A bill for an ordinance repealing the sunset date of the cannabis consumption pilot program. The Committee approved filing this item at its meeting on 1-28-19.
Please refrain from profane or obscene speech. Excuse me, direct your comments to council as a whole and please refrain from individual or personal attacks. Councilwoman Gilmore, would you please put comfortable 24 on the floor? Yes, Mr. President. I move that council bill 19 dash 0024 be ordered published. It has been moved. And can I get a second and second in the public hearing for council bill 24 is open. May we have the staff report? Councilwoman Black, I think you're going to take this one. Yes, I am. Thank you, Mr. President. This very short bill simply repeals the 2020 sunset of the 2016 voter approved initiative that allows businesses to apply for designated social consumption licenses. The ballot initiative, with almost 170,000 votes in favor, established a pilot program for businesses to apply for a designated social consumption license. Because there are only two businesses in operation since it was passed in 2016, this bill would remove the sunset to allow other businesses the time and opportunity to pursue a new business and a new license. It's a matter of business fairness, but prospective businesses need more time to plan, to finance, to find a location, and to apply for a license. So this bill will repeal the sunset. Thank you, Councilwoman Black. We do have seven individuals signed up to speak this evening, so I'm going to call the first five, if you would come up to this first bench. When I call your name, step right up to the microphone as your time will start to elapse. The first five we have are John MacAskill, Chairman Sekou Michael Polansky, Jesse Paris and Cindy Silverman. John MacAskill, you're you're going. Thank you. My name is John McCaskill, ten year resident of the East Side, founder of Hotbox International International, which is based in five points in an area now known as the Rhino Art District. For future reference, that can be found at the HDB XCOM. For questions and follow up, I'm here today to speak to the success that's happening developing under the current rules of social consumption with my startup HTC X International and our pending DCA application for the HOTBOX Solution, which you will see that is up currently at public record as the TBC solution, which is to take place May 31st . I would also like to close with comments on the proposed changes to the initiative and briefly address items that are being debated under the social consumption initiatives. Last month my organization submitted the first special event DCA application to be accepted by the city. While this application is currently under review, we anticipate approval to be announced in coming weeks. To date, my team has been the only organization to successfully navigate the special event license application. So how have we gotten this far? Tell you a little bit about my business first. The hotbox is an agile and sustainable solution. We have developed and upcycled modified shipping container into a mobile patio which adheres to all DCA requirements that can be temporarily placed for special events and then removed following a leave no trace ethos. This is a benefit to municipalities for who who want to determine specifically when, where and for how long consumption takes place. The hotbox is also a truly shared solution providing neighborhoods, businesses and other individuals. 21 to know a safe and responsible space to consume cannabis. With anticipated ballot initiatives for tasting rooms coming to vote in May. We will offer HOTBOX as a cost effective and sustainable replacement to traditional brick and mortar buildings as well. Second, we worked within the framework of the existing rules at the city in the state. We developed the hotbox with the city by sitting down with all regulatory agencies to discuss our product, our plan and a roadmap with full support from the city. We've been able to focus on safety and compliance without needing a rule changes. Third, the hotbox is designed to be a solution for everyone. Cities across the country, including Denver, appreciate the easily identifiable and malleable structure. We're developing the business for the nation's first standardized cannabis intoxication certification in conjunction with the TIPS TIPS Program, which is currently mandated in Colorado as an education program for alcohol sales. We're working to understand social implications with planned research projects at the University of Colorado, and we understand that we are on the frontier of social consumption. So we're developing innovative operating and use procedures with the latest technology focusing on safety, security and compliance. In the future, we look forward to designing, building, leasing and selling units across the country to industries and organizations and municipalities solving the problem of social consumption. I'm sorry, but your time is up. Thank you very much. Next up, Chairman Zak. Yes. Good evening. My name's Chairman Siku. I will be the next mayor of the city county of Denver 2019. And, you know. I have never in my life. Seen. A body, a government body. Who could mess up a great cigar. And all you got to do is light it. All of this overregulation of marijuana by folks who are alcoholics that don't smoke has driven this thing underground. And people are doing this now and having social meetings in places that are happening as we speak around the clock. My grandfather told me legislation in law ain't worth a bucket of spit. If you can