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Illinois revised timelines and guidelines

Julian

Canna Consultant
ICMag Donor
Veteran
We had discussed earlier briefly deficiency notices for dispensary.

Initially, it was not known if that was strictly IDFPR procedure or if would be AGR as well.

We did recently hear from several sources they did receive deficiency/request for additional materials from AGR (cultivation) via certified mail the end of October/November, so, I suppose they are/were indeed doing that for all (dispo and cultivation).

(We didn't receive any, so, how would we know otherwise :smoke:....)




amannamedtruth said:
Aahhh, gotcha, thanks for clearing that up.

So evidently there's only 800 patients approved in IL right now? So at this rate, probably no more than 2000 by the end of the year...

And with an un-supportive Governor-elect, one has to wonder how viable the market in Illinois will be, whether people want to produce for little to no return, and with no guarantee of being allowed to operate in a few years...makes one wonder how many of those awarded a permit actually accept it.

Obviously its about the patients, but nobody wants to spend $2 mil to get people an herb for no return.
A point I continuously laugh about....

Actually, last count was 230 patients :smoke:...(official).....6000-8000 apps? (forgot the number).....

The money groups running around talking about 6000lbs within 6 months, 30MM facilities, 200k sq. ft. facilities......blah,blah,blah...

Yeah......I guess they missed the whole thing about new restricted program and only 200 patients :biglaugh:...

Gotta love those "sophisticated investors".....:smoke:....

I/We have actually addressed many for quite a while that IL is not the place necessarily to be dumping 8 figures given the directions we are witnessing in the industry.....(3 more rec jurisdictions, 24 months 7 more proposed, which may change, as well as numerous other avenues within the industry, etc....

Briefly addressed a source recently with a 7MM budget (IL)....

Imagine what could be done nationwide with a 7MM budget :smoke:......(vs. IL op for starting of a couple hundred patients).......which is of course another angle (several) as to planning and operations of many applicants (the failure of such)......
 

Bababooey

Horse-toothed Jackass
Veteran
So... youre saying that even if you were awarded a license you wouldnt take it?
I can see that. Having to pay 25k or 200k for the privilege to barely make money or lose money is not a good investment; those millionaires didnt get rich by being stupid.

I'm still hopeful that IL will see around 5K medical patients next year, 8k for 2016, 10k or more for 2017? And those numbers could be more, as the program matures and more doctors are comfortable recommending it, maybe could be 20K patients in 3 years.
And then the state would have to renew the program, with 10-20K patients getting relief.

And some dispensaries and cultivation centers will do ok, with that level of customer base. Probably not the ones who over-built or over-invested.
 

rootfingers

Active member
In this state couldn't it be a longer term investment for some? At this point we are where we are with a restrictive law but the bigger nation wide trend is more liberal. I could see an investor dropping money into this restricted market for now in preparation (build a reputation/network) for a larger return when the laws finally open up a bit. Be that in a few years or more even.
 

Julian

Canna Consultant
ICMag Donor
Veteran
Bababooey said:
So... youre saying that even if you were awarded a license you wouldnt take it?
I can see that.
No.....but, and we will combine many thoughts from several posts here:
1. I think one should be aware and weigh carefully the risk reward and long term benefits of the capital before committing...

Yes. The long term benefits are there. Added conditions over the next several years, and a potential recreational scenario which will occur as 24 months from now we could very well be up to 10+ recreational jurisdictions.....definitely an upside...

2.Many of the groups have proposed operations which will be impossible to maintain with the way the program stands if they pursue the full implementation of such....such as one group spouting first 6 months 6k units...(that was the one using LED's :biglaugh:....okay.....so what happens when they find out they're going to be sitting on first round for 3 years :smoke:....condition of permit(s) is continuous operation(s), and implementation of proposed project as submitted, so....

Would I throw 5-10MM into Illinois for the long term benefit when the same capital could be utilized and underway today, nationwide? with much greater returns? No.

(We actually addressed a 10MM group. My advice? Cut the budget to 8. Throw the remaining 2MM into an alternate nationwide proposal, as we'd make back their 10 with the 2 before they made back the 2 from their 8. :smoke:...

We see people speaking of 200k (sq. ft.) facilities.....$30MM budgets......No. I would not. It would be very unwise, and irresponsible to recommend to a client.

No. My advisory from day 1 has been minimal build out with easy expansion built in to gauge the program as it proceeds and go from there.

There are actually people (hundreds of them) who think they are going to set up full force, some even talking dozens of acres of greenhouses from day 1.....

Can they (financially) carry until the time when it all comes together?.....maybe.....but it's one thing to be under the impression your going to put up 10MM and make 5MM a year, and another to find out your going to have to keep feeding it for several years...

We focus on the bigger picture.......the industry.....the nation...
Having to pay 25k or 200k for the privilege to barely make money or lose money is not a good investment; those millionaires didnt get rich by being stupid.
They didn't make it either by rushing in full force into an industry which they possess no in depth knowledge and experience either :smoke:...

(I was speaking the past 2 weeks about groups applying which do not even have industry specific personnel involved in their projects......which I can't even imagine how that would be possible...(The attorney and physician groups...who of course, know absolutely everything there is to know...same groups projecting they are going to wholesale for $4-5k per, and retail for $500-600 a z......)
I'm still hopeful that IL will see around 5K medical patients next year, 8k for 2016, 10k or more for 2017? And those numbers could be more, as the program matures and more doctors are comfortable recommending it, maybe could be 20K patients in 3 years.
And then the state would have to renew the program, with 10-20K patients getting relief.

And some dispensaries and cultivation centers will do ok, with that level of customer base. Probably not the ones who over-built or over-invested.
Well.....the last count (applications submitted) was somewhere like 6-8k....factor in as time gos on....throw on top adding conditions...and we could hit some good numbers....especially once program established...

The other significant factor which most have ignored is, in the end, it depends on the physicians...

There are also numerous applicants actually dedicating entire facilities towards CBD product......which is terrifying....on more levels than can be reasonably explained.....(It's freely available without a recommendation in all 50 states and has been for quite a while....)



rootfingers said:
In this state couldn't it be a longer term investment for some? At this point we are where we are with a restrictive law but the bigger nation wide trend is more liberal. I could see an investor dropping money into this restricted market for now in preparation (build a reputation/network) for a larger return when the laws finally open up a bit. Be that in a few years or more even.
All good, sound points, and addressed above, but there is a difference between establishing the foundation and footprint and "full force" $5-30MM entry....

But that again goes back to (investor) is it worth a large number to do that, and an equally large number to maintain it, "in hopes of"...when there are endless opportunities almost daily nationwide (worldwide)....

