Sandy voters to decide contentious question of marijuana sales in the city

SANDY - One of Oregon's most anti-pot cities plans to ask voters whether to allow sales of medical and recreational marijuana within the city limits.

The City Council has agreed to place a measure on the November 2016 general election ballot, hoping that the heavy turnout for a presidential election would finally decide the issue.

The vote could end a long political squabble over marijuana in the "Gateway to Mount Hood" city. Or it could open another round in a legal duel between city officials and an Eagle Creek-area man who wants to open a medical marijuana dispensary in Sandy.

The local vote on marijuana sales would be a first in Oregon.  Other cities have enacted bans, moratoriums, sales taxes and zoning limits, but have not placed yes-or-no measures before voters.

"The City Council has always had the desire to ban any dispensaries - recreational or medical - in Sandy," said City Manager Seth Atkinson. "But they're hoping for some clarity from voters in the election results."

Meanwhile, Matt Naegeli, an Eagle Creek grower, said city officials remain in denial, ignoring the will of voters in previous statewide tallies.

Matt Naegeli believes Sandy city officials are ignoring the will of Oregon voters by denying him a business license to open a medical marijuana dispensary.

"They already have heard from voters," said Naegeli, who at one point sued the city. "The county voted for it. The state voted for it. The city of Sandy voted for it. But they have this just-say-no attitude that is out of touch."

After Oregon voters passed Measure 67 in 1998, a system of licensed growers and by-prescription-only dispensaries grew up around the state. But Sandy officials were troubled by the apparent unresolved conflicts it created with federal law. They also were bothered by the image that dispensaries on main thoroughfares might project in this heavily tourism-dependent city, which sees more than 30,000 vehicles a day on U.S. 26.

To exercise control, the council took advantage of state law to adopt a moratorium, an outright ban and an ordinance requiring dispensaries to be located on land zoned for industrial uses.

But last year, the City Council sensed change in the state's marijuana politics. Anticipating that Oregon voters would pass Measure 91, legalizing marijuana possession and recreational sales statewide, the City Council adopted a tax on both medical and recreational sales. The council subsequently strengthened the city's zoning code, allowing medical marijuana dispensaries in commercial and industrial zones while requiring 1,000-foot buffers from schools, preschools and daycare centers.

As expected, Oregon voters did pass Measure 91 in November. But Sandy voters were lukewarm in their support.

The measure passed in Sandy by only 45 votes out of 3,295 cast, producing a razor-thin 50.6 percent "yes" versus 49.3 "no" with voter turnout of 70 percent.

The results further fueled city officials' doubts.

"What I've heard from voters in Sandy is they are fine with dispensaries being legal in the state," said Mayor Bill King, "But they have very different feelings about having them in their city."

King also expressed frustration with the apparent dilemma the successful marijuana-sales measures have caused for officeholders. He noted that despite the "yes" votes, marijuana remains illegal under the federal Controlled Substances Act. The U.S. Drug Enforcement Administration classifies marijuana as a Schedule 1 drug, grouping it with heroin, LSD and ecstasy for having "no currently accepted medical use and a high potential for abuse."

Sandy Mayor Bill King said Measure 91 forces local elected officials to violate federal drug laws.

"One of the how things I can't understand is how voters in the state of Oregon can force local elected officials to violate federal law," King said.

Last year, Naegeli sued the city in Clackamas County Circuit Court, challenging the city's denial of a business license for his company, Quality Control Group LLC. But in July, just before the suit was set to go to trial, the City Council took advantage of newly minted state law, House Bill 3400, and became one of the first cities in Oregon to adopt an outright ban.

Naegeli said the council's actions were undemocratic, ignoring voters' intentions to legalize marijuana sales under limits prescribed by state laws and regulations.

However, despite all the challenges, Naegeli still has his eye on Sandy. He said the city is a commercial hub on Mount Hood and would support a farm-to-prescription dispensary.

At this point, both Naegeli and city officials say they agree on one thing: When Sandy voters have spoken, they will abide by the will of the people.

-- Rick Bella rbella@oregonian.com

503-294-5915; @southnewshound

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