Business & Tech

Studio City Collective Prepares for Next Moves With L.A.

One of L.A.'s earliest medical marijuana shops, Buds & Roses continues working toward smart regulation of the evolving business, while also building and catering to the needs of its local clientele.

From being almost bankrupt in 2010, Buds & Roses Collective on Ventura Boulevard in Studio City continues growing a strong customer base while also making a professional connection with the community.

Its president, Aaron Justis, who's been active with the neighborhood council, the Greater Los Angeles Collective Alliance (G.L.A.C.A.) and other medical marijuana advocacy groups in California and throughout the country, admits one last step toward compliance with the city is to relocate before mid-December from its proximity to Dixie Canyon Elementary School.

"I think we'll be okay," Justis said, "but the illegal shops definitely have a competitive advantage for now until the city shuts them down."

When L.A. passed Prop D in May, the only medical marijuana businesses allowed were ones that were registered with the city in 2007 and met certain requirements.

Deputy City Attorney Tamar Galatzan told the land use and public safety committees of what's possibly to come of the rogue pot shops proliferating in North Hollywood and elsewhere, citing the "location hurdle" as the last remaining obstacle to become compliant.

A final list of compliant operating businesses will be distributed throughout Los Angeles by Dec. 17, Justis said.

"That's how we built the store, building organically as a business to get some sort of regulation in L.A.," Justus said. "But we know we need state regulation. That's three to four years away."

Buds & Roses, like most longstanding L.A. medical marijuana shops trying to shed the stigma of feeling like an illegal operation to being a normal business experience, is under a microscope with the city to follow strict guidelines in order to continue operating, such as not being within 1,000 feet of a school. There have been similar cases elsewhere in L.A. during the medical marijuana business boom, including Eagle Rock.

"We don't want to be a target of law enforcement," Justis said.

Buds & Roses was the 17th registered collective in the city prior to the 2007 moratorium placed by the city, and Justis and his growers have observed the lack of regulation in L.A. during the storefront growth years and compare to the other markets getting attention in the country, such as Washington, Colorado and states in the northeast. Justis, as a advocate and member of G.L.A.C.A., said they work closely with the city agencies on building smart regulation.

In Studio City, which has 16 operating dispensaries, there is not much proliferation of illegal storefronts due to high commercial real estate, Justis said. Whereas in nearby North Hollywood, which easily has the most collectives in L.A., there are more storefront vacancies, and landlords "will rent to anybody," Justis adds.

He also said the storefront crackdown from the Devonshire Division of the LAPD in recent years added to the overspill of pot shops to North Hollywood.

"I put blame on the operators and lack of regulation," Justis said about the growth of illegal medical marijuana storefronts. "You kind of get what you get from that situation."

Buds & Roses pays sales tax, payroll tax for its five employees plus for its subcontracted security firm, liability insurance and gross compensation. With so many post interim control ordinance (ICO) storefronts coming, going and changing locations, it makes enforcement hard, Justis says. Legitimate storefronts like Buds & Roses charge $55 for an eighth of medical marijuana versus the rogue shops charging $40.

"The guy opening up just down the street doesn't have to pay anything," Justis noted.

A day at Buds & Roses

The collective's current brick storefront has an open door where you are greeted by a security guard and brought inside to a waiting room.

When called into the next room, you enter into a back room boutique with a friendly employee behind the counter, framed highlights of the business hanging on the walls, glass pipes, various marijuana strains on display behind glass, edible marijuana such as cookies and gum, as well as other unique items like THC-contained palliative oral care spray, canna-lozenges and cannabis extract capsules.

Justis, along with his two growers Kyle Kushman and Tyler Wadleigh, work to promote their products to the Studio City clientele while, most importantly, accompanying the medical needs. They grow 13 strains in one room less than 500 square feet (beyond the boutique room), ranging from heavy indica to heavy sativa.

"Our patient base is a lot of Studio City residents," Justis said, adding the age demographic is an average between 30 and 50, but they also receive a handful of residents in their 70s.

"Our building is approachable, secure and our staff is professional," he added.

Justis said his clients reacted when they began charging sales tax, but then became accustomed.

The most common ailment for treatment is chronic pain.

"Because of whole flower extract oils that we carry, we get a lot of cancer patients," Justis said. Other ailments arriving at Buds & Roses include Crohn's disease, anxiety, depression, panic disorders and various stresses, such as waking up at night or not being allowed to rest.

Repeatedly winning Cannabis Cups, features in High Times

Buds & Roses is widely known for its "veganic" (a term combining "vegan" and "organic" which is further explained in Kushman's blog) strawberry cough. The collective has won several Cannabis Cups and has been featured in High Times, most recently taking first place for its veganic platinum cookies in Denver's Cannabis Cup and the veganic strawberry cough taking home first place in Seattle's Cannabis Cup.

For more information on Buds & Roses, visit its website.


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