interest.”]
Marty Richman said he was confused. He said from the description of the business it would be producing patches or other topical applications, but when he read the resolution, it stated the applicant also wanted to cultivate marijuana. He said previous speakers who spoke in favor of recreational marijuana earlier in the council meeting had made it clear that medical marijuana would represent less than 5 percent of the market after Jan. 1, when recreational marijuana would become legal in California.
“If they’re (Euphoric Life) cultivating just for medicine that would appear from earlier testimony to not make any economic sense,” he said and went on to reason that once recreational marijuana is legal those who were using medical cards to obtain their medicinal marijuana will stop going to doctors and begin self-medicating, most likely with the wrong dosages. He also said the council needs to be consistent in its rulings concerning Industrial Drive. “First thing you’re going to do is get challenged in court.”
Elia Salinas, a representative of the cannabis industry who has consistently challenged the rational of those who have maintained their opposition to cannabis businesses on Industrial Drive, took the argument to a whole new level.
“I’m curious that this is for the protection of children. There are 42 registered sex offenders within a two-mile radius of these two facilities,” she claimed. “Where are the procedures to protect their clients? I would be more afraid of a sex offender driving along the street, within seconds taking a kid. That’s more dangerous than a child walking into a facility that has absolutely no public access.”
Victor Gomez, who not only represents Euphoric Life, but whose employee, Marlee Smith (who did not identify herself as representing Euphoric Life while supporting the business earlier), said whether it was a good location or not was irrelevant. He said this was because when the council approved the medical marijuana ordinance it included Industrial Drive.
Then in a move—that may or may not have been a last-minute tactic—Gomez went on to say that even after the financial investments his client, Dr. Rafii, had made, he was willing to forgo the cultivation component of the business.
“We do believe the manufacturing component is 100 percent consistent with the industrial zoning use and the cannabis use,” he said.
Councilwoman Mickie Luna asked staff how many manufacturing businesses were located on Industrial Drive. She was told there weren’t any after Green Tripe had left for Gilroy. Luna said she talked to four former mayors, including her brother, in order to gain a historical perspective. She contended the street had never been designated for any businesses catering to children, and it was historically intended only for industrial businesses. Staff said the gym and other businesses on Industrial Drive were allowed to be there on a conditional basis, and that none were permitted.
Councilman Jim Gillio asked if there would be walk-in customers or whether all the products would be sold wholesale to dispensaries outside the county. He was told there would be no local sales and that only employees would be allowed inside the facility. Gillio asked Bill Avera, city manager, if since the applicant was willing to drop the request for cultivation, could the council vote on the resolution even though it stated the request was for cultivation and manufacturing. Avera said a motion could be made that would eliminate the portion regarding cultivation. City Attorney Soren Diaz agreed with Avera that the council could make such a motion.
Mayor Velazquez’s only statement was that even though the product sounded promising, he still thought the location on Industrial Drive was “the wrong place.”
Councilman Ray Friend made the motion to approve the resolution with the deferment of the cultivation component. The resolution passed 3-1, with Velazquez the lone no vote.
You must be logged in to post a comment.