All good points.....but, in the end? Doesn't make financial sense if even remotely on the larger side...

Our specific clients are, and were advised of all of the above prior to beginning, will be again before acceptance, they're on the smaller side with easy expansion, and fully aware smaller will enable easier to carry while waiting out the patient participation levels and added conditions to reach a reasonable level and are okay with that.

With what is being seen, is being proposed?.....I dont think the same can be said of most.....and I think when they finally learn that....some heads are seriously going to roll (literally)...

Consultants......professionals.....advisory......It's their role to have made their clients aware of all those matters....I don't think most did/do.

This "thing of ours"?.....well.....yeah.....I've dabbled for many decades.....:smoke:....But, my primary business for the last 25 years was basically representing clients in several hundred million in large transactions, so...I mean......the above?......duty, responsibility, advisory?......I take that/those role(s) extremely seriously....

I was laughing earlier today how all of these personal injury attorneys are all of a sudden "expert" marijuana consultants and authorities throughout the state.......For every source well versed, there are 20+ who aren't.....(seriously?.....what makes a Wilmette paralegal let's say one day decide to proclaim themselves a cannabis expert and authority???...ya gotta love it....

Of course.....we....here....know that whole story.....I was talking today about someone who proclaimed themselves the all knowing guru of cannabis, and their justification for that status was they were busted once transporting 50 units from Mexico......or the guy who says how he ran an aero system, but insists he was running his crops with plain water, no nute lines used......and on and on....(I'm out of smiley faces, so....this surely deserves several)....

It would all be quite funny if it sadly wasn't.....
 
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Bababooey

Horse-toothed Jackass
Veteran
Julian, I like you and do think you're an expert but you've also been just as wrong as any of us in regards to IL mmj (thinking the south side would have a bunch of apps when they had none, thinking the boonies would have fewer apps when actually the city had less). I've made these same mistakes myself but im also not someone who transacted whatever hundred million over 3 decades and looks down on all the other so-called experts out there.

Prior experience, preferably in growing (for cc's) would certainly be helpful but is it required? A yoga teacher could open a successful dispensary if they opened small, kept their expenses low, and gave good customer service. I think the one requirement for success would be not overbuilding or overinvesting, which would make turning a profit or even breaking even difficult or impossible, no matter how good of a business person you were.
For cc's, being cautious in buildup and expansion are doubly more important. Applicants are throwing around 8 figure budgets for cc's when demand for the first year or two may be satisfied with a low seven figure budget. Growing experience would surely be most helpful but ive often wondered how a horticulturist, maybe someone trained in greenhouse production of vegetables, would tackle the issue of growing hydroponic cannabis. It might be in a totally different manner than most experienced mj growers, who tend to scale up their bedroom operations, which is what they know. Even if they have a 100k sf warehouse, it's just their bedroom op times 100: 600-700 5 gallon buckets, that sort of thing.
Which can certainly be most productive and high quality but perhaps more labor intensive than what a legitimate horticulturist would do if given the same budget...
 

Julian

Canna Consultant
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Veteran
Bababooey said:
Julian, I like you and do think you're an expert but you've also been just as wrong as any of us in regards to IL mmj (thinking the south side would have a bunch of apps when they had none, thinking the boonies would have fewer apps when actually the city had less). I've made these same mistakes myself but im also not someone who transacted whatever hundred million over 3 decades and looks down on all the other so-called experts out there.
Well, thank you...I do appreciate the kind words...but I think you misunderstood....

Who I wholeheartedly do look down upon....with a healthy side serving of complete and utter disbelief and disgust are those with absolutely no knowledge or background personally or professionally in any aspect setting up shop and charging consumers substantial fee's on false pretenses....and it's carried over to all related aspects actually......seen as a target for profit by many....and all through industry on many levels....

I dont like this in any area of life.....predatory behavior is predatory behavior....and I dont think it's fair for such to take place.....people earn a certain position by their lifetime and experiences......for one to hop onto something and try and profit from it proclaiming the very same as others who have earned it is simply wrong....

Boonies have less dispo than grows, city has more dispos than grows, another given.....originally city stated nothing north of North Avenue fit the zoning requirements. Their info, not mine.

I would include you, btw in the above......you've been around....obviously well versed....how would/do you feel about someone with absolutely no knowledge, exposure, or experience trying to push their way next to you? To a place that your life has placed you due to the above (knowledge, experience, exposure), and trying to convince consumers of the same, charging the same, even trying to proclaim their traits above as greater than yours?....

No.....its wrong in any industry....

I have many areas of weakness......and for every one of them, people to fill those gaps...

Anyway.....I respect many.....and there are many worthy of it, and who have earned it....but for every one of them, there are 20 popping up who have not....otherwise, I'm good....Honesty, Integrity, Loyalty, Duty....best interests of the client (whether in your interest or not).....I mean.....not too much to ask right?....right there with common courtesy...so...Takes a lot to rub me wrong.....I dont think I'm setting the bar too high here....
Prior experience, preferably in growing (for cc's) would certainly be helpful but is it required? A yoga teacher could open a successful dispensary if they opened small, kept their expenses low, and gave good customer service. I think the one requirement for success would be not overbuilding or overinvesting, which would make turning a profit or even breaking even difficult or impossible, no matter how good of a business person you were.
Apples and oranges....Of course they could have will, and will again, and, the best of luck to all in every endeavor...

I dont think however people should enter into something with zero knowledge of it, while not pursing any knowledge of it....(in any industry or endeavor....I mean look where we sit right now? :smoke:....a community dedicated to the furthering of any and all knowledge related......of which I am sure we have all spent great time and effort to develop any and all we possess, and continue to....and will......

The previous point? How's this:
Would it be right for someone claiming command to assure the very same yoga teacher, possibly with family relying on them, to invest their life's savings based on fictional numbers and unrealistic expectations?.......

No. These kinds of things greatly offend me.

If they were given realistic expectations caution, and made aware of every aspect prior to that decision?......well....then it is their choice....but, then again, it is equally the choice of the advisor, especially if they know the competition they faced and the expenses involved in attemptiing to do such in the name of profit...

I would have a hard time advising them to pursue that course of action knowing their competition (in this specific situation) are those spending her entire life savings alone on their lobbyist, and that a victory or not, they basically come away untouched financially....

