The Telluride Town Council approved regulations allowing retail marijuana shops to open in Telluride starting in January 2014. The ordinance establishes a licensing system for retail shops that mirrors the existing rules for medical marijuana dispensaries. While most other municipalities in the region have banned retail pot sales, Telluride opted to regulate shops rather than prohibit them. Some concerns were raised about marijuana cultivation within mixed-use buildings, but the council passed the ordinance allowing retail sales by a 5-2 vote.

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Jars of medical marijuana are displayed at Telluride Alpine
Wellness off of Colorado Avenue in Telluride. Co-owners
Nolan Murphy and Michael Grady say they expect a boom in
business with rules just passed in Telluride and San Miguel
County. [Photo by Collin McRann]
NEWS
Telluride approves retail marijuana regulations
Retail shops could begin operating as early
as January
By Katie Klingsporn
Editor
Published: Thursday, September 19, 2013 6:06 AM CDT
Starting sometime after Jan. 1, adults in
Telluride will be able walk into retail marijuana
shops in town and purchase pot without a
medical marijuana card.
On Tuesday, the Telluride Town Council
approved an ordinance that will regulate retail
marijuana shops in town. The ordinance sets up
a licensing scheme that in many ways mirrors
Telluride’s medical marijuana policy, and opens
the door for retail pot sales to begin in 2014.
The approval makes Telluride one of the few
municipalities on the Western Slope to allow the sales of marijuana. Grand Junction, Montrose and
most recently, Norwood, have all decided to ban retail sales, joining larger cities around the state like
Greeley and Colorado Springs. Nearby Durango placed a moratorium on the sale of non-medical pot,
meanwhile.
The passage of Amendment 64 last November made it legal for adults 21 and older in Colorado to
possess up to 1 ounce of marijuana, but the implementation of retail pot shops has been delayed as
the state drafted rules for exactly how recreational pot should be grown and sold. In early July, the
Department of Revenue released those rules, which address everything from potency labels to who
can work in the marijuana business.
Following the release of the state’s rules, the Town of Telluride began the process of creating its own
licensing regulations for retail shops, opting to do that rather than prohibiting retail marijuana
facilities. In Telluride, where medical marijuana dispensaries have been operating with few problems
for the last couple of years, the decision to also allow retail sales brought little controversy.
The council gave the ordinance preliminary approval in late August, and on Tuesday held a public
hearing and second reading on the regulations.
The ordinance includes a framework that allows the town’s current medical marijuana dispensaries to
transition into retail stores if they choose, and to operate as dual retail and medical facilities under
certain conditions. It also sets out rules on things like signage, ventilation and cultivation. It allows
cultivation in commercial buildings, imposes a proximity limitation that keeps retail marijuana shops
at least 500 feet away from schools and contains signage regulations that makes it unlawful to use
advertising that is misleading, deceptive or false or that appeals to minors. It also makes it unlawful
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2. to consume, use, display or grow marijuana on town-owned or leased property.
Though no one at the hearing said they were opposed to the sales of pot in town, some had concerns
about in-town cultivation and other details of the legislation.
Lynda Tueller is one of the operators of the Studio Telluride Pilates Studio in the Silver Bell Building,
where The Telluride Bud Company grows and sells medical marijuana. She said that they have had
issues with odors from the cultivation, and while the smells have been suppressed recently, Tueller
suggested that the town impose stricter regulations for growing pot in town.
The issue of cultivation had come up at the first reading, when the town council considered a
provision that would limit cultivation to commercial buildings that did not have any residential units.
That provision was struck down after the majority of council members agreed that it’s an issue that
can be worked out between landlords and tenants.
On Tuesday, however, Mayor Stu Fraser suggested reinstating the prohibition of cultivation in
mixed-use buildings. Although he has no problem with retail sales, Fraser said, complaints about
cultivation within town prove that is has been and could continue to be a problem.
“I just really believe that what we have is a situation that can be relieved at this time,” Fraser said.
Ann Brady supported Fraser’s suggestion, and Town Manager Greg Clifton also said it’s been an issue
for town, but the change failed to gain the support of the rest of the council.
Council member Kristen Permakoff said that the question of where to grow is a sticky issue, but the
constituents have spoken loud and clear about marijuana.
“Our county passed Amendment 64 with highest percentage of support [in the state],” she said. “So
I’m all for having retail marijuana in town.”
The final version of the ordinance passed on a 5-2 vote, with Fraser and Brady casting the no votes.
Under the state’s deadline, the town had until Oct. 1 to adopt an ordinance that designates a local
licensing authority.
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