Document text
3 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Pair who escaped North Bend prison includes Jackson County man Train talk turns into historical discovery in Talent Emergency services, April 26 Public Meetings: April 27-May 1 Budding Opportunity Crime, Courts and Emergency Services Pair who escaped North Bend prison includes Jackson County man Emergency services, April 26 Garcia sculpture reported stolen from Medford yard Emergency services Central Point garage fire believed caused by electrical issues Politics and Elections Arthur I. Cyr: Cuba’s enduring challenge to American foreign policy – and American politics Gov. Brown touts need for transportation funding in talk to Medford chamber Kent Bush: Clinton 2.0 is neither new nor improved Arthur I. Cyr: Britain’s earthquake election Former state Senate President Brady Adams dies Education Needs improvement SWAT students track progress of stream restoration efforts Students participate in fuel reduction effort at Ruch School New funding formula awards universities for graduating more students Official hopeful whooping cough case at John Muir contained Environment Residents say armed mine supporters sully Josephine County's reputation Armed protesters gather at Medford BLM office over Sugar Pine Mine dispute Jackson County's wildlife services agent seen as both killer and savior Biomass technology: Creating products out of former waste Sugar Pine Mine co-owner: "Please stop calling the BLM and threatening their personnel" State News What's left of Oregon battleship stands in Portland Police identify armed man killed in Salem RV standoff Bill under debate in Oregon would limit livestock antibiotics US Rep. Newhouse proposes ending protection for wolves Judge proposes Oregon bakery pay $135,000 to lesbian couple Nation - World There's a $10 million precious stone hidden in plain sight at Grand Central Tsarnaev convicted on all charges in Boston Marathon bombing Obituaries Maurice "Zeke" Ziegler Phillip Stevens Larry E. Dameron Marie Melvina Besette-Hull James Emmett Boozer Weather Photo Galleries Since You Asked Videos Web Cams Mail Tribune 100 Shareable Sports Latest Stories Challengers picks up wins Donahue, Beavers down USC at home Rose seals victory in New Orleans Cavaliers sweep, but Love hurt Conley to miss Game 4 Varsity 541 College Sports Donahue, Beavers down USC at home King's single lifts OSU over No. 10 USC Emmert, Silver not on same page with one-and-dones Addison gets back into rhythm with Ducks Oregon wins distance medley relay at Penn Relays Pro Sports Rose seals victory in New Orleans Cavaliers sweep, but Love hurt Conley to miss Game 4 Blazers on the ropes Klitschko outpoints Jennings for titles Community Sports Bailey picks up modified win Wilson delivers in return of local boxing Palmer breezes to second straight men’s title Business Latest Stories Fermentation Fest highlights Southern Oregon growth in craft brewing Travel boosting Oregon economy more than ever Blog: Weekend Impossible Business briefs Ride & Drive: 2015 Nissan Frontier Real Estate News New home in an old house Naumes plans custom-crush winery in former packing house GREEN ACRES: Southern Oregon provides escape from the maddening crowd Since You Asked: Metro Medford rebranding proved economical Jackson County median home price hits $215,000 in first quarter People In Business Transportation Erickson finds room to work at Medford airport Lithia Motors nets $40.7 million in first quarter Lithia Motors reports second-best quarter ever Business briefs Medford airport's record run continues Agriculture Naumes plans custom-crush winery in former packing house New bosses take charge at Harry & David Dancin Vineyards covers up Opinion Latest Our View: Sensation and sensibility: a balancing act Letters to the Editor, April 26 George Will: A Graham candidacy's fun factor Dana Milbank: The TPP is an abomination Charles Krauthammer: Obama's Nixon doctrine: anointing Iran Editorials Our View: Sensation and sensibility: a balancing act Other Views: UO president search happened in the dark Our View: Buildings belong with the Jackson County Library District Our View: Public's right to film police should be protected Our View: Raises for Jackson County officials — again Letters to the Editor Letters to the Editor, April 26 Letters to the Editor, April 25 Letters to the Editor, April 24 Letters to the Editor, April 23 Letters to the Editor, April 22 Columns George Will: A Graham candidacy's fun factor Dana Milbank: The TPP is an abomination Charles Krauthammer: Obama's Nixon doctrine: anointing Iran Guest Opinion: Uniting to restore our sovereignty to we, the