NO Applications for Med MJ dispensaries in Sioux Falls

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I had heard from a reliable source this week that it was true, but honestly I just thought it was a fluke. The Argus has confirmed it with a story this morning. While I have not read their article I can speculate the reasons why.

Between the rules actually being in place with the state, there is the 700 lb gorilla in the room, the Supreme Court decision. Honestly, if I had the knowledge and the capital to invest in this, I would wait for those two things to be in place before moving forward. There is also a potential ballot question if they get enough signatures.

Factor in that there is very strict rules in Sioux Falls when it comes to dispensaries and my guess is finding a facility location is also very difficult.

If I were to invest in such a thing, I would do it in Lincoln County outside the city limits.

This is what happens folks when a legislative body jumps the gun on rules, and makes those rules so strict no one is interested. We all know that was the plan from the get go. So it seems South Dakota’s largest city can’t even progress on something this simple due to manufactured red tape. What a massive waste of time and taxdollars, but not a surprise from a cruise control mayor, and incompetent city attorney and a rubberstamp council.

If it ain’t for the benefit of the developers we will crush it. The sad part is the banksters, bondsters and developers will end up crushing the middle-class economy in Sioux Falls (if they haven’t already) due to their greed (taxpayer handouts) and unbridled growth (with no game plan on how to handle it).

I have been talking about our uncontrolled growth since I started this blog. Read this letter to the editor someone wrote in 2009 I quoted;

It is my opinion a moratorium on the city-limit footprint is needed. There are several, sizeable areas of undeveloped land within the current city limits This moratorium should last as long as these areas remain undeveloped, or 25 years, whichever is greater. As these areas fill in, property values will rise. Older, dilapidated neighborhoods could be razed, and urban renewal could flourish.

This statement was made 12 years ago and what has happened to our core neighborhoods (besides just downtown) since then? Nothing. The roads have gotten worse, affordable housing is virtually gone, Minnesota avenue has looked the same since the 1980’s and our core neighborhoods continue to crumble while we invest in play palaces and egg roll factories in corn fields. A reckoning is coming folks because of this willy nilly form of planning.

Sioux Falls Cannabis Raffle

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Guest Post by Emmett Reistroffer

Who wants a dispensary license? Step right up and buy your raffle tickets! No limit on how many tickets you can buy. That’s right folks. Just $75,000 Dollars, now who’s ready to test their odds?

All satire aside, this is a very serious issue and shows why policy details matter. Not only policy details – but how city attorney’s and bureaucrats interpret policies. The Sioux Falls cannabis licensing ordinance (#105-21) clearly states, under Section 121.003 (Licensing of Medical Cannabis Dispensary and Testing Facility), sub-section (a)(E)(2) “Only one application per location is allowed.“
At no time during council discussion did the City Attorney point out that this would be interpreted differently. According to the City Attorney, it’s only one application per location, per applicant. “Applicant” is not tied to the individual, but it’s tied to the ‘entity’ which applies. So, Mr. Monopoly can create 100 separate LLCs, and submit 100 separate applications, all listing the same location/address, and thus drastically increase the odds that Mr. Monopoly gets a license over his other less-funded competitors. It’s also not just a matter of who has the most funding at their disposal, but who genuinely follows the process according to the spirit of law versus those who are willing to exploit a “loophole”. Unfortunately, the way loopholes work, it doesn’t matter where you stand on it ethically – the outcome is based entirely on how it stands legally. If it’s legal to form the 100 LLCs and submit 100 applications – then at the end of the day that’s all that matter and the applicant willing to do that absolutely will have the greatest odds at getting a license.

This can be prevented and fixed. The path of least resistance would be for the administration to put its foot down and change its position. The administration should stick to, “only one application per location” per the plain meaning of the language of the ordinance. They could accept an application listing an address, and then deny all other subsequent applications that list the same address (first come first serve), OR the city could just simply deny all applications submitted which list the same address. Either way, if the city is very clear in its position and in the application instructions – then this issue can be easily preventable.

