OAKLAND COPS BEGIN WEEDING OUT POT CLUBS

Unlicensed Medical Marijuana Dispensaries Face Closure

OAKLAND -- Police have begun citing operators of unlicensed medical marijuana outlets, and neighboring cities are feeling the effects of the crackdown, officials said Friday.

One unlicensed dispenser -- Dragonfly Alternative Healing Clinic at 1727 Telegraph Ave.  -- has been cited twice since the enforcement started Thursday at the direction of the city administrator's office.

Repeated violations could lead to further sanctions, including permanent shutdown through public nuisance ordinances, officials said.

"The city established only a few sites to be permitted, and we're seeking compliance with the ordinance," said Deputy Chief of Police Pete Dunbar.

The City Council decided in May to limit the number of medical marijuana dispensaries to four, putting an end to the proliferation of pot clubs in an area of uptown nicknamed "Oaksterdam." At the time, five established clubs were operating there, with others nearby.

The city has issued three business licenses but not yet the fourth.  California Advocate Relief Exchange, or CARE, is the only club in the Oaksterdam triangle between 17th and 19th streets and Telegraph Avenue and Broadway to get a license.  The Dragonfly, initially denied a permit, is waiting to hear whether it will

be granted the fourth license.

The new regulations went into effect June 1 and unlicensed clubs received letters warning them they had to shut down.  At the time, Dragonfly owner Ken Estes vowed to defy the order.  But after meeting with city officials, he closed down a few days later and remained shuttered until last week, when repeated pleas from medical marijuana patients prompted him to reopen, he said.

"We agreed to close while ( city officials ) were working on the permit, but after a month of broken promises, we reopened a week ago," Estes said.  "We're going to stay open because the patients are the reason we are here fighting this.  The patients shouldn't suffer while the city tries to figure out this problem."

According to police, Patricia White, 56, of Vallejo, chief operations officer at Dragonfly, was first cited about 2:15 p.m.  Thursday for violating the city's ordinance requiring a proper permit to dispense marijuana.

Two officers first questioned a 17-year-old Orinda resident they saw leave the clinic.  The youth had a valid cannabis buyer's club card and admitted to buying $50 worth of "Purple Maui" marijuana, police said.

The youth told the officers he uses marijuana to cope with migraine headaches, insomnia and stress.  After photographing the marijuana, police returned it to the youth before going to the clinic.

White gave the officers a tour of the clinic, which features a "menu" of the types of marijuana available for sale, the amounts and the prices.  Prices ranged from $11 for a gram of "soma skunk" to $345 for an ounce of "purple skunk," police said.

Signs posted inside the club tell customers to be courteous of neighbors and the surrounding areas, don't litter and don't smoke marijuana in their cars or parking lots.  A sign also warns it is illegal for clients to resell any medical marijuana they purchase at the clinic.

While at the clinic, officers said they saw customers enter, show their cannabis buyer's cards and place orders.

Dragonfly, which police said claimed to serve 350 to 500 patients daily, was denied a permit by the city following hearings on April 22 and May 14.  White told officers that city officials failed to return repeated phone calls to negotiate a resolution over the permit.

Assistant City Administrator Cheryl Thompson confirmed Friday that the club is one of a few being considered for the fourth permit, but a decision has not been made.

Councilmember Nancy Nadel ( Downtown-West Oakland ) said Friday that although she originally favored having more than four licensed clubs, now that four is the law, the clubs need to abide by the rules.

"I wanted to have more than four, but I don't want people to be operating outside of the law," Nadel said.

Last month, the owner of two licensed dispensaries in Hayward said Oakland's new law had sent many new patients her way in search of the medicinal herb.

And the Emeryville City Council on July 20 temporarily banned medical marijuana outlets after one of Oakland's spurned clubs -- The Green Door -- came calling and the city realized it doesn't have a way to regulate the outlets, said City Attorney Michael Biddle.

The ban will last 45 days, giving the city time to review issues related to zoning, permitting and licensing such establishments, Biddle said.  The ban could be extended with the council's approval.

"We don't have a definition for that type of use activity," Biddle said.  "We have to take ( location of ) schools into consideration and also rules regarding licensing the people who would be running these dispensaries."