Loading...
HomeMy Public PortalAbout2017-03-14 ATG - RMD /1630 Watertown Town Council Administration Building 149 Main Street p�Ce co Watertown, MA 02472 Phone: 617-972-6470 ELECTED OFFICIALS: Committee on Economic Development and Planning Mark S.Sideris, Meeting: March 2, 2017 Council President Report: March 14, 2017 Vincent J.Piccirilli,Jr., The Committee convened at 7:00 pm on Thursday March 2, 2017 in the Philip Pane Lower Vice President Conference Room. Present were Susan Falkoff, chair; Kenneth Woodland,vice-chair; and Michael F.Dattoli, Vincent Piccirilli, secretary. Staff present were Stephen Magoon,Director of Community Councilor At Large Development&Planning/Assistant Town Manager; Andrea Adams, Senior Planner; and Aaron P.Dushku, Mark Reich, Town Attorney/KP Law. See attached sheet for other attendees. Councilor At Large Review the Application for Alternative Therapies GrouD(ATG) for a Recistered Mariivana Susan G.Falkoff, DisDensary at 36 Arlincton Street to determine if it is readv to be broucht to the Town Councilor At Large Council for a vote for a letter of suDDort or non-oDDosition. Anthony Palomba, Councilor At Large Chris Edwards,the petitioner, gave an overview of his application, along with Julio Fuentes, his Chief Financial Officer. (see addendum for revised application) Angeline B.Kounelis, District A Councilor Key changes from Alternative Therapies Group's prior application: Lisa J.Feltner, • They provided a detailed facility plan with proposed security measures, and parking District B Councilor arrangements. Kenneth M.woodland, • They now agree to a Host Community Agreement with a mitigation payment, term District D Councilor of the agreement is life of the facility, and a limitation on recreational marijuana sales. The Committee discussion included these key points: • Councilor Piccirilli noted that their proposed financial projection shows them in the red by year three, and asked for clarification. Mr. Edwards stated that they believe that recreational marijuana sales will begin to cut into their business by year 3, and that they will need to begin selling recreational marijuana to stay competitive. • Mr. Magoon asked about the parking arrangements, and said that this building had a history of parking problems, and was also the subject of a prior Special Permit condition on parking. Mr. Edwards stated he was not aware of that,but had been negotiating for additional parking spaces with the landlord, and that a parking study is in process. • Mr. Magoon asked about the loitering he observed at their Salem facility, and how ATG will address this in Watertown. Mr. Edwards stated that they will educate their patients to wait inside the lobby to wait for rides. • Mr. Reich provided a marked-up copy of the Host Community Agreement(see Attachment A), stating that there was much back-and-forth with the petitioner on the wording. Two problematic areas were the mitigation payment, and the agreement not to sell recreational marijuana. Mr. Edwards said they do expect to offer recreational sales once this is legal, and that he expects the Town will be allowing this sometime soon. Mr. Reich cautioned that this is not correct, and the Town is not currently working on any regulations for recreation sales. Page 1 of 2 Committee on Economic Development and Planning Report March 14, 2017 • Councilor Woodland asked about the mitigation payments for"negative impacts"which would be determined by the Town in its"reasonable discretion", and asked if this would create future legal battles over what are the negative impacts and what they are worth. Mr. Edwards stated that they do not expect any negative impacts so they don't see the need to make any payments to the Town. • Councilor Falkoff noted that presenting a financial projection that shows losing money in the third year seems like a poor business plan, and it seems like they are setting this up to create a necessity to sell recreational marijuana by year 3. • Councilor Woodland stated that this Committee's job is not to weigh the merits of the application, but rather to insure that the application is complete, as described in the November 9, 2016 Committee report,to bring before the Town Council for a vote. Mr. Reich concurred. • Councilor Piccirilli agreed that the application appears complete and ready to send to the Town Council for a vote,but expressed concern about the apparent conflicting positions the petitioner has taken on both the mitigation payments and the prohibition on recreational marijuana sales. • Mr. Magoon stated that prior to coming forward for a Town Council vote,the petitioner must hold a community meeting. 4 Action Item: Councilor Woodland made a motion, seconded by Councilor Piccirilli, to refer the application for a Medical Marijuana Treatment Center at 36 Arlington Street by Alternative Therapies Group,back to the Town Council for a vote for a letter of support or non-opposition. The motion was affirmatively voted 3-0. Reuse of the Former Police Station Mr. Magoon presented a memo (see Attachment B)with input from various departments. He also had the on-call architect perform a quick review of the estimated costs, and the found the costs in line. The discussion generated two schemes for moving forward: 1. If the School Department moves its administrative offices to the building, it will take a majority of the available space,but could potentially co-exist with the fire boat storage, consolidated Town/School IT operations, and the Library's Hatch Program. This use would also require significant changes to the municipal parking. A feasibility study for future school needs is currently underway and should be completed in six months, so more will be known at that time about the need for administrative space if the Phillips School is used as an additional school or as temporary space while other buildings are being renovated or replaced. 2. If the School Department does not need to use the building,then uses could include the entire DCDP, as well as the consolidated IT servers, fire boat storage, and Hatch. This will not significantly impact municipal parking because DCDP employees are already working in the municipal center and it would allow Town Hall space to be allocated in a more effective way. The Committee agreed to reconvene after the School's feasibility study is done for further discussion. The meeting adjourned at 8:30 pm. Report prepared by Vincent Piccirilli Page 2 of 2 Watertown Town Council Administration Building 149 Main Street Watertown, MA 02472 ELECTED Phone: 617-972-6470 OFFICIALS: Mark S.Sideris, Council President MEETING NOTICE Vincent J.Piccirilli,Jr., COMMITTEE ON ECONOMIC DEVELOPMENT AND PLANNING Vice President THURSDAY,MARCH 2, 2017, 7:00 P.M. Michael F.Dattoli, PHILIP PANE LOWER CONFERENCE ROOM, GROUND FLOOR Councilor At Large ADMINISTRATION BUILDING Aaron P.Dushku, Councilor At Large Susan G.Falkoff, Councilor At Large 1. Call to Order Anthony Palomba, Councilor At Large 2. Review the Application for Alternative Therapies Group for a Registered Angeline B.Kounelis, Marijuana Dispensary at 36 Arlington Street to See if it is Ready to be Brought District A Councilor to the Town Council for a Vote for a Letter of Support or Non-opposition. Lisa J.Feltner, District B Councilor 3. Re-Use of the Former Police Station Building Kenneth M.Woodland, District D Councilor 4. Adjournment Councilor Susan G. Falkoff, Chair cc: Honorable Town Council Committee Members: Susan G. Falkoff, Chair Kenneth M. Woodland, Vice-Chair Vincent J Piccirilli, Jr., Secretary i2,�a Gam�, el 41 t C✓�idKy j�'r2t C c✓c�<�I G v , e4 ?11� o � �lax- JErF 3a� L 3V ?oNZ ass S Attachment A TOWN OF WATERTOWN AND ALTERNATIVE THERAPIES GROUP,INC. HOST COMMUNITY AGREEMENT tHIS HOST COMMUNITY AGREEMENT ("AGREEMENT") is entered into this day of Commented[AS]:In addition to the provisions contained herein, 2016r2017 by and between Alternative Therapies Group,Inc.,a Massachusetts not-for-profit I many municipalities have negotiated Host Community Agreements that address some of the following: corporation with a principal office address of 24R Pleasant St, Unit 2, Newburyport, MA,01950 ("the Company'), and the Town of Watertown, a Massachusetts municipal corporation with a principal The potential for the RMD•s engagement in the cultivation, processing and sale of marijuana for recreational purposes in this address of 149 Main Street, Watertown, MA 02472 ("the Town"), acting by and through its Town Agreement(see provision included below) Manager. I Restrictions on the production of sale of items that resemble or are in the form of candy,such as lollipops,gummy bears,jelly beans or WHEREAS, the Company wishes to locate a Registered Marijuana Dispensary ("RMD") similar products,as well as hours of operation. dispensing facility (but not a cultivation or processing facility) at 36 Arlington I Commitments to provide staff to participate in Town-sponsored Street in the Town in accordance with regulations issued by the educational programs on public health and drug abuse prevention, Commonwealth of Massachusetts Department of Public Health DPH" and the Town's Zoning and departments cooperatively witheFICAother ownpunhcsafety p ("DPH") I departments not mentioned in the FICA. Ordinance;and Required coordination with the Police Department in a similar manner as the NS AGO HCA provides. WHEREAS,the Company intends to provide certain benefits to the Town in the event that it 11 pt receives a license from the DPH to operate an RMD dispensing facility(the"DPH License")and receives Formatted:Font:(Default)+Body(Calibri), all required local permits and approvals;and WHEREAS,the Companv is seeking a letter of support/non-opposition from the Town regarding the Comoanv's application for the DPH License. NOW THEREFORE,in consideration of the provisions of this Agreement,the Company offers and the Town accepts this Agreement in accordance with G.L c.44, §53A,and the Company and the Town agree as follows: 1. In the event that the presence of Companv's dispensary facilitv results in negative impacts on- Formatted:List Paragraph,Add space between paragraphs the Town. Companv agrees to mitigate these impacts through Davments to the Town uD to a of the same style,Numbered+Level:1+Numbering Style: 1,2,3,...+Start at:1+Alignment:Left+Aligned at: 0"+ maximum amount of S200,000 per vear ("Mitigation Pavments"). Negative Impacts and Indent at: 0.5" associated mitigation costs are to be determined by the Town in its reasonable discretion. —�Formatted:Font:(Default)+Body(Calibri),11 pt z. The !`.......a Ry agFees to I., nwAal pmyme..#r the Tr...,.. in the a Rd 1 Rd PF♦I... teFF.s..r,..,ided h Fei.,(the 461...I..r,,.....#,,.... ) The C;9M..aRy.hall:vo i!::1hi Tcvg;W..,,..,th @RR...,..,,..I Prefit_and Less Statements,as seen as they beEGme available, FefleEting gFOSS sales figWes fer thp RMD dispensing farHity located in thp Town eevies of its veriedie financial filings to the DPH .J,.,.. ___a gross revenues and also a ceov of i+r anneal f:lina i1 a Fiar.r/af:+ ifs., +n+t+..+he a. In the first, of epeFatien: 25 pement of the RMD's gross ales revenue geneFated +..A Tn..,n rluring the first year of operation, e be paid within 60 days after♦t.n ens.Af the First ye@F of a ri ir., Pk')[ W? s of$100 000 GeRSOStiRg of tW8 paymeRts 9 $50 000 each to he marlp. :thin an days after each of the following milestones:(•I)the receipt of all the Townes Spee+al Permits, occupancy permits, etc. as required to cernmenee Donn n -,tinny (2) the remmenrement of sales at the onnn dispensing h. IM tV.1 I ' .Rd and r p-dinn yeaFs of epeFatien: 3.00 peFeent of the DnAn'r gFOSS ales Fevenue nd 6 n the Teimn ch yeaF of epeFation, to be paid within cn days after the end of the yeaF of n r^tien, In the ev 1fal.the l>n that i RA,.