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Ganjapreneurs are cashing in on Colorado's booming medical pot business

I knock on the locked door of the nondescript one-story building not far from downtown, willing away my anxiety.

"Can I help you?" A security guard peers from behind the door, eyeing me suspiciously. He's an older guy, probably somebody's grandpa, but he gives me a look that says he doesn't have a problem tangling with a whippersnapper like me.

"I have an appointment," I stammer. I have Xeroxed medical records and $200 in cash to prove it. At that, the security guard is all smiles.

"Come on in," he offers, opening the door wide and beckoning me into one of Denver's most successful medical marijuana dispensaries.

I'm here to become a state-certified medical marijuana patient. If I succeed, I'll have access to one of the fastest-growing — and unusual — businesses around.

Colorado voters legalized marijuana for medicinal use in 2000 with the passage of Amendment 20, but until recently, the state's medical marijuana community was small and fairly inconspicuous. As of January, 5,000 people had applied to the state registry, and there were less than two dozen dispensaries selling pot.

But that's changed, thanks to the Obama administration's move in March to end most dispensary raids, as well as a Colorado Board of Health decision in July that did nothing to limit the number of patients that medical marijuana dispensaries can have. As of June 30, the Colorado medical marijuana registry had swelled to more than 10,000 applicants, with the state receiving more than 400 new applications each day. To meet that demand, at least seventy Colorado dispensaries have opened, forty in the metro area alone.

Many of these are operated by what insiders are calling a "second wave" of ganjapreneurs — savvy, experienced businesspeople and professionals. Some honed their chops running ventures that have nothing to do with marijuana; others are opportunists from the heady California dispensary scene who see a new market ripe for investment.

In the meantime, legal consultants, insurance companies and real-estate brokers are carving out their own niche, building industry-wide infrastructure for a form of commerce that never before existed.

Whether any of it is truly legal — and whether any of it will last — is anybody's guess, because marijuana, after all, is still illegal under federal law. And although Amendment 20 allows people in Colorado to use pot for medical reasons, the law says nothing about dispensaries or whether buying and selling marijuana at them is legal. ("Growth Industry," February 5.)

"I saw it coming," says Colorado Attorney General John Suthers about the growth of the dispensary industry, of which he disapproves. "Even when we looked at the amendment in 2000, it was very purposely designed, in my opinion, by the advocates so it was so broad you could drive a truck through it."

Cities and towns aren't waiting for Suthers and his colleagues to sort the laws out. To deal with the reality of a business model that isn't going away, one municipality after another is looking into their zoning or planning codes, and some have passed dispensary-specific rules, like where they can be located and what type of signage is allowed.

I'm not waiting, either. Past the security guard, I can see a brightly lit, professional-looking operation. People shuttle paperwork to and fro, chatting and laughing. It's a far cry from a drug-dealing operation — though a familiar smell lingers in the air. No time for second thoughts: I'm already late for my appointment.

I step inside, ready to get medicated.


For Craig Mardick, it's a great day for a grand opening.

The windows of his new business, Golden Alternative Care, are freshly polished, and a spread of complimentary fruit, veggies and dip greets customers just inside the door. Mardick's landlord and insurance agent stop by to congratulate him and his employees. His mom pops in, too, with a freshly framed art poster to hang on the wall.

Mardick has just launched Golden's first marijuana dispensary, and behind a discreet curtain, a glass display case offers marijuana strains with names like Bubble Berry, AK-47 and Pot of Gold, plus an assortment of cannabis-infused edibles.

"I have never seen an economic model like this," he says of his new undertaking. "It's unheard of. Economists don't know how to forecast the industry."

A former medical technician and environmental scientist by trade, Mardick had been laid off from a couple of jobs in the past few years when he got the idea to open a dispensary. A medical marijuana patient himself — he's been diagnosed with a large hiatal hernia, a serious gastrointestinal ailment — he'd been using his botany background to grow medicine for a half-dozen patients.

In February of this year, the Colorado Department of Public Health and Environment, which oversees the state medical marijuana registry, revealed that it was considering limiting marijuana caregivers to providing for a maximum of five patients — a move that would have put dispensaries out of business, since they need more than five customers to survive.

But at a heavily attended hearing on July 20, the Colorado Board of Health, the advisory board for CDPHE, voted against the proposed limitation. The decision was seen as a tacit endorsement of the dispensary model, and state registrar Ron Hyman says the state has received 6,000 medical marijuana patient applications since then.

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  • 07/19/2011 4:57:00 AM

    You know its interesting what a bust the dispensary business turned out to be in Colorado. On my website, I have a classifieds section and it lists all the dispensaries that are up for sell in Colorado. The laws due to ab1284 just killed it. I just hope the strong survive! http://www.How-To-Open-A-Dispensary.com

  • Ty Palmer 09/01/2010 5:03:00 AM

    As a ganjapreneur in San Francisco, I strongly support Prop 19 to control, regulate, and tax cannabis in California in 2010. Society will begin to heal immediately from the simple honesty alone. Prohibition creates violence. I don't know any violent cannabis users. Quite the opposite, in fact, cannabis users are peaceful, thoughtful, professional, and they look just like your successful neighbors. After California legalizes cannabis for adults with Prop 19, professional people in the other 49 states will feel more confident in "coming out" as responsible cannabis users who are suffering for no good reason under punitive prohibition. End the war on drugs yesterday. Use is not abuse. We all share the goal of reducing the harms associated with drug abuse. Harm reduction is the theme for our shared goal for the people of the United States. Toast a green hit to ganjapreneurs everywhere!

  • Air jordan 1 08/04/2010 2:52:00 PM

    Amazing write-up! This could aid plenty of people find out more about this particular issue. Are you keen to integrate video clips coupled with these? It would absolutely help out. Your conclusion was spot on and thanks to you; I probably won’t have to describe everything to my pals. I can simply direct them here!