enforce it and you can't enforce this, you can't stop people from doing something they've been doing for over 100 years in this town. And then tell them after the voters say, do it and it's okay, you make it. I don't care. And that's the hypocrisy. And there's words that I can't say about this. Think that I'm an honest president this evening. But come on, man. This is straight up, people. La la la la, la, la. That's all this is. Because what you don't want to address is the white privilege cocktail. The two got it. Currently with this thing where you don't have nobody else doing this. As you preach diversity and you ain't got nothing at all on this level or any level. So what we're going to do is not only repeal this, but all of this legislation that's come into place to mess up a good cigar so we can let this thing flow. Otherwise, what are we talking about here? State socialism where you go and everything that happens with everybody. Cause you don't do it. Well, come on, man. Come on. Close the door. It's going to be a socialist and communism. Regulate everything. Are you gonna let the people do what they do and have faith that they have enough sense to govern themselves? As you go and salute that flag and violate every principle, doesn't that flag. What a freedom. Where's the liberation act? And you sit up there. Well, I can't wait. I can't wait. I've been looking for this moment. This is my year. And I want to thank you very much, because this is the stuff that organized the opposition to make me the mayor. Because in office. All of this stuff. I'm sorry, but your time. Your time is up. Thank you very much, Michael Polansky. Good evening. My name is Michael Polansky. I'm the CEO of Teen Women's Honeypot Loans. I'm speaking to you today because your committee holds the fate of my company and that of the entire social consumption experiments in your hands. Entering uncharted territory. We knew, as all operators in the space know well, there would be hurdles to face. But the sunset clauses, the one hurdle we operators cannot outmaneuver or out persist. It is, in fact the one we cannot get over without your help. A Denver social consumption license program is set to expire in September of 2020. Since three hundreds of passage, Denver has seen only two licensed social consumption facilities open and zero special events permits issued. Why is this? There are many theories floating around. No viable business models. Distance requirements, too restrictive, too risky, etc. Certainly these are valid points, but all could be cured if we went after the disease instead of the symptoms. Having a sunset clause or expiration of a business makes all of those theories hold a bit of truth. How can one come up with a viable business model? Uncertain whether or not they can be operational in two years? How can one forecast financials not knowing if they will be around to actualize a standard five year forecast? How could a potential investor consider any financial deal not knowing if the company will be around long enough to see a return? Our investors cannot justify putting in money and faith into an industry that this clause effectively kills before it has had a chance to be born, let alone to flourish. And I stand in solidarity with everyone else in this room who has seen this special opportunity for what it is. I implore you to unshackle this burgeoning industry. Open an extension for another five years from 2020, if not indefinitely. The people of this city did not overwhelmingly vote for this bill to pass just so that it could be suffocated before it could grow. All of the meetings that all of these good people have attended time and again will be for naught if you do not take a reasonable approach to this. We have done the work on this side. Give us a real chance to see this through and this will be a great triumph for us all. Stifle it now with this shortsighted, unreasonable sunset clause, and this story has no chance for a happy ending. Without our efforts, we will be back where we started with a hypocritical message to all of our tourists that says, We will take your money and sell you cannabis. Then we will say you for using it in public. Our city has been the lodestar for the entire world to follow, and we have brought cannabis out from the shadows and shown the world that we can regulate and manage it ourselves. You will force us back into the shadows, back into the legal gray area, back into unsafe draw consumption, back to totally unmonitored overconsumption, back to unhygienic practices and unsafe biohazards. These are things that we resolve. We are the Band-Aids to the issues that the legal cannabis market has brought up. I only ask for fair consideration on the impact of your vote. By voting no or abstaining, you will be responsible for the death of numerous legal and licensed businesses, all of which climbed mountains to become operational as well as killing Denver cannabis innovation and our roles as leaders in the legal, regulated cannabis industry. Thank you. Thank you. Next up, Jesse Pearce. Just two pairs represent for Black Star Action Moment for self-defense. Denver Home of Out Loud and Positive Action A Commitment for Social Change. And I reside in Albert Brooks, District of District nine, and I'm also an at large candidate for 2019. We are definitely against this, as has already been previously stated. You have. Enabled an all white cartel to take over this city. None of these businesses that you are. This law is pertaining to Freddie's consumption. Clubs are owned by black people. There is no black people own dispensaries besides Wanda James. Simply pure. There is no black owned dispensaries in this whole city. But yet it's legal for us to consume. But this has become a tourist attraction. The voters voted in 2014 to make this legal. And now Denver has become the moral high income city where people come here to get high but cannot even afford to live here. The cost of living has skyrocketed since this is being passed. And you got to sit up here. I realize this is a good. This is a good thing. People are being displaced. People are being criminalized. People are being pushed away. We are definitely against this. This is white supremacy at its finest, and we are no longer going to stand for this. And we're going to sweep the council like this with the homeless every night. Thank you. Thank you. Next up, Cindy Sullivan. And then I'll ask the last three if you could come up to the front. I think we have eight now. Have you come up to the frontbench if you've signed up to speak on this and I have already called your name, come on up to the frontbench. Go ahead. Thank you. My name is Cindy Sabine and I'm the CEO of Utopia Spa and Lounge. I was the second applicant to apply in Denver. I went through the process but was denied for being 18 feet too close to a daycare center. I've since been working with the city and I would like to take a moment to thank Councilman Black. You've been really, really great in working with the industry, working with the people and working with the voters that have stayed engaged and remained in this issue to move this conversation forward. But I'm here tonight to speak in support of removing the cap or removing the sunset on the on the pilot program. You heard Michael talk about the business ramifications that come with trying to put a business together and not being able to have the certainty of know that you can flush out a financial model and be able to guarantee to your investor that you'll actually still be there in five years. I certainly ran into this too, while we ran into for the Spa a number of investors that even still continue to trickle in with interest. We are not able to provide a location and in addition to that, the surety of the five year business model. So removing the cap or the sunset will really help in that regard. I'd also just like to speak out in support of social consumption with the remainder of my time. This is about harm reduction. It is about monitoring intoxication. That's really what is the most important piece I would like to keep in taking away and trying to make this program successful. You know, he was very supportive of the conversations that you all put forward around having a safe injection sites for the same very, very same reasons . When you think about this, people are using cannabis just like any other substance for a reason. If we can provide them safe spaces and places where we monitor them in order to do this, this is actually the safest substance available. And to that point, the safest place for people can go. We need to be able to continue to be on the forefront in this with cannabis. The point about private businesses in this going underground is well taken. I just hosted my second private consumption event on Valentine's Day to an almost 200 people. We recruited over two dozen healers. We had to turn people away. We had massage therapists, acupuncture, Reiki. Everybody was very much interested in participating. We had a really, really good crowd. And I will tell you, it was the most low key event I've ever seen in my life. I have heard the joke recently. A couple of times you get five drunk people together and they start a fight. You get five stoned people together and they start a band. I mean, we are really, really at the creme de la creme when we start talking about what we've done here in Denver for monitoring, intoxication, ventilation, all of the health and safety, the work that the city put into these models, into these rules. They're workable. The main problems that we have is that we have this sunset that is really a clock ticking down on everybody who wants to get into this industry right now. And then also in available locations, which I know you guys will continue to talk about. I really appreciate the opportunity to have this conversation and be involved in this dialog. And I really thank you for all your work. Thank you. Next up, Mariana Thompson. Mariana Thompson, Denver homeless out loud. Ladies and gentlemen, say, everybody, that's for this is white. What does that say? Okay, so here we go again. More gentrification. So I don't know what when you get there, it's going to turn around and realize that there's more people in this world that need jobs and that need businesses like Latinos , like, you know, Puerto Ricans, like black people, everything but white people. You know, this is this is completely unfair. You guys talk about being progressive in a progressive city. You know, let's look at progressive, linear. Let's look at all of them. Okay. Thank you. My answer's no. Thank you. Next up, Aubry Rizzo. Good evening, Mr. President. I thank you for an honorable council members. Thank you for allowing me to speak. I am here in support of the repeal of I 300 sunset. I'd like to offer some perspective. First of all, I think everyone in this room should know that Denver is a leader in socially responsible marijuana policy and through its through the annual Marijuana Management Symposium that occurs and the only one of its kind in the world that occurs here every October, November. And then with the mayors and office recent announcement of the turnover new leaf program, we've really de-stigmatize social consumption of marijuana. So I really need to give kudos to the city of Denver for that. We we are a leader when it comes to socially responsible marijuana policy. Secondly, in 2017, I served on the Social Consumption Advisory Committee and in 2018 on the A-300 Task Force or Task Force discussions were interesting and occasionally passionate, and we did not always agree. But the one thing we did agree. Was that the 300 sunset should be repealed. I ask that you please consider the time that the task. Force members spent in discussion and meetings and vote to repeal the 300 sunset. Finally, I take pride in having served my profession as a veterinarian in the city of Denver as an independent small business owner for over 40 years. My proudest accomplishment was being able to provide employment and thousands of dollars in revenue to Denver in sales use and occupational privileged occupational privilege taxes in a business whose expressly stated mission was to serve our community because that is what small business does. We serve our communities in ways that big business cannot or will not if the A300 sunset is not repealed. Big Business and Big Pharma will find a way to make social consumption work. Shutting out socially responsible, community minded small business owners. Therefore, I ask that you please vote to repeal. The A300 sunset. Thank you. Thank you. And our last speaker tonight is Logan Goolsbee. Thank you, council members. First off, it seems like I'm the only representative from the industry that has intended. So please don't take my word as the the whole industry. But the industry does appreciate the work that the City Council and Councilwoman Black did in putting together this this review on the A-300. It took a lot of investment from stakeholders city members, community members, industry and attorneys as well, all coming together, sitting down on the same table to continue this conversation. For that reason, it looks like this conversation still needs to continue on. There was no resolution at the end of this at the end of this committee. Nor has there really seemed to be a unanimous resolution since then in the Special Issues Committee. I think by repealing this sunset bill or sunset, it allows the individuals to continue this conversation about these are these small businesses and this service that the city of Denver, the public for the city of Denver has voted for. It's it's been a small business struggle to continue on with not only these special events, but these businesses just creating these social use consumption businesses as well. We struggle a lot with voting, with the zoning, with installation systems, employee training, mandated employee training, the security systems, mandatory security systems, licensed area, electronic scene, electrical bathrooms, zoning, fire inspections. The list goes on and on in the regulatory framework that the small businesses do have to navigate. And we we would continue to pursue should these businesses be allowed to go on. I also want to speak to a comment that was made during the during the Special Issues Committee in the individual from the Boys and Girls Club stood up during a during a statement that was made by by the committee asking who would be opposed to the to the social use. The individual from Boys and Girls Clubs stood up and said, you mean for the children? And if that was the case, then everyone in the room should have stood up. It shouldn't be that we just look at my for 20 tours and Colorado cannabis stores as the only operators out there . But we want to protect individuals from those public public use areas like my for 22 years in Colorado cannabis tours and allow them to. I'm sorry, but your time is up. Thank you very much. That concludes our speakers. Are there any questions from members of council? Councilman Espinosa. Michael Polaski. Please call you back up. So I'm confused on the two businesses. Is your business in operation as a consumption? We are pursuing a special events license within that as a request. Yeah, because my other questions are related, but not if you're bricks and mortar social consumption. So you're not. So thank you very much. Sir. Sir. No further questions, sir. All right. Seeing no other questions from members of Council for Public Hearing for Council Bill 24 is closed. Comments by members of Council. That's why I'm black. Thank you, Mr. President. As several of the speakers mentioned, we had a task force last year. Some of the people here served on the task force, as you did. And we looked at why there are so few licenses. And one of the main reasons was the sunset also distance requirements, which we will be looking at later. The sunset, I think it's a no brainer to repeal it. It's not serving any purpose. It's just hindering the ability for anyone to put a business plan together. So the task force recommended that we repeal the sunset, and I hope that my colleagues will support that repeal. Thank you. Thank you. Councilwoman Black's seeing no other Councilman Espinosa. Council president. Are we going to I guess would we just call it out for comment a second or would we have a, you know, a dedicated comment then? Or should I comment now? You can do whatever you'd like. This is just to be ordered published so you can save for final will be next week, but there will not be another hearing, so someone would have to call it out. Okay. I guess I just want my colleagues to sort of ruminate on on this. When we had a when we met as a as a committee, we spoke to all the issues that were raised, particularly by the last speaker. And we sort of concluded on this matter of the sunset. And I don't agree that it is a no brainer to eliminate this as sort of a no brainer to eliminate this in light of the fact that we are looking at relaxing some other rules, you know, and so the idea of a pilot would be that you actually have some means to to rein it back in. And and so if we're if we do eliminate the sunset, what are the unintended consequences if we start relaxing distance rules and other things? And so, you know, I really wish, as it seemed to be going, that we would bring all these matters to council at once is sort of a package, because one of the things in my time in council, because we first we, you know, we dealt with a a licensing moratorium is that the council has time and time again sort of proven that it's reticent to to potentially, you know, put people, business operators who have definitely approached an industry at risk. At risk. You know, once they start making that investment, we then use that as sort of our, you know, you know, sort of we get worrisome about the possibility of other decision that we make, making those business operators that have vested into potential business that was at risk, you know, making them suffer the losses that they knowingly and willingly chose to pursue. And so I have always been in agreement that we should extend the the moratorium, I mean, the sunset, simply because the rulemaking has proven to be to be too. And I'm losing the words. But you understand there's too restrictive. And so I think we should look at relaxing those rules. But I do think that we should just have another extension. I mean, so that we are we are making it very clear to the operators that you are doing this with enough time to hopefully profit and prove that this is a viable industry with new rules and prove that you can operate in a in a good faith way, in a way that is enduring and engendering yourself to your community, providing the service and making the case for a subsequent sunset. Removal of the sunset. Right now we have no businesses in bricks and mortar businesses that have made that case, that this is a good pilot because of our own rules. So let's fix the rules that actually are not mean, preventing businesses from forming and give them adequate time and so that they can actually become viable. But let's not say, you know, put it on future councils that basically if things do go wrong, that future councils have to then sort of shut the door on on those investments that have been made long after they've been made. Let's let them do it with, you know, understanding that there is a legitimate vulnerability there, you know, so because it's always been right, it's still a federally listed. Drug. And so I think we've now proven we've made the case that it can be incorporated and sort of suitably legalized and hopefully made the case that it could actually be legalized at the federal level. But it is by our proper approach to regulation. So that's the thing I want you all to consider is without knowing how we're going to regulate, I mean, relax the rules. It doesn't make sense that we've relaxed this uncertainty, you know, indefinitely things. Thank you, Councilman Espinosa. Councilman Brooks? Yeah. I just wanted to thank my colleague, Councilwoman Black, for working so hard on this. She's been diligently working on it. Some that I'm concerned about, and she's moving the ball forward. So thank you, Councilwoman Black. Thank you, Councilman Brooks. See no other comments. I'll just also echo a thank you to Councilwoman Black for taking this on and all of the task force meetings. And it is a lot of work. I want to thank the task force members who are here tonight who participated in that process as volunteers for adding your voice then and now. And I hope you'll stick with us as we continue to talk about these issues in our in Councilwoman Black's committee. And then I'll just add, you know, I think that Councilwoman Black, when you said this was a no brainer, I agree with that. I think the sunset was originally put in the bill to protect from a future that opponents were worried about, that this would open the floodgates and there would be, you know, the public consumption Wild West going on. And this was a protection to say, okay, we're going to try this, but if it goes really bad, this'll turn everything back off again. And with two licenses in the city, that has not been the case. And there are a lot of moving pieces and a lot of levers to try and play with as to see what exactly in here is is preventing more or licenses from happening so that we could see how this is working out even. And we're going to continue talking about those. But this is one of them. This is one of the ones that we've heard directly is a a hurdle to get through. And I think that it's an easy one to step away from, because it clearly has not led to the Armageddon that was feared. And so it's I think it's not needed and so happy to support. But thank you for all your work to get us here. Madam Secretary, roll call on Council Bill 1924. Black eye. BROOKS Hi. Espinosa Hi. Flynn Sorry. Gilmore I. Cashman. All right. Can each. Hi. Lopez. Hi. New Ortega. Mr. President. All right, now, secretary, please post voting, announce results. Ice Age Constable, 24, has been ordered published on Monday, March 18th, 2019. Council will hold a required public hearing on Constable 19 0079, changing the zoning classification for 901 Irving Street and will park any protest against Constable 19 0079 must be filed with the council officers no later than