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BASALT — The partners in Basalt Alternative Medicine (BAM) want the Basalt Town Council to overturn a town staff decision to deny their request to open a medical marijuana dispensary.
BAM filed a formal appeal of the staff decision Tuesday and asked the council to grant a temporary permit to operate a dispensary through November. The council has scheduled a hearing on Sept. 14.
Two key points in the 46-page appeal centered on how Town Hall handled the initial permit, and an interpretation about the suitability of the former WIN Institute building to hold a dispensary.
David Schoenberger and Doug Olson, two of the partners in BAM, contend they should have been allowed to join a previous dispensary as investors. The Doctors' Healthcare Cooperative began operating in late fall 2009 in the WIN Institute building. It ran into financial problems in May. Schoenberger and Olson said in the appeal that they talked to town officials in May about adding their names to the list of owners of DHC and taking over operations.
The town's position was that adding Schoenberger and Olson as new members constituted a transfer of the license, which wasn't allowed. The appeal said Town Attorney Tom Smith stressed that the town's position on that issue was “non-negotiable,” so they applied for the new license rather than fight the interpretation. The new application included their partner, Dr. Jason Slaver, who was also part of Doctors' Healthcare Cooperative.
The appeal claimed Smith had no legal basis for the town not advising the owners of Doctors' Healthcare Cooperative to transfer their shares in the company or bring in new blood. Doing so didn't constitute “transferring” the license, said the appeal, prepared by attorney David Bovino.
The town staff rejected the BAM applications on Aug. 25, contending it failed to meet various requirements in the town code.
Smith and Basalt Town Manager Bill Kane previously declined discussing specific issues of the case since it is heading to the council on appeal.
One of the grounds for denial was that the WIN building doesn't have at least six medical practitioners, as required in the town's medical marijuana code. BAM's appeal suggests there is something grossly unfair about the town's application of its rules. It found that the WIN Institute building met the criteria of a “medical center” when the Doctors' Healthcare Alternative applied for a dispensary license, but ruled the building was ineligible when BAM applied.
The building has undergone extensive changes in the last year. The developer lost it through foreclosure, and businessman John Jiles bought in a distress sale from the lender. Several doctors operating there under the umbrella of integrated health care vacated the premises.
The town contends there are only two medical practitioners remaining in the building, so it doesn't qualify as a medical center.
BAM's appeal said at least four additional doctors use equipment at the WIN, so it still qualifies. In addition, they accused Jiles of charging rents well above market rates to vacate the building and force the town to approve uses currently prohibited.
The appeal asks the council to approve a license for a dispensary through Nov. 30, the length of BAM's current lease. After that, the partners want to relocate to a permanent space suitable to the town.
The council will be asked to consider at least four other major points in BAM's appeal as part of the hearing Tuesday.
scondon@aspentimes.com
BAM filed a formal appeal of the staff decision Tuesday and asked the council to grant a temporary permit to operate a dispensary through November. The council has scheduled a hearing on Sept. 14.
Two key points in the 46-page appeal centered on how Town Hall handled the initial permit, and an interpretation about the suitability of the former WIN Institute building to hold a dispensary.
David Schoenberger and Doug Olson, two of the partners in BAM, contend they should have been allowed to join a previous dispensary as investors. The Doctors' Healthcare Cooperative began operating in late fall 2009 in the WIN Institute building. It ran into financial problems in May. Schoenberger and Olson said in the appeal that they talked to town officials in May about adding their names to the list of owners of DHC and taking over operations.
The town's position was that adding Schoenberger and Olson as new members constituted a transfer of the license, which wasn't allowed. The appeal said Town Attorney Tom Smith stressed that the town's position on that issue was “non-negotiable,” so they applied for the new license rather than fight the interpretation. The new application included their partner, Dr. Jason Slaver, who was also part of Doctors' Healthcare Cooperative.
The appeal claimed Smith had no legal basis for the town not advising the owners of Doctors' Healthcare Cooperative to transfer their shares in the company or bring in new blood. Doing so didn't constitute “transferring” the license, said the appeal, prepared by attorney David Bovino.
The town staff rejected the BAM applications on Aug. 25, contending it failed to meet various requirements in the town code.
Smith and Basalt Town Manager Bill Kane previously declined discussing specific issues of the case since it is heading to the council on appeal.
One of the grounds for denial was that the WIN building doesn't have at least six medical practitioners, as required in the town's medical marijuana code. BAM's appeal suggests there is something grossly unfair about the town's application of its rules. It found that the WIN Institute building met the criteria of a “medical center” when the Doctors' Healthcare Alternative applied for a dispensary license, but ruled the building was ineligible when BAM applied.
The building has undergone extensive changes in the last year. The developer lost it through foreclosure, and businessman John Jiles bought in a distress sale from the lender. Several doctors operating there under the umbrella of integrated health care vacated the premises.
The town contends there are only two medical practitioners remaining in the building, so it doesn't qualify as a medical center.
BAM's appeal said at least four additional doctors use equipment at the WIN, so it still qualifies. In addition, they accused Jiles of charging rents well above market rates to vacate the building and force the town to approve uses currently prohibited.
The appeal asks the council to approve a license for a dispensary through Nov. 30, the length of BAM's current lease. After that, the partners want to relocate to a permanent space suitable to the town.
The council will be asked to consider at least four other major points in BAM's appeal as part of the hearing Tuesday.
scondon@aspentimes.com