  • Justin Archuleta 06/17/2010 12:20:00 AM

    I love Marijuana, I am 21 years old and I have been smoking since I was 10. I don't rely on it. I actually have a healthier life, and am more productive than those who claim marijuana makes you lazy and not get things done. That is not true. If something were to happen where the governement or the people thought that this was getting out of control, it's not. It's just a good business, and those who are good at it will succeed quickly while others sit back and watch. I sense a bit of jealosy as well. If Medical Marijuana were to be taken from me, I could not imagine how I would react.

  • Greg Hall 12/31/2009 5:43:00 PM

    This article by Mardick excites me about the research I pursued shortly after being issued my card. I called my caregiver immediately and found out he was just getting his project started and didn't have any product. So I went web surfin and used the directory for dispensarie and the first place I called was the Golden Alternative and they had the hash I was looking for as I wish to get started and stay as close to the THC chemical as possible without all the by products of the bud. I then surfed further and began reading Mardick's experience and totally related and appreciated his article. I hope to now visit his dispensary and continue my journey to painless hikes and walks through life. Greg

  • Aaron A Day 10/10/2009 6:33:00 PM

    It comes as no surprise to me that Colorado was this progressive. I'm glad to see the marijuana movement moving gaining momentum across the country, largely due to people realizing how harmless the weed truly is. Next we need to completely legalize, regulate and tax online poker, so people of Colorado (and all other states) could smoke weed and play poker at http://www.reeferpoker.com from the comfort of their own homes, without worrying about big brother busting down the door.

  • Reality_Check 09/14/2009 8:03:00 PM

    Dispensaries are NOT authorized under Amendment 20. They are a legal fiction invented by overzealous marijuana dealers to make tens of thousands of $$ per month perverting the law. The ONLY exemptions from criminal prosecution that Amendment 20 created were for bonafide PATIENTS and a single patient nominated CAREGIVER. The only acts they are permitted under Amendment 20 are small scale personal possession, medicinal use, and small scale personal cultivation. Nothing more, nothing less. Everything else is STILL CRIMINAL under existing drug laws.

  • Yippie 09/14/2009 5:30:00 PM

    ARTICLE WAS VERY WELL "RESEARCHED" AND WRITTEN! When I lived in CO I voted for the Amendment both times it was on the ballot and was obviously pleased that it eventually passed. It's good to see that the business is booming! I'm sure it is a great time of year to be outside in the fields of cannabis right before harvest time!!! WHAT THIS COUNTRY REALLY NEEDS TO DO IS LEGALIZE INDUSTRIAL HEMP TO CREATE MILLIONS OF NEW "GREEN" JOBS!

  • Michelle 09/12/2009 4:25:00 AM

    I just want to congratulate Mr. Warner on a fantastically written article. Kudos to you for capturing and imparting a wide range of emotion- fear, joy, humor, trepidation, longing and love- in your well-written article. Thanks also for giving factual, un-biased, useful inofrmation on this hot topic. I am new to Westword and look forward to reading more from you!

  • Brent 09/10/2009 10:13:00 PM

    I'm not confused, but apparently our legal system, elected officials and law enforcement officials are confused." -- No they're not, they've been fighting it all the way. These are citizen based referendums. It's called a Democracy for a reason.

  • ColoradoGuy 09/10/2009 10:06:00 PM

    Great, informative article. I can't wait until federal law changes so that we can start to make REAL progress on this important issue. Nonetheless, Colorado, California, and other states have started an excellent trend.

  • toober 09/10/2009 9:57:00 PM

    Get stoned and read http://fithyrichmond.com

  • gary 09/10/2009 8:55:00 PM

    I pray every day that passes The State of Colorado, its citizens, Law makers and people have compation to the folks that this really HELPS. I Love our country, please support this industry. We all win in the end. Caregiver

  • gary 09/10/2009 8:55:00 PM

    I pray every day that passes The State of Colorado, its citizens, Law makers and people have compation to the folks that this really HELPS. I Love our country, please support this industry. We all win in the end. Caregiver

  • www.cannabis.md 09/10/2009 8:00:00 PM

    I have to disagree with the previous comment. No one claims that medical marijuana, permitted under the CO state constitution, is a prescription drug. Rather, a doctor issues a recommendation that the effects of marijuana may help a patient with their medical condition. This is much the same as a doctor who advises their patient to drink Echinacea tea to help ward off a cold or to use a saline nasal rinse to help reduce sinus infections. Neither of these substances would be considered a prescription, yet both have some medicinal value. The doctors and patients writing and receiving recommendations for medical marijuana do not claim that this treatment is the magic bullet that can cure AIDS, cancer or severe physical pain. Rather, it is one effective tool in a number of treatments that allow patients to effectively combat the side effects of their condition along with perhaps several other traditional or non-traditional treatments. Rather that myopically prejudging the Colorado medical marijuana industry as a bunch of pot-smoking hippy slackers, it is time for the citizens of Colorado on both sides of this issue to come together and discuss rational policies and procedures for how we can all insure this new industry is above-board and a responsible corporate citizen. Without that dialogue, we may never be able to move forward to accept the reality that our state has tens, if not hundreds, of thousands of regular marijuana users who only seek safe, affordable, responsible access to their treatment of choice.

  • meee 09/10/2009 6:38:00 PM

    Call it what you want - it is dealing drugs. Until it is processed, regulated and distributed like all other prescribed medicines - or until it becomes a legally controlled substance subject to the processing, regulation and taxation of other substances through the department of Alcohol, Tobacco and Firearms - it is an illegal DRUG. They are drug dealers. I'm not confused, but apparently our legal system, elected officials and law enforcement officials are confused.

 
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