Reconsideration

of the Boulder
City
Marijuana
1. Lack of Appeals / Zero Tolerance
2. Grandfathering Rule
Ordinance
3. Limit on transitioning stores to
Dual-Use Medical & Recreational
4. 70/30 MIP Rule
5. Classification of Seeds
6. Confusion regarding Branded
Merchandise
7. Coupons
8. Sunset Rule on Conversions

Introduction
As Boulder City Marijuana Business License
Holders since 2010, we have been working
with Boulder to create good Marijuana
Business and City policies.
The current Boulder Marijuana laws create
a confusing, and unduly burdensome
regulatory framework that is inconsistent
with the laws of the State and other local
jurisdictions.
These laws are also incompatible with the
best interests of businesses and
enforcement, which is to have a clear and
consistent regulatory system in line with
state law that promotes an environment for
businesses to thrive while having clear
guidelines for enforcement.
The following is not a complete list of the
2

1. Lack of Appeals / Zero

Tolerance
Boulder City imposes a Zero
Tolerance policy in regards to their
Marijuana Ordinance, and currently
does not offer a system for
handling appeals regarding
decisions about Marijuana
Businesses.
With the uncertain and often
confusing regulatory landscape in
which we operate, an appeals
process should be in place for
authorities to work with Marijuana
Businesses that have been striving
to be compliant and successful

oulder City Ordinance numbers:

-16-1 (7) | 6-16-4 (e)

1. Lack of Appeals / Zero Tolerance

Proposed Solutions

We recommend the City of Boulder

remove the Zero Tolerance rule and
allow for appeals, aligning with
State law.

oulder City Ordinance numbers:

-16-1 (7) | 6-16-4 (e)

2. Grandfathering Rule

Problems for businesses

If a business would like to sell a
grandfathered facility, & they are
within 500 feet of two other
facilities, they cannot sell their
license without losing
grandfathering.
Licenses are not transferable restructuring a company for
growth is impossible.

Lowers value of Boulder

Marijuana businesses. Not able to
realize invested assets.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

2. Grandfathering Rule

Problems for businesses

Forces existing businesses to keep
licenses they would prefer to sell,
while new businesses are creating
more.
Forces new Marijuana Businesses
to find new locations and build-out
new facilities, when there could be
existing facilities available for sale
already.
No reason to invest in Boulder
based companies, loss in tax
revenue for Boulder.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

2. Grandfathering Rule
Plants and Sale of Business

Upon sale of a cultivation facility,

plants must be removed or destroyed,
per Boulder City regulations.
Plants are not being treated as
business assets.
Contradicts State law, where plants
transfer with licenses and contradicts
standard law, where these would be
business assets.
All other jurisdictions (where legal to
sell Cannabis), as well as the State of
Colorado allow the sale of plants with
the business, allowing for immediate
commerce.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

2. Grandfathering Rule

Plants and Sale of Business

Environmental Cost.
Waste of energy & resources that
went into growing the plants.
Sales and excise tax revenue lost.
Doesn't allow business to sell
plants with location for fair market
value, instead makes them
worthless. Potential buyers want to
purchase location with the plant
genetics.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

2. Grandfathering Rule
Plants and Sale of Business

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Use?

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At State level, as well as in the

Cities listed, Grandfathering
survives the sale of the business
to the new business owner.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

10

2. Grandfathering Rule
Proposed Solutions

We recommend that the City of

Boulder allow for the transfer of
ownership of licenses through an
asset sale.
We also recommend that, in
accordance with State law, plants
be treated as assets and transfer
with the license when sold.

der City Ordinance numbers:

-3 (e) | 6-16-7 (e) (1) | 6-16-7 (e) (2) | 6-16-7 (e) (3) | 6-16-5 (9)

11

3. Limit on ability for those that own two stores

to transition to Dual Use Medical & Recreational Problems for Boulder Businesses

The current Boulder City Ordinance limits the

number of dispensaries a licensee may own to one
Medical Store and one Recreational Store.
The intent of this rule was to prevent proliferation of
Chain Marijuana Businesses in the City of Boulder,
and also to mimic State alcohol laws that prohibit
alcohol licensees from owning more than one liquor
store.
However, there is no state-wide limit on marijuana
licensees owning multiple marijuana stores, there is
only a Boulder City limit.
We have had two stores, The Farm since 2009, and
Root since 2012.
Due to the Boulder Ordinance passed in 2013, we
had to transition one of our stores. We transitioned
The Farm to recreational, and Root stayed a Medical
store.

There were only two companies in the City of

oulder City Ordinance numbers:
Boulder that had more than one marijuana store
-16-6 (a) (9)
12

3. Limit on ability for those that own two stores

to transition to Dual Use Medical & Recreational Problems for Boulder Businesses

These two companies were not allowed to convert

their stores to Dual-Use because of their two-store
status.
Due to this Boulder-centric regulation, and
dwindling sales in our Medical store - Root, we have
been forced to put Root on the market for sale
because of lack of potential for growth and the
inability to convert to Dual-Use.

