Attorney transforms old warehouse into 'Fort Knox for pot' for medical marijuana growers
By Barton Deiters
GRAND RAPIDS, MI - The fact that there's money to be made in the marijuana business is nothing new, but the idea that it can be made legally is a novel concept.
At an undisclosed location on the city's West Side, criminal attorney Matthew Herman is looking to cash in on the growing tolerance toward marijuana legally and socially. And he plans to do it without ever growing a plant.
Herman admits that calling it the "Fort Knox for pot" may be a little over the top, but it coveys the general idea.
Herman has transformed an old building into what he believes is the first of its kind - a secure growing facility available to people commonly known as caregivers, who grow and provide medical marijuana to licensed patients.
The facility provides a locked, secure access, alarm and video monitored facility for growers that allows them to cultivate marijuana away from basements or sheds on private property, which sometimes makes them a target for home invasions.
It also allows people to grow their plants without the pungent aroma that fresh marijuana produces, permeating homes and everything therein.
As a defense attorney, Herman has represented a multitude of people charged with marijuana law violations. Many have run afoul of the voter-approved Michigan Medical Marijuana Act.
The MMMA is a law that many believe is poorly written and confusing. Others say the law has been made confusing by authorities who oppose it and have created a byzantine enforcement regime that changes from one jurisdiction to the next.
"Logically, the law doesn't make sense, but it is clear as far as what you can and can't do," Herman said. "It's not meant to be a way for people to legally drug traffic."
Herman says he makes it clear that it is the responsibility of his clients to make sure they are in compliance with the law. He says he will report anyone he knows to have violated it.
All perspective tenants of his company, named "Cannabis Solutions," will sign a lease that sets out what is allowed, including the fact that no one other than the legally-designated caregiver can be in the rooms where the plants are growing.
"I don't even have a key to their rooms," Herman said. "You can't push it or I will turn you in."
In the rehabbed 12,000-square-foot building, each room includes a sink and the outlets necessary to install grow lights. Herman said the building has the capacity to handle the high energy consumption that grow lights demand.
The $4,000 monthly rent covers only the room and the energy use. Everything else - soil, fertilizer, irrigation equipment, lighting and - especially - plant material - is borne by the tenant.
Herman estimates setting up a fully functional grow room could cost about $13,000. That does not include the $4,000 security deposit he requires.
So there is money to be made without ever growing a plant, but what about the risk?
Herman said he has consulted with local assistant prosecutors, judges and attorneys who are well-versed in the law and believes his operation complies with all state laws.
Grand Rapids Attorney Bruce Block, a lawyer specializing in marijuana defense, says Herman's plan sounds like a good one and, from a state law perspective, should be fine.
The only problem is the federal government, which refuses to recognize state marijuana initiatives.
Block says while currently the U.S. Department of Justice has decided not to interfere in states with medical marijuana statutes, that could change on the whim of whomever is in charge of the department at any given time.
"Matt's pushing the envelope and sometimes you have to push the envelope to make change," Block said. "But I'd proceed with great caution."
Joseph Voss, senior counsel at Clark Hill PLC, advises business looking to invest in the growing field of marijuana-related ventures. He says there are opportunities, but those profits are tinged with the kind of risks that "normal" investors don't see.
"There's risks that are not involved in investing in a tool and die shop, in that the government isn't going to step in and shut the whole thing down," Voss said.
Voss said he is not sure if Herman's claim that he is indemnifying himself by having his clients agree to abide by the law will protect him.
"He can try to show that indemnity clause to the sheriffs as their kicking in his door," Voss said.
Because of that risk, typical investors are leery about getting involved and banks are concerned that their federal banking licensing prohibits them from making loans to companies involved in marijuana trade that is legal under the laws of some states.
Nevertheless, Voss says there is a lot of money flowing around the "agri-business" of marijuana, including operations like Herman's that have sprung up in states like Washington and Colorado where recreational marijuana is legal.
Voss says another potential growth area is in the testing of marijuana for purity and the amount of THC in the bud, the compound that produces the "high" in marijuana.
He said it seems the arc of history is leading toward a growing tolerance, even acceptance of marijuana, leading to increasing entrepreneurial opportunities.
"There are a lot of forward-looking people out there looking at this area," Voss said.
"There's risks that are not involved in investing in a tool and die shop, in that the government isn't going to step in and shut the whole thing down," Voss said.
Voss said he is not sure if Herman's claim that he is indemnifying himself by having his clients agree to abide by the law will protect him.
"He can try to show that indemnity clause to the sheriffs as their kicking in his door," Voss said.
Because of that risk, typical investors are leery about getting involved and banks are concerned that their federal banking licensing prohibits them from making loans to companies involved in marijuana trade that is legal under the laws of some states.
Nevertheless, Voss says there is a lot of money flowing around the "agri-business" of marijuana, including operations like Herman's that have sprung up in states like Washington and Colorado where recreational marijuana is legal.
Voss says another potential growth area is in the testing of marijuana for purity and the amount of THC in the bud, the compound that produces the "high" in marijuana.
He said it seems the arc of history is leading toward a growing tolerance, even acceptance of marijuana, leading to increasing entrepreneurial opportunities.
"There are a lot of forward-looking people out there looking at this area," Voss said.
Herman says he is more than happy to show law enforcement his operation and if a Grand Rapids Police cruiser is parked right outside his door, that's fine with him.
"I feel I'm fully in the clear," Herman said. "If we have police who sit out there because they're worried about it, that just makes us that much safer."
Herman said he has a waiting list of 30 people looking to have a secure facility and said he plans to open another facility soon in Ionia County.