people Michael Gerson: 'The Road to Character' starts with humility Guest Opinions Guest Opinion: Uniting to restore our sovereignty to we, the people Guest Opinion: This Earth Day, we celebrate the Northwest Forest Plan The Medford School Board was wrong: 'American Pageant' is a political agenda, not history The Medford School Board was right: 'American Pageant' is a fine book, and the board did its homework Guest Opinion: Removing barriers to walking, biking benefits everyone Lifestyle Latest stories My to-do list for the Spring Garden Fair COLUMNIST FOR A DAY: Friendly skies not as friendly as the road Is grumpiness an inevitable symptom of aging? Adopt a Pet: Goliath Community blog: Jackson County Votes to Pay Wildlife Services: the War on Wildlife continues Food Community blog: 'Good' sushi may be more rare than real wasabi Community blog: Oregon Breweries to grow or seriously to grow? The joy of true wasabi Season Stepp: Veggie treat hidden deep inside artichokes Tammy Kelly: The South’s favorite side dish — slaw Home and Garden Costa Living: Basking in flower power Garden Cameos: Spring is time for azaleas in the garden Dear Monty: Seven costly mistakes of new real estate investors Paul Rogers: Enjoy convenience of container gardening Home Help: 3 quick, easy kitchen and bath upgrades Health Health Watch: Tips for protecting your eyes Dr. Jeff Hersh: Could severe cramping mean endometriosis? Dr. Murray Feingold: Is pre-op testing for cataract surgery necessary? Community blog: What about Lucy? Brent St. Germain: One year and counting Hiking Biking Faith Religion Briefs: Friday, April 24 Religion Briefs: Friday, April 17 Religion briefs: Friday, April 10 Religion briefs: Friday, April 3 Milestones and Achievements ENGAGEMENT: Sellers-James Witham's birthday bash draws hundreds for 1950s prices Charlesworth-Murphy Drizzle doesn't dampen Pear Blossom Parade spirit New Arrivals: Sunday, April 12 Columnist for a Day Rogue Healthy Aging Tempo Latest stories 5 picks for live entertainment this week A Taste of Ashland pairs food and wine at galleries Rogue Valley Earth Day 2015 Regional brewers, distillers, winemakers at Harry & David Field Moment in Time presents 'Viejo con Nuevo' Theater 'Secret Love' playwright Stan Lai appears in Ashland REVIEW: 'Secret Love' strikes comical, poignant balance Ashland New Plays Festival chooses new artistic director A tale of two plays at OSF Oregon Cabaret Theatre's "The Musical!" delivers five clever Broadway parodies in Ashland Music Maria Muldaur at the Unitarian Fellowship Genticorum at Paschal Winery Southern Oregon Repertory Singers Live Music in Local Clubs The Farr Side: Slow disappearance of physical music Community Events A Taste of Ashland pairs food and wine at galleries Rogue Valley Earth Day 2015 Foreign language film festival set at SOU Regional brewers, distillers, winemakers at Harry & David Field Third Fridays celebrates poetry, student art Movies Reader Review: 'Danny Collins' a sentimental and funny tribute to John Lennon Reader Review: 'Birdman' for the birds Movie review: ‘Ex Machina’ is the droid you’re looking for Movie review: Fairly smooth sailing for ‘The Water Diviner’ Movie review: ‘Age of Adaline’ is sweet but a little sloppy Dining Restaurant inspections: April 26, 2015 Island Grindz serves up Hawaiian specialties Have you wandered down the Bear Creek Wine Trail yet? Restaurant inspections: April 19, 2015 Siam Cafe offers 'mild' to 'very spicy' Thai cuisine Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obits Blogs TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Special Sections Business Services NEWS NOW Pair who escaped North Bend prison includes Jackson County man ... Our View: Sensation and sensibility: a balancing act ... Guest Opinion: Uniting to restore our sovereignty to we, the people ... Pair who escaped North Bend prison includes Jackson County man ... Our View: Sensation and sensibility: a balancing act ... Guest Opinion: Uniting to restore our sovereignty to we, the people ... SUNDAY FOCUS: THE MARIJUANA INDUSTRY Budding Opportunity From grow 'condos' to testing labs, entrepreneurs gear up for July 1 By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Apr. 26, 2015 @ 12:01 am By Damian Mann Mail Tribune Posted Apr. 26, 2015 @ 12:01 am » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> The lid is ready to blow off the pot industry after decades of prohibition kept it simmering on the black market. Delivery services, laboratory testing, commercial grows, retail operations, grow "condos" and an untold number of backyard gardens are sprouting up in anticipation of July 1, when recreational marijuana