^" :Hall tha n^^^t°^^'L^I^"than v.1 Commented[A2]:The Town may wish to consider adding such language. 3. TI-- f^'^"of this Agreement shall be Fenegetiated by the Gemn-.n.,and the T-eWR iRgeed fait L.-, Formatted:Font:(Default)+Body(Calibri),11 pt fallow" k:.,� ., f^ ^t:..,,,.,.r 9peF^t:� nn facility ^r Formatted•Font: Default +Bod Calibri 11 t t.. �i 1kr f1A ^ t"^ ^'rrrl yhr11k11 ( ) v( ), p TewHe2v_iMm_ w h^'t community .,:t L. ;in. add.it:nn^I R.M.D.TLntits/cf this.%gFeement Formatted:Normal, No bullets or numbering Commented[A3]:I would advise against this language as the ceRegetidi.m rf thif Arai rim@PA rh rU.incl„de a Feview of n^riti„e and negative 0mpaets„n^n the T-ewR Company would have limited incentive to renegotiate once it isfully approved by DPH and operating. ;�ui�enlf, ur.d h�winuf_ nri lirtaildi3rr, GeMMURityT11MAV., Wlfllft?d bUSiReS5 gfe`•th a4ieeFime, use of T-9WR _�, p,..;-.(— prepeFtyimpacts,and theF documentedimpacts. In the n yyAol*.a Company enters host community nt for onnn yith o1hcr ir,AAR'c alit.. the Cm -,Itl. of the nn-,rr^^l..r,.tt tt.-.t'Inteim firstfiif.1&rlwf 1hfl. tfs flllfbill,19 what the!'..mn RFA ,:.J.. tTt�CxN lfurll.lurlt to this AweemeRt then the i9apties shall FeeiaeR this 1-men1 tr.�Ira^->a94atte_vn RMIRR14MIMI 1191VIIIln;in fiRaRei..l beRpfitr tR the Tn..,n eeawiyaleRt eF rwmnrinr to these nrn,.idpel to the r1her rtAo.-% pd6ltV 4.2. The Treasurer of the Town shall hold theall DenationsMitiaation Pavments in a separate account,to be expended by the Town Council without further appropriation pursuant to G.L. c.44, §53A, for the purposes of addressing the potential health, safety, and other effects or impacts of the RMD facility on the Town and on municipal programs, services, personnel, and facilities. While the purpose of these payments is to assist the Town in addressing any public health, safety and other effn^ts or i:Yil'!./7�Ic fys FIN^n dispensing f^^:lit., May have the Tnivp hese issues, the Town may expend the above-referenced payments at its sole and absolute discretion,as determined by the Town. - Formatted:Justified 3. The Company, in addition to any aaaualMitieation P-payments specified herein,shall annually contribute to public charities in an amount no less than a sum of$25,000,said charities to be determined by the Company in its reasonable discretion. 4. Except as provided herein,tThe provisions of this Agreement shall be applicable as long as the- Formatted:Justified Company operates a RMD dispensing facility in the Town, pursuant to a license issued by DPH, subject to the provisions of Paragraph 89,below. 6-The Company ill w .~..I,,m Teke�.^ff^~t'_shall work in a good faith, legal and non-discriminatory manner �Formatted:Font:(Default)+Body(Calibri),11 pt f to hire qualified, local vendors, suppliers, contractors, builders and employees who are Town residents,and t tiliie, orlon b.agnrl i the Tn.•,n 2 *a roc). property of the Roan dispensing fae'lity shall he treated a taxable and the r,...,pan shall not object to or ether. .,i-a ahr"It'.Of J'.e taxability a crL. pvl.gnKdpoy, but reseFves any Fights it might have with respect to the Valuation Of SEIMP The r,......any, te the e* ant IKM it rnt;#hUir:1 Pit IIti0ioMj..^^ as a Fen pFefit eFganiEatieR t. pliGable MaSSae!RUSettS IaW Shall b eXefflpt fFeffl the PayffleRt Rf taxeg AR PeFSE)nal PFE)PeFty W the s ^91V9rot 17 arri2ar .Rd faCiliti PM epeFating within the Town..The Companv shall pav all local,state and federal taxes as required by applicable law,as Formatted:Font:(Default)+Body(Calibri),11 pt now existing or as hereafter may from time to time be enacted. repealed or modified. The Companv shall not request anv tax credits or subsidv from the Town for the development of land or the Facilitv, including but not limited to anv request for a real estate tax exemption or abatement as a non-profit corporation,and shall not obiect or otherwise challenge the taxabilitv of land or the RMD. Notwithstanding the foregoing. (i) if real or personal property is determined to be non-taxable or partially non-taxable.a determination of which the Companv agrees not to seek at anv time during this Agreement or (ii) if the value of such property is abated with the effect of reducing or eliminating the tax which would otherwise be paid if assessed at fair cash value as defined in G.L.c.59,§38,or NO if the Companv is determined to be entitled or subiect to exemption with the effect of reducing or eliminating the tax which would otherwise be due if not so exempted,then the Companv shall pav to the Town an amount which when added to the taxes.if anv.paid on such property,shall be equal to the taxes which would have been pavable on such property at fair cash value and at the otherwise applicable tax rate, if there had been no abatement or exemption; this pavment shall be in addition to the IFAl9aGt ^^ 'i^^Mitigation Pavments made by the Companv under Section .1 of this Agreement. 6. The Companv,its successors,assigns or related parties herebv agrees to waive any rights it has- Formatted:Justified or may have to cultivate, sell or Process non-medical mariivana or to operate a Mariivana Formatted:Font:(Default)+Body(Calibri),11 pt Establishment,as defined in G.L.c.94G,§1,for non-medical use at the site of its RMD within the Town and herebv agrees that it shall not engage in cultivating.selling or processing mariivana and mariivana products for non-medical use within the Town without first obtaining prior written authorization from the Watertown Town Council and comolving with all State and local regulations and obtaining all necessary State and local licenses and permits. The Companv further agrees that in the event the Companv becomes licensed and permitted to operate a Mariivana Establishment at the same location as the RMD, the parties shall renegotiate the terms of this Agreement.including but not limited to increasing the amount of the oMitigation Pavments to be made to the Town.in recognition that the additional purposes of the RMD may have greater impacts and effects on the Town. in ne rase shall the annual I enati^^Pavments- be 9-. The obligations of the Company and the Town recited herein are specifically contingent upon the Company obtaining the DPH License for operation of a RMD dispensing facility in the Town, and the Company's receipt of any and all necessary local approvals to locate, occupy, and operate a RMD dispensing facility in the Town. If the Companv fails to secure either a Final Certificate of Registration, or any of the required municipal approvals aforementioned, this Agreement shall be null and voidi hewe or,ir.i►nk virsumstaRees,the Gempany Shall FeiMbUFse the T-GwR fGF its legal feesasser"atpel with the n ffee....nt tirt;a�r ,1is .. I&8_This Agreement does not affect, limit, or control the authority of Town boards, commissions, and departments to carry out their respective powers and duties to decide upon and to issue,or 3 deny, applicable permits and other approvals under the statutes and regulations of the Commonwealth, the General and Zoning Bylaws Ordinances of the Town, or applicable regulations of those boards, commissions, and departments, or to enforce said statutes, Sylawsordinances,and regulations. The Town,by entering into this Agreement, is not thereby required or obligated to issue such permits and approvals as may be necessary for the RMD dispensing facility to operate in the Town, or to refrain from enforcement action against the Company and/or its RMD dispensing facility for violation of the terms of said permits and approvals or said statutes,Bylawsordinances,and regulations. 44-.9. The Company shall not assign,sublet or otherwise transfer this Agreement,in whole or in part, without the prior written consent of the Town,and shall not assign any of the monies payable under this Agreement,except by and with the written consent of the Town. 4-L 10. This Agreement is binding upon the parties hereto, their successors, assigns and legal representatives. Neither the Town nor the Company shall assign or transfer any interest in the Agreement without the written consent of the other. 4-3,11. The Company agrees to comply with all laws, rules, regulations and orders applicable to the RMD dispensing facility, such provisions being incorporated herein by reference, and shall be responsible for obtaining all necessary licenses, permits, and approvals required for the performance of such work. The Company agrees not to assert or seek exemption as an agricultural use under the provisions of G.L. c.40A, §3 from the requirements of the Town's Zoning BylawsOrdinances. Any and all notices,or other communications required or permitted under this Agreement,shall- — (Formatted:Justified be in writing and delivered by hand or mailed postage prepaid, return receipt requested, by registered or certified mail or by other reputable delivery service,to;e paFtito r`1hr r4olfair21 set4s.-.c a,,%Pons 1 or f„rRishp d F.rr,lima to 1iwo i,,%writing hereafteF by, party to the atheparty. Any qUICh RGtiCe eF reFrespendence shall be deemed given%A.FhP_.R se deliveFed by hand,i so mailed,when deposited�k�t *)nc YL. P9stal Service eF, if sent by pFivate evernight 9F other d liveFy seFYiee,when.J..pesited,.41;side..deli eFy seFY,,., _,and will be effective upon receipt for hand or said delivery and three days after mailing, to the other Partv at the following addresses: If to TOWN: Michael J.Driscoll - Formatted:Space After: o pt Town Manager - Formatted.Indent:Left: 1.5',Space After: 0 pt ---------------------------------------------- 149 Main St. - Formatted:Space After: 0 pt Watertown,MA 02472 If to the Comoanv: n e^dPnt and CFQAlternative Theraoies Grouo - — Formatted:Space After: o pt 24R Pleasant St,Unit 2 NewburvDort.MA 019501 Commented[A41:This needs to be confirmed. Formatted:Font:(Default)+Body(Calibri),11 pt� 4 44-. 2. If any term or condition of this Agreement or any application thereof shall to any extent be held invalid, illegal or unenforceable by a court of competent jurisdiction,the validity, legality, and enforceability of the remaining terms and conditions of this Agreement shall not be deemed affected thereby unless one or both parties would be substantially or materially prejudiced.` Formatted:Font:(Default)+Body(Calibri),11 pt J Further,the Companv agrees it will not challenge, in anv iurisdiction,the enforceabilitv of anv provision included in this Agreement; and to the extent the validity of this Agreement is challenged in a court of competent iurisdiction,the Companv shall pay for all reasonable fees and costs incurred by the Town in enforcing this Agreement. 4-5 13. This Agreement shall be governed by,construed and enforced in accordance with the laws of the Commonwealth of Massachusetts,and the Company submits to the jurisdiction of any of its appropriate courts for the adjudication of disputes arising out of this Agreement. 4&14. This Agreement, including all documents incorporated herein by reference, constitutes the entire integrated agreement between the Company and the Town with respect to the matters described herein. This Agreement supersedes all prior agreements, negotiations and representations, either written or oral, and it shall not be modified or amended except by a written document executed by the parties hereto. 