Herman was looking at starting a marijuana-related business in Colorado where it is legal, but that is on hold now while he concentrates on this local operation.
http://www.mlive.com/news/grand-rapids/index....y_mar.html
By Barton Deiters
GRAND RAPIDS, MI - The fact that there's money to be made in the marijuana business is nothing new, but the idea that it can be made legally is a novel concept.
At an undisclosed location on the city's West Side, criminal attorney Matthew Herman is looking to cash in on the growing tolerance toward marijuana legally and socially. And he plans to do it without ever growing a plant.
Herman admits that calling it the "Fort Knox for pot" may be a little over the top, but it coveys the general idea.
Herman has transformed an old building into what he believes is the first of its kind - a secure growing facility available to people commonly known as caregivers, who grow and provide medical marijuana to licensed patients.
The facility provides a locked, secure access, alarm and video monitored facility for growers that allows them to cultivate marijuana away from basements or sheds on private property, which sometimes makes them a target for home invasions.
It also allows people to grow their plants without the pungent aroma that fresh marijuana produces, permeating homes and everything therein.
As a defense attorney, Herman has represented a multitude of people charged with marijuana law violations. Many have run afoul of the voter-approved Michigan Medical Marijuana Act.
The MMMA is a law that many believe is poorly written and confusing. Others say the law has been made confusing by authorities who oppose it and have created a byzantine enforcement regime that changes from one jurisdiction to the next.
"Logically, the law doesn't make sense, but it is clear as far as what you can and can't do," Herman said. "It's not meant to be a way for people to legally drug traffic."
Herman says he makes it clear that it is the responsibility of his clients to make sure they are in compliance with the law. He says he will report anyone he knows to have violated it.
All perspective tenants of his company, named "Cannabis Solutions," will sign a lease that sets out what is allowed, including the fact that no one other than the legally-designated caregiver can be in the rooms where the plants are growing.
"I don't even have a key to their rooms," Herman said. "You can't push it or I will turn you in."
In the rehabbed 12,000-square-foot building, each room includes a sink and the outlets necessary to install grow lights. Herman said the building has the capacity to handle the high energy consumption that grow lights demand.
The $4,000 monthly rent covers only the room and the energy use. Everything else - soil, fertilizer, irrigation equipment, lighting and - especially - plant material - is borne by the tenant.
Herman estimates setting up a fully functional grow room could cost about $13,000. That does not include the $4,000 security deposit he requires.
So there is money to be made without ever growing a plant, but what about the risk?
Herman said he has consulted with local assistant prosecutors, judges and attorneys who are well-versed in the law and believes his operation complies with all state laws.
Grand Rapids Attorney Bruce Block, a lawyer specializing in marijuana defense, says Herman's plan sounds like a good one and, from a state law perspective, should be fine.
The only problem is the federal government, which refuses to recognize state marijuana initiatives.
Block says while currently the U.S. Department of Justice has decided not to interfere in states with medical marijuana statutes, that could change on the whim of whomever is in charge of the department at any given time.
"Matt's pushing the envelope and sometimes you have to push the envelope to make change," Block said. "But I'd proceed with great caution."
Joseph Voss, senior counsel at Clark Hill PLC, advises business looking to invest in the growing field of marijuana-related ventures. He says there are opportunities, but those profits are tinged with the kind of risks that "normal" investors don't see.
"There's risks that are not involved in investing in a tool and die shop, in that the government isn't going to step in and shut the whole thing down," Voss said.
Voss said he is not sure if Herman's claim that he is indemnifying himself by having his clients agree to abide by the law will protect him.
"He can try to show that indemnity clause to the sheriffs as their kicking in his door," Voss said.
Because of that risk, typical investors are leery about getting involved and banks are concerned that their federal banking licensing prohibits them from making loans to companies involved in marijuana trade that is legal under the laws of some states.
Nevertheless, Voss says there is a lot of money flowing around the "agri-business" of marijuana, including operations like Herman's that have sprung up in states like Washington and Colorado where recreational marijuana is legal.
Voss says another potential growth area is in the testing of marijuana for purity and the amount of THC in the bud, the compound that produces the "high" in marijuana.
He said it seems the arc of history is leading toward a growing tolerance, even acceptance of marijuana, leading to increasing entrepreneurial opportunities.
"There are a lot of forward-looking people out there looking at this area," Voss said.
"There's risks that are not involved in investing in a tool and die shop, in that the government isn't going to step in and shut the whole thing down," Voss said.
Voss said he is not sure if Herman's claim that he is indemnifying himself by having his clients agree to abide by the law will protect him.
"He can try to show that indemnity clause to the sheriffs as their kicking in his door," Voss said.
Because of that risk, typical investors are leery about getting involved and banks are concerned that their federal banking licensing prohibits them from making loans to companies involved in marijuana trade that is legal under the laws of some states.
Nevertheless, Voss says there is a lot of money flowing around the "agri-business" of marijuana, including operations like Herman's that have sprung up in states like Washington and Colorado where recreational marijuana is legal.
Voss says another potential growth area is in the testing of marijuana for purity and the amount of THC in the bud, the compound that produces the "high" in marijuana.
He said it seems the arc of history is leading toward a growing tolerance, even acceptance of marijuana, leading to increasing entrepreneurial opportunities.
"There are a lot of forward-looking people out there looking at this area," Voss said.
Herman says he is more than happy to show law enforcement his operation and if a Grand Rapids Police cruiser is parked right outside his door, that's fine with him.
"I feel I'm fully in the clear," Herman said. "If we have police who sit out there because they're worried about it, that just makes us that much safer."
Herman said he has a waiting list of 30 people looking to have a secure facility and said he plans to open another facility soon in Ionia County.
Herman was looking at starting a marijuana-related business in Colorado where it is legal, but that is on hold now while he concentrates on this local operation.
http://www.mlive.com/news/grand-rapids/index....y_mar.html