Just me.....just my position....
For cc's, being cautious in buildup and expansion are doubly more important. Applicants are throwing around 8 figure budgets for cc's when demand for the first year or two may be satisfied with a low seven figure budget. Growing experience would surely be most helpful but ive often wondered how a horticulturist, maybe someone trained in greenhouse production of vegetables, would tackle the issue of growing hydroponic cannabis. It might be in a totally different manner than most experienced mj growers, who tend to scale up their bedroom operations, which is what they know. Even if they have a 100k sf warehouse, it's just their bedroom op times 100: 600-700 5 gallon buckets, that sort of thing.
Which can certainly be most productive and high quality but perhaps more labor intensive than what a legitimate horticulturist would do if given the same budget...
We actually have quite a few (quite a few) extremely experienced and equally impressively educated individuals who we have taken on and picked up and started some work on...with no direct cannabis knowledge or experience.....(as well as those with, of course :smoke:)....and it's always very interesting conversations....as well as aqua(ponics) guys...and so on....(majority of all our guys everywhere are Masters and PhD's, etc.....)

Dont want to/cant share too much....but, yes....it's interesting sometimes to engage in such with side a wide variety of people...


Edit: Was just discussing the above with someone....
Does one think these investors and principals popped up, without advisory and declared "we're going 100k (sq. ft), Tables, these methods and strains etc, facility cost and size of this, operations this?"....No.....Such was determined under guidance and advisory...10-20-30MM?....most restrictive program with uncertain participation levels?....

No.....any "consultant" or "expert" who would advise such certainly isn't :smoke: (And say what you will......but there is volumes I haven't spoken of here...never have I been on record (or off) of saying anything but, to any party, at any time....(I was steering people talking such away since last June :smoke:...)

Wonder how Connecticut is doing with the $10MM ops and limited patients....

Quick glimpse...(went to MPP but this source said as of 2 weeks ago, which it isn't only by IL numbers, but an interesting glimpse. Both sets of numbers are pretty much the same.)
 
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Bababooey

Horse-toothed Jackass
Veteran
I was talking more about applicants who applied without using an 'advisor' beyond a lawyer, architect, etc.
In fact, i would think most applicants would have been better served not contracting with an advisor, as it looks like the odds of success are less, maybe much less than 50%.
Applicants who do plenty of their own research, get necessary legal or architectural work done but otherwise do everything themselves was probably the correct way to go here, especially if its your life savings at stake.
Now, maybe contracting with a lobbying firm (ill post the story about that from some of the chicago apps later) and paying them bribes i mean consulting fees (100's of k's), maybe thats worth it if youre in for a license. not worth it if all you get is chicago zoning approval but the state gives the license to someone else.

I get you on the fact theres a lot of shady advisors promising anything to get your money. Saw a guy at one of the town hall meetings, a consultant from california, wearing a flashy outfit including a purple vest, looked like a blonde tan joker. Think he was hosting some 'seminars' prior to the app process for a few hundred bucks a seat about the mmj business. Just looked like all he cared about was money. He got some from those seminars, and probably from a few applicants as well.


About the large scale ops, I should retract my comments. Advanced horticulture ops have a significant investment in equipment and buildout (irrigation system, trays, plumbing, etc) in order to achieve automation. In this business, even in the so called legal states, there is always the possibility of confiscation or tear down, which discourages investing more than necessary into equipment and automation.
 

Julian

Canna Consultant
ICMag Donor
Veteran
Bababooey said:
I was talking more about applicants who applied without using an 'advisor' beyond a lawyer, architect, etc.
In fact, i would think most applicants would have been better served not contracting with an advisor, as it looks like the odds of success are less, maybe much less than 50%.
Well......the level of success dependent upon many factors, of course. I dont see how many could accomplish such (specifically cultivation) without counsel. (I recently spoke to someone about a group of attorneys applying for cultivation and had no consultants and advisory (on cultivation), and frankly, can't see how they could possibly do this.

(I wouldn't attempt to set up a medical clinic (MRI's and such) without the proper physicians guidance....billing what equipment, procedure, staffing etc......same with any industry....)

I still wonder what they submitted, and how.....

You mentioned an architect. How could an architect with no prior knowledge or experience with horticulture possibly even begin to design a cultivation facility? (Not to mentioned address the MEP of such, specifically without knowing what systems being run and how, staffing, procedures, methods, etc.....Just can't see it.....we've worked with such....they were easy and fun to work with, but, didn't know what they were putting together or doing until fully informed of each and every aspect as discussed.....
Applicants who do plenty of their own research, get necessary legal or architectural work done but otherwise do everything themselves was probably the correct way to go here, especially if its your life savings at stake.
I would still disagree......most dont put in the amount of work into something as they should prior to launching (any new endeavor in any industry)......

I wish the best to all....sincerely....My wishes multiply exponentially actually the more "regular" the person.....It's really nonsensical the big money rushing in blindly and ferociously...so.....my wishes go to the "little guys".....(per se)..and, of course, as above......the people who have a lifetime of devotion to it...passion....dedication......

They're the ones who it should go to....(anywhere, anytime)...
Now, maybe contracting with a lobbying firm (ill post the story about that from some of the chicago apps later) and paying them bribes i mean consulting fees (100's of k's), maybe thats worth it if youre in for a license. not worth it if all you get is chicago zoning approval but the state gives the license to someone else.
:smoke: We're on every story, all news, every day nationwide....I know exactly story your referring to.....think the number was 165k for "lobbying"....

I have a lobbyist joke...I'll save it. It's not appropriate.......:smoke:...

Have seen a lot the past year and a half.....and it's much worse than that, I assure you. There's a reason I have some of the opinions I do......
I get you on the fact theres a lot of shady advisors promising anything to get your money. Saw a guy at one of the town hall meetings, a consultant from california, wearing a flashy outfit including a purple vest, looked like a blonde tan joker. Think he was hosting some 'seminars' prior to the app process for a few hundred bucks a seat about the mmj business. Just looked like all he cared about was money. He got some from those seminars, and probably from a few applicants as well.
Well.....look what happened in Florida....

CBD passed with the chosen few, and, I think the count (of MMJ business's) was somewhere in the 300-400 range that popped up?...(Actually same in IL and Chicago....group(s) holding cultivation seminars....you think they mentioned anywhere entry is prob $2MM before the people booked it?....(they might still even be holding them...S/SW suburbs....)

(Frankly, I wonder if they even know the bill themselves.....maybe a reason why....interesting also the roles people enter, as touched on above...I'd be curious about the true level of knowledge and experience of some of them.....
About the large scale ops, I should retract my comments. Advanced horticulture ops have a significant investment in equipment and buildout (irrigation system, trays, plumbing, etc) in order to achieve automation. In this business, even in the so called legal states, there is always the possibility of confiscation or tear down, which discourages investing more than necessary into equipment and automation.
Well, it's not so much the op that is/are the expenses as much as the build(s)...(talking new building)....they've really made it a little unreasonable....(licensing, 225k, app rep, designs, security requirements......if your on the local news, you see, city was calling for 24/7 armed security (to remain on site after hours, etc)..

