COS Councilors say new ordinance could send marijuana money outside the city, creates red tape

Colorado Springs City Council voted on June 24 not to shelve an ordinance that would allow it to solicit grant applications from nonprofits to receive funds raised through recreational marijuana sales, and recommend to Mayor Yemi Mobolade how to spend the pot money.

Freshman Councilor Kimberly Gold proposed removing the ordinance from the consent agenda - which includes routine, non-controversial items that are grouped together and passed with a single motion and vote - immediately following a presentation of the City's budget, which showed a projected shortfall of $11.5 million.

Gold said she objected to language in the ordinance that "created a grant application process … when we have such immediate needs, we know what those needs are, and when we're projecting to be $11 million behind … in the budget," she told the Pikes Peak Bulletin.

"Let's be efficient and not do more red tape with a grant application process," she said.

The ordinance proposed by Council leadership said Council would make recommendations to the Mayor on how to spend money raised through the 5% sales tax on recreational marijuana.

It proposes giving the City the option of entering "into contracts with an established nonprofit organization or agency in the local area which provides public safety programs, mental health services, or post-traumatic stress disorder treatment programs for veterans." That nonprofit would then be eligible to receive money from the special fund set up to receive revenues generated by rec sales.

Let’s be efficient and not do more red tape with a grant application process. - Councilor Kimberly Gold

Mobolade's Chief of Staff Jamie Fabos said the administration would not support setting up a grant program and give the $1.4 million expected to be generated by rec sales to an outside nonprofit, especially at a time when the City is facing a budget shortfall.

She also noted that the power to contract and spend money is "reserved by the City Charter to the administrative branch."

Councilor Nancy Henjum said she "simply cannot be supportive of creating an external process at this point with the dollars, given the fact that those services can be and are provided within our city."

Colorado Springs Fire Department could use the money to ensure that its homeless outreach and alternate response teams are able to "continue to help the community," Deputy Fire Chief Jayme McConnellogue said. The sums envisioned were $184,000 for one homeless outreach team and $146,000 for one alternate response team - a fraction of the $1.4 million rec sales are expected to generate.

But councilors voted 6-3 to keep the ordinance on the consent calendar. Dave Donelson, Gold and Henjum were the three no-votes.

It was unclear what the next steps are for the ordinance, which is the latest bump in the road for recreational marijuana sales in Colorado Springs.

In September, City Council voted to extend the setback distance between marijuana dispensaries selling rec, and schools, daycares and rehab facilities, from 1,000 feet to one mile, effectively barring sales in Colorado Springs.

Then, after a citizens' initiative passed in the November elections, Councilors called for a do-over vote. That led to a lawsuit, which City Council lost, paving the way for rec sales to begin in mid-April.