MARYSVILLE, BUILDING OWNER SETTLE POT DISPENSARY CASE

Owners of a building that housed a medical marijuana dispensary last
year in Marysville will no longer be named in the city's pending
lawsuit against the dispensary's operator.

As a condition of a settlement with the city approved Tuesday by the
City Council, Carothers Investments, owner of 825 Ninth St., has
agreed not to renew a lease to Joseph Leon of Norcal Health and
Wellness Collective.

Norcal leased the building in November 2009. The lease expires Oct.
31.

In July 2010, the city sued Carothers and Norcal, claiming they did
not possess a business license and conditional use permit for the
dispensary's operation. Both are required for operation of a business
within the city limits.

The city recently filed a motion for summary judgment and payment by
defendants of penalties, administrative fines and legal fees totaling
$68,000.

Carothers agreement with the city includes a provision that any future
lease agreement at the Ninth Street location include specific language
to avoid a repeat of circumstances with Norcal.

The property owner, according to the agreement, can't allow a tenant
to occupy the property without first obtaining a business license.

Any future tenant must also make the property, "readily accessible to
the public, including city employees through an unlocked entry door
during business hours," according to the settlement agreement.

Finally, Carothers agreed not to allow a tenant to operate a medical
marijuana dispensary or related business at the site.

In July, Leon was denied an appeal on a criminal charge for operating
a dispensary at the site without the necessary license and permit.