You know....again.....the things I've seen...numbers calling for 4k wholesale.....dispos talking the 500-600 range (a z)....something the other day talking of 30 a gram and how will meet that called for by the state....

(I dont know about anyone else, but, wholesale on street for AAA in is in the 3k/250z range....so......Ive been saying it from day 1.......why would anyone step foot in a dispo if they can get it from their neighbor for half the price :smoke:...

(I know all our stuff the numbers we (I) punched in was wholesale in the 24-28 range and yields a 1/3rd of realistic capabilities :smoke:...
 

Bababooey

Horse-toothed Jackass
Veteran
Loevy and Loevy is a firm that's made millions suing chicago police officers for violating people's civil rights (truly, an almost inexhaustible source of claims) and now it looks like they want to get into the mmj business.
If they hit their 'benchmarks', they'll pay half a million up to a million to local schools over the next 10 years. And if they dont then those schools get nothing.





EFFINGHAM — Investors in a potential medical marijuana-growing operation are trying to persuade a city council in south-central Illinois to reconsider their zoning request, and they're offering money to local schools to show they're serious about helping the community.

But at least two commissioners in Effingham see the offer — up to $1 million over 10 years — as an attempt by Chicago investors to buy votes in the city of 12,000 residents.

"This must be the Chicago way," Effingham Commissioner Brian Milleville told The Effingham Daily News. "They want to grease a palm, but because it is in a public setting, they call it legal."

Commissioner Matt Hirtzel said that if he changes his vote, he'll be "nothing more than a Judas ... Instead of 30 pieces of silver, it would be a million dollars to the school."

Numerous other cities in Illinois have embraced the potential jobs, taxes and community investments promised by the medical marijuana entrepreneurs. The Effingham City Council last month narrowly rejected a zoning proposal for the cultivation center.

Investors in the prospective business, Effingham Medicinal Farms, want to get their plan back before the City Council next week so they can obtain zoning approval and update their application with the state. The state agriculture department plans to grant a limited number of business permits by the end of the year.

The Effingham proposal is the only application that the Chicago-based group has submitted to the state.

"If we meet benchmarks with the business — benchmarks we think we can meet — we will give half a million dollars to Effingham schools," said Chicago attorney Jon Loevy, one of the investors. "I believe the company will do well enough to up that to a million" over 10 years.

Loevy and his partners made the overture public in a story in the Effingham newspaper, along with a more immediate offer of $75,000 for a vocational program if the council approves the zoning change and the state grants a permit.

Loevy told The Associated Press on Wednesday that his group wants to use profits from medical marijuana to open charter schools in Illinois. He said it makes sense for the company to give money to Effingham schools.

"We believe it is in the company's interest to fund vocational education because we need trained workers," Loevy said. "The group I represent is trying to partner with Effingham. ... If they want to reject that and try to characterize that as improper influence, I don't understand that logic."

Reversing the council's 3-2 rejection of the zoning request is still possible, Loevy said.

"We are hopeful this issue can be put back on the agenda for Nov. 18 and that at least one council member will change their vote," Loevy said.
 

Bababooey

Horse-toothed Jackass
Veteran
The 900 block of West Lake Street is the northern border of a meatpacking and warehousing district now occupied by trendy Chicago restaurants and bars.


If this company, Clinic West Loop, gets its way, that stretch of road will also be home to one of the 13 medical marijuana dispensaries scheduled to open next year in Chicago as the state rolls out the medical cannabis pilot program created by legislation passed and signed into law by Gov. Pat Quinn last year.

A subsidiary of a consortium called Green Thumb Industries (GTI), Clinic West Loop has applied for licenses for four marijuana cultivation centers and three dispensaries statewide.

Their team includes The Clinic Colorado, a nonprofit policy and lobbying group that also operates six clinics in Denver; Hillard Heintze, a security risk management firm co-founded by former Chicago Police Superintendent Terry Hillard; and Terrance Gainer, former Illinois State Police director and former Chicago police detective.

While it’s ironic that a couple of former cops are now eager to provide security expertise for marijuana providers, Clinic West Loop is just one of several hundred applicants awaiting the state’s announcement, expected in December, that determines who will get a stake in what is expected to become a booming and highly lucrative new industry.

But getting in on the ground floor of Illinois’ medical marijuana business isn’t cheap or easy, a BGA Rescuing Illinois investigation details. The opportunity is drawing an elite crowd of applicants from the world of high finance, along with a flurry of technical, legal and marketing experts from states where medical marijuana has been legal for years.

That rush of big money and power, along with Illinois’ sorry track record of tricky deals, has some applicants questioning whether selections will be influenced by cronyism, politicking and mystery.

“Plenty of people contacted us saying they would like to apply for one of these licenses, but they think the application process is going to be rigged and corrupt and they don’t want to waste the money if it’s going to be someone’s brother-in-law getting the licenses,” said Dan Linn, executive director of the Illinois chapter of the National Organization for Reform of Marijuana Laws (NORML).

State officials disagree. They vow an honest selection process, free of influence peddling, and assert that any mistakes or problems made along the way will be corrected.

“No law is perfect, no set of rules is perfect, and there will probably have to be adjustments – I’ll be there to make those,” said State Rep. Lou Lang, D-Skokie, lead sponsor of the law that created the four-year pilot program and presumably laid the groundwork for future and potentially expanded medical marijuana legislation.

Applications roll in

In total, the state received 214 applications for up to 60 dispensary licenses and 159 applications for 21 cultivation centers statewide, with each application costing $5,000 and $25,000 to file, respectively.

Cultivation center applicants must show proof of $500,000 in liquid assets and post a surety bond of $2 million to the Illinois Department of Agriculture; dispensary hopefuls must show $400,000 in liquid assets. There will be two cultivation centers in Chicago and the northern suburbs.

These numbers show just how big people expect Illinois’ medical marijuana industry to become. Their hopes are bolstered by financial data from other states with medical marijuana and projections regarding full marijuana legalization, which some see in the cards for Illinois down the line.

For example, Michigan brought in $10.9 million in fees from its medical marijuana program last year, providing significant revenue beyond the $4 million the program costs to administer. And the blog Wallstcheatsheet.com recently predicted that Illinois is among the seven states with the greatest potential revenue if marijuana were fully legalized. http://wallstcheatsheet.com/busines...money-by-legalizing-marijuana.html/?a=viewall

It estimated that an Illinois marijuana industry could bring in $544 million in revenue, and $126 million in taxes to the state.