15. This Agreement shall also be null and void in the event that the Company shall not locate a RMDt Formatted:Justified,Space After: 0 pt J dispensing facility in the Town or shall relocate such RMD dispensing facility out of the Town. In the case of any relocation out of the Town,an adjustment of funds due to the Town hereunder shall be calculated based upon the period of occupation of the RMD dispensing facility within the Town, but in no event shall the Town be responsible for the return of any funds already Formatted:Font:(Default)+Body(Calibri),11 pt provided to it by the Company, Formatted:Normal,Justified, No bullets or numbering the «; «; c this n « ~ Formatted:Numbered+Level:1+Numbering Style:1,2, 3,...+Start at:1+Alignment:Left+Aligned at: 0"+ Indent at: 0.5" t Formatted:Space After: 12 pt,Numbered+Level:1+ 4q—.----IThis agreement shall become null and void if and when the Commonwealth of Massachusetts or- Numbering Style:1,2,3,...+Start at:1+Alignment:Left+ Aligned at: 0"+Indent at: 0.5" the Town of Watertown adopts an excise tax, fee, or assessment that entitles the Town to Formatted:Space After: 12 pt revenue from the Company in addition to the annual campensationMitigation Pavments (section-21).charitable donations(section 3),or. tax payments(section 5S)set forth in Formatted:Font:(Default)+Body(Calibri),11 pt this agreement) Formatted:Font:(Default)+Body(Calibri),11 pt 16. Formatted:Font:(Default)+Body(Calibri),11 pt — The Tai.vn may terminate this Agreement at any time by providing wFitten n—,.--- I \ Commented[A5]:The Department of Revenue has determined III that the sales tax exemption for prescription medicine in G.L.c. 64H.§6(1)applies to sales of marijuana and products containing marijuana to a qualifying patient or the patient's personal caregiver II pursuant to a written certification by a licensed physician.Any other supplies,educational materials or other items sold by the medical marijuana treatment center are subject to tax unless another IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and year it exemption applies. first above written. Further,under the so-called Recreational Marijuana Act,the Town Imay impose a sales tax of up to 2%for non-medical use of I1 marijuana. Il Formatted:Font:(Default)+Body(Calibri),11 pt TOWN OF WATERTOWN ALTERNATIVE THERAPIES GROUP,INC. Formatted:Font:(Default)+Body(Calibri),11 pt Formatted:Space After: 12 pt,Numbered+Level:1+ Numbering Style:1,2,3,...+Start at:1+Alignment:Left+ Aligned at: 0"+Indent at: 0.5" 5 By: By:Christopher Edwards Its: Its:Executive Director .572784/WATR/0001 Formatted:Font:11 pt 6 Gmail -FW: Old Police Station report review Page 1 of 5 Attachment B MG m a l l Vincent Piccirilli <vincent.piccirilli@gmail.com> FW: Old Police Station report review Magoon, Steven <smagoon@watertown-ma.gov> Fri, Feb 24, 2017 at 12:15 PM To: Town Councilors <TownCouncilors@watertown-ma.gov> Cc: "Driscoll, Michael" <mdriscoll@watertown-ma.gov>, "Tracy, Thomas" <ttracy@watertown-ma.gov>, "Mee, Gerald" <Jmee@watertown-ma.gov>, "Lawn, Michael" <mlawn@watertown-ma.gov>, "Rosati, Deborah" <drosati@watertown-ma.gov>, "Mahoney, Joseph" <jmahoney@watertown-ma.gov>, "Centola, Peter" <pcentola@watertown-ma.gov>, "Cole, Leone" <Icole@watertown-ma.gov>, John Brackett <john.brackett@watertown.k12.ma.us>, "Orangio, Mario Fwd Mail to Fire" <morangio@fire.watertown-ma.gov> At the last Economic Development and Planning subcommittee meeting, Councilors requested some additional information from staff regarding the architects report and departments that are interested in using the renovated space. Below is a preliminary review from one of our current on-call architects with options for further study. I have also attached several responses that I have gotten from various departments, and summarize all of this below. The cursory review would suggest the cost figures are not out of line, but that the assumption as to the number of staff that could be housed may have been high. Based on this, I would suggest that we assume a renovated building could accommodate approximately 40 staff members, as opposed to the 63 originally envisioned by the previous architects in the renovated space of 12,788 square feet. While we may be able to accommodate more with a final design, I would suggest the more conservative approach at this point. We should also assume that a renovation should cost approximately$4.8 million. Regarding departmental needs, I have received the following; Library—HATCH needs at least 1500 square feet of open area, lots of electricity and preferably a sink. Leone Cole has also suggested the idea of a larger innovation space,with a commercial kitchen and office space for teaching and entrepreneurs. Information Technology—The former dispatch center could be a good location for a combined School and Town IT department. There are already a considerable amount of communication and technology equipment in the building basement that will need to remain with any future scenarios. Recreation—The desire would be for an office space,two multipurpose rooms, storage space of 1250 square feet. https://mail.google.com/mail/u/0/?ui=2&ik=b467d28eb7&view=pt&q=police%20station&q... 3/9/2017 Gmail -FW: Old Police Station report review Page 2 of 5 School Department—They currently occupy approximately 10,S00 square feet in the Phillips Building with 30 staff members who would potentially relocate. If we apply the architects approximation of 325 square feet per employee, they would require 9750 square feet. Health Department—There is a need for temporary animal storage, which currently is being done in the former jail cells. They also suffer from dispersed office space in Town Hall. Fire Department—they currently house a response boat and trailer in the sally port. They also need to maintain the access immediately outside the former police station to the fire house. Community Development and Planning—We currently have 16 staff positions spread between floors in Town Hall. Again, applying the 325 square foot standard would result in 5200 square feet. The additional benefit would be consolidating the office and providing a coordinated departmental public interface. Record Storage—There is a definite need for record organization and storage across Town government. In 2008 an analysis was done by King Systems that suggested we would need 2000 square feet and $65,000 to set up a records management system. From: Bandini, Raeleen Sent:Thursday, February 23, 2017 11:01 AM To: Magoon, Steven <smagoon@watertown-ma.gov> Cc: Driscoll, Michael <mdriscoll@watertown-ma.gov>;Tracy,Thomas<ttracy@watertown-ma.gov> Subject: FW: Old Police Station report review FYI below, options for review for your consideration. From: Dale Gienapp [mailto:dgienapp@gienappdesign.comj Sent:Thursday, February 23, 2017 10:22 AM To: Bandini, Raeleen <rbandini@watertown-ma.gov> Cc: Imelda Barnhurst<i barn hurst@gienappdesign.com> Subject: RE: Old Police Station report review Raeleen, Of course we will be happy to provide a proposal to perform a peer review of the report.To prepare the proposal I have briefly looked at the report. Based on that, I think the right scope of work for us to do depends on what you https://mail.google.com/mail/u/0/?ui=2&ik=b467d28eb7&view=pt&q=police%20station&q... 3/9/2017 Gmail -FW: Old Police Station report review Page 3 of 5 are hoping to gain from our review. I have described this in Proposal scenario A, B or C below. But, I will offer the following based on a thumb-through of the report: 1. 1 think their order of magnitude of$525 sf(p.2)for replacement is realistic. I would expect ultimately under public bid costs replacement is not a viable option; it will be more frugal, per seat,to construct a larger building. 2. 1 have not studied their assumptions and assessment. But,assuming they are correct,the costs per sf on page 5 of$324-$378/sf are not surprising. 3. We did not drill down into the cost estimate. But,we do reviews of Fogarty's estimates frequently. I doubt they are widely off. 4. Although their plans work'in theory', I think the number of seats shown in the Complete Renovation Plan is not realistic. Due to general office needs,acoustics, meeting space,storage space,etc. I do not think one would ever 'pack it'that tight.The head count and sf indicates 201sf/person. In our experience,for most any office other than a call center,telemarketer or similar,anything under 300 sf/person starts to be cramped due inadequate storage and meeting space,etc. I don't think a sufficient number of toilet fixtures are shown to meet code,or to be practical. The kitchen and lunch room is too small to satisfy workers,there is not enough meeting space.When those things are added, it will end up at more like 300-325 sf/person or more. 5. 1 doubt it is practical to add a third floor.As they indicate on page 4,to consider adding a third floor it would require a structural assessment. It is very unlikely a structural assessment is going to show it is practical to add a third floor.Changes to the seismic code has eliminated that as a practical opportunity for most buildings of this vintage and construction. It would probably mean a new column structure to the ground. 6. 1 have not done a real evaluation, but it appears very little cost is included for the exterior work. I am concerned that will have considerable cost creep. The purpose of my brief review was to determine a fee to do a peer review. I would suggest either of two options: Proposal Scenario A: For$1,500 we could do a thorough review of the information and with our own staff do a review of the line items in the cost estimate.We would also do a bit more evaluation of their planning options and comment on the number of seats and code information (but not draw an new plan). If the goals of the peer review is to confirm if the scope of work is correct and there will not be excessive scope creep as a project, I think this would be a useful review. Ideally we would add$500 and do a walkthrough of the building.The product will be letter report with comments. Proposal Scenario B: For$5,000 we could do a walkthrough of the building, do a thorough review of the planning options and have our professional cost estimator check the estimate.We will include a more detailed review of the plans and likely do a drawing to determine what we think is a more realistic number of staff that would be accommodated. I think this is right level of review if you are really determining if this is a 'Go or No-Go'decision based on the cost of number of staff to be accommodated and construction cost. I think this level is appropriate if you are debating whether to appropriate money to proceed with final design. It will also be a better check that everything is included and help protect against scope creep.Our product will be a letter report with a check of the cost estimate and diagrams or drawings to address any findings. Proposal Scenario C—No Proposal: I am not clear on what your goals for a peer review may be. I have some concern on the items 1-6 above. I do not think a peer review will indicate the cost will be any/significantly less than presented and further study may not be merited. If the above information provides you what you are looking for, there is no cost. https://mail.google.com/mail/u/0/?ui=2&ik=b467d28eb7&view=pt&q=police%20station&q... 3/9/2017 Gmail -FW: Old Police Station report review Page 4 of 5 The report seems to present this as a renovation for'administrative