Colorado Real Estate Journal - February 18, 2015
Recently, more than 175 architecture, engineering and construction leaders gathered for the Society for Marketing Professional Services Colorado’s event focusing on the built environment for the legal recreational cannabis industry. The panels focused around the resources that are required to develop cannabis buildings. A cultivation/grow facility panel explored design considerations, new technology and energy savings opportunities, and was moderated by James Lowe, president of cultivation, MJardin Management. “There is huge demand for facility development and an extremely high level of hunger for new technology for the cannabis industry,” remarked panelist Todd Whitaker of Surna. Nathan Mendel, president of Your Green Contractor, which builds cultivation facilities and dispensaries, noted he has seen a shift toward greenhouses, since warehouse spaces are simply not available. The panel also recognized an industry shift from indoor grow operations to the trend of developing greenhouses, which harness a great free energy source – the sun – and use outside air to cool and dehumidify space. Panelists noted that this can reduce overall operational costs by 30 percent. The dispensary panel was moderated by Jaime Lewis, owner of Mountain Medicine, and reviewed what to know about zoning and navigating city personnel. The panel also examined how interior design can lead to a more inviting – and ultimately safe and secure – experience. “I’ve been working in the cannabis industry in Colorado for the past five years, and I have seen the need for ancillary businesses for our companies to flourish – the need for architects, designers, retail marketing, construction, engineering,” said Lewis.
Panelist Brett Gilbert, principal, Competitive Edge Engineering, advised, “Pay attention to the changing regulations; they’re changing all the time. You’ve got to keep in touch with your regulators and figure out what’s happening next. That was definitely a big lesson on some of the projects we were working on this year. The legitimacy of this industry over the last 12 months, and how it has changed, the technology, the professionalism, has been amazing.” “From the city of Denver’s perspective, marijuana is like any other business; we are trying to implement the will of the voters while ensuring the safety and prosperity of our neighborhoods,” said Jill Jennings Golich, deputy director, Community Planning & Development, city and county of Denver. “Zoning is your first stop at the city because before you can get licensed, you have to get your zoning permits in place. The biggest thing I can say is have a consultant in place who knows our processes, knows the zoning code, knows what you need to look for, because it will take longer if you don’t give us the information we need to make the right decisions.” “Try not to reinvent the wheel. I looked at casinos, banks and pharmacies. It’s very important to remain a good neighbor. Instead of putting up screens, we put up boulders and rocks; beautify the neighborhood. Neighborhood associations can make or break your business,” added Lewis. A legal, insurance and finance panel was moderated by Michael Gifford, president and CEO, AGC Colorado, with participating panelists Chris Myklebust, commissioner, Division of Financial Services; James Thompson, attorney, Berenbaum Weinshienk PC; and J.B. Woods, Greenpoint Insurance Advisors LLC. The panel covered issues such as what design and construction companies should consider with financial transactions and challenges with insurance coverage. The panel noted that the cannabis industry faces enormous hurdles when looking for insurers, with many functioning under ambiguity. Thompson stressed that many “cannabusinesses” aren’t even certain if their policy will cover them, since an exclusion could leave them in the cold. Additionally, the panel walked through considerations with financial transactions and challenges with insurance coverage. The panelists noted that if you’re working with a cannabusiness, be transparent with your bankers, and be prepared for some banks to charge a fee for accepting cash. Myklebust reminded the attendees that the fact is that cannabusinesses could potentially be shut down under federal law, but under current guidance, the industry presently has a gray area to function for the next several years. “While we hope the SMPS Colorado event cleared up some of the smoke around the issue for attendees, as an industry, cannabusinesses and the ancillary businesses that serve them must remain diligent to provide transparent service and work with state and community representatives to ensure the growth of this brand-new and burgeoning sector,” noted Red Thread Creative Group President Stan Wagner. Red Thread Creative Group produced the event on behalf of SMPS Colorado.