becomes legal in Oregon. Entrepreneurs are launching legal challenges or finding ways to work around resistance by local governments to embrace the new law because of fears it will lead to increases in crime, drug addiction and conflicts among neighbors over the pungent, skunk-like odor of ripening pot plants. Some entrepreneurs are locating their businesses in Jackson County, rather than cities where the population hubs are, simply because the county doesn’t require business licenses. Wayne Zallen says that within a month after launching Grow Condos — condominiums for medical marijuana growers — his 15,000-square-foot warehouse in northern Jackson County was filled up with 10 new businesses. He’s now branching out, getting ready to offer a similar concept in Portland and Eugene. “Eugene is welcoming me with open arms,” he says. “Portland is welcoming me with open arms, and Jackson County is telling me marijuana is not a permitted crop.” Zallen says his business model operates within existing medical marijuana laws but could be applied to commercial recreational grows once the state begins licensing them after July 1, potentially opening the floodgates for large indoor and outdoor operations. In Zallen’s Grow Condos warehouse, each space offered is 1,500 square feet. But tenants often build a second story inside the warehouse, doubling the square footage, he says. (Zallen didn’t want to disclose the exact location of the warehouse.) He says each condo can be purchased for $150,000. But most growers don’t have that kind of cash and can’t get a bank loan, so Zallen offers a lease-purchase option. With a 25 percent down payment, the tenant pays $1,000 to lease the space and $1,000 toward the lease option every month. After 36 months, the $36,000 accumulated from the lease option is applied against the remainder of the $150,000. The tenant receives the space inside the warehouse, a 400-amp electric panel, a security system and a water hookup, Zallen says. Under the Oregon Medical Marijuana Act, designated growers can cultivate up to six plants for each of four patients. “It’s up to each tenant to obtain their own medical marijuana cards or a commercial license,” Zallen says. He expects many growers to apply for a commercial license once recreational pot is legalized. In White City, Kenevir Technologies LLC and Kenevir Research Labs began operations last year to test marijuana for potency and also for the presence of mold and mildew, a requirement before cannabis can be sold at a dispensary. Anthony Smith, who runs the two-man laboratory on Antelope Road, tests cannabis for many local dispensaries, including the Talent Health Club, Green Valley Wellness, House of Leaves and Siskiyou Medical Supply. Kenevir requires a valid Oregon Medical Marijuana Card and valid state-issued identification. Smith's microscopes, gas chromatograph machine, petri dishes and mass spectrometer analyze marijuana before it’s sold to check for mold, mildew and THC, the active ingredient in pot that produces the high. “Flowers we test have a high rate of failing,” he says, adding about 10 to 15 percent of the buds test positive for mold or fungus. Some also test positive for pesticides and other contaminants, he says. Smith received a PhD from Oregon State University in molecular and cellular biology with an emphasis on biochemistry, metabolism and nutrition. He also works for a biotechnology company in White City called BioMed. Walking inside his facility on Antelope Road, the first thing a visitor notices is the lack of that familiar pot smell. Smith, who has a grower license, says the building is well ventilated and there is very little actual marijuana on the premises. Typically, growers supply 3.5 grams of marijuana for testing. Most of it is diluted in solvents for testing purposes. Smith says he tends to err on the conservative side when he checks for THC because of recent reports that different laboratories are coming up with exaggerated levels of potency. “Folks are disappointed that there isn’t one tried-and-true standard,” Smith says. “Unfortunately for my industry, they put numbers out there that are obviously too high.” Still, the highest level detected of all the pot samples so far has been 28.5 percent, he says. The Oregon Legislature is currently working on developing standards for testing both medical and recreational marijuana, Smith says. Though Kenevir is not currently licensed by the state, it follows industry-standard testing methods and is ready for any requirements the state might legislate, he says. “It’s a lot of record keeping and transparent data,” he says. Smith says he was hoping to put his lab