offices'. I assume this is for town use and therefore public construction. If the building is up for consideration for sale,and this evaluation is an exercise to value the building and the renovation would be a private project,then the cost may less than presented. If you would like further consider one of the proposal scenarios above let us know and we can do a formal proposal. Sincerely, Dale Gienapp Gienapp Design 20 Conant Street Danvers, MA 01923 978-750-9062 x 112 www.gienappdesign.com -----Original Message----- From: Bandini, Raeleen [mai Ito:rbandini@watertown-ma.gov] Sent:Tuesday, February 21, 2017 9:37 AM To: Dale Gienapp<dgienapp@gienappdesign.com>; Imelda Barnhurst<i barn hurst@gienappdesign.com> Subject: FW:Old Police Station Hello Dale and Imelda: Attached is the request I received last week from Steve Magoon,Asst.Town Manager/Comm. Development and Planning,with the request below. I reminded him that there would be a cost associated with request of your review. Please send us a price proposal for your review and opinion of the attached.Thank you. Regards, Raeleen -----Original Message----- From: Magoon,Steven https://mail.google.com/mail/u/0/?ui=2&ik=b467d28eb7&view=pt&q=police%20station&q... 3/9/2017 Gmail -FW: Old Police Station report review Page 5 of 5 Sent:Tuesday, February 14, 2017 5:08 PM To: Bandini, Raeleen<rbandini@watertown-ma.gov> Subject:Old Police Station As we discussed,attached is the report prepared by MDS regarding options for the reuse of the old Police Station property. The Council committee asked that we have our current on call architects review the study and give an opinion if the per square foot costs appear to be reasonable. Let me know if you have any questions. Thanks Your message is ready to be sent with the following file or link attachments: 20170214170412439 Note:To protect against computer viruses,e-mail programs may prevent sending or receiving certain types of file attachments. Check your e-mail security settings to determine how attachments are handled. 20170224094126888.pdf 263K https://mail.google.com/mail/u/0/?ui=2&ik=b467d28eb7&view=pt&q=police%2Ostation&q... 3/9/2017 Magoon, Steven From: Cole, Leone Sent: Wednesday,January 25, 2017 8:45 AM To: Magoon, Steven Cc: Driscoll, Michael Subject: RE: Former Police Station Hi Steve, For HATCH we need at least 1500 sf of open space. Lots of electricity. A sink in the space would be preferable. And access to a restroom. Thanks, Leone From: Magoon, Steven Sent: Monday,January 23, 2017 2:16 PM To:John Brackett<john.bracl<ett@watertown.kl2.ma.us>; Rosati, Deborah <drosati@watertown-ma.gov>; Centola, Peter<pcentola@watertown-ma.gov>; Mee, Gerald <Jmee@watertown-ma.gov>; Cole, Leone <lcole@watertown- ma.gov> Cc: Driscoll, Michael <mdriscoll@watertown-ma.gov> Subject: Former Police Station As you are aware, the Council Subcommittee requested that I compile the space needs each of your prospective uses might need if the farmer Police Station were renovated. Could you please forward any information you have as to square footage, or number of staff. I will then pass this information along to the Council. Let me know if you have any questions. Thanks Steve Magoon Director, Community Development and Planning/Assistant Town Manager 149 Main Street Watertown, MA 02472 Office 617 972-6417 Cell 617 987-1136 smaPoo n(a)watertown-ma.gov 1 Magoon, Steven From: Cole, Leone Sent: Thursday, February 16, 2017 2:07 PM To: Magoon, Steven Cc: Driscoll, Michael Subject: RE: Vision for former police station Hi Steve, At this point I do not have a good estimate of the number of people it could serve. I do know that there are waiting lists for commercial kitchens in Boston and surrounding areas and I do know that our meeting spaces and computers are used to capacity. We turn people away regularly who are looking for meeting and work spaces. Here are a few articles about similar projects: httPs://www.nycedc.com/program/entrepreneur-space htto://www.Rravitvtanl(.com/bloc/intersection of space httn:/Jai incu bator.ora/ Leone E. Cole Library Director Watertown Free Public Library 123 Main St. Watertown, MA 02472 617-972-6434 www.watertownlib.org From: Magoon,Steven Sent:Thursday, February 16, 2017 1:46 PM To: Cole, Leone <Icole@watertown-ma.gov> Cc: Driscoll, Michael<mdriscoll@watertown-ma.gov> Subject: RE:Vision for former police station Do you have ideas about size number of people you are thinking? Thanks From: Cole, Leone Sent:Thursday, February 16, 2017 11:52 AM To: Magoon, Steven <smaaoon(@watertown-ma.gov> Cc: Driscoll, Michael <mdriscoll(@watertown-ma.gov> Subject:Vision for former police station We have been thinking about the potential for that building/space, especially given its prime location in town. We envision the building being used for community collaboration, learning and entrepreneurship. HATCH will be located there, as well as the following: 1 Commercial kitchen that would be used for classes and also rented out (there is a huge demand for this) Office cubicles for rent Meeting/classroom/collaboration spaces for rent Would there be state economic development money available to make this a reality? Currently, the high tech hub of Watertown is in the Arsenal Street corridor. A project like this one would bring those people to the Watertown Square area. These are just my initial thoughts and may not be possible, but I wanted to at least get them out there for consideration. Thanks, Leone Leone E. Cole Library Director Watertown Free Public Library 123 Main St. Watertown, MA 02472 617-972-6434 www.watertown li b.orp 2 Magoon, Steven From: Mahoney, Joseph Sent: Friday, January 27, 2017 3:28 PM To: Magoon, Steven Subject: Former Police Station -IT Department Hello Steve, The dispatch room in the former Police Station may be a suitable size for a modern data center(IT Dept. CIP item.)This would facilitate Town and School computer equipment.Thank you. Joseph Mahoney Information Technology Manager Town of Watertown 149 Main Street Watertown, MA 02472 Tel. 1-617-972-6463 ( Fax 1-617-972-6453 1 www.watertown-ma.gov When responding,please be aware that the Massachusetts Secretary of State has determined that most email is public record and therefore cannot be kept confidential. 1 Magoon, Steven From: Centola, Peter Sent: Tuesday, January 24, 2017 8:57 AM To: Magoon, Steven Cc: Thebado, Ernest Subject: recreation - police station request Steve, Sorry for the delay, I was still trying to update the square footage of the storage space required. In a perfect world, we would like to be in all in one place. This would include: • An office suite with privacy for four full time staff. • A couple of multi-purpose rooms - class room / conference to host meetings, small information sessions, classes such as arts and crafts, baby sitting, yoga, movie etc. • Storage area for our archives - photo, news paper, digital disks. • Adjacent storage area for most of our equipment so that it is easily accessible. I think 1250 square feet should work. At the minimum, we need to maintain and/or increase by 20% our equipment storage capacity. As a side bar recommendation, all of our files should be stored by a private, separate, storage company off site. I would support the Hatch to be located in the police station as well. Peter Peter Centola Director of Recreation 617-972-6494 617-312-9007 Join us at Facebook, Twitter and Instagram Facebook: http;//www.facebook.com/watertownrecreationdepartment Twitter: @watertownrec and @watertownsummerhoop Instagram: watertownrecreation t Magoon, Steven From: John Brackett <john.brackett@watertown.kl2.ma.us> Sent: Wednesday, February 22, 2017 2:38 PM To: Magoon, Steven Subject: Re: Old Police Station Hi Steve, We currently have 30 regular employees with Phillips as their assigned work place. These would be the employees most likely relocated to a new site and does not include the preschool staff nor Steve Romanelli and maintenance staff. Thanks jolm John R. Brackett, Ed.D, Interim Superintendent On Thu, Feb 16, 2017 at 1:00 PM, Magoon, Steven <smacoon(iUwatertown-ma.Lrov>wrote: One additional piece of information I need is the number of staff people you would potentially relocate to the building to go with the square footage you already provided. Thanks Steve Magoon Director, Community Development and Planning/Assistant Town Manager 149 Main Street Watertown, MA 02472 Office 617 972-6417 Cell 617 987-1136 snla fLoo❑(R)wa tertoSvll-nla.vov r Watertown Alternative (Phillips( School Second Floor 631'51 -- -- _ - - ft- �' Special Education hten's 2ZX 15' 22x15' V'I 21 x31° Administrative Office Lavatory 330 ftz 330 ft- 651 ft- `women's Director of Lavatory Sp_Ed.Once IGtchen l Sp_Ed. L Special Education LEAP Program Assessment Offices Lav _ C 21�A31' 22k15,' 22k19 2 65511 ft ff 651 fr" 330 ftz 330 fC" a " K 6 Coordinators'Office Registraras K 12 Sp-Ed. 24kAl5' 1 Md 9 Office Coordinators' 360 ft= 240 ft` Sp.Ed.Storage Office ELL Coord. Assessment -Office A Window w Double[Door It Single Door 1/25/2017 2017.01.25.RoorPlan.PhMps3 jpg Watertown Alternative (Phillips) School Third Floor E Director of Business 22x33° Services'Office Administrative Office [ _-� 726 ft= 17x12 I Id [ Data Lab f lien's 204'ft 22x39' 10x12 1 I Lavatory ase�c= 120€c� 1Mvatorys Meeting Space/ � _ 11 avatory [ Tech.Coord.Office L Business Office 1 Copier Data pfi felanagers 10x16° 1 l 16dtt� V ;1Xi 11 - ! [ 22x29' 231 St' 4,9x21' 22x19 ! 638to Copier/Mail/Fifes 1029tt- 330tt= _ Conference "[ Personnel Office ! ,.' - Roam t(itchen/ 11x17° 1ax16' x11° 13x11° [ Meeting Space — 187St 160 fic < 88 tr 1 t3it= Lavatory 18113' Director of Human 234 fr' [ Administrative Office �[ Resources'Office Director of Wellness and Assistant SuperintendehYsOffice SuperintendenfsOftice F)dended Services•Office e�Window en Double Door It Smgte Door .<https://mail.google.com/ma!Uu/0/#inbmJ159d7389dab6d6c3?projector-1 1/2 Watertown Public Schools Phillips Building 30 Common Street,Watertown,Massachusetts 02472 Room Size and Utilization as of January 25,2017 ,3•• 306A 17• 12 204 Office , Director of Business Services BIZ 3 306D 22 _ 39 858 Office Business Administration BIZ 3 309A 10 12 120 Office Business Administration _ _ _ BIZ 1182 i2 204 21 31 651 Office Curriculum Cooridnators,K-5 CURR �3 304B 11 17 187 Office Director of Wellness&Extended Services CURR _ _ ___ .__P ,3 305B 11 13 143 Office Assistant Su erintendent CURR 981 3 304D 10 16 160 Office Director of Human Resources--_ ___ __ _ _ _ _ _HR __ _ _ 160____ 13 303 22 29 638 Meeting Space/Kitchen General MTG '3 311 22 15 330 Meeting Space Superintendent's Conference Room MTG_ 13 301 22 33 726 Meeting Space General,Data Lab MTG 1 101 22 33 726 Meeting Space General MTG 2420 2 201 21 31 651 Storage Special Education/Student Services Files SPED 1;2 203 21 31 651 Office Special Education/Student Services Administration SPED :2 206 22 15 330 Office Special Education Assessment SPED 2 208 22 15 330 Office Director of Special Education _ _SPED _ _.___.._._... _..� ._____.._..,.. _w_.._.