Reconsideration of the

Boulder City Marijuana

Ordinance
1. Lack of Appeals / Zero Tolerance
2. Grandfathering Rule
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 issues we
face on a daily basis, but rather a list of the ones we
currently find most difficult to navigate.
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Boulder City Ordinance Comparison Chart

CITY OF
BOULDER

BOULDER
COUNTY

DENVER

MED / STATE

ALLOWS FOR APPEALS?

NO

YES

YES

YES

GRANDFATHERING SURVIVES SALE OF BUSINESS?

NO

YES

YES

YES

LIMIT ON TRANSITIONING STORES TO DUAL USE

MEDICAL & RECREATIONAL STORES?

YES

NO

NO

NO

70/30 RULE EXISTS?

YES

NO

NO

NO

SALE OF SEEDS ALLOWED?

NO

YES

YES

YES

CONFUSION ON MEANING OF BRANDED

MERCHANDISE?

YES

NO

NO

NO

USE OF COUPONS ALLOWED?

NO

YES

YES

YES

SUNSET RULE PREVENTS CONVERSIONS?

YES

NO

NO

NO

Coupons
Prohibited:

Sunset Rule on
Conversions:

Reference Chart for Boulder City Ordinances

Zero
Limit on
Tolerance / Grandfathering transitioning
70/30 Rule:
Lack of
Issue:
stores to
Appeals
Dual Use:
6-16-1 (a) (7) 6-16-3 (e)
6-16-4 (e)

6-16-5 (a) (9)

6-16-7 (e) (1)

Sale of Seeds:

6-16-6 (a) (9) 6-16-5 (a) (16) 6-16-2: Definition

of "Recreational
6-16-7 (h)
Marijuana Plant"
6-16-7 (i)

Confusion on
meaning of
"Branded
Merchandise"?
6-16-8 (p) (1) (c)

6-16-8 (p) (4)

6-16-13 (a) (27)

6-16-2: Definition
of "Co-Located
Marijuana
Business"

6-16-7 (e) (2)

6-16-7 (g) (2)

6-16-3 (f)

6-16-7 (e) (3)

6-16-8 (j)

6-16-3 (g)

6-16-13 (a) (24)

6-16-3 (h)
6-16-4 (h) (1)
6-16-4 (h) (2)
6-16-4 (h) (3)
6-16-4 (h) (4)

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 members of the
Boulder Business community.

Boulder City Ordinance numbers:

6-16-1 (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.

Boulder City Ordinance numbers:

6-16-1 (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.

Boulder City Ordinance numbers:

6-16-3 (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.

Boulder City Ordinance numbers:

6-16-3 (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.

Boulder City Ordinance numbers:

6-16-3 (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.

Boulder City Ordinance numbers:

6-16-3 (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

Grandfather
of Use?

Boulder
County

Boulder
City

Denver Louisville Lafayette

Allowed

Not
Allowed

Allowed

Allowed

Allowed

Nederland

Aurora

Lyons

Allowed

Allowed

Allowed

At State level, as well as in the Cities

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

Boulder City Ordinance numbers:

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

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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.

Boulder City Ordinance numbers:

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

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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 Boulder that had
more than one marijuana store we were one of them.
Boulder City Ordinance numbers:
6-16-6 (a) (9)

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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 navigating the complex regulatory
framework that exists in the Cannabis industry.
Boulder City Ordinance numbers:
6-16-6 (a) (9)

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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.
Boulder City Ordinance numbers:
6-16-6 (a) (9)

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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 outof-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 inviting chains in.
Boulder City Ordinance numbers:
6-16-6 (a) (9)

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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.

Boulder City Ordinance numbers:

6-16-6 (a) (9)

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2. 70/30
Rule
4. 70/30
MIP
Rule
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.

Boulder City Ordinance numbers:

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

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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 of Boulder.

Boulder City Ordinance numbers:

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

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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.

Boulder City Ordinance numbers:

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

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4. 70/30 MIP Rule

Problems for Infused Product Manufacturers

Cant meet local
or state demand
& unable to
grow business.

Boulder Infused
Products Kitchen
sits largely
unused due to
restrictions.

Boulder City Ordinance numbers:

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

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4. 70/30 MIP Rule

Effects on our Community

How many Bouldermade 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.
Boulder consumers want to buy local.
Boulder City Ordinance numbers:
6-16-5 (a) (16) | 6-16-7 (h) | 6-16-7 (i)

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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.

Boulder City Ordinance numbers:

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

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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 plant means 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 Marijuana Plant

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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 of Boulder.

Boulder City Ordinance numbers:

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

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5. Sale and Classification of Seeds

Proposed Solutions
We recommend that Boulder City allow for
the sale of Seeds as permitted under State
law.

Boulder City Ordinance numbers:

6-16-7 (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

These shirts were pulled from The

Farms shelves by Boulder City
Police as non-branded
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.
Boulder City Ordinance numbers:
6-16-8 (p) (1) (c)

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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.

Boulder City Ordinance numbers:

6-16-8 (p) (1) (c)

27

7. Restrictions on Coupons
Negative Effects on Boulder City
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.

Boulder City Ordinance numbers:

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

28

7. Restrictions on Coupons
Proposed Solutions
We recommend that Boulder remove
restrictions on coupons and align with State
law.

Boulder City Ordinance numbers:

6-16-8 (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 Marijuana Business

30

8. Sunset Rule on Conversions

Problems for Businesses
Many centers do not have ability or finances
currently to convert to co-located/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 Marijuana Business

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 colocated 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 Marijuana Business

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 of their City to survive
and thrive.
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Thank you for your time and

consideration!

34