in Medford on one of his properties, but “Medford is staunchly against me being in Medford. I hit a brick wall there.” Smith says he wants to expand his two-man operation and is looking for a new location, possibly in Central Point, because he anticipates a surge in business once pot is legalized. He wants to branch out into other related ventures, including genetic testing of cannabis and creating tissue cultures of specific strains, which he says provides more control than using seeds or clones for propagation. “I basically want to bring biotech into the cannabis industry,” he says. Kenevir Research will host a Medicinal Herb Science Symposium from 6:30 to 8 p.m. Tuesday, May 19, in Room 319 in the Stevenson Union at Southern Oregon University in Ashland. State Rep. Peter Buckley, an Ashland Democrat who has championed cannabis legalization, says the Legislature is working on rules that would make the testing for medical marijuana consistent with the testing for recreational marijuana. He also would like a food safety review of edible marijuana products and would like the packaging to be consistent for all pot products. Other marijuana-based businesses that have cropped up include Smokey J’s and Upper Rogue Cooperative, both of Medford, which offer medical marijuana delivery service to help disabled patients. Medford police Lt. Kevin Walruff says his department has contacted such delivery services and explained to them what is allowed under the Oregon Medical Marijuana Act. “If someone is a caregiver for a patient, that person can deliver to the patient,” Walruff says. “If indeed that person is not a caregiver, they would then be working outside the umbrella of the Oregon Medical Marijuana Act and are subject to criminal penalties. We haven’t seen anything that would be a crime at this point.” The city is still operating under a moratorium for medical marijuana dispensaries until police receive further direction from the City Council. “We want to allow people to do what is legally allowed,” Walruff says. “If not, we will hold them accountable.” A representative from Smokey J's declined to be interviewed, and the Upper Rogue Cooperative could not be reached for comment. Medical marijuana dispensaries were the first attempt to provide a legal means of providing marijuana to patients. So far about 10 dispensaries are operating, according to the popular pot website, leafly.com. Several physicians in the area also help patients receive medical marijuana cards. Some dispensaries have had to launch legal challenges to city bans, however. Patients Helping Patients, on East Main Street in Medford, where there's a permanent ban on dispensaries, continues to offer medical marijuana to patients while the court decides its case. The Greenery in Phoenix was forced to shut down because of a citywide moratorium on dispensaries and lost its legal challenge in February. The newest dispensary, House of Leaves in Ashland, was named fifth best in the state for April, according to leafly.com. Owners of the dispensary are already considering retail sales of recreational cannabis in 2016. Justin Hancock, operating manager, says he thinks many people would prefer to buy marijuana at the store even though it is taxed under the new state law and will cost more. “The idea of a black market is upsetting,” he says. “Some people would rather pay that tax and obtain their cannabis from a legitimate business.” One advantage to buying pot from a store is the requirement that it be tested for mold, mildew and other chemicals, Hancock notes. House of Leaves envisions a hybrid business that would offer a two-tiered pricing structure: untaxed for medical marijuana and taxed for recreational marijuana. Ashland enacted a 5 percent tax on medical marijuana, but House of Leaves builds it into the cost, Hancock says. Dispensaries are not sure how the legalization of pot will affect price. In Washington State, demand outstripped supply after pot was legalized last year. For medical marijuana, the average price for an eighth of an ounce, or 3.5 grams, is $25 at House of leaves. The same strain of marijuana, once it becomes legal for recreational use, could cost up to $45 because of the extra taxes added on by the state, Hancock says. “It’s going to be real awkward when the guy in front of you gets it for $25, when you have to pay $35 or $45,” Hancock says. Reach reporter Damian Mann at 541-776-4476 or [email protected] . Follow him on Twitter at www.twitter.com/reporterdm .   By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Apr. 26, 2015 @ 12:01 am » Comment or view comments /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501