DEPARTMENT OF EXCISE AND LICENSES DENVER, COLORADO FINAL DECISION IN THE MATTER OF THE APPLICATION OF 1130 YUMA, LLC, DOING BUSINESS AS THE COFFEE JOINT, FOR A CANNABIS CONSUMPTION BUSINESS PERMIT FOR THE PREMISES KNOWN AND DESIGNATED AS 1130 NORTH YUMA COURT, DENVER, COLORADO BUSINESS FILE 2017-0009024 The Director of the Denver Department of Excise and Licenses (the ?Department?), having reviewed the Recommended Decision in this matter issued on February 14, 2018 orders that: The Recommended Decision is adopted as the Final Decision of the Department. The following conditions shall be attached to the license: 1) Licensee will have written approval from Denver Department of Public Health and Environment before renting marijuana consumption equipment. 2) Licensee shall obey all stipulations issued by DDPHE in the letter approving the Health and Sanitation Plan dated January 10, 2018. The application of 130 Yuma, LLC for a new cannabis consumption business permit at 130 N. Yuma Court, Denver, Colorado, is hereby APPROVED subject to the conditions above. so ORDERED this 2b day or it ,2018. Ashley Kilroy, Exfcuti?gtgj Department of Excise and Licenses CERTIFICATE OF MAILING The undersigned hereby states and certi es that one true copy of the foregoing Final Decision was sent via mail and email on the gig day of Zia/Ha 2018 to the following: Adam Stapen, Attorney for the Applicant astapen@dillanddill.com Depart?nEka Excise and Licenses OFFICE OF THE DIRECTOR OF EXCISE AND LICENSES CITY AND COUNTY OF DENVER, COLORADO RECOMMENDED DECISION IN THE MATTER OF THE APPLICATION OF 1130 YUMA, LLC, DOING BUSINESS AS THE COFFEE JOINT, FOR A CANNABIS CONSUMPTION BUSINESS PERMIT FOR THE PREMISES KNOWN AND DESIGNATED AS 1130 NORTH YUMA COURT, DENVER, COLORADO This matter came on for hearing on Friday, February 9, 2018 pursuant to an application and prior notice filed by 1130 Yuma, LLC, doing business as The Coffee Joint, for a cannabis consumption business permit for the premises known and designated as 1130 North Yuma Court, Denver, Colorado. The Applicant, 1130 Yuma, LLC, was represented at the hearing by attorney Adam Stapen, Colorado attorney registration number 27506. The Licensing Authority was represented by Assistant City Attorney Anshul Bagga, Colorado attorney registration number 47577, and by Erica Rogers, Fellow with the City Attorney’s Office, Colorado registration number 51468. No persons appeared in opposition to the permit. Prior to the taking of testimony, the parties stipulated to admission of the following exhibits, which were admitted into evidence by the Hearing Officer: • • • • • • • • • • City’s Exhibit C-1, the Notice of Publication, showing that notice of the hearing was duly published in The Daily Journal on January 19, 2018; City’s Exhibit C-2, the Verification of Posting with attached photograph of the posting showing that posting was verified on January 19, 23, 26 and 31 and on February 8, 2018; City’s Exhibit C-3, a letter sent by the Department (EXL) to the Councilperson for the designated neighborhood, additional councilpersons, Ms. Tsalyuk, Mr. Merkulov and the relevant registered neighborhood organizations notifying them of the hearing; City’s Exhibit C-4, a Map of the designated neighborhood; City’s Exhibit C-5, a report listing licensed marijuana outlets in the designated neighborhood showing 5 Retail Marijuana Stores and 4 Medical Marijuana Centers; City’s Exhibit C-6, a Floor Plan of the premises; City’s Exhibit C-7, Pre-Hearing Findings of the Department; Applicant’s Exhibit A-1, the Affidavit of Posting, showing that posting of the premises was done from January 19, 2018 to the date of the hearing; Applicant’s Exhibit A-2, Petitions in support of the permit showing signatures of business owners and managers as well as residents, with the total number adjusted per the findings of the City Attorneys to 56, a total to which counsel for the Applicant agreed; Applicant’s Exhibit A-3, Applicant’s Health and Sanitation Plan; Page 2 • • • • Applicant’s Exhibit A-4, Applicant’s Odor Control Plan; Applicant’s Exhibit A-5, Applicant’s Responsible Operations Plan; Applicant’s Exhibit A-6, Applicant’s Employee Training Manual; and Applicant’s Exhibit A-7, Applicant’s Waste Plan. Applicant’s Exhibit A-8, a letter of support from the La Alma/Lincoln Park Neighborhood Association; Applicant’s Exhibit A-9, a Good Neighbor Agreement; Applicant’s Exhibit A10, landlord’s letter of reference and Applicant’s Exhibit A-11, photographs of the Designated Consumption Area, were marked for identification and admitted later in the hearing following foundational testimony. All witnesses were sworn-in to testify. After reviewing the testimony and exhibits received into evidence, as summarized below, and applying existing law, the Hearing Officer finds, concludes and recommends as follows: 1. The Applicant, 1130 Yuma, LLC was formed in the State of Colorado and is in good standing in Colorado. 