Colorado Politics

Denver official calls marijuana market oversaturated

Denver has 1,000 marijuana licenses in 440 unique locations, according to Ashley Kilroy, executive director of marijuana policy for the city.

And she says that’s might be enough.

Kilroy told an audience of public safety officials and their supporters last week that the city is “getting to the point of being oversaturated” and also could be close to overproduction of marijuana.

Her remarks come just two months before the Denver City Council takes up whether to extend or let expire a moratorium on new recreational marijuana licenses, a decision that also could select who gets new licenses, if any are made available.







Denver official calls marijuana market oversaturated

Denver Manager of Public Safety Stephanie O’Malley visits with Denver Police Chief Robert White at the Nov. 2 Public Safety Luncheon at the Curtis Hotel in Denver.Photo by Marianne Goodland/The Colorado Statesman



In 2013, the city council passed an ordinance that allowed only existing medical marijuana dispensaries to expand into the recreational market. That moratorium expires on Jan. 1, and Kilroy is expected to make recommendations about what will happen after that. In addition to how to handle the moratorium, that could also include changes to existing city ordinances on operating hours, odor control and the procedure for public hearings tied to new medical marijuana facilities.

The Marijuana Industry Group, a trade association that counts some of the industry’s biggest investors as members, on Tuesday released the following statement about the Denver moratorium: “We are still looking at the details of the moratorium and can’t comment on specifics at this time,” said Michael Elliott, executive director of the organization. “The Marijuana Industry Group supports responsible regulation and expansion of the industry. We support expansion of the industry based on market demand. The marijuana industry has helped spark an economic boom in Denver but at this point it appears the number of businesses is in line with market demand.”

On the other side, cannabis industry activists and business leaders support lifting the moratorium, claiming it will allow for a better customer experience and arguing that the market should determine winners and losers, not the government.

Activist Mason Tvert, one of the leading backers of Amendment 64, which legalized recreational marijuana in Colorado, said that lifting the moratorium wouldn’t necessarily result in more business, given that available space is becoming scarce. However, sit could spur more competition, which Tvert said would help “the cream rise to the top.” Businesses that aren’t providing the best service would lose market share, he told The Colorado Statesman, adding, “The market will benefit from having the best actors involved.”

Tyler Henson, executive director of the Colorado Cannabis Chamber of Commerce, says his members — including dispensaries, growers and businesses providing services to the industry — support lifting the moratorium.







Denver official calls marijuana market oversaturated

State Rep. Beth McCann, D-Denver, and CU Regent Michael Carrigan, both candidates for the Democratic nomination for Denver district attorney, share a laugh at the Nov. 2 Public Safety Luncheon at the Curtis Hotel in Denver.Photo by Marianne Goodland/The Colorado Statesman



“The market should determine who succeeds and who doesn’t,” he said. “The city shouldn’t be picking winners and losers.”

In September and October, Kilroy led meetings that looked at the city’s marijuana regulations, including the moratorium. The taskforce included city officials involved with licensing, regulation and law enforcement, as well as representatives from the industry, parents’ groups, restaurants and hotels, neighborhoods and other businesses. Industry members advocated for longer operating hours as a matter of security and public safety, while community representatives wanted business owners to be able to file complaints about odors. (Currently, odor complaints can only be filed by individuals, not businesses.)

Access to marijuana is not an issue, Kilroy told the public safety luncheon attendees. She acknowledged that marijuana has helped the city’s economy but said it hasn’t had as much of a boon as many think. Marijuana sales have generated less than 2 percent of the city’s revenue and account for about 1 percent of the workforce, she said.

The fifth annual Denver Public Safety luncheon was held on Nov. 2 at the Curtis Hotel. Luncheon founder Josh Hanfling of Sewald-Hanfling Public Affairs noted that it’s the only time all year that all public safety chiefs are in the same room at the same time.

The luncheon was sponsored by Sage Hospitality, Sage CEO Walter Isenberg and Columbine Health Plan.







Denver official calls marijuana market oversaturated

Mayor Michael Hancock presents the Jerry Kennedy Denver Public Safety Lifetime Achievement Award to Denver Fire Department Division Chief Joseph Gonzales on Nov. 2 at the fifth annual Public Safety Luncheon at the Curtis Hotel in Denver.Photo by Marianne Goodland/The Colorado Statesman



At this year’s luncheon, Mayor Michael Hancock presented the Jerry Kennedy Denver Public Safety Lifetime Achievement Award to Denver fire Division Chief Joe Gonzales. A native of Globeville, Gonzales has been division chief since 1998 and has more than 40 years of service with the Denver Fire Department.

In his remarks, Hancock talked about the city budget, which adds $24 million to the Denver Sheriff’s Department budget, earmarked for hiring 43 new uniformed personnel, as well as training and the final build-out of two floors of the Denver jail.

All Denver Police Department officers on the street will be wearing body cameras by the end of the year, Hancock announced, although Denver Police Chief Robert White later said the decision wasn’t tied to any particular incident. White discussed what he termed the challenges of using body cameras, such as whether to release videos and who gets to see them. But a six-month pilot project resulted in a dramatic decrease in the number of citizen complaints about alleged police misconduct, he said. Body cameras will result in more transparency and a significant reduction in the number of complaints that in the past were judged “unsustained,” White added.

Denver District Attorney Mitch Morrissey, who is term-limited and will step down next year after 12 years in office, talked about the Denver crime gun intelligence center, a collaborative effort with several local and federal law enforcement agencies to keep guns out of the hands of those who don’t have a legal right to possess them. Statistics show the vast majority of gun-related killings and injuries are perpetrated by people who are barred by law from having them.

The biggest change in the past year for the Denver Fire Department is that it now also serves Englewood, Chief Eric Tade told the crowd. The fire department is also working to deal with mental health issues faced by firefighters, he said.

marianne@coloradostatesman.com

UPDATE: This story has been updated to include a statement issued on Tuesday by the Marijuana Industry Group regarding Denver’s moratorium on marijuana stores.


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