Arizona Dispensary Solutions Simplifies the Application and Licensing Process

PHOENIX, Feb. 22, 2012 /PRNewswire/ -- The dispensary application portion of the Arizona Medical Marijuana program has been on hold for the last 9 months and is set to begin as early as April 2012. As prospective owners find locations to open an Arizona dispensary, the commercial real estate market is seeing heated competition in some areas for locations that are compliant with local medical marijuana land use requirements. This is because dispensary applicants also have to submit documentation of property owner approval for use and compliance with local jurisdiction zoning.

Landlords with properly zoned locations that are set back from schools, churches, public parks, daycare centers, and other prohibited areas can be matched up with qualified applicants using the dispensary location form provided by Arizona Dispensary Solutions.

Here are some examples of zoning requirements codified by local municipalities:

• City of Phoenix - C-2 (Commercial)
• City of Scottsdale - I-1 (Industrial preferred)
• City of Tucson - C-2 and C-3 (Commercial)
• Pima County - CB-2, CI-1, CI-2, and CI-3 (Commercial & Industrial)
• Marana - RC, LI, and HI (Commercial & Industrial)

If a landlord has executed an agreement contingent on the lessee being granted a dispensary license, they should be aware of all the factors. In New Jersey, out of 35 applications turned in by 21 groups, only 6 dispensary licenses were awarded. 

Dispensary licenses are awarded using a health zone known as a CHAA (Community Health Analysis Area). Although Arizona has 126 CHAAs, several fall on Native American reservations where dispensaries are not currently allowed. In the remaining CHAAs, dispensary operators should be prepared to show $150,000 of operating capital available per application in addition to upfront rent payments, application fees, and consulting fees. 

A complete and compliant dispensary application must include patient recordkeeping policies, cultivation plans, inventory control processes & systems, patient education materials, security plan, and a non-profit business plan. When qualitative measures have been used in other states, final application materials are up to 300 pages in length.

The cost of putting together a comprehensive application depends on how much work is being done by consulting service providers such as Arizona Dispensary Solutions. Fees for customized applications start from $10,000 and can increase depending on the scope of work and the timeframe in which it is required. Successful applications will demonstrate a vision of a patient-centric wellness center rather than a negatively viewed "pot shop."

As the next set of DHS rules will eliminate disclosures of bankruptcy and financial delinquency, landlords may have to conduct due diligence. If a landlord is doing an exclusive agreement with a prospective applicant and wants to be sure they are getting the most favorable clientele, they should verify not only the financial stability but also the business plan and materials being put forth by the applicant. 

Arizona Dispensary Solutions values client confidentiality and can be contacted at 480.442.0190 or by email at [email protected]. 

On the web: http://www.arizonadispense.com

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SOURCE Arizona Dispensary Solutions