Path Cleared For Medical Marijuana In Lakewood

LAKEWOOD, OH — During an eventful Lakewood City Council meeting Oct. 2, legislation was passed that could pave the path for medical marijuana dispensaries in the city. After months of debate and back-and-forth, Ordinance 32-17 passed this week, allowing dispensaries to come into the city. The legislation will take effect in 40 days.

"Medical marijuana is coming to a nearby neighborhood, whether we like it or not. It is the Law of Ohio and investors are lined up around the corner everywhere in Ohio. There will be five dispensaries in Cuyahoga County in the first round. Probably more at a later date," said Mayor Mike Summers in an email to Patch.

Some city officials have told Patch there is a great deal of interest already from business interested in opening a dispensary in Lakewood. (Subscribe to the Patch Lakewood newsletter for local news and updates.)

Councilman Sam Bullock has been reticent to support medical marijuana legislation but eventually came around to support the ordinance. He has been concerned about the impact a controlled substance distributor could have on the community.

"I’ve been preaching caution. It’s possible I’m being cautious but it won’t play out as negatively as I’ve said I’m concerned it could," Bullock said. "It’s possible the state does a good job and only bona fide patients who are receiving pain management are going to go to a dispensary. Everyone else, in a misuse situation, they’ll continue to frequent the black market."

Big Green

Medical marijuana is a pricey business in Ohio. Applying for a medical marijuana license in Lakewood will cost $350, non-refundable. Renewal applications will cost $250. If a license is granted, the recipient will have to pay the city $25,000 annually. That money is non-refundable.

Summers said the licensing fee won't be the only fee levied against dispensaries. A 1.5 percent fee for every sales dollar above $1.25 million will be charged.

Tack all of that onto a $10,000 application fee paid to the state and a $90,000 license fee, also paid to the state. Renewing that license will cost $100,000 annually.

The state has already received close to 200 applications for medical marijuana licenses. Only 24 grow licenses will be awarded. Those growers will sell product through approximately 60 dispensaries, according to the Ohio Medical Marijuana Control Program website.

Lakewood's ordinance does more than charge hefty fees for bringing a dispensary into the city.

Other Guidances

Ordinance 32-17 also sets up the rules for city inspections of dispensaries, where the dispensaries can be located and other details of the possible business. Some of the key guidance in the legislation includes:

• Police officers and other city officials will be able to inspect the dispensary facility during any time the business is open and operational
• Medical marijuana licenses issued by the city cannot be transferred from one location to another
• The dispensary cannot be located within 1,000 feet of a school, church, public library, park or playground
• Medical professionals cannot provide consultations at the dispensary
• Vending machines with medical marijuana in them are prohibited

"The intent of this high [licensing] fee and controlled zoning approach is to let the market limit the demand for such services in our community. It also sets the template for future laws and trends that we are likely to face," Summers told Patch. "I am confident this new ordinance is a very good start. As is the case with most laws, they can and should be improved with experience."

To read the full text of the ordinance, click here and go to page 33.

Photo from Rick Uldricks, Patch