___.._____— 2 209 21 31 _ _ _ _ 651 LEAP/ClassroomKitchen Special Education,LEAP Program SPED 2 205C 22 15 330 Office Special Education Coodinators,6-12 __ _ _ SPED 294.3 2 215 24 15 360 Office Coordinator,ELL STDSEV ?2 205 22 15 330 Office Registrar,PK-5 STD SRV 2 211 16 15 240 Office Coordin ce ator,Guidan &Assessment STD SRV 930 ;3 _ 312 18 13 234 Office - _ _Superintendent of Schools _ _SUPT_ 3 304C 21 11 231 Work Space/Storage Superintendent's Copier and HR Files SUPT '3 305A 49 21 1029 Office Superintendent's Administration _ _ SUPT 'i3 305C 8 11 88 Office Superintendent's Administration SUPT 1582 3 302 _ 10 16 160 Office Accounts&Data Manager TECH 160 10358 _---10358 /1630 Watertown Town Council Administration Building 149 Main Street p�Ce co Watertown, MA 02472 Phone: 617-972-6470 ELECTED OFFICIALS: Committee on Economic Development and Planning Mark S.Sideris, Meetings: March 2, 2017 Council President Report: March 14, 2017 Vincent J.Piccirilli,Jr., ADDENDUM TO THE REPORT Vice President Michael F.Dattoli, Councilor At Large Revised Application for Registered Marijuana Dispensary Aaron P.Dushku, Alternative Therapies Group, 36 Arlington St Councilor At Large 1. Supplemental information dated February 13, 2017 Susan G.Falkoff, 2. Patient Education Package Councilor At Large 3. 3 Yr. Patient Ramp and Revenue Projections Anthony Palomba, 4. Capital Expenditures Councilor At Large 5. 3-year Profit and Loss Statement Angeline B.Kounelis, 6. ATG Proposed Host Community Agreement District A Councilor Lisa J.Feltner, District B Councilor Kenneth M.Woodland, District D Councilor Page 1 of 1 ALTERNATIVE i THERAPIES GROUP February 13, 2017 Attn: Councillor Falkoff Watertown Town Council 149 Main Street Watertown, MA 02472 Dear Economic Development & Planning Committee members: Thank you once again,for the opportunity to present to your subcommittee. Please accept the following supplemental materials for your consideration of our proposal to site a Registered Marijuana Dispensary at 36 Arlington Street in Watertown. I would be happy to go into greater detail on any area that you would like, and I will reiterate my offer to provide a tour of our Salem facility, where you will see first-hand the level of professionalism that characterizes our organization. Sincerely, Christopher Edwards Executive Director CC: Steven Magoon CC: Mark Sideris 24R Pleasant Street, Unit 2• Newburyport, MA 01950• 617-549-8575 p•617-674-2480 f•www.atama.oro, Introduction Alternative Therapies Group, Inc (ATG), is a non-profit organization founded in 2012 with a goal of operating a Registered Marijuana Dispensary(RMD) here in Massachusetts. ATG was selected from a large pool of applicants to operate the very first RMD in the state. We began serving patients in Salem, MA in June 2015. We are in the process of trying to site additional dispensaries in the state, and we feel that Watertown would be an ideal location for this type of facility. ATG has withstood a staggering amount of scrutiny throughout a highly competitive selection process in the state. I believe ATG was selected by the state to operate the first dispensary for a few reasons: • We are fortunate to have an experienced and competent team,with credentials including PhDs, MDs, MBAs, and law enforcement professionals, all successful and with clean backgrounds. • We are transparent, and willing to meet and work with municipal and community stakeholders, and to address their concerns. • We forge strong, mutually beneficial relationships with our community hosts. • We work hard and we avoid the drama that has plagued some of the other applicants. • Lastly, we are doing this for the right reasons. Many members of our team have, unfortunately, been surrounded by illness in their families. We share a common belief that, when facing a debilitating illness, all treatment options should be available, in a safe and regulated way, and without stigma. ATG has an excellent reputation,with references to back it up. Mayors Driscoll (Salem) and Gray (Amesbury) as well as members of their City Council and Chiefs of Police have served as references for us numerous times. Should you decide to consult with any of these individuals directly, I am confident they will confirm that ATG has reliably held up their end, and will also validate that an RMD is a valuable service to have in the community. The state of Massachusetts has established the most restrictive Medical Use of Marijuana regulations in the nation. It is very different from some of the stories you may have heard about the programs in states such as California or Colorado. For example,the patient must have a qualifying debilitating medical condition such as cancer,AIDS,ALS, multiple sclerosis or Parkinson's disease in order to qualify for Medical Use of Marijuana. Only a licensed physician with a documented, bona-fide patient/doctor relationship may certify a patient for use of marijuana.The penalties for diversion of medical marijuana include imprisonment of up to 5 years. Every day we serve patients in Salem who report benefits to their health from use of our products which include help with nausea, insomnia, quelling of seizures, reduced muscle spasticity, reduced pain, and successfully weening off of opiates.As far as the crisis with opiate addiction—the medical marijuana industry is part of the solution, not a contributor to the problem. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora Whv Watertown? In November 2012,the people of Watertown voted to approve Medical Use of Marijuana by an overwhelming majority. For the moment, Watertown is situated in an under-served part of the state. The nearest RMDs are located in Boston, Brookline and Newton at this time. Clearly,this presents an inconvenience for Medical Use of Marijuana patients living in the area, many of whom have difficulty getting around. In a way,these patients are facing discrimination relative to patients who are able to obtain their medication from conventional pharmacies including CVS and Walgreens right in their home community. Our proposed location in Watertown offers excellent access to major roadways,which has been an important criteria in the state's review process over the past years. Public transportation including buses and taxis is readily available. Our presence in Watertown would provide several important benefits to the community: • Our presence would result in as many as 15-18 professional jobs being added to this community, and a handful more at our Amesbury cultivation facility.The Watertown jobs would consist of 4 Security Guards, 2 Dispensary Managers, 2 RMD Team Leads, and between 7 and 10 part-time Patient Provisioning Specialists. Watertown residents will be given priority consideration for these positions. • Our presence would boost commerce in the short term, as we spend several hundred thousand dollars to build out our facility at the proposed location, and in the long-term as we attract patients from surrounding communities,who will hopefully spend money in Watertown. • Our presence will allow the Town to avoid the hardship clause, which allows patients to grow marijuana in their homes for Medicinal purposes—something that many law enforcement officials appreciate. • Our presence will provide a financial benefit to local charities. • We're a local team.The vast majority of our team were all born and raised right here in Massachusetts.There are numerous applicants for RMD licenses from Colorado, California and other states with a very different philosophy on this industry and way of doing business. • Working with, and supporting the efforts of responsible applicants like ATG gives municipalities control over the selection process. We hope that Watertown will embrace the opportunity to do so! Whv ATG? ATG is differentiated from many RMD operators and applicants in several ways. We are a medical organization,with a focus on helping our patients to derive the maximum benefit from the medications that we offer. We were not involved with or supportive of the effort in this state to legalize marijuana for recreational purposes. We respectfully ask the Town of Watertown to consider supporting ATG for the following reasons: 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora • ATG was founded, and continues to operate,with a fundamental philosophy that patients facing a debilitating illness should have safe access to cannabis as a treatment option. We provide patients with the information needed to make informed decisions about cannabis, in a stigma- free and safe environment.ATG offers the lowest prices of the 9 active RMDs in the state, as well as a Financial Hardship Program which provides discounts on medicine to patients with a demonstrated financial hardship. • ATG is comprised of a team of experienced professionals. Credentials include PhDs, MD's, MBAs, CFAs, etc,with a proven track record of success in the cannabis industry in multiple states. We are honest,transparent, hard-working, and have avoided the drama that has plagued many of the other Massachusetts applicants over the past 3 years. Please refer to Exhibit S. • ATG received the fifth highest score in the state during the application process under the Patrick Administration.As the field of applicants was reduced from nearly 200, down to 100,then 11, and then 9 organizations, ATG sailed through all rounds of local and state-level scrutiny.ATG was selected by the state to open the very first dispensary in the state. • ATG has continuously operated the state's first dispensary(Salem, MA) since June 24, 2015 without incident, and while maintaining an excellent reputation with the patient/medical community, state regulators, and our municipal hosts. • Mayor Driscoll of Salem has provided a written reference supporting ATG's efforts to site a dispensary in Watertown. We are happy to arrange for additional discussion with Salem and/or Amesbury officials upon request. • ATG has made a continual effort to reach above and beyond what is required by regulation, particularly in the areas of security and compliance. • Because ATG has an established cultivation facility, with proven genetics and products, we are in a unique position which allows us to commence operations in Watertown on an accelerated timeline. Other applicants will require a minimum of 1 year before they can receive the necessary state approvals, construct their facilities, and grow their first crops of cannabis. Realistically,the timeline for new applicants is closer to 18 months. No other applicant can offer access to cannabinoid medicine for Watertown patients faster than ATG at this time. Proposed location ATG has vetted multiple properties in Watertown before arriving at 36 Arlington Street as the ideal location. Our first proposed location was 640 Arsenal Street.The feedback we received was that the site was too prominent, and therefore not a good fit. Another property that we considered was 23 Elm Street. Because the property only offers 9 parking spaces, it is not a viable location for an RMD whose staff alone would consume all of the available parking.The next property we vetted with Town officials was 246 North Beacon St.The feedback we received here was that the off-street parking was not adequate. Our proposed location at 36 Arlington Street is an existing masonry structure which is correctly zoned for a Registered Marijuana Dispensary according to Watertown's zoning ordinance.The structure consists of two levels, approximately 22,500 s/f per level. Our interest is in the southern half of the top 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atama.ora level,where we propose to build a professional and secure facility which complies with all local and state ordinances and regulations. Some additional notable facts about the location: 1. There are multiple municipal bus stops within a 3-5 minute walk of the proposed location. 