If this requires a policy change, then that’s more difficult. That would require Council to call an emergency meeting and get a majority of council to agree to an amendment. I’m not very optimistic, however I am grateful for Councilors Brekke, Neitzert and Erickson who have all responded to my concern with an open mind, and have indicated they’re all working in various ways to find a solution. However, like I said, an administrative fix would be the quickest and easiest path to a solution, and a legislative fix is up against a tight timeline and would require a majority of council to act in agreement.

Ultimately, if the city doesn’t fix the loophole – then I have no doubt this will end up in the courts and the city attorney’s interpretation will come into question. This will cost the city time and money and delay the opening of medical cannabis dispensaries in Sioux Falls.

Regardless, my group is working to draft an ordinance that is legally sound and based on fairness and gives the voters what they want. Our ordinance will not include a licensing cap or lottery, and it will generally allow a free market – balanced with common sense zoning requirements and setbacks (away from schools, parks, daycares etc.). We don’t want dispensaries to be open on every corner, and we also don’t want the city conducting lotteries or creating processes that allow big money unfair advantage over others.
Here are some links to demonstrate how licensing lotteries are riddled with problems:


https://www.denverpost.com/2021/10/05/broomfield-marijuana-licenses-lottery-lawsuit-terrapin/


https://harrisbricken.com/cannalawblog/was-the-illinois-cannabis-dispensary-lottery-rigged-sure-looks-like-it/

https://www.chicagotribune.com/marijuana/illinois/ct-illinois-marijuana-license-lottery-qualified-20210728-dncra2em3fhhjeel2isr3ew7am-story.html


Best,
Emmett Reistroffer

MJ Advocate Reistroffer proves the incompetence of the City of Sioux Falls Attorney Stacy Kooistra

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So Emmett dropped this bomb on the city council last night;

Emmett Reistroffer, a consultant for medical cannabis businesses, believes the current interpretation of the new application process by the city attorney’s office could lead to out-of-state interests exploiting a loophole that could have a business entity or individual submit multiple applications and then squeeze out local business people.


Reistroffer told the City Council during public comment that to ensure a level playing field, they should limit the applications to one per location.

Emmett told me last week he had been in a back and forth with the city attorney’s office about this for weeks with no avail. This is why he showed up during public input last night to inform the council about the issues.

When the MED MJ ordinances were being debated, Councilor Brekke also questioned the City Attorney if the lottery system was even legal. Remember, Janet was the first full-time city attorney, she doesn’t take this lightly.

I have known for a very long time that our city attorney who is trained in military law, knows next to nothing about city law and also struggles with 1st Amendment Constitutional law. Usually if he doesn’t know the answer, he doesn’t answer the question which is happening a lot these days.

Med MJ Dispensaries are bad, but dropping off kids at a Bar Parking lot is okay?

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I have been thinking about this for awhile. I drive by this place a couple of times a day, imagine my surprise when I see almost a dozen kids using a bar parking lot as a pickup and drop-off for the school bus. I get it, it is technically the entrance to the trailer park where several school kids live, but to pick this location?

I bring this up because there has been this argument by local government officials that we can’t have MED MJ dispensaries 1,000 feet with-in sensitive use because MJ is harmful and dangerous to children. I will go along for the sake of the argument. But isn’t the perception of using a bar parking lot as a school bus pickup just as ‘dangerous’. Couldn’t the kids be picked up just as easily 1 block east or west?

Also realize that MED MJ can only be purchased at these dispensaries for pain relief, etc. Sales are to be discreet and private within the facility and NO use can proceed on the premises and only allowed in the ADULT customer’s homes. Juxtapoz that with a bar, that clearly has an alcohol sign on the building advertising the consumption of that product on the premise and it is okay to drop kids off right in front of the patrons of this establishment?

We certainly have a whacked view of the dangers of alcohol compared to the dangers of MJ.