The teams applying for cultivation center and dispensary licenses appear typically to be made up of successful local businesspeople from a variety of sectors along with wealthy financiers and expert growers and sellers from states like California and Colorado where medical marijuana has been legal for years.

“This is the hottest business opportunity in the United States,” said attorney Bradley Vallerius about legalized marijuana in general. “An already existing market made legal. An opportunity to get in on the ground floor of a new industry, to become the Budweiser of marijuana, to secure family wealth for generations.”

Checks and balances

More than 23 states and the District of Columbia have legalized medical marijuana and four of those states and Washington, D.C., have legalized marijuana for recreational use.

Illinois’ medical marijuana law is among the country’s strictest, many experts say, with a relatively limited list of three dozen qualifying medical conditions for patients, high fees and standards for dispensary and cultivation center owners, strict operational rules and a promise of tight regulation.

Applicants had to propose extremely detailed security plans, undergo background checks, submit personal tax returns and provide various other documents ultimately resulting in single applications filling multiple bankers boxes. A cottage industry has sprung up for lawyers and consultants assisting with applications.

“It’s kind of putting marijuana on the same playing field as plutonium,” said Chris Lindsey, legislative analyst of the national Marijuana Policy Project, which favors legal regulation of marijuana sales similar to selling alcohol. “It’s pretty phenomenal how high the bar is” to even apply for a license.

The patient ailments eligible for medical marijuana under the Illinois law include: cancer, HIV, lupus, muscular dystrophy, severe fibromyalgia and about 30 other diseases. Medical marijuana is typically used to treat pain, nausea and other symptoms associated with these diseases.

It does not include post-traumatic stress disorder (PTSD), chronic pain or other common ailments that are covered under other states’ medical marijuana laws. The Illinois law includes a process allowing people to petition to add new ailments to the list. Patients can get 2.5 ounces of marijuana every two weeks, or more with a special waiver.

The marijuana cultivation centers will be high-tech industrial indoor agricultural facilities, typically covering 20 acres or more, with complicated ventilation, lighting and watering systems. The law requires security to be tight, with video surveillance, ID cards for entry and “perimeter intrusion detection systems.”

The dispensaries will essentially be retail outlets, likely located in storefronts in commercial areas. However no walk-in buyers will be allowed; patients must be registered with one specific dispensary.

The Illinois Department of Financial and Professional Regulation will regulate dispensaries and the Illinois Department of Agriculture will regulate cultivation centers, while the state Department of Public Health handles patient registration.

The departments are all part of the state’s Medical Cannabis Pilot Program, a new entity within the state government which brings together employees of the public health, agriculture and finance and professional regulation departments along with 40 new employees, said Melaney Arnold, a health department spokesperson who is also spokesperson for the pilot program.


Illinois: A bad trip?

Some applicants are wary of doing business in Chicago and Illinois, which has a rich history of doling out sweetheart government contracts, ranging from driving trucks, cleaning city buildings or construction work, to vendors and suppliers with political connections.

For years, Dick Simpson and colleagues at the University of Illinois at Chicago have produced regular reports outlining years of Chicago and suburban corruption and suspect business practices.

Simpson said this is a valid concern in the medical marijuana process.

“It’s always a problem with contracts that are very profitable,” said Simpson, a political science professor and former Chicago alderman. “It’s even more tempting when it’s something at the margins of legality – for instance Al Capone in the Prohibition era, or gambling or [horse] racing. Every time gambling has been brought to the state it’s been a concern, and medical marijuana has the same potential…[With fears] that it would end up on the street or be very lucrative and bribes would be paid to get the (licenses).”

Still, Linn and other lawyers and policy experts say they expect a rigorous and fair process.

“The officials in the state who are making these decisions realize there are many, many eyes on them,” said Brendan Shiller, an attorney representing several applicants. “If it’s not very clear, very obvious that the best applicants got chosen, then there will be all sorts of problems they don’t want to deal with.”

State lawmakers recognized that influence peddling would be a concern so dispensaries and cultivation centers or political action committees formed by them are prohibited from making political donations.

Dispensary and cultivation center applications will be reviewed by committees of about a dozen people, each from the finance and agriculture departments, according to the state.

Committee members have “policy, program and legal expertise, as well as horticulture expertise for cultivation center panelists,” Arnold said.

The selection committees will review applications with names and identifying information redacted. However, some question whether redaction could be done imperfectly, intentionally or not, and whether letters of support or other supplementary materials will reveal applicants’ identities.

Security plans account for 20 percent of the decision in both categories. The cultivation plan counts for 30 percent for centers, with other categories including business plan and “suitability.”

“Bonus points” are awarded for women and minority-owned businesses and for plans to give back to the community, for example with educational outreach, donations to HIV services or job training for veterans.

The applications are not public or subject to the Freedom of Information Act (FOIA), a provision lawyers and advocates say is necessary since they include personal information like tax returns and competitive business and security plans.

Arnold said officials are figuring out what if any documents from the decision-making process will be subject to FOIA.

While the Quinn Administration is on board with keeping applicants’ names confidential, Governor-elect Bruce Rauner is not.

“The application process for medical marijuana should not be held in secret where insiders win and taxpayers lose; it should be open and transparent,” Rauner said in a campaign press release. Rauner also called for passage of a new law making changes to the application process. http://brucerauner.com/rauner-calls-on-quinn-to-halt-secret-medical-marijuana-licensing/

Lawyers argue their clients involved in other industry sectors fear reputational harm if it’s known they are interested in medical marijuana.

Proposals for dispensaries and cultivation centers have also drawn opposition in communities where they are proposed, with some neighbors associating them with crime or debauchery, a connotation many business leaders want to avoid.

When licenses are awarded it is likely the recipients’ identities will all become public, but there is no point in revealing the identities of people who never get licenses, attorneys argue.

“It’s typical to see a business or investment fail, that’s nothing new,” said attorney Vallerius. “But it’s different when you go to church and everybody keeps staring at you because they heard you grow and smoke drugs.”

So far, the identities of some dispensary and cultivation center applicants has become public primarily through filings for the special use permits required from municipalities, which can be obtained before or after a state license is issued.

In Chicago, City Council decides on the special use permit. This summer City Council passed legislation allowing dispensaries in business and commercial districts as long as they are 1,000 feet from schools and not in residential areas.