2. There are no schools or other facilities where children commonly congregate in the area. 3. The mix of uses in the neighborhood includes retail, municipal and industrial. Our use is not expected to negatively impact any of these establishments. 4. The facility includes approximately 150 shared parking spaces. Please refer to Exhibit 4. Proposed facilitv Our proposed facility layout is based on over a decade of experience in operating state-compliant dispensaries in Massachusetts and Maine. Please refer to Exhibit 3.The facility design is ADA compliant, functional, and secure.A security guard will be stationed outside the facility, performing a cursory review of each arriving patient's identification documents.The guard will be responsible for monitoring the ATG patient parking area, and for enforcing our no-loitering and no-on-site consumption policies. Patients who are awaiting a ride will not be allowed to loiter outside the facility.A waiting area for this purpose will be made available inside the common area vestibule, near the main entrance for the building. After a cursory ID check by an ATG security guard, patients will enter a secure man-trap, one at a time. A second security guard will be stationed inside the man-trap. An ATG agent working inside a secure check-in office will confirm the patient's status in a centralized DPH patient registration database before activating an electronic mag-lock that opens the inner steel door, allowing the patient to enter the dispensary. First time patients are required to participate in an educational presentation hosted by our Chief Medical Officer, Walter Panis, MD. Patients are educated on a variety of topics including symptom indications, methods of ingestion, dosage, monitoring and documenting effects, drug interactions, and substance abuse. A copy of ATG's new patient educational materials packet has been provided separately as "Patient-Education-Packet.pdf". Upon completion of the new patient onboarding process, patients are able to speak privately with our staff about their symptoms and treatment goals, and to ask questions about the different products. All products are sold in state approved child-resistant packaging, and stapled inside an opaque bag before exiting the facility. On-site consumption of the medicine is not allowed—a rule that our staff is trained to strictly enforce. Our proposed facility also includes ADA compliant bathrooms, an employee break area, and a manager's office. ATG uses just-in-time inventory management procedures, storing just enough product onsite required for 2-3 days of sales. Final packaging is conducted in a sanitary packaging area by ATG staff. The entire dispensary is highly secure.ATG's goal is to not only meet, but to exceed state security requirements. Some of these requirements include redundancy in camera angles, alarm systems, alarm 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora monitoring services, and electrical power. All camera footage is stored for a minimum of 90-days. Many of our security procedures are sensitive, and not appropriate for inclusion in a document which could be made public. We have presented a detailed security design and discussed the details of our security plan with Chief Lawn, and he expressed that he was satisfied with our proposal. Home delivery Although Alternative Therapies Group is not currently providing a home delivery service for registered patients or their caregivers, we are open to offering such a service in the future. We occasionally receive requests for home delivery from our patients, some of whom are shut-ins or unable to drive. State regulations for transportation of marijuana and marijuana products are highly detailed. Here are a few highlights from the state-mandated requirements, which far exceed the requirements for transportation of opioids and other DEA-regulated pharmaceuticals: • All products must be weighed on camera and added to a transportation manifest, signed by two dispensary agents prior to placing the medicine into a vehicle • Storage in a vehicle must be done inside a secure lock box, which has been made a permanent part of the vehicle. • Transportation routes must be varied, and must be monitored remotely. • Two dispensary agents must be present in the vehicle. We have had zero incidents with product transport between our facilities or the third-party testing laboratories that we use. We are confident that we can provide a safe, secure home delivery service to patients and caregivers in the future, in full compliance with state regulations. Hours of operation Our proposed hours of operation are Sam to 8pm, 7 days per week. Realistically,we will operate fewer hours than this, but having permission to operate within this range affords us some flexibility to shift our schedule forward or back based on real world conditions (such as traffic patterns) in the neighborhood. Community Host Agreement ATG has proposed a Community Host Agreement which legally outlines the relationship between our organization and the Town. It provides for a generous annual contribution to a worthy local charity.As we have discussed,ATG has recently revised its original proposed CHA by removing the municipal revenue share portion. This decision is driven by industry developments in neighboring Cambridge. The City of Cambridge has agreed to support/not oppose multiple dispensaries, and not to require a municipal revenue share, or any municipal contributions for that matter.The Cambridge City Council has expressed that: • Community Host Agreements are intended to mitigate negative impacts resulting from the presence of a business. It has been clearly demonstrated that there are in fact no negative impacts of a dispensary on its host community. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora • The costs associated with these agreements will flow directly to patients, which is unfair to patients and contrary to the intent of MA law—a state that does not tax medicine. It is our position that an RMD which agrees to make municipal financial payments in the Watertown market, or any border community, will find themselves at a significant competitive disadvantage to RMDs in Cambridge. If municipal payments from RMDs to the City of Cambridge were to become commonplace in Cambridge in the future,we would be course be willing to reconsider this position, so long as a level playing field can be achieved. The following narrative is intended to accompany ATG 3-Yr PL Proiections.xlsx General Assumptions and Some Facts: • ATG will be the only dispensary in Watertown • Competitive dispensaries will be (or are already) open in Cambridge, Boston, Brighton, Somerville, Newton, Brookline and Arlington during 2017 • Based on political feedback to date and public voting numbers, Watertown will not initially be open to adult use sales, while some neighboring communities will be • Dispensaries that are allowed to participate in recreational sales will have higher sales volume which will allow them to offer lower product pricing relative to "medical only" dispensaries • Consumers are price sensitive • Approximately 90 RMD applicants have already received a Provisional Certificate of Registration from the Department of Public Health. We expect most of these to open during 2017, with the balance in early 2018 • We expect the number of approved Provisional Certificates of Registration to continue to grow as the application pipeline continues to swell • Given the new adult use law's provision which allows for home grows, we expect that many citizens will attempt to do so • Each of the preceding three assumptions will lead to significant price degradation as experienced in states like CO, CA, and WA • ATG is 100% vertically integrated, as the medical marijuana law requires. Not all adult use dispensaries will be 100% vertically integrated as allowed by the new law. This puts ATG at a cost disadvantage, having already built a vertically integrated infrastructure. Patient Ramp and Revenue Projections: Year 1 • We assume the Watertown dispensary would open on July 1, 2017 • Given expected competition in surrounding communities, we expect that ATG's population base will be approximately 79,000 citizens--comprised of 100% of Watertown's population plus approximately SS%of the populations of both Belmont and Waltham, which are not expected to have dispensaries at this time • We expect the penetration rate to ramp up moderately from 1% to 1.5% during year 1. The national long-term average is 2-2.5% 24R Pleasant Street, Unit 2• Newburyport, MA 01950 •617-549-8575 p• 617-674-2480 f•www.atanna.ora • Patient counts are expected to grow from 790 to 1185 patients during year 1 • The average patient purchases the equivalent of 1 ounce of flower per month • The cost of an ounce is expected to be $300 at opening,falling to$275 by the end of year 1 • This results in quarterly revenue ranging from $700k to $980k in year 1 Patient Ramp and Revenue Projections: Year 2 • Given expected competition in surrounding communities, we expect that ATG's population base will be approximately 79,000 citizens--comprised of 100% of Watertown's population plus approximately 55%of the populations of both Belmont and Waltham, which are not expected to have dispensaries at this time • However, given that we expect some of the neighboring communities will allow adult use sales, we expect to lose about 25% of our target population to dispensaries in those communities due to their ability to offer lower prices. This will result in a population base of approximately 59,000 citizens • We expect the penetration rate to continue to ramp up moderately from 1.75%to 2.25% during year 2 • Patient counts are expected to initially drop to 1033 in 1Q of year 2 as ATG loses patients to pricing in neighboring dispensaries, but then grows to 1328 patients in 4Q of year 2 as our expected penetration rate continues to grow • The average patient purchases the equivalent of 1 ounce of flower per month • The cost of an ounce is expected to fall from $275 to $250 during the year as competition continues to intensify • This results in quarterly revenue ranging from $852k to $996k in year 2 Patient Ramp and Revenue Projections: Year 3 • Given expected competition in surrounding communities, we expect that ATG's population base will be approximately 49,000 citizens--comprised of 100% of Watertown's population plus approximately 60% of the population of Belmont which we do not expected to have a dispensary at this time. We now expect Waltham to have a dispensary which results in a significant loss in ATG's targeted population • Additionally, given that we expect some of the neighboring communities will allow adult use sales, we expect to lose about 40% of our target population to dispensaries in those communities due to their ability to offer lower prices. This will result in a population base of approximately 29,000 citizens • We expect the penetration rate to continue to ramp up moderately from 2.25%to 3.25% during year 3 • Patient counts are expected to initially drop to 653 in 1Q of year 3 as ATG loses patients to pricing in neighboring dispensaries and Waltham's opening, but then grows to 943 patients in 4Q of year 3 as our expected penetration rate continues to grow • The average patient purchases the equivalent of 1 ounce of flower per month • The cost of an ounce is expected to fall from $250 to $200 during the year as competition continues to intensify • This results in quarterly revenue ranging from $489k to $566k in year 3 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atama.ora A Few Comments about the Profit