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Deadlock Kills Dispensary Moratorium Proposal After Packed Public Hearing

DENVER (CBS4) - It seemed marijuana shops started popping up the moment pot was legalized in Colorado. There are 215 locations selling marijuana in the City and County of Denver -- more than the number of Starbucks, McDonald's, Taco Bells and King Soopers combined.

A proposal was introduced by Councilwoman Robin Kniech. It would place caps on the industry, preventing new stores and centers and grow facilities. It does't affect Manufacturers of Infused Products (MIPs) nor testing facilities, according to Dan Rowland, Communication Director for Denver's Office of Marijuana Policy and Department of Excise & Licenses.

The city council spent all of Monday debating the idea.

Warehouse after warehouse can be seen in industrial lots on every block, each occupied by a marijuana growhouse.

"There are 1,046 marijuana business licenses currently issued, operating out of 467 unique locations. Many locations have multiple licenses like a grow and a store, for example," Rowland said in a statement to CBS4. "The proposal seeks to limit new locations – not necessarily licenses – that operate stores/centers and/or grows."

Rowland said there are currently about 420 of those types of locations.

"Also, there are currently pending applications for licenses that would create up to 47 new locations of those types," he said.

Denver City Councilman Albus Brooks voted no on the proposal, "siding with the folks who don't want the pending applications to be processed," according to Rowland.

Brooks says marijuana has reached a critical mass.

"This is about a city where you can live work and play. And when you start to impede on their ability to live work and play because of the environment, that is a real problem for your city," he said.

Brooks sponsored a proposal to cap the number of locations where marijuana can be grown and to strengthen zoning. It would keep grow operations at least 1,000 feet from schools and homes, and outright stop new developments in areas that are already saturated with pot.

"Our neighbors and constituents are upset, and they feel like this is now affecting their quality of life," Brooks said.

denver pot moratorium
(credit: CBS)

Opinions were mixed at a public hearing. Truman Bradley says the bill would bankrupt his business.

"Myself and a bunch of pending applicants will truly be devastated if this goes through," he said.

Bradley has invested $3 million in a new multi-use facility for growing and selling legal marijuana. He and dozens of other businesses have spent thousands getting permits from the city that would be dead in the water if Brooks' proposal were approved.

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"This sends a pretty bad message to business in general: it's risky to invest here," said Bradley.

Denver City Council came to a conclusion at approximately 1 a.m. Tuesday, an even vote at 6-6 that ultimately killed the proposal.

Additional Information From Dan Rowland's Statement

"The split 6-6 vote kept CW Kniech's proposal from going forward, but she will likely bring forward a modified proposal this coming Monday, April 18. Her new proposal would have to incorporate the two amendments that were passed at the last meeting, but it will likely still allow for the pending applications to be processed. It will need seven yes votes to move forward to second reading, which would be on April 25.

"This is really a debate about a strict proposal vs. an even stricter approach. Either way, everyone agrees that the industry's footprint in Denver is plenty big enough and that locations should be capped. The debate has really been about how and where to apply those caps and whether or not the pending applications should be allowed through."

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