2. The Applicant has possession of the designated premises, which is a suitable location for operation of a cannabis consumption business permit. 3. Pursuant to the Revised Municipal Code of the City and County of Denver, Councilperson Paul Lopez was given notice of the hearing. Jesus Orrantia, Lara Adriana, Robin Kniech and Deborah Ortega were also given notice. Rita Tsalyuk and Kirill Merkulov were given notice, as were the EX&L City Attorneys. The following registered neighborhood organizations were also given notice: Inter-Neighborhood Cooperation; Denver Neighborhood Association, Inc.; Federal Boulevard Corridor Improvement Partnership; Jefferson Park United Neighbors; La Alma/Lincoln Park Neighborhood Association; Santa Fe Drive Redevelopment Corporation and Sun Valley Community Coalition. 4. Stan Zislis testified that he is over the age of twenty-one and that he is one of the owners of a marijuana retail store and grow facility in the designated neighborhood. He testified that he is over the age of twenty-one. He testified that his establishment is located at 1235 Umatilla Street, within walking distance of the Applicant’s designated premises. He testified that his employees are excited about Applicant’s application for a cannabis consumption permit and that he expects them to patronize the designated premises if the requested permit is issued. He, too, expects to patronize the designated premises. He testified that he is familiar with the owners of the applicant limited liability and that he has no concern about their ability to operate lawfully. He testified that the Applicant operates a medical marijuana center also within the designated neighborhood and that the medical marijuana center follows lawful and appropriate business practices and is a good Page 3 neighbor. He testified that there is a need for the consumption permit because there is no other such permit operating with the neighborhood. Because of the absence of such a permit, citations are currently being issued by law enforcement for public consumption within the neighborhood. He testified that he personally desires that the permit be issued. He received no compensation for his testimony, and he has neither a financial nor a family connection to the Applicant. He testified that the neighborhood is industrial in nature and is adjacent to Colfax and to Highway I-25. He testified that the location is appropriate for operation of the permit and that he has heard no negative comments from neighborhood inhabitants relating to the consumption permit. The permit, he testified, would have a positive effect on the health, welfare and safety of the neighborhood. 5. Kevin Marik testified that he is over the age of twenty-one and that he is the manager of 1136 Yuma, a medical center and retail store with attached grow, located within the designated neighborhood. 1136 Yuma, he testified, is owned in part by one of the individuals who also owns the applicant limited liability company. Mr. Marik testified that he has worked at 1136 Yuma since 2016. He is responsible for overall conduct of the business and has authority to hire and fire employees. He testified that the neighborhood is industrial in nature and that it has become safer since 1136 Yuma started operating because of enhanced security measures added by 1136 Yuma to the neighborhood. He testified that there have been no violations of marijuana laws at 1136 Yuma. He testified that there is a need for the requested consumption permit because purchasers of marijuana need a safe place to consume, particularly purchasers from outof-state who have no home nearby in which they might consume. For neighborhood inhabitants, the designated premises would be convenient and within walking distance for some individuals. He testified that, if approved, the consumption permit would have a positive effect on the health, welfare and safety of the neighborhood. He testified that he personally desires that the consumption permit be approved. He testified that he has no reason to believe that the designated premises would not be lawfully operated. He did not sign a petition in support of the permit but would have done so if given the opportunity. 