Locals who have their eyes set on starting a retail marijuana facility in the unincorporated parts of La Plata County likely will have to sit tight until 2015.
An ordinance that would temporarily ban all applications for retail marijuana facilities in the county until Dec. 31, 2014, received unanimous approval Tuesday from La Plata County commissioners.
The delay will give county staff members time to craft regulations for the four different types of retail marijuana facilities – cultivation facilities, retail stores, manufacturing facilities and testing facilities.
Creating the new rules will require gathering public input, forming stakeholder groups and working with various county departments, County Attorney Sheryl Rogers said. The county also needs to wait until the state Department of Revenue finalizes its retail marijuana rules, which isn’t expected until the beginning of September.
“We’re at the mercy of the state,” Commissioner Bobby Lieb said.
Considering the pace of government, it is an “absolute fallacy” to expect the county to have its regulations ready by October, which is when the state must begin accepting retail marijuana licenses, Lieb said.
The public has until Aug. 26 to comment about the temporary ban before commissioners consider a final reading of the ordinance Aug. 27.
Commissioners did support a phased approach that could mean some types of retail facilities could be allowed before others. Rogers also said her staff would try to finish regulations before the end of 2014. If that happens, the ordinance would be terminated early.
County staff intends to use existing medical marijuana rules as a basis for the new retail regulations.
Three people representing medical marijuana businesses spoke at Tuesday’s commissioners meeting in support of allowing retail marijuana facilities in the county and urged the county to expedite the rule-making process.
These facilities could provide a much-needed source of revenue for county coffers, said Steven “Rasta Stevie” Smith.
“There is a huge market you guys are missing the money on because you’re not embracing and encouraging these businesses,” Smith said. “If marijuana businesses can be embraced, we will have a huge amount of new revenue produced that is local and sustainable within our community.”
But available data indicates the county wouldn’t see a big windfall from new retail marijuana facilities. The county would receive direct sales-tax revenues from retail marijuana facilities, but revenue from additional sales and excise taxes on retail and grow facilities would be minimal, Rogers said.
Colorado voters will be asked in November to approve a 15 percent sales tax and a 15 percent excise tax on retail marijuana, but the excise-tax revenues will be directed to education, and only a small portion of the new sales-tax revenues will go to the individual counties.
“It’s a pretty miniscule amount at the end of the day,” Rogers said.
Jonny Radding, co-owner of Durango Organics, encouraged the county to mimic the state’s regulations, which allow current medical marijuana facilities to apply for retail licenses ahead of businesses just entering the industry. Of the four medical marijuana facilities operating in the county, Durango Organics is the only one that has received a permanent land-use permit and a business license.
La Plata County voters supported Amendment 64, which legalizes recreational marijuana use and sales among adults older than age 21, 62 percent to 38 percent.
ecowan@durangoherald.com.
In an earlier version of this story, the photo caption gave outdated information of “Rasta Stevie” Smith’s place of employment.
To comment
The La Plata County attorney’s office will accept comments about the proposed temporary ban on retail marijuana until Aug. 26.
The ordinance is available on the county’s website at co.laplata.co.us and comments can be sent to County Attorney Sheryl Rogers at rogers@lpcattorney.org.