There have been two types of interested buyers:

The Mom and Pop type of owners that
have shown interest in purchasing Root are only
interested in the purchase if they could hire The
Farm / Root Management Team to run it for them.
Unfortunately, Boulder Rule 6-16-6 (a) (9) prevents
us from managing any other companies while
owning & operating The Farm.
The Mom and Pop types dont have much
interest in running their own dispensary without
some
assistance
from persons who have experience
oulder
City Ordinance
numbers:
-16-6
(a) (9)
navigating
the complex regulatory framework that
13

3. Limit on ability for those that own two stores

to transition to Dual Use Medical & Recreational Problems for Boulder Businesses

The other type of interested buyers, who

will be much more likely to purchase Root, are
the big chain stores from out of town.
They have the experience to run a
dispensary with their own management team,
and as new Boulder dispensary owners, have
the ability to convert the store to dual-use in
order to realize the dispensaries full potential.
They also will be running this dispensary from
their Denver offices. Rather than keeping jobs
in Boulder and employing Boulder residents,
they will bring in their own people from Denver.

They also realize that we are under duress

because of the Sunset Rule. That gives them
the ability to pressure us to sell Root for much
less than the value.
oulder City Ordinance numbers:

-16-6 (a) (9)

14

3. Limit on ability for those that own two stores

to transition to Dual Use Medical & Recreational Problems for Boulder Businesses

This is detrimental to our business. We

have been operating in the City of
Boulder for six years, and we are Boulder
residents.
Our question is, Would the City of
Boulder prefer to support locally owned
businesses, or would they rather see us
sell our businesses to out-of-city chains?
If this is the case, then its already
happening. Several smaller Boulder
Marijuana Businesses have already sold
to big Denver chains.

This rule, that was created to limit chains

in Boulder,
is actually hurting us and
oulder
City Ordinance numbers:

-16-6 (a) (9)

15

3. Limit on ability for those that own two stores

to transition to Dual Use Medical & Recreational Proposed Solutions

We ask that the City of Boulder grant us

grandfathering status since we owned
two stores in Boulder before the 2013
regulations were drafted, and allow us to
transition to Dual-Use.
Or completely eliminate this rule from the
Boulder City Marijuana Ordinance,
aligning with State Regulations.

oulder City Ordinance numbers:

-16-6 (a) (9)

16

70/30MIP
RuleRule
4. 2.
70/30
If you manufacture Infused
Products in Boulder, you must also
own a cultivation facility in Boulder
that will provide at least 70% of the
material to be used in your infused
products.

oulder City Ordinance numbers:

16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

17

4. 70/30 MIP Rule

Problems for Infused Product Manufacturers

Square footage of a cultivation

facility limited to <15,000 sq ft. in
Boulder City.
There are limits on the number of
cultivation facilities a licensee
may own in Boulder.
Not able to source or produce
enough product in Boulder to
sustain a brand to be distributed
state-wide.
Cant meet local or state demand
- unable to grow business.
Disables Boulder kitchens from
sourcing quality products outside

oulder City Ordinance numbers:

16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

18

4. 70/30 MIP Rule

Problems for Infused Product Manufacturers

Pricing disadvantage. Not a free

market.
Many other options in Colorado
without these severe restrictions.
Boulder customers forced to
purchase infused products made
outside of Boulder.
Many locals prefer to buy &
support local businesses.
Disservice to Boulder residents.

oulder City Ordinance numbers:

16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

19

4. 70/30 MIP Rule

Problems for Infused Product Manufacturers

oulder City Ordinance numbers:

16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

Cant meet
local or
state
demand &
unable to
grow
business.
Boulder
Infused
Products
Kitchen sits
largely
unused due
to
restrictions.
20

4. 70/30 MIP Rule

Effects on our Community

How many
Boulder-made
infused
products or
concentrates
are available at
The Farm?
Only one the in-house
Hummingbird Brand of
concentrates.
The Farm offers a wide variety of
Marijuana products to many
guests every day, and roughly
30% purchase infused products or
concentrates.
oulder City Ordinance numbers:
16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)
Boulder consumers want to buy
21

4. 70/30 MIP Rule

Proposed Solutions
We ask that the 70/30 rule be
eliminated from the Boulder City
Marijuana Ordinance to be aligned
with State laws.
Boulder Infused Products
Manufacturers should be allowed
to acquire quality cannabis
material for processing from any
compliant, MED registered facility
in the state, as permitted by state
law.
Eliminating this rule would allow
for Boulder to focus on Product
and Consumer Safety.

oulder City Ordinance numbers:

16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

22

5. Sale and Classification

of Seeds
Cannabis seeds are allowed for sale on
the Medical side of the industry, but
prohibited for sale on the Recreational
side, because of a difference of three
words in the Boulder City definition of
Retail Marijuana Plant.
Medical marijuana plantmeans a
marijuana seed that is germinated,
"Recreational marijuana plant"
means a marijuana seed and all parts of
the growth therefrom
Selling a recreational Marijuana Seed is
prohibited in Boulder because they are
technically defined as plants.
Boulder City Ordinance numbers:
6-16-7 (g) (2) | 6-16-8 (j) | 6-16-13 (24) | 6-16-2 Recreational

23

5. Sale and Classification of Seeds

Problems for Businesses & Consumers

This rule puts Boulder Recreational

Marijuana Businesses at a
competitive disadvantage from
other businesses across the State
by prohibiting Boulder businesses
from selling seeds.
There are currently licensed
Boulder cultivation facilities
breeding seeds that they can sell to
dispensaries outside of Boulder,
but cannot sell in their own stores.
Forces Boulder residents to leave
the City to purchase their seeds,
decreasing tax revenue for the City
Boulder City Ordinance numbers:
6-16-7 (g) (2) | 6-16-8 (j) | 6-16-13 (24) | 6-16-2 Recreational

24

5. Sale and Classification of Seeds

Proposed Solutions

We recommend that Boulder City

allow for the sale of Seeds as
permitted under State law.

er City Ordinance numbers:

7 (g) (2) | 6-16-8 (j) | 6-16-13 (24) | 6-16-2 Recreational Marijuana Plant

25

6. Confusion on the Meaning of

Branded Merchandise
Problems for businesses

oulder City Ordinance numbers:

-16-8 (p) (1) (c)

These shirts were pulled

from The Farms shelves by
Boulder City Police as nonbranded merchandise.
While The Farms logo is
identifiable, it was stated
that since artistic designs
and a different font were
used on these shirts, that
they did not count as Farmbranded merchandise.
26

6. Confusion on the Meaning of

Branded Merchandise
Proposed Solutions

We recommend that the City of Boulder

align with State law and allow branded
merchandise to be sold, and eliminate
the confusion around the definition of
Branded Merchandise and Logos.

oulder City Ordinance numbers:

-16-8 (p) (1) (c)

27

7. Restrictions on Coupons
Negative Effects on Boulder City

oulder City Ordinance numbers:

-16-8 (p) (4) | 6-16-13 (a) (27)

Puts Boulder Businesses at a

Competitive Disadvantage.
Dispensaries licensed outside
Boulder are able to put coupons in
Boulder publications.
City of Boulder coupon policies
extend to showing Colorado Drivers
Licenses and other forms of
identification. This is inconsistent
with the language of the regulation.

28

7. Restrictions on Coupons
Proposed Solutions

We recommend that Boulder

remove restrictions on coupons and
align with State law.

oulder City Ordinance numbers:

-16-8 (p) (4) | 6-16-13 (a) (27)

29

8. Sunset Rule on
Conversions
The Sunset Rule on Conversions
prohibits any existing Medical
Marijuana Business from becoming
a co-located Retail & Medical store
after December 31st 2015.

Boulder City Ordinance numbers:

6-16-3 (f), (g), & (h) | 6-16-4 (h) (1), (2), (3), & (4) | 6-16-2 Co-Located

30

8. Sunset Rule on Conversions

Problems for Businesses

Many centers do not have ability or

finances currently to convert to colocated/physical separation.
This will likely create more
marijuana facilities across the city,
instead of reducing the number of
facilities.
Limits ability of businesses to
operate at their full potential,
lowering the value of the business.

Boulder City Ordinance numbers:

6-16-3 (f), (g), & (h) | 6-16-4 (h) (1), (2), (3), & (4) | 6-16-2 Co-Located

31

8. Sunset Rule on Conversions

Proposed Solutions

We recommend the City of Boulder

remove the Sunset Rule on
Conversions and allow Marijuana
Businesses to apply for co-located
licenses indefinitely, as permitted
under State law.

Boulder City Ordinance numbers:

6-16-3 (f), (g), & (h) | 6-16-4 (h) (1), (2), (3), & (4) | 6-16-2 Co-Located

32

In Conclusion
We love Boulder.
We currently employ 96 people in
our two stores, five grow facilities,
and a kitchen. Most of them live in
Boulder.
The Boulder City Marijuana
Ordinance is incredibly restrictive &
creates a severe business climate.
Growing and/or restructuring our
business under the current
regulation is nearly impossible.
With the ever-changing regulations
that exist, Boulder Marijuana
Businesses are request the support
33

Thank you for your

time and
consideration!

34