Walter Burnett Jr. is alderman of the 27th ward where both GTI and Mandera want to open dispensaries. Burnett told DNAInfo that he fears “yuppie wards” will get all the dispensaries. (Burnett did not respond to requests for comment.) http://www.dnainfo.com/chicago/2014...edical-marijuana-so-should-near-west-side-ald

The dispensary licenses will be awarded in “townships” geographically spread across the city. The South Township drew no applications, while the West Township had 10.


Rules, regs abound

The awarding of licenses is only the start of a raft of new responsibilities for a stressed state government.

The state needs to select labs to test the marijuana being produced, and carry out strict oversight of the cultivation and dispensing processes. Licenses are renewed annually, after reviews by the state.

Operators are required to carefully log and account for all the marijuana produced. It must be packaged at cultivation centers and sold by dispensaries unopened – no jars of loose product to sample or bundle on-site.

Unsold marijuana must be destroyed and transported to landfills in a regulated process, with state police notified.

The law includes provisions meant to prevent monopolies and keep prices fair. One party can have an interest in only three cultivation centers and five dispensaries statewide.

And cultivation centers must offer the same prices to all dispensaries. But some are concerned patients and independent businesspeople will still be taken advantage of by big conglomerates.

“If everybody who has a cultivation center has a dispensary or vice versa, there’s not going to be a whole lot of competition,” said Shiller. “People will just sell to themselves – that may be problematic.”

Tammy Jacobi owns Good Intentions LLC, a clinic in West Town that advises patients on how to register for the program and connects them with doctors.

Jacobi said she sees much potential for market manipulation under the rules. She thinks cultivation centers will find a way to offer favorable prices to dispensaries they also own, perhaps by selling different types of products to different dispensaries. And she fears dispensaries could band together to agree on prices higher than patients should have to pay.

She points to a law proposed in Michigan that could allow medical marijuana sales to Illinois patients, potentially competing with Illinois dispensaries.

Meanwhile experts note that if Illinois dispensary prices are higher than street prices, many consumers will still go the illegal route.

Lang said that any such problems will become apparent as the pilot program plays out, and can be addressed in a new law.

“I actually think these guys will not make as much money as they think they will, certainly not now. When we refine this, when the model program sunsets and we make a new law, there may be better opportunities for businesses and better prices for patients.

“We’ll have a better grip on what it means and how to make it work for really sick people and how to enhance the revenue for the state of Illinois,” Lang said.

Kari Lydersen is a Chicago-based author and freelance writer who regularly reports on government for the Better Government Association and other media outlets.


Medical marijuana a budding industry in central Illinois

Springfield could soon have one or more businesses selling pot downtown.

But don’t get out your wallet just yet. The businesses would be tightly controlled “dispensaries” of medical marijuana, and potential users must jump through several legal hoops to partake.

Applications to grow, dispense and use marijuana in Illinois’ Medical Cannabis Pilot Program are pending with the state, and the first legal medical pot could surface in Illinois by spring 2015. Across Illinois, companies are vying for the coveted permits required to run grow operations and storefronts, selling a plant that is still technically illegal.

Todd Greenberg, corporation counsel for the City of Springfield, says three dispensary applicants asked the city to okay their plans to locate here. While the state makes the final determination on which applicants will receive permits, the companies must receive letters of approval from the municipality in which they want to operate. Dispensaries can’t be located in residential areas, with a setback requirement of 1,000 feet from schools and day cares.

“Because dispensaries have to be away from schools and day cares, there are only a very few places in the city where they could be,” Greenberg said. “One is downtown, and the rest are in industrial areas.”

Greenberg says the city provided each of the three applicants a letter attesting that their proposed locations downtown would not violate any existing zoning rules. The letters became part of the application packets that each company submitted to the state for final approval.

State law allows 60 dispensaries across Illinois, divided between 48 districts. Melaney Arnold, spokeswoman for the Illinois Medical Cannabis Pilot Project, says the 48 dispensary districts mostly coincide with the 20 Illinois State Police districts downstate, but the heavily populated Chicago area is broken down into smaller dispensary districts. Arnold says the state received no dispensary applications for two districts, but that doesn’t mean the remaining districts will receive extra dispensaries.

Sangamon County is in ISP District 9, which also includes Logan, Menard, Morgan, Mason, Cass and Christian counties. That means the seven counties will share two dispensaries once those permits are awarded. Additionally, the seven counties in District 9 will share one cultivation center. In total, eight applications for cultivation centers have been filed with the state for District 9, along with four dispensary applications.

Norm Sims, director of the Springfield-Sangamon County Regional Planning Commission, says a handful of companies examined opening a cultivation center in Sangamon County. He says a combination of late rulemaking at the state level and a lack of appropriately sized vacant buildings in the county made it unlikely for cultivation centers to locate in Sangamon County.

“Time works against these guys, and they’re not going to spend a bunch of money to get set up when they’re still waiting for approval,” he said. “If they’re building, they’re looking at spring before they even become operational.”

Additionally, both the City of Springfield and Sangamon County had to stretch the definitions of their zoning designations to fit marijuana facilities.

“The legislature spent a lot of time understanding medical marijuana,” Sims said. “What they don’t understand is zoning, because it’s not something they do every day. That’s local.”

Applications for cultivation centers are pending in other counties within ISP District 9. Chicago-based Cresco Labs wants to open a grow operation in Logan County, about a mile north of Lincoln next to Interstate 55. Springfield lobbyist Mark Strawn hopes to run a similar operation in Christian County, near Kincaid. Two other companies also want to set up in Christian County. Morgan County, which includes Jacksonville, has been courted by four separate applicants, while another applicant is interested in Cass County. Only one of the companies will be selected under the current regulations, however. Officials in Menard and Mason counties say they haven’t heard of any companies looking to set up in their jurisdictions.

Paul Schmitz, Christian County Board chairman, acknowledged that legitimizing an often villainized plant will be a culture change. However, he said his board mostly accepted the idea of locating a marijuana facility within their county.

“There were maybe two or three ‘nays,’ out of 16 of us,” he said. “I wouldn’t be a supporter of legalizing marijuana at this point, but if I have someone in my family who needs relief, I would much rather see that person be able to live a life that’s halfway decent as opposed to being wracked with pain.”

Melaney Arnold, the state’s medical marijuana spokeswoman, says about 8,000 people began the application process to use medical marijuana, but only about 1,500 have completed some or all of the three-part application. Arnold says 230 people statewide have been approved so far, but there is no deadline to apply.

For more information on the pilot program, visit www2.illinois.gov. To apply as a patient for medical marijuana, visit medicalcannabispatients.illinois.gov.
 