6. Chad Martinez testified that he is a business owner who signed a lease approximately a week earlier for premises located in the designated neighborhood. He is over the age of twenty-one. He testified that the neighborhood is primarily industrial in nature with a buffer between the industrial and residential sections of the neighborhood. His business will also be requesting a cannabis consumption permit. He testified that he personally desires that Applicant’s application for a cannabis consumption permit be approved and that he expects to patronize the designated premises. He testified that the permit, if issued, would have a positive impact on the neighborhood because it would enhance the safety of the neighborhood and bring neighbors together. He foresees no possibility that the permit would have a negative impact. There is a need for it, he testified, because there is no location within the designated neighborhood where cannabis may legally be consumed. He testified that he has neither a family nor a financial connection to the Applicant. Page 4 7. Aubrey Lavizzo testified that he is a member of the Board of Directors of the La Alma/Lincoln Park Neighborhood Association (“LA-LPNA”). He testified as to the boundaries of LA-LPNA and described the area that comprises LA-LPNA as one of great diversity and home to several well-known Denver organizations. He testified that LALPNA fully supports Applicant’s application for a cannabis consumption permit, as the letter signed by Christine Sprague, president of LA-LPNA, states. He testified that the Board voted on whether to support or oppose the application; and that, with a quorum present, the Board voted unanimously to support the application. The general membership of LA-LPNA is also supportive of the application. He testified that if the permit is approved, it would have either a positive or a neutral impact on the health, welfare and safety of the neighborhood. It would not, he testified, be detrimental in any way. He testified that LA-LPNA was established more than two years ago and not for the purpose of supporting Applicant’s cannabis consumption permit. Exhibit A-8, the letter of support from La Alma/Lincoln Park Neighborhood, was offered and admitted into evidence. Mr. Lavizzo also testified that he prepared and signed the Good Neighbor Agreement, marked as Applicant’s Exhibit A-9. It was also signed by Christine Sprague, president of LA-LPNA. It was offered and admitted into evidence. The Hearing Officer specifically finds that Applicant’s Exhibits A-8 and A-9, as well as the testimony of Aubrey Lavizzo, is valid and reliable evidence of community support; and that LALPNA, an “Eligible Neighborhood Organization,” was not created for the primary purpose of supporting a Cannabis Consumption Permit. 8. Rita Tsalyuk testified that she manages the premises located at 1130 North Yuma Court, Denver, Colorado and that is now operating as a coffee shop. She co-owns the premises with Kirill Merkulov. She testified that Mr. Merkulov co-owns, with her husband, the marijuana establishment located at 1136 North Yuma Court. She testified that there have been no marijuana violations, complaints or odor issues at 1136 North Yuma Court. She testified that she and Mr. Merkulov reached out to neighborhood businesses and to LALPNA and received feedback that neighborhood inhabitants desire a consumption location. As described in Applicant’s Exhibit A-3, the Health and Sanitation Plan, The Coffee Joint will initially offer a limited variety of pre-packaged, single-serving, nonrefrigerated products for sale, including coffee, tea and cookies. CBD products from approved sources will be sold if approved by the Health Department. Applicant will not be renting marijuana consumption equipment but may elect to do so at a later date, and only after receiving approval from the Denver Department of Public Health & Environment. She testified that there is adequate parking for patrons and that the entire permitted premises, as depicted on City’s Exhibit C-6, will constitute the Designated Consumption Area (“DCA”). City’s Exhibit C-6, she testified, is an accurate depiction of the premises. She testified that Applicant’s Exhibit A-11 consists of photographs of the interior of the premises. She testified that, as shown in the photographs, places where patrons will consume marijuana are not visible to persons just entering the premises. The photos, she testified, accurately depict the premises as they appear now. Applicant’s Exhibit A-11 was offered and admitted into evidence. She testified that Applicant’s Odor Control Plan, Exhibit A-4, provides for the use of carbon filters and air purifiers. No smoking of any kind will be allowed on the premises, either indoors or outdoors, which will limit odors, as will the closed air circulation system used at the premises. There Page 5 may be some odors caused by vaping, dabbing and plant material, which, she testified, will be controlled by the carbon filters and air purifiers, as explained in Exhibit A-4. Complaints regarding odors will be tracked. As stated in the Responsible Operations Plan, Applicant’s Exhibit A-5, hours of operation are 8:00 a.m. to 10:00 p.m. seven days a week. Consumption of marijuana will be permitted during all hours of operation. Ms. Tsalyuk identified Applicant’s Exhibit A-7 as the Waste Plan for the premises. Marijuana waste will be mixed with a foreign substance, secured in a locked area and picked up regularly. She identified Applicant’s