Twenty-six entities applied for one of Broomfield’s three retail marijuana licenses, the next step in the process of allowing marijuana shops to operate in the city and county.
However, Gard Law Firm, which operates out of Boulder, has sent two letters to Broomfield city and county officials penning concerns about the number of seemingly duplicated applications. The firm represents members of the cannabis industry, including applicants interested in the Broomfield licenses, the letters state.
After reviewing the 26 applications, the firm believes four ownership groups make up 13 applications total. They cited five IgadI applications, four Yuma-related applications and wrote they believe there is a connection between three of the individuals. Additionally, they contend applicants LP Management Company LLC and Silverpeak Corp. share ownership.
But city and county staff state the applications technically comply with the ordinance language, since they were submitted by separate entities owned by different individuals.
The applicants are vying for one of three licenses that will ultimately be distributed through a lottery system. Broomfield City Council approved retail marijuana regulations in March that went into effect May 3, the same day the licensing process began and the moratorium expired. Applications were accepted between July 2 and Aug. 31, and public comments on the applicants are now being accepted through Oct. 4.
Of the applications there are five that list the registered trade name as IgadI, a cannabis company headquartered in Tabernash with seven locations across the state. While the five applications have the same registered trade name, they each have varying names of the business applicant listed, such as PCA, Ltd. and JPO, Ltd. The five applications each have the same mailing address and the same primary contact person listed, records show.
The applicants Yuma BRMT LLC, Yuma BRKM LLC, Yuma BRIT LLC and Yuma BRAT LLC each do not have a registered trade name, though the four applications list the same proposed business location of 1480 West First Ave. Three of the four registered agents listed in connection to the Yuma applications share the same last name, records show.
An additional two applicants who share the same last name both applied as “Individual/Sole Proprietor,” though one listed a Denver address under contact information and one listed a Bettendorf, Iowa address.
The letter cites the city and county’s municipal code related to then-Mayor Pro Tem Guyleen Castriotta’s proposed amendment as the City Council worked through details of the marijuana regulations earlier this year, ensuring no person or entity could apply for more than one license in any location. She said she wanted to ensure the three initial licenses were fairly distributed among businesses, and the motion passed unanimously.
The Broomfield Municipal Code related to marijuana licenses now reads: “No owner of any business applying for a license or in possession of a license within the city may apply for, or be an owner of, any other business entity applying for another license within the city.”
“That section is unambiguous that anyone who is an owner of an existing applicant may not be an owner of any other applicant,” the letter reads. “Given the prohibition, any applicant sharing ownership with any other applicant is automatically ineligible for licensure and those applications should be denied without further consideration.”
The firm wrote they saw a similar issue play out in Adams County last year, when more than 150 applications were submitted, adding, “It was common for business owners to offer major financial incentives to employees who applied and were selected in the licensing lottery, resulting in dozens of applications for a single business. That process resulted in substantial unrest among industry members because it was felt that the lottery was ‘bought’ by larger companies who were unwilling to follow the intent of the application process.”
City and county officials stated the applications “technically meet the language of the ordinance because they have been submitted by separate entities owned by different individuals,” Broomfield spokesperson Carolyn Romero wrote in a statement, adding, “at the conclusion of the pending licensing process, this may be something that is addressed before subsequent application processes. Any changes to the code would need to be approved by City Council by ordinance.”
Gard law firm wrote they hope the city and county “will apply additional scrutiny to the applicants listed herein and any others that you discover may have submitted duplicate entries. At minimum, we would request that only one application from each interest group be permitted to proceed to lottery. We believe that complete exclusion from the process may also be appropriate to account for the abuse of the application process. An efficient and equitable application process is in the best interests of Broomfield’s citizens.”
Romero wrote that Broomfield’s Municipal Code states the city and county clerk will make a determination of completeness, and the completed applications will be sent to the selection committee.
“While there will ultimately be a lottery, the selection system established by Ordinance No. 2149 first provides for rigorous evaluation of each application by a selection committee,” Romero wrote. “This evaluation will take into consideration the criteria outlined in (Broomfield Municipal Code) 5-42-150, including the totality of the circumstances and diversity of ownership, consideration of public comment. The selection committee ultimately determines if the applications meet merit, and those that do will enter the lottery process.”
As part of the application, the applicants each submitted a proposed location for their business in Broomfield. Of the 26 applicants, 13 list 11650 Teller St. and four applicants list 1480 West First Ave. There are two applicants that list 4381 West 120th Ave.; and one application each listing 1995 West Midway Blvd., 1690 Midway Blvd., 300 Alter St., 7110 West 117th Ave. Unit A2, 11625 Reed Court and 4181 West 120th Ave. A map of the proposed locations can be found at bit.ly/proposedmap.
The Selection Committee is anticipated to issue a final report of qualified applicants to the City Clerk on Oct. 11, and on Oct. 21 at 4 p.m., a public, random lottery will be held in the City Council Chambers, 1 DesCombes Drive. The opening dates of the first three establishments will depend on the business, the licensing and inspection. The Council ultimately voted to award three licenses at first, with the ability to add two additional license 12 months after the first three are issued.
The 26 applications are available for public view on the Broomfield Voice portal. Residents can comment on the individual applications through the portal, or hard copy comments can be dropped off at the city and county building during business hours.
