P&Z divided on leisure marijuana dispensary | Native Information

Payson’s Planning and Zoning Commission split on a proposal to update the town code so a recreational marijuana dispensary could operate in town.

In a 2-2 vote, the commission acknowledged the need for a dispensary now that the medical dispensary license had been moved to the Valley, but could not come to an agreement on a recreational dispensary in town.

The Payson Town Council will ultimately decide if they will update the town code to allow for a recreational dispensary. The council had a first hearing on the matter Thursday night.

For years, medical marijuana cardholders went to Untamed Herbs on Tonto Street for various products. Then several months ago the dispensary owner moved the license to the Valley where they could make more money given the larger population base.

Medical marijuana cardholders could still order products through the dispensary’s website and pick it up in Untamed Herbs’ parking lot, but the storefront had closed.

Then dispensary owner, Andrew Provencio, and his business partners successfully got a license to operate one of two recreational dispensaries in the county. Unlike medical licenses, which can be moved around the state, recreational permits cannot leave the county. The state structured these new licenses so rural areas like Payson could have a marijuana dispensary.

Provencio hopes to open an adult use dispensary under a new name.

And there are plans in the works to possibly open the dispensary at 104 E. Highway 260, the former location of a credit union. The town’s community development group were set to discuss the project Wednesday morning.

Before a recreational dispensary can open in Payson, the town needs to amend the code regarding operation of a recreational facility.

On July 12, the commission met to discuss the proposal.

Doni Wilbanks, community development director for the town, explained in 2020, voters approved Proposition 207, which legalized recreational marijuana (up to 1 ounce) for adults 21 years of age and older.

Current town code allows for a dispensary if the applicant has a dual license, meaning they can sell recreational and medical marijuana.

Payson 200, LLC requested the town amend the town code so it could open under a recreational license.

“If granted, the request would remove the requirement for a dual license/repeal the prohibition and allow Payson 200, LLC to locate their license and business in the Town of Payson,” Wilbanks wrote.

Mike Maerowitz, with Gammage and Burnham, the law firm hired by Payson 200, said their client very much wants to open a recreational dispensary in Payson to meet the needs of the community.

Lindsay Schube, with Gammage and Burnham, said the advantage of having a recreational dispensary is that any adult can buy product and they don’t need a medical card to do so.

However, the price of recreational products is significantly higher than that of medical since purchases are subject to a 16% cannabis excise tax besides the state retail tax rate of 5.6%, bringing the total to 21.6%.

Ronnie Kassab, with the dispensary, said they plan on giving medical patients a discount. He said they would cover the cost of the 16% tax to offset the cost.

Schube said the dispensary’s owners value medical patients and will continue to work with them to make sure they meet their needs.

P&Z commissioner Vincent Herman said he could not support updating the code since he believes the community does not want a recreational dispensary. He based this on the number of residents who voted No to Prop. 207.

While Prop. 207 passed at 53.16% in Gila County, it did not pass in every Payson precinct. In two out of the eight Payson precincts, voters narrowly voted down Prop. 207.

Herman said while he knows many people who used the old dispensary for medical reasons he does not believe the community wants a dispensary.

Schube told Herman she too had her reservations about recreational marijuana legalization, but she said a lot of people are using recreational dispensaries for medical use. She said many people are no longer getting medical cards since they don’t want to go through the hassle or cost of getting a medical card.

She said with the dispensaries people are guaranteed a quality product that is highly regulated.

Unlike buying marijuana off the street, when you buy from a dispensary there is no chance any of the product being laced with something.

“I would prefer that people have a product that is tested and not going through the illegal market,” she said.

P&Z Chair Ken Woolcock said with all the veterans in the community who depend on medical marijuana he would vote to approve the code change.

A motion was made to approve (with an amendment to reduce the number of dispensaries/establishments from two to one). The commission voted 2-2, so the proposed text and chart amendment moves forward to the council as originally drafted with an unfavorable recommendation.