SEQUIM — Emanon Systems Inc. is in the process of obtaining a state license to sell recreational marijuana within Sequim city limits.
Voters in November 2012 approved Initiative 502, which legalized the sale and use of recreational marijuana by adults 21 and older.
The Peninsula Daily News erroneously reported Wednesday that the company had already received a license.
David Halpern, 62, of Sequim, owner of Emanon Systems Inc., is proceeding with obtaining one so he can open Nature’s Gifts at 755 W. Washington St., Suite C, now that the city has adopted an ordinance providing guidelines for marijuana businesses within the city limit.
The city last week lifted its 18-month moratorium on recreational marijuana retail businesses and implemented permanent zoning rules with amendments addressing changes in state law relating to medical marijuana.
The City Council had adopted a moratorium Feb. 24, 2014, that prevented retail stores from opening and had approved six-month extensions Aug. 11, 2014, and again Feb. 9.
The moratorium was enacted so city staff could study and prepare solutions for dealing with the implications of legal marijuana
The ban would have expired Aug. 9.
The ordinance allows Halpern to move forward with opening his business if a license is obtained from the state Liquor and Cannabis Board.
First app drawn
Halpern’s company was the first application drawn from a lottery in April 2014 for a license to operate the one retail outlet allotted to Sequim.
His business was one of 34 applicants for the North Olympic Peninsula’s 10 retail stores that had passed through initial rounds of state screening.
The company then underwent more background checking and submitted business plans reviewed by the state, said Matthew Clark, 43, of Port Angeles, general manager of Nature’s Gifts.
However, a license was not issued due to the moratorium, said Brian E. Smith, Liquor and Cannabis Board communications director.
“David did win the lottery. We do have a number,” Clark said.
“Everything was approved and ready to go. The state approved him for his license after the lottery win, and he has been paying the fees and everything to keep it up-to-date. On the state side, it is just in limbo until the local stuff is resolved.”
And the state has reserved a license number for the company, Clark said.
“The state holds our license number, but they won’t issue us an actual license until we have done the build-out and have the security cameras and everything in place.”
According to the state Liquor and Cannabis Board website, Emanon Systems Inc. has “412106” listed as a pending license number.
Next steps
The next steps for the business are to secure a business license from the city and a permit to perform renovations at the office space.
“Once the build-out is complete and they do inspections, then the state will actually issue our license,” Clark said.
Halpern in July 2014 signed a one-year lease for the office space in Sequim in order to open the retail marijuana shop.
The suite, formerly occupied by an Edward Jones financial services company office, has sat vacant ever since.
Once open, the business will employ about seven full-time employees who will be given wages spanning from $12 to $15 an hour with benefits, Clark said.
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Sequim-Dungeness Valley Editor Chris McDaniel can be reached at 360-681-2390, ext. 5052, or cmcdaniel@peninsuladailynews.com.