Bababooey

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Veteran
Well......the level of success dependent upon many factors, of course. I dont see how many could accomplish such (specifically cultivation) without counsel. (I recently spoke to someone about a group of attorneys applying for cultivation and had no consultants and advisory (on cultivation), and frankly, can't see how they could possibly do this.


I would still disagree......most dont put in the amount of work into something as they should prior to launching (any new endeavor in any industry)......



(I dont know about anyone else, but, wholesale on street for AAA in is in the 3k/250z range....so......Ive been saying it from day 1.......why would anyone step foot in a dispo if they can get it from their neighbor for half the price :smoke:...
.

Well, if there are applicants who are going into this without having any prior experience/knowledge or working with someone experienced/knowledgable, that doesn't make much sense. I kind of assumed that if you were going to apply, that you'd have some interest/knowledge of the field (like if you wanted to open a restaurant, you would have an interest in cooking and food, etc) and/or be collaborating with people who have the knowledge.
Apparently youre aware of applicants who have no idea what theyre doing and think this is just a big money grab. Maybe it'll backfire on them, assuming the mmj market isnt as big as everyone's thinking.
Even the sponsor of the bill doesnt think the big profits are going to be there, at least right away, and if black market prices are much less for similar quality...
 

Julian

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Veteran
Bababooey said:
Well, if there are applicants who are going into this without having any prior experience/knowledge or working with someone experienced/knowledgable, that doesn't make much sense. I kind of assumed that if you were going to apply, that you'd have some interest/knowledge of the field (like if you wanted to open a restaurant, you would have an interest in cooking and food, etc) and/or be collaborating with people who have the knowledge.
The above is.....indeed....pretty much almost every single last applicant :smoke: (Due to the financial restrictions, etc)...

An interest in cooking indeed :smoke:...

Check the below...
Apparently youre aware of applicants who have no idea what theyre doing and think this is just a big money grab. Maybe it'll backfire on them, assuming the mmj market isnt as big as everyone's thinking.
Thats all the applicants. :smoke:

Read through the above my friend.....that's virtually every applicant in the state! :smoke:..

The attorney groups.....the physician groups....the investors....

Is there any single name or group mentioned in any story in which that group are cultivators or dispensary owners?...

NNNNoo....the management deals out there by the way are running about 20% give or take......

Explanation:
If the requirements were a little more reasonable...you might actually have actual cultivators and groups...

No. Look at every story. Every piece of information. (I'm not talking) out there.......

They're all money groups.......no passion about cooking :smoke:.....no interest in produce.....

Just money guys......(sure, there's a couple out there that are "real".......but, "couple" out of 170?......
Even the sponsor of the bill doesnt think the big profits are going to be there, at least right away, and if black market prices are much less for similar quality...
He's a good guy, and from day one aid he doesn't care if anyone makes a dime and not hat it's for.....

But then you have close associates of his representing a dozen clients, etc (attorneys).......so...
 

amannamedtruth

Active member
Veteran
^^ real talk. Kind of disillusioned, myself. The ton hall meeting really put things into perspective for me. Ima keep doing my thing. Almost glad that patients in this state are basically refusing to be put into a system, fingerprints and all, just to support a bunch of people who could care less about strain varieties, and the beautiful subtleties of this plant. You can really tell someone is passionate about something when they are willing to skirt the law, and put their freedom on the line, in order to produce quality flowers.

I was thinking about getting my caregiver card, for a friend of mine. But now I don't think so, and if he needs help getting his card, I'll help no problem. But for some reason, I get the feeling that card holders may be getting more attention than they used to. This is what happens in all the other med states. Look at Michigan, lots of card holders get straight up harassed and even prosecuted by local LEO.

For some reason, I think we're going to look back on this in a few years, and things will be way different that what people were expecting. The hardcore money grabbers may have less funny paper to hold and look at.
 

Julian

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Loevy and Loevy is a firm that's made millions suing chicago police officers for violating people's civil rights (truly, an almost inexhaustible source of claims) and now it looks like they want to get into the mmj business.
If they hit their 'benchmarks', they'll pay half a million up to a million to local schools over the next 10 years. And if they dont then those schools get nothing.

I shortened it by clipping the story (people can scroll back up)...

See, that specific group is a prime example:
1. I believe they were denied their original selection (site) by the deadline. (AGR had a 60 day deadline following submission to submit zoning docs for app. Nov. 22nd)

The same day as their final, they had members also pitching other cities in the same district.

And what if one of those other last minute pitches was successful?

A. Their site plans and application is for another location.
B. Many of their specifics do not apply and would have to be revised. (Quite a bit would have to be revised if changing site....we actually had someone change their site with 3 days prior to submission deadline, so, we know :smoke:...)

So essentially, we're 2 months into the review, 2 months following deadline, and, for all intent and purposes, they are still assembling their application and docs....

Now.....we have no interests in that specific district....but, I would think, and hope, their competitors in that district are and/or will have a serious problem with that...

(We actually spent quite a bit of round table time on that one (out of analysis, interest) trying to determine if the law and guidelines as written allow for such to take place and be accomplished...

(As above....AGR did have the 60 day extension following submission for zoning matters and docs....and, they possibly did meet that deadline, but by the submission of a completely different site and city and arrangements.....

(Which, if building from scratch would call for changes to plans, such as civil having to be redone....as plans could essentially be tossed onto another site, civil redone...but then the MEP might also have to be slightly adjusted as well due to the utility feeds and specifics as well.....

So.....another example.....their out shopping new locations 2 months into review...

Application was in......60 days to wrap and submit zoning.......and their out shopping new sites.....

On one hand?, an interesting exercise in review and strategy and all rules and regs as written.....but on the other?.......ehh.....doesn't seem like can be done.....
 

Julian

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I posted the above before this was posted....
amannamedtruth said:
^^ real talk. Kind of disillusioned, myself. The ton hall meeting really put things into perspective for me. Ima keep doing my thing. Almost glad that patients in this state are basically refusing to be put into a system, fingerprints and all, just to support a bunch of people who could care less about strain varieties, and the beautiful subtleties of this plant. You can really tell someone is passionate about something when they are willing to skirt the law, and put their freedom on the line, in order to produce quality flowers.
And the above kind of my earlier point....(rant(s) :biglaugh:..

You have people who have dedicated immense time and effort at great personal cost to "this thing of ours"..decades in many cases.....

To have someone walk in and just declare themselves "such and such"......it offends me.....I find it insulting on behalf of all those who have....

Interesting note:
We receive quite a large amount of inquiries from people seeking to enter industry....in all capacities....