and Loss Projections: • ATG's vertical integration results in certain administrative and cultivation costs that must be properly allocated across all revenue centers (dispensaries) • Expenses shown here are ATG's Watertown dispensary's share of overall and direct expenses • ATG is able to produce a small profit in years 1 and 2, but not in year 3 as pricing pressures and the loss of patients to lower cost providers really takes hold • The ability to achieve relatively high sales volumes, and thus become one of the lowest cost providers, is entirely contingent on being allowed to participate in the adult use market • Dispensary operational costs are somewhat variable and linked to the level of sales, however certain minimum standards/costs are required to properly operate a dispensary regardless of the level of sales • While the net income and cash flow projections are not exactly what ATG would like, Watertown remains an attractive opportunity because it would allow ATG to add incremental sales to help cover already existing significant fixed costs related to our 100% vertical integration structure • We remain somewhat hopeful that Watertown will reconsider its stance on adult use once we have shown a short history of responsible operations • ATG is well aware of the challenges and business failures that intense competition and falling product prices have brought to the industry in states like CA, CO, and WA. We are also aware of how quickly these things occurred in those states. Many facts have changed and come to light since we first began discussions with Watertown and submitted our initial documents (the passing of the adult use law, details of the number of dispensaries coming in surrounding communities, details of surrounding Community Host Agreements, Watertown's resistance to adult use sales, etc.). To ensure that ATG can be the best long-term partner, we must adjust to these facts. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora Exhibit 1: 36 Arlington St—street view 'a u 11 K I!� 24R Pleasant Street, Unit 2• Newburyport, MA 01950• 617-549-8575 p•617-674-2480 f•www.atama.ora, y --� � Gymlt Watertown � . ■ _� -- � 6 .36 Arlington Street• - �� le.a�. - *• � Approximately Agency,Inc - 5,000 s/f r 4' Pleasant Street, Unit 2- Newburyport, ' 01950 • 4• • • • J:1 • • • Exhibit 3: Proposed facility layout N O 3 3 PD m n co 3 D c� m cn ' n@ D 3 v v aCni cD ^►: (D N 7 N n O C 7 C N > C 7 (D I tO CD ;p I 7 O \ (n cn go Cn $ � � \ nXi $ o \ co 3 CO CD co 3 3 vi XW o c@ n� 3 °�' _ °' \ $ m 010 1 C: N 1\ r o ' RL(8 24R Pleasant Street, Unit 2• Newburyport, MA 01950• 617-549-8575 p•617-674-2480 f•www.atama.ora, Exhibit 4: 36 Arlington Street Parking Analysis V - l •L /' - , ,, F rl'tom '` � .. ' �� Y rI s L t A Represents the area abutting the front of the building on Arlington 28 +/- Spaces Street B Represents the rear of the building(lower level) 61 +/- Spaces Customer parking for the "GymIt" Members C Represents the spaces that are available adjacent to the hotel now 30+/- Spaces under construction at the corner of Arlington &Arsenal St. Spaces to be used "in common"with hotel designated for the exclusive use of customers of the property(non-employee) D Represents space that could possibly be used for employees of the 30 +/- Spaces building as well as spill-over customer parking Also, additional two hour street parking is also available along the even numbered side of the street. 24R Pleasant Street, Unit 2- Newburyport, MA 01950- 617-549-8575 p-617-674-2480 f-www.atama.ora. Exhibit 5: Board of Directors and Executive Management Team Biographies Tracy Lessor, PhD, Board of Directors: Tracy is Vice President for Feinstein Kean's Healthcare practice and brings with her more than 20 years of science communications experience, providing strategic communications counsel, planning and implementation.A scientist by training,Tracy offers clients great depth and breadth of scientific knowledge, and her strength lies in the translation of complex scientific information into simplified language for non-scientists. Tracy has significant experience in oncology both as a scientist and as a science communicator. When she left the bench,Tracy worked closely with the National Cancer Institute and the Van Andel Research Institute for many years on scientific communications, and also served as a journalist for the Journal of the National Cancer Institute and Cancer&You, a Time Inc. publication for cancer patients. She served as a senior clinical editor of continuing medical education (CME) programs in every therapeutic area at Pri-Med Institute,where she also launched Oncology Updates and Neurology Updates for oncologists and neurologists, respectively. She then entered the world of personalized medicine within regulatory strategy and intelligence while at Millennium Pharmaceuticals where she was responsible for developing company position statements on personalized medicine for FDA and EMEA. At FKH,Tracy works closely with many pharmaceutical and biotechnology companies, policy organizations and payers, including, but not limited to, Pfizer, Novartis Oncology, EMD Serono, Silicon Valley Biosystems Inc., Aetna/Healthagen, Turning the Tide Against Cancer and the Personalized Medicine Coalition. Tracy has authored more than 75 scientific and clinical publications, co-authored "Sustaining Progress Against Cancer in an Era of Cost Containment" and served as managing editor and co-author of PMC's "The Case for Personalized Medicine 3rd Edition". Tracy earned her MBA in entrepreneurship from Babson College, PhD in molecular and cell biology from the University of Maryland Greenebaum Cancer Center, and BSc in exercise science and chemistry from the University of Massachusetts at Amherst and the University of East Anglia in Norwich, England. In 2005,Tracy became a board certified editor in the life sciences (ELS). Tracy is a firm believer in the medical utility of cannabis,the most investigated therapeutic substance in history. With her scientific training and medical communications background, she actively supports ATG's medical and community education efforts to help separate the myths from facts of medical marijuana, and extend understanding of ATG's contribution to the lives of its patients and other stakeholders. Edward Jenkins, Board of Directors: Edward F.Jenkins is a practicing attorney,former high-level public safety official, and a security professional with deep roots in Essex County and the North Shore. For over 20 years, Ed served with distinction in the Essex County Sheriff's Department, beginning as a Correctional Officer and ultimately 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora advancing to Assistant Director of Security for the Department in 2005, and then in 2007,to Assistant Superintendent, a position from which he oversaw the implementation of an updated comprehensive set of security protocols and procedures designed to leverage new technologies and opportunities for real-time efficiencies. His efforts,which extended to his retirement from the Department in 2012, helped lead to its first-time accreditation from the American Correctional Association. Ed received a B.S. in Criminal Justice from Salem State University, and his J.D.from Massachusetts School of Law, in Andover, MA. Kevin Lombardi, Board of Directors: Kevin Lombardi is a seasoned healthcare professional with extensive experience in strategic planning, technology implementation and project accountability. Kevin served for 9 years as a Senior Director for the Center for Health Care Financing at the UMASS Medical School,with a focus in cost-containment strategies and IT solutions deployment. He led the creation of the Center's Strategic Management Consulting Group, which was charged with providing organizational analysis and design across all levels. Additionally, he drove the implementation of a revised set of best practices, policies, and procedures, including a special emphasis on accounting, budgeting, and market forecasting. Following his brother Anthony's diagnosis, in 2007, of severe MS, Kevin has become a passionate ambassador for the National Multiple Sclerosis Society and has raised over$500,000 in an ongoing fundraising campaign conducted through the Anthony V. Lombardi Foundation. Additionally, Kevin regularly speaks before regional and national conferences about his experience raising awareness within communities that were previously unacquainted with the personal toll MS can take on individuals and their families. As a Board member, Kevin helps to guide and support the efforts of ATG's Executive Management Team, and helps the organization connect to local patient support organizations. Kevin received a B.A. in Political Science from Suffolk University, and a M.A. in Health Care Administration from Framingham State University, where he served as a member of the Health Care Administration advisory board following graduation. Scott Reed, Board of Directors: Scott K. Reed is a veteran, hands-on retail executive with immediate experience in the regulated medical marijuana industry.As the COO of Maine Organic Therapy(MOT), one of six licensed cultivation and dispensary non-profit organizations in the State of Maine, Scott has helped ensure safe access for registered patients and full regulatory compliance. Scott enjoyed a 20 year career leading conventional and natural food grocery chains throughout New England, first with Shaw's Supermarkets and then later as a top performing Store Director and Regional Director of Operations for Wild Oats Markets, Inc. In this latter role, from 2001-2008, Scott was responsible for overall operations of 16 stores throughout 6 states (ME, MA, CT, NJ, OH and FL)with an 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora annual operating budget of 250 million dollars. His charge included budget adherence and delivering, region-wide, extraordinary customer experiences. Since 2011, Scott has worked with MOT leadership to build relationships with the Maine patient and physician communities so that patient stories and corresponding needs are more accurately understood. From an operational position, Scott has accelerated the organization's adoption of industry best practices, a process of continuous improvement evidenced in acknowledgement by State regulatory officials and, concurrently, heightened patient satisfaction reports. As a Board member of Alternative Therapies Group, Scott brings his full complement of skills and experience to help build a strong, safe and compliant medical marijuana industry in Massachusetts. Sherie Kennedy, Board of Directors: Sherie is a registered nurse, with deep clinical and personal experience with assisted living and palliative care. Sherie currently serves as Health Care Coordinator at Sunrise Senior Center, in Lynnfield, MA. In this role, she assesses potential residents, devises care plans, manages change of status issues, and addresses the communication needs of families and their loved ones. She also manages the facility's medication program, and oversees personnel hiring within it. Previously, Sherie worked as a surgical nurse at Lowell General Hospital; as a case manager RN with Home Health VNA, in Lawrence, MA; and as a care nurse supervisor at Ashland Farms, based in North Andover, MA. During this period, she received numerous awards, including"Unsung Hero" and "Service Champion of the Month" on repeated occasions. She believes that a properly operated medical marijuana dispensary can do much to ease the suffering of qualified members of its community. She brings all her skill and compassion to ATG's mission,with a particular focus on local outreach and best practices. Christopher Edwards, Executive Director: Since 2000, Chris served as the CEO or CTO of four technology-focused startups prior to joining ATG as its Executive Director in October 2012. In his 2.5+years in this position, Chris has been responsible for reporting to the Board of Directors, has overall strategic and operational responsibility for ATG's staff, programs, expansion, and execution of its mission. He has deep knowledge of state regulations, company retail and manufacturing operations, and business plans. In addition to having direct oversight of the company's retail and cultivation operations,the ED has direct oversight responsibilities for Security,Trade Association participation, Human Resources, and Patient/Community Outreach.The ED also has secondary responsibilities over the Finance, Compliance, and Administrative functions. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora Jason Beauchesne, Director of Operations: Jason brings more than a decade of experience from the health care and non-profit sectors to the team. Since earning his Master's degree in Organizational Management and Leadership,Jason has focused his career on managing programs related to senior services for the Kane Group and for the Easter Seals organization. His responsibilities have included multi-site staff leadership and management, OSHA and state-level compliance, and coordination with physicians, staff, and community stakeholders. He is an experienced manager of practical and emotional support services teams which serve frail, elderly and otherwise challenged individuals.Jason recognizes that many of the registered patients in Massachusetts often experience similar challenges- isolation, physical disability and overall life uncertainty. In his last position,Jason managed a program that collaborates with area physicians on health care plans and coordinates with clients to ensure that they understand and follow their care plans correctly.Jason has significant experience with health regulatory compliance and patient privacy best practices. In his role with ATG,Jason develops strategic planning and implements new processes. He leads the performance management process that measure and evaluate progress against organizational goals. He provides strong day-to-day leadership presence, bridging production and dispensary operations. Julio Fuentes, Chief Financial Officer: Julio has been serving as CFO of ATG since the organization was officially incorporated in October 2012. In his 2.5+years in this position,Julio has lead the performance management process that measures and evaluates progress against goals for the organization. Working in partnership with the ED,Julio is responsible for the financial, compliance, and administrative functions at ATG. He has implemented the infrastructure/systems needed to support substantial growth over the coming years. He will continue to build and manage effective and streamlined administrative, compliance, and financial systems, including financial accounting, legal, and physical infrastructure. In addition to having direct oversight over the company's Financial, Compliance and Administrative functions,Julio assists in the oversight of the retail and cultivation operations.Julio also has secondary oversight responsibilities for Security,Trade Association participation, Human Resources, and Patient/Community Outreach.As a member of the Executive Management Team,Julio is involved in strategic planning, evaluation, and professional development initiatives, as well as planning for ATG's expansion to meet patient demand. Derek Brock, Director of Cultivation: Derek's responsibilities with marijuana for medical use cultivation operations began in 2010 as "Head Cultivation Manager"for Maine Organic Therapy-one of 8 Maine state-licensed RMDs. Derek served as the lead grower for their 13,000 s/f indoor, organic medicinal cannabis cultivation facility. Derek designed and facilitated construction of all propagation,vegetative and flowering areas in the facility. His responsibilities included overseeing all cultivation activities, managing the rotation of eight different 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora strains, overseeing harvest, processing, sanitation and quality control activities. Derek was responsible for identification and control of diseases and pests, using an Integrated Pest Management (IPM) strategy. He managed a five member cultivation and processing team. Derek began working as ATG's full time Director of Cultivation in October 2014. His responsibilities include overseeing all aspects of crop propagation, including cloning, watering, selecting and administering nutrients, identifying and addressing deficiencies, light cycle and intensity adjustments, monitoring and adjustments of environmental conditions and more. Derek currently manages a five-person grow team. G. Robert Christy, Director of Security: Rob Christy is an accomplished security expert with extensive experience with high value installations in the military and civilian sectors. A 13-year veteran of the United States Navy, in both active and reserve capacity, Rob has served as a Counterterrorism Analyst, specializing in biometric collection,tactical site exploitation and tactical questioning. Prior to joining ATG, Rob worked for Logan Airport Aviation Security as Manager of Compliance. Rob began working full time as ATG's Director of Security in December 2014. His responsibilities in this role have included design and planning for cultivation and dispensary security systems and procedures, staff training relative to security, internal audits for security and compliance, point person for DPH inspections, and coordination with police and other stakeholders. Walter Panis, MD, Chief Medical Officer: Dr. Walter Panis has had a distinguish career in Neurology and Pain Management. Having held positions at Massachusetts General Hospital, New England Baptist Hospital, and Spaulding Rehabilitation, amongst others, he has been a practicing clinician since finishing a Fellowship in Cerebral Vascular Disease in 1979.As an attending physician at Massachusetts Rehabilitation Hospital (the forerunner of Spaulding Rehabilitation Hospital), he was director of one of the Stroke Rehabilitation Services. In addition to patient and family care, he was the supervisor and mentor for stroke fellows until he left that position to complete his second residency in Physical Medicine and Rehabilitation. During those years, he was active in Tufts Medical School teaching both in the classroom and hospital. Occasionally, MGH residents interested in stroke neurology and rehabilitation would participate. He was an active member of the medical staff holding many positions (executive committee, laboratory committee, URC, ethics committee, residency planning committee) over the years concluding with serving as President of the Medical Staff. He has participated as a director for Massachusetts Wheel chair and Sports as well as a volunteer for ice skating/hockey program for a special needs program. His career has been guided by his strengths. He is a clinician who has been recognized by his peers as caring and thoughtful. He has received an Occupational Medicine Service Achievement Award as well as having recently been recognized by his peers in being named to the "Best Doctors" list by US News and World Report. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora Judith Ronshagen, Director of Patient Provisioning: As a veteran New England pharmacist, pharmacy systems administrator, and industry leader,Judy Ronshagen has served patients and institutions in a variety of clinical settings for more than 38 years. Since graduating from Massachusetts College of Pharmacy& Health Sciences in 1970,Judy established herself as a trusted resource for both patients and local physicians in roles including Assistant Pharmacy Director and Coordinator of Pharmacy Systems at Elliot Hospital, in Manchester, NH.An expert networker,Judy has helped mentor numerous women who have recently achieved top leadership positions in the pharmacy field. She's served in significant positions of influence on many industry groups and associations, including the New England Council of Hospital Pharmacists,the New Hampshire Board of Pharmacy,the American Pharmaceutical Association, and the American Society of Health Systems Pharmacists.Throughout her career,Judy received a great many awards and statements of recognition, including the 1985 "Pharmacist of the Year" from the New Hampshire Pharmacists Association, "Award for Educational Excellence", in 1986,from New England Hospital Assembly, and the Massachusetts College of Pharmacy, "Alumni Achievement Award", in 1983. 24R Pleasant Street, Unit 2 • Newburyport, MA 01950 • 617-549-8575 p• 617-674-2480 f•www.atgma.ora ALTERNATIVE THERAPIES GROUP Mission: To provide registered, qualifying Massachusetts patients access to safely-cultivated and responsibly-dispensed alternative forms of pain and symptom management, in strict compliance with Department of Public Health regulations. Vision: A community in which the alternative palliative needs of its members are met in a safe, effective, and properly regulated manner. General Warninas: The federal government still classifies marijuana as a class 1 drug, thus it has not been analyzed or approved by FDA (federal government). There is limited information on side effects and there may be health risks associated with using marijuana. Marijuana should be kept away from children! When under the influence of marijuana, driving is prohibited by law (M.G.L. c. 90, s. 24). When under the influence of marijuana machinery should not be operated. Important Medical Facts About Cannabis Cannabis is being used as a medication (a substance used for medical treatment), and you have been certified to have a medical condition for which cannabis may be appropriate. Cannabis is a powerful substance, which is why it is being used for your chronic medical condition. It has psychoactive (brain) as well as somatic (body) effects. For many reasons, cannabis has not been as extensively studied and tested as other medications are before they can be used by health care professionals. Our Products We provide high-quality marijuana that is grown to maximize the medicinal properties. We never use chemical pesticides, and we test all of our products to be sure they are free of 1 pathogens and mold. We offer a wide variety of products, recognizing that different strains have unique properties and effects on patients. Effects of Cannabis: The effects of marijuana can vary greatly depending on sub-species and strain. The plant species Cannabis sativa L. has two main sub-species used for medicinal purposes: Cannabis indica and Cannabis sativa. Indicas Effects: Indica strains are known as sedatives/relaxants, and are effective for treating the symptoms of medical conditions such as anxiety, chronic pain, insomnia, muscle spasms and tremors. Indicas generally have higher levels of CBD and other cannabinoids than Sativas, which may result in a sedated effect. Because Indica strains may cause feelings of sleepiness and heaviness, many patients prefer to medicate with this type of cannabis at night. Potential Benefits: Aids in sleep; Reduces pain; Muscle relaxant; Relieves spasms; Stimulates appetite; Reduces nausