Marijuana Dispensaries Fight In Court Over Mile High Real Estate

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The lawsuit revolves around the Lit Cannabis pharmacy in this building on 1630 Federal Boulevard in Denver. (BusinessDen file)

The battle for marijuana near Mile High is back in court.

Mile High Medical Cannabis recently filed a lawsuit to defend its Federal Boulevard lease against a competitor, in addition to a pending claim for a subtenant’s contract.

In a lawsuit filed May 11 in Denver District Court, PG Retail and parent company Pure Greens have applied for permission to change ownership of the dispensary on 1630 Federal Boulevard, where Mile High Medical Cannabis is currently working with Lit Cannabis.

Cannabis Growing Company Pure Greens owns retail stores Mile High Green Cross on South Broadway and Nature’s Medicine in Salida.

The ownership of Federal Boulevard, owned by Gibraltar Realty Co., has been leased to JDL Federal and subleased by Mile High Medical Cannabis since 2015.

The change of permission to use, according to the lawsuit, is the latest act of “malicious tampering” committed against Mile High Medical Cannabis while attempting to evict through the back door.

According to the complaint, Pure Greens allegedly colluded with subordinates of Mile High Medical Cannabis, Lisa Vedovelli and David Benlolo, who own JDL Federal and Field house meeting point next door.

“The Defendants (Clean Greens) have or are trying to collude with the subtenant and / or owner in an attempt to force the plaintiff (Mile High Medical Cannabis) to withdraw from the sublease in order to obtain higher rent from the defendants as a new tenant in the cannabis industry” said in the May lawsuit.

In January 2020, Mile High Medical Cannabis sued JDL Federal over a rent increase. Under the original 2015 lease, the rent was $ 5,000 a month with five parking spaces for an additional $ 375. After 18 months, the rent increased to $ 6,500, in line with the 1.5% increase in the main lease. According to an estimate, Mile High Medical Cannabis expected rents to rise to $ 7,029 in January 2020.

Instead, JDL Federal issued a 407 percent increase in an attempt to charge roughly $ 27,247.50 a month. When Mile High Medical Cannabis questioned the rate, it claimed that its subordinate owner had retaliated by threatening to tow cars and hiring armed guards to intimidate customers.

“Defendant (JDL Federal) subsequently engaged in a pattern of behavior in an attempt to create a false sense of pressure and the illusion that if Mile High Medical Cannabis did not agree to a 407 percent rent increase, he would lose his lease and therefore his license to sell. cannabis in the Medicines Enforcement Administration (MED) and the City and County of Denver Excise and Licensing Department, ”the lawsuit said in January 2020.

Mile High Medical Cannabis has three lease options for five years, the second of which took effect on January 1, 2020.

Founded in November 2009, Mile High Medical Cannabis previously owned the TRU Cannabis network. The company is currently running two dispensaries called Lit, one on Federal and one on South Broadway.

JDL Federal filed for chapter 11 bankruptcy in March, which could also result in the cancellation of Mile High Medical Cannabis’s lease as a tenant.

Mile High Medical Cannabis said that in the period between bankruptcy proceedings and the filing of a fraudulent permitting permit, the defendants attempted to “harm the reputation and goodwill of MHMC among actual and potential customers, potential employees and actual employees, and among government regulators in Colorado Marijuana Fight; and the City and County of Denver Excise and Licensing Department.

A spokesman for the Marijuana Enforcement Administration explained that the application for permission will be refused if it is submitted for a location where a dispensary is already located. A history of fraud or negative licensing can also be grounds for future rejections.

In its May 2021 lawsuit, Mile High Medical Cannabis is asking the court to award damages and attorney fees.

Jeffrey Sosio, senior retail manager for Pure Greens LLC, did not respond to requests for comment.

Mile High Medical Cannabis is represented by Lone Tree attorney Scott McLeod of Memkov Brunger McLeod. McLeod did not respond to requests for comment, nor did the Lit Cannabis guide.

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