Assembly hears blunt testimony on marijuana rules

PALMER — Mat-Su Borough Assembly members heard blunt testimony on potential commercial marijuana regulations but ultimately passed on taking any new action during Tuesday’s regular meeting.

More than 20 people — most of them potential pot entrepreneurs — turned out to discuss zoning requirements and conditions of possible businesses in the borough. The zoning laws are intended as a stop-gap measure between when marijuana business licenses are issued by the state on June 9, and a scheduled Oct. 4 referendum on the future of retail marijuana in the borough.

Large numbers of people and — for possibly the first time — the intoxicating herb itself showed up for the lively meeting, which also featured a discussion of the borough’s troubled M/V Susitna ferry.

Prospective marijuana growers said state regulations would adequately protect public safety and property rights; borough rules, they said, would effectively double the regulations. Most entrepreneurs who spoke said they were willing to risk the possibility of a voter-driven shut down in order to prove the businesses could be run safely and profitably.

Willow resident Amy Tuma told assembly members growers are aware of the risks of the new business.

“We are all aware that in any point in time our licenses can be revoked for any reason, and are only valid for one year,” she said.

But, she added, the potential rewards of the new agricultural industry are high.

Washington State is projected to take in $1 billion in marijuana tax revenue as the industry there ramps up, according to widely cited projections. Colorado’s marijuana business earned about $1 billion in 2015, according to Fortune magazine. Valley weed could face equally heady prospects, Tuma said.

“A good, clean marijuana facility can produce 500 pounds in 12 weeks,” she said. “At the state tax level that’s $500 an ounce, (which) would be $200,000.”

If the borough set a 10 percent retail tax for marijuana on an estimated $20 per gram retail price, the same 500 pounds could produce up to $448,000 in local revenue in three months, Tuma said.

Numerous people testified that some requirements submitted for consideration were unusually cruel, like a 100-foot setback requirement for retail operations. Alex Strawn told assembly members the measure was designed to keep retail businesses out of dense, residential neighborhoods without resorting to zoning, which the borough cannot enact. The setback would need to be offered as an amendment to the suggested resolution, Strawn said.

Commercial greenhouses and breweries don’t face similar restrictions, said Timothy Hale.

“I think we deserve a chance to show that we can do this, we can do this right, we can do this within the rules, we can respect the neighborhoods,” Hale said.

Not everyone who spoke was so bullish on bud. Former borough mayor Larry DeVilbiss told assembly members they should hold off enacting any zoning laws until after voters weigh in.

“I think it’s reasonable and it’s responsive to the voters’ desire by every indication on this issue to wait until the voters this fall have a say,” he said.

Others made broader points, like Robert Brown, who brought a plastic container of marijuana before the full borough assembly.

“I brought some marijuana here because I always wanted to stand in front of government with marijuana, and now I can,” he said, prompting laughter and applause. “If for some reason, there’s an Alaskan that hasn’t tried it, there it is.”

Brown, a combat veteran and North Slope worker, said he thought the industry should set aside space for small grow operations.

“I see this as a real opportunity for little fish to make a little bit of money,” he said. “I am concerned about the regulation for little fish.”

Contact reporter Brian O’Connor at 352-2270, brian.oconnor@frontiersman.com, or on Twitter @reporterbriano.