I find most interesting these:
Non industry people, many never have even seen a bud in person let alone anything more....

Their desired role?

Take a guess...:smoke:...

The inquiries are not how do I do this, I would like to do this etc......

Their inquiries are mostly "I want to be a consultant"....

"I have no knowledge no experience, no dedication as of date to industry, but I'd like to "step to the front of the line"....I'd like a "job as an expert".....

I mean......c'monnn......ya know?.....

(It's one thing for certain people, in certain cases, such as a highly experienced individual in a related area......(horticulturalists, etc....but with no green experience).....and even more interesting though when you get to people such as those in marketing......(Do they know and understand the industry?, where it is, has been where heading?, have they watched it evolve for 2-5-10-20 years?, etc......sometimes you have such people and their efforts truly do not do well due to a lack of the previous understanding of the industry and products, etc....

anyway....
I was thinking about getting my caregiver card, for a friend of mine. But now I don't think so, and if he needs help getting his card, I'll help no problem. But for some reason, I get the feeling that card holders may be getting more attention than they used to. This is what happens in all the other med states. Look at Michigan, lots of card holders get straight up harassed and even prosecuted by local LEO.

For some reason, I think we're going to look back on this in a few years, and things will be way different that what people were expecting. The hardcore money grabbers may have less funny paper to hold and look at.
I think there will be tremendous expansion in future....I think we will hit a point in the future when the "right" conditions are added for expansion...I also think we'll hit recreational at a certain point....(several more jurisdictions this month, total of 5, and 2016 7 more scheduled, which may increase by the time that come, making that 24 months from now a cumulative 12+ recreational jurisdictions..

This is an amazing time.....with fantastic things being done.....

I was talking to people recently about how more has happened in last 12-24 months than the last ten years as far as industry advancing....and the momentum seems to not be letting up, so.....

(and forget cultivation and dispo.......I mean, the opportunities outside of those are greater than those in many cases......)

Edit:
I do think, in the end.....it will work for patients....they can sit back all day long trying to do 4k wholesale and 600 z's.......but they have to sell them first :smoke:....the quality has to be there first...

I think the money people are in for a surprise....but, those who have a grasp?.....I think will work out well :smoke:.....(I do though think there will be an issue with patients having to be married to their dispo....which hopefully should change and that also opens up possibilities for dispos with better product at better prices.....(I mean...if the dispo closest to you is 600 a z for mediocre and you find another with top end for 250-270? :smoke:....I'm sure many will change up and make the trip if within reason......

I do agree........that many might be establishing their footprint ad see it as a longer term move.....(business)....but, dont think they are aware of the true long term cost to carry it.....and think that the capital required to do so could be put into industry elsewhere with much greater rewards in shorter period.....(another reason why many cultivators and rue groups would pass on IL for now, hence what we have left competing due to restrictions (financial, barrier to entry)..

End note:
Personally?, we're very excited, and looking forward to commencement/a favorable decision....we take great pride in what we have assembled...our staffing unlike any in the world to date.....products high end with numbers extremely low end, and the principals for the time being more than happy to break even/minor loss knowing all discussed.....and grateful for the opportunity and freedom given to create such....
 
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amannamedtruth

Active member
Veteran
I like your optimism. I was super optimistic about future expansion, too, along with some applicant friends I know, but now that we have a new gov. elect, I've lost much of that confidence. Let's not forget the feds, too.
 

Julian

Canna Consultant
ICMag Donor
Veteran
I think as the tightest medical in the nation, fed issues will be non existent...(They have much bigger issues in many other places than 21 facilities tightly controlled by the state and ISP.......)

IL will be fine....we look forward to being able to work the addition of several acres of greenhouses in the future :smoke:...(The only yet really that has said from day 1 its actually more a requirement (ability to rapidly expand to meet potential demand in production....)

I certainly hope I haven't offended (given your interacting with applicants/groups)...I do mean well though :biglaugh: :smoke:...My concern with dedicated operators/professionals, patients, ethics, etc.......everything and everyone is a distant second...

Hard being a man of principle sometimes :smoke:....(and all the more reason to cling so tightly to it, ya know?...)

I talked many years go (pre rec period) to a lot of people who feared "big business/big money" was going to "take it over" and was going to "cut them out"....

My response was always, and still is:
"Only if you let them"...

Dont know about anyone else....but I'm doing the best I can for myself and an increasing number of others...(I turned away quite a few early on......significant engagements.....didn't want to.....couldn't afford to....but...didn't like the people, the groups.....and sure I will again.....and enjoying doing so more and more it seems... :smoke:...

Truly honored to have found project(s) that allowed for a "blank canvas" and control....guided virtually every aspect and they were/are fine with that....which given the above?.....truly a miraculous thing.....
 

Julian

Canna Consultant
ICMag Donor
Veteran
There will be announcements shortly.

The best of luck to all with an interest.

Let's have some fun. :smoke:
 

Bababooey

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Veteran
Illinois state officials are just days from announcing what companies will be issued licenses to grow and sell medical marijuana.

Illinois' application process to sell medical marijuana was the toughest in the nation, according to businesses waiting to hear if they will receive a license. Chicago zoning officials have already approved numerous locations, even as some neighbors remain wary about these new businesses.

Chicago residents have raised concerns about security at soon-to-be licensed medical marijuana dispensaries in the city, but a local alderman says strict regulations are in place to keep people and property safe.

A recent meeting in the 45th Ward was held to discuss a possible store in the 4700-block of North Milwaukee, not far from Alderman John Arena's office.

"Personally I believe that the product has merit for medical use," Arena said. "So I'm looking for a way, an avenue to support the state's move in this and have it done responsibly in our community."

Ald. Arena says the four-year pilot program in Illinois is the most restrictive in the country. The state will license 21 growers and 60 dispensaries.

"Patients have to be vetted, receive a card, fill out an application, partner with their doctors on this," he says. "So, it's very tightly controlled."

Les Hollis is CEO of Illinois Grown Medicine. The company applied for five dispensary and three cultivation licenses; two in Chicago, others in the suburbs.

"If you look at the other 23 states and the District of Columbia that have similar medical cannabis laws, this one is the most regulated, the most strict," Hollis says.

Hollis says he believes the Illinois law will be the template for other states trying to pass medical marijuana legislation.

"We think it's going to create a good platform to start and we'll see how this industry evolves over time," he said.

READ MORE: The I-Team reveals how marijuana farms and dispensaries will be protected once they open in Illinois. "High Security" looks at the armed guards and armored trucks that will hit the streets to protect the public, the pot and the proceeds.
 
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