Council to Vote on Medical Marijuana Issue

The debate over what to do with the city’s 100-plus medical marijuana collectives looks like it will finally result in some action Tuesday, when the City Council will vote on setting up a complete regulatory program.

This comes after a memo was submitted last month by Vice Mayor Madison Nguyen and Councilmembers Rose Herrera, Sam Liccardo and Pete Constant to impose a cap of 10 on collectives in San Jose.

On the heels of voters overwhelmingly passing Measure U last November, which would impose a tax on all medical marijuana collective sales, Mayor Chuck Reed has suggested an eBay-style auction for permits.

Recommendations for the complete regulatory program include:

• Establishing land use regulations pertaining to medical marijuana collectives and establishing a zoning verification certificate process. These amendments would then be given to the planning commission for a report and recommendation, before a public hearing date is set for the City Council.
• Establishing a registration process pertaining to medical marijuana collectives.
• Establishing regulations pertaining to medical marijuana collectives and to the individual cultivation and use of medical marijuana.
• Establishing a city staffing plan for the 2011-12 fiscal year, and amending the schedule of fees and charges to include an annual operating fee as well as the schedule of fines. This would then become part of the Mayor Reed’s June budget message.
• Adopting a resolution to add a medical marijuana collective application processing fee of $2,400 per collective.

Following all of these actions, a lottery would then be set up for collectives, which would then lead to an auction.

Other matters the council will address Tuesday include decisions related to financing Convention Center renovations as well as the Happy Hollow Park & Zoo renovation project. And, of course, there will be labor negotiations updates.

San Jose City Council Agenda for April 12, 2011.
City Council Memo: Medical Marijuana Permitting Proposal

Josh Koehn is a former managing editor for San Jose Inside and Metro Silicon Valley.


  1. Has anyone else noticed that these “Cannabis Clubs” are set up like the garage of Wayne and Garth from Waynes World. I mean theres psychadellic posters,lava lamps, tattoo riddled employees. I can’t wait till Longs, Walgreens, and CVS goes to the 60’s retro theme!! They have ridiculous names for their marijuana. I think they are making a mockery of Prop 215!! It’s pretty sad to see cities are enabling this kind of behavior!!!

  2. >>Mayor Chuck Reed has suggested an eBay-style auction for permits.

    Is any check going to be done as to the origin of said funds?

    I have no doubt that if you looked at the list of investors in any of these venture, you’ll find a laundry list of ex-gang drug dealers who managed to fly under the radar stashing their cash reserves away till now.  Can SJ be accountable for money laundering? 

    You’re also talking about putting 90 established business’s out. 

    City should take over the business if it’s so good.  Why not make a city run dispensary system? Unlike SF, San Jose still has farmable land.  Give a few of the talented growers a decent job, a pension, 20 acres with all the necessary farm equipment, fertiliser, and put them to work. 

    Just put them all out…  Cut out the middlemen, and the shady folks that put them in business.  Do a cost-benefit on it, it will make sense.

    In fact… Let me try and find some stuff here.  Let’s find the price of mary jane, and how much you can grow per acre….

    Found some prices..

    [email protected] Gram?

    This forum says you yeild about 1/2 per plant.

    According to the merc, the convention center is 425,000sqft

    and the plants need about 1.4’of spacing.  Let’s just round it down to 1’.


    sqrt of 425,000 is 651.920241.  Let’s round up to 652’x652’
    1/2 of that is used for spacing.  326×326 = 106276 plants

    106276 plants times a .5lb yeild per plant.53138lbs

    24,102,991.4 x $20 = $482,059,828

    Now according to this site, with indoor growing you can harvest every 8 weeks.

    So… 6.5 cycles a year times..

    The convention center could be making more money in one year than in all the years combined since it came into existence!

    OK recap the math.
    425,000sqft can grow about 106276 plants
    106276 plants will yield about 53138lbs per crop
    53138lbs is equal to 24,102,991.4 grams
    24,102,991.4 grams x $20 = $482,059,828
    $482,059,828 x 6.5 harvest per year = $3,133,388,882


    • Ha! I love the idea, but let’s be realistic!

      The true net profit to the city or (taxpayers) would be zero.

      All of the money would be used to

      1.create an office of farming and pot development complete with staffs.
      2.amend contract with Waken-hut to not only provide fire protection at the airport but also at the grow site.
      3. reallocate funding to “renovate” the convention center. Of course we would have to wait until the current renovation is done, because “that money cannot be used for anything else legally” (gee where have we heard that before???) for trips of senior city officials to travel to Amsterdam to learn how to grow weed.
      5. the remaining money would be spent on having Pete Constant take another city subsidized weight loss program because using city weed he would of course turn back into an albatross after having the munchies and cleaning out all the cookies at every SNI/NAC/budget meeting!

  3. eBay style auctions. Really? Reallly? Maybe they’ll start using twitter for code enforcement and for speeding tickets. Can’t afford to pay for jury duty any more? Easy! Just use a combination of twitter and youtube.

    This is of course all sarcasm. This meeting shows the true incompetence of the council which is proudly exhibited at every meeting. Thankfully they broadcast all of these online for the public to watch. Even though Steve Carrell is leaving the office it’s okay. You have a whole council full of Dwight Schrutes and Michael Scotts to make up for the loss.

    eBay auction for a city permit. Really? Really? How is the city going to deal with being sued with the other 80 or so organizations that will be put out of business ?

  4. To some, medical marijuana is remonstrated because they consider it as illegal, but to others, medical cannabis sativa represents an essential medicine that alleviates debilitating symptoms. Recently, a huge issue stirred the populace about medical marijuana in San Jose. Every year, the state of California gets significant amounts of money from medical cannabis. Yes you read it right! There is around $1 billion in profits taxes paid to California and its towns from weed profits. And so lately, the area of San Jose has voted to limit medical marijuana sales within the city. The vote, however, also makes medical weed profits in the area legal. Now, what do you think will be its impact?