Exhibit A-10 as a Letter of Reference from Applicant’s landlord, who also owns the property located at 1136 North Yuma Court. Exhibit A-10 was offered and admitted into evidence. Ms. Tsalyuk testified that she prepared Applicant’s Training Manual, Exhibit A-6. She completed the training offered by Trichome Institute, a responsible vendor training program approved by the State of Colorado. Exhibit A-6 will be changed and kept upto-date, as necessary, she testified. All employees will be expected to read and understand the manual and to take the course offered by Trichome, which consists of both online classes and an in-person class. Training is to be completed within the first two weeks of employment. She testified that Applicant expects to have eight to ten employees. A patron must be at least twenty-one years of age to enter the premises. A person employed by the Applicant will be at the entry at all times to check identification, which will be done using identification scanners and an identification reference book, if necessary. A calendar will be posted inside the premises to assist employees with determining whether a patron has reached age twenty-one. She testified that Applicant will act cautiously when reviewing vertical identification cards, and will require that all vertical identification be checked by two employees. Expired identification will not be accepted. If a person under the age of twenty-one attempts to enter, he or she will be asked to leave. If they refuse, law enforcement will be called. Required signage will be posted in the places designated on Applicant’s Floor Plan, Exhibit A-6. Employees will be trained to watch for signs of unauthorized distribution of marijuana and will ask anyone suspected of the same to leave the premises. Intoxication, she testified, is difficult to identify at times, but when suspected, the intoxicated person will be asked to leave the premises. The Applicant will have agreements with driving services, such as Uber and Lyft, to assist persons in getting home safely. Furthermore, she testified that the Applicant intends, through its employees, to educate patrons about the safe use of marijuana products. She testified that no use of alcohol will be permitted on the premises, and that the exterior of the premises and the parking lot will be monitored. No loitering on the premises will be permitted. Ms. Tsalyuk noted that, as provided in the Good Neighbor Agreement, Applicant’s Exhibit A-9, Applicant will work with the Denver Police Department to assure that the premises are safe and in legal compliance at all times. 9. The testimony and evidence presented, as described above, warrant the confidence of the Director that the business would be lawfully operated if the permit were issued. ACCORDINGLY, having considered the evidence in its entirety, it is concluded by the weight thereof that the Applicant, 1130 Yuma Court, LLC, doing business as The Coffee Joint, at premises Page 6 known and designated as 1130 N. Yuma Court, Denver, Colorado, has sustained its burden to show that, pursuant to the Denver Revised Municipal Code, Chapter 6 and the Rules Governing Marijuana Designated Consumption Areas, issuance of a Cannabis Consumption Business Permit would not adversely impact the health, welfare or public safety of the designated neighborhood and would serve the needs and desires of the designated neighborhood. There is no good cause to deny the permit. Therefore, it is recommended that the cannabis consumption business permit application be approved. RECOMMENDED this 14th day of February, 2018. /s/ Kimberley A. Chandler Kimberley A. Chandler Hearing Officer Any party in interest may file objections to the foregoing Recommended Decision within ten (10) calendar days from the date above. All filings shall be made by email to CAOexciseandlicense@denvergov.org and to EXLrecordsmanagement@denvergov.org. If a party in interest does not have access to email, objections shall be submitted in writing to the Director, Dept. of Excise and Licenses, 201 W. Colfax Ave., Dept. 206, Denver, CO 80202. The Director of the Department of Excise and Licenses will issue a FINAL DECISION in this matter following review and consideration of the Recommended Decision, and if applicable, any objections. CERTIFICATE OF SERVICE The undersigned hereby states and certifies that one true copy of the foregoing Recommended Decision was sent via email, on the date above, to the following: Adam Stapen, Attorney for the Applicant astapen@dillanddill.com Page 7 Anshul Bagga, Assistant City Attorney Anshul.bagga@denvergov.org Erica Rogers, Fellow with the City Attorney’s Office Erica.rogers@denvergov.org Ashley Kilroy, Director, Dept. of Excise and Licenses Ashley.kilroy@denvergov.org EXLrecordsmanagement@denvergov.org CAOExciseandLicense@denvergov.org /s/ Kimberley A. Chandler Kimberley A. Chandler Hearing Officer