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MEDICAL MARIJUANA

ADVERTISING - CALIFORNIA

ADVERTISING - ARIZONA

STATE LEGISLATION Number of dispensaries Statewide 1 for every 10 pharmacies, Estimated 124 County (minimum 1) City (estimated 3 5) Agents are authorized to dispense and grow. Cardholders are patients authorized for personal use and possession Limited to obtain 2.5 oz every two weeks Personal growing only if 25 miles or more from dispensary No more than 12 plants; can donate to dispensary Consumption prohibited in public places and within dispensaries. Zoning authority preserved for cities and counties Dispensaries prohibited within 500-feet of public or private charter schools.

MEDICAL MARIJUANA IN OTHER STATES 15 other states Alaska, California, Colorado, District of Columbia, Hawaii, Maine, Maryland, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island and Washington California Experiences No limits on numbers of dispensaries Easy access to medical examinations Land Use and compatibility issues Montana experiences Cash based business increases possibility of robberies Estimated 3% of state population has marijuana access cards. For Arizona: 200,000 For Peoria: 5,000 Land Use and compatibility issues Use in Public Places

RESEARCH FINDINGS Concerns Dispensaries Parking High trip generation Security Protecting both patients and employees Compatibility with adjacent businesses. Marijuana is odiferous and may impact adjacent commercial businesses Ensuring the use operates like a retail commercial business Concerns Cultivation Facilities No sales except to dispensaries Limit signage and advertising Treat like other light industrial uses Security Plan Compatibility with adjacent businesses Utilities and Fire

LICENSING AND TAXATION Sales tax In California, gross revenue from dispensaries exceeds two billion dollars a year. Licensing Dispensaries and Patients will be under the jurisdiction of the Arizona Department of Health Services. So far this year, the state [Colorado] has collected more than $2.2 million in sales tax from dispensaries. In Denver, which has more dispensaries than any other city in Colorado, the businesses have also paid more than $2.2 million this year in local sales tax. Colorado Springs has collected about $380,000 in local sales tax. Denver Post, 11/23/2010

DISPENSARIES VISUAL CONTEXT Outside Lobby Medicine / Waiting / Room Storefront Room Dispensaries are the locations where a patient can be examined and if qualified purchase marijuana for personal consumption. Medicine rooms are inaccessible to general public. Only patient cardholders allowed.

LOCAL REGULATION - DISPENSARY C-2, C-4, C-5 Conditional Use Permit Required. Visible locations to prevent opportunity crimes. ½ mile separation between other cultivation facilities and dispensaries Operational aspects Prohibit delivery and drive-through Prohibit cultivation Prohibited within: 200-feet of residential 1000-feet of schools, day-cares, preschools 1000-feet of retail liquor stores, adult uses, bars, taverns, and substance abuse treatment centers. Security management plans Access from arterial street & Parking Plan required. Prohibited on-site consumption Medical Marijuana product must be inaccessible to the public i.e. separate medicine room. Additional air filtration and odor control requirements for compatibility

LOCAL REGULATION CULTIVATION BPI, PI-1, I-2 Conditional Use Permit Required ½ mile separation between other cultivation facilities and dispensaries Operational aspects No direct dispensing or sales to cardholders Odor & Filtration controls Security management plans Prohibited within: 200-feet of residential 1000-feet of schools, day-cares, pre-schools No signage directing to dispensaries All growing in enclosed, secured buildings

SCHEDULE Planning Commission Recommendation December 16, 2010 City Council Action January 18, 2011 Amendments to Smoking Code January 18, 2011 State Rules in Place (ADHS) April 1, 2011