Alexander council approves medical marijuana dispensary; state approval next

The Alexander city council accepted the recommendation of the planning commission allowing Natural State Medical Group to establish a medical marijuana dispensary in the city at the corner of Arkansas Highway 5 and Alexander Road. They must now submit an application to the state and be approved to do business in Alexander. The decision is expected to be made on 
September 18.

Mayor Paul Mitchell called the special meeting for Tuesday, September 3, one week after the planning commission held its own special meeting on this and other issues. See article here. Council members present at the meeting were Joe Pollard (Ward-1), Joy Gray and Juanita Wilson (Ward-2), Harold Timmerman and Dan Church (Ward-3), and Lonny Chapman and Jeff Watson (Ward-4). Absent was Elizabeth Bland (Ward-1).

First to speak to council members was Planning Commission Chairman Michael Huck. He started by explaining how the commission had to cancel its regular August 13 meeting due to the lack of a quorum. When the city attorney gave approval for an ordinance concerning fees Huck began trying to schedule a special meeting in order to get the ordinance to the council for its regular September meeting. It was then he received an E-mail from James Adametz concerning the dispensary. Calling it “The first coincidence,” because the special meeting hadn’t been announced, he added the issue to the agenda.

He then referred to the possibility of having a medical marijuana dispensary in the city as a, “Second coincidence.”

“I’ve been trying to think in the back of my head what can Alexander get that not everybody else (other cities) has,” he told council members. “ Now granted marijuana dispensary was not way up there at the top of the list. I was thinking food (restaurants), or store, or something like that; but frankly I’ll take what I can get.”

After Huck’s presentation Mayor Mitchell read the planning commission’s recommendation which states in part, “[T]he City of Alexander Planning Commission, in a four to zero vote, passed a motion to, ‘Recommend the Alexander City Council approve Natural State Medical Group’s request to establish a medical marijuana dispensary at the corner of Arkansas Highway 5 and Alexander Road.’” With Council Member Joy Gray making the motion to accept the recommendation and seconded by Council Member Jeff Watson, the motion passed with a voice-vote all members saying “Aye.” The only “No” vote would be from the absent Elizabeth Bland. An absent member counts as a “No” vote.

The next step was to read and approve a resolution provided by the mayor’s office. Council Member Joy Gray asked why there is a recommendation and a resolution.

“Since installing the new planning commission we haven’t done anything like this,” said Mayor Mitchell. “This is the way I chose to do it; to be able to put the planning commission, everything they stated and done, with the resolution itself to have it in one packet for the future.”

Mitchell then read the resolution, which cites Amendment 98 to the Arkansas Constitution approved by voters in 2016. Known as the, “Medical Marijuana Amendment of 2016,” the resolution states the amendment, “[A]uthorizes the cultivation and distribution of medical marijuana.”

It also includes the state’s requirement that, “[Z]oning regulations (for medical marijuana dispensaries) are the same as those for a retail pharmacy.” The property at Arkansas Highway 5 and Alexander Road is zoned Highway Commercial. That zoning designation includes Neighborhood Commercial, which includes “Drug Store” as stated in the Alexander Zoning Ordinance.

With a motion made by Jeff Watson and seconded by Joy Gray to approve the resolution council members were then permitted to ask questions. Gray asked for an estimate of revenue in the first year. James Adametz gave an estimated revenue between $2 Million to $3 Million. The city’s three-cent sales tax would generate an additional $60,000 to $90,000 respectively.

In response to a question concerning an opening date Adametz said it could be by the end of the year. But, between now and then they have to get final approval from the state, purchase the property and renovate the inside of the former funeral home. The decision by the state is expected on September 18.

“This is the hardest decision that I can make in my life since I’ve been (a) council member,” said Joe Pollard. “I approve of it … because the people want it, but you know I got some doubts about it.”

Continuing along that same thought Council Member Harold Timmerman said, “The people of the city voted me in here,” he said. “I talked to some of the people in my ward and they are for it. I think I talked to about 20 people and only two said ‘No.’ The rest said ‘Yes’ it’s for assistance for those who need it.”

When the mayor asked if there were any other questions the only person there as an observer was Xavier Hendrix. His first question concerned, “Security during open hours.”

“We’ll have numerous cameras,” Adametz responded. “We’ll have a double entrance where you have to come into a door, and then present your (state) card to prove you’re able to buy, then you’re allowed entrance the rest of the way.”

When Hendrix asked about security guards and whether they will be armed Dr. Mel Collazo, another member of the medical group, who is also a part-time deputy sheriff in Clark County said, “I’m going to handle security people,” and “We’ll probably have some armed guards,” which is a state requirement.

Currently, the Natural State Medical Group has an approved license for Hot Springs, however, they have yet to open a facility there. Hendrix asked why they are moving to Alexander.

“There’s already two others (dispensaries) in Hot Springs,” Adametz said. “There are really not any in Alexander, Benton, Bryant, Malvern, Bauxite, this whole section. We would like to be in an area that’s under served rather than over served.”

At that point Mayor Mitchell cut off the questions, pointing out that if there were any more questions they can be asked during the public comment portion of the meeting. Mitchell then asked for a voice vote to approve the resolution. All council members present voted “Aye.”

Before being allowed to take advantage of the public comment portion of the meeting Council Member Joy Gray asked Hendrix if he is a resident of Alexander.

“We own commercial property in Alexander,” Hendrix said. “We own on Highway 5 the old Dollar General building.”

“That’s Bryant,” several voices chimed in unison.

“Yeah, but our address is Alexander,” Hendrix replied.

“My question is before a special use or conditional permit are you guys required any kind of posting, where you have to notify, like run it in the newspaper, put up a sign,” Hendrix asked?

“This is not conditional use,” Huck said.

“But you do need a special permit like a drug pharmacy,” Hendrix queried.

“No, no,” Gray responded. “It needs to be zoned like a pharmacy, so us putting this (the dispensary) there is no different than them putting a Walgreens there. So, we just followed whatever policy or procedure would be utilized (for a Walgreens).”

“There’s not going to be anymore (meetings) open for the public,” Hendrix continued.

“The only way a city cannot have medical marijuana is if, during a regular election, there’s a referendum by the people of that city,” Gray said before being cut off by Hendrix.

“I’m very aware of that,” Hendrix chimed in. “But, the public should be notified. We had to notify the public on our building.”

“This is it, you’re looking at it,” Gray proclaimed. “We had a public meeting.”

Mitchell explained that the planning commission held a public meeting and all meetings are posted. Because Alexander doesn’t have a newspaper in the city regular or special meeting announcements are posted on the city hall facing outside, inside the post office, at Hess, and at Elmo’s Grocery. Meeting times and dates also appear on the electronic sign in front of city hall. Gray also mentioned meeting announcements can be seen posted on the local blog site The Alexandrian.

Meeting announcements and agendas are also sent to local media outlets who request them. Aside from this reporter, there were no representatives from the media at this meeting.

Adametz said Bryant handles medical marijuana dispensary applications differently than other cities. According to Bryant’s zoning regulations a special use permit, which would require a public hearing, is needed for both pharmacies and medical marijuana dispensaries in Neighborhood Commercial Districts (C-1) and Highway Commercial Districts (C-2).

Hendrix’s three minute time limit for speaking had expired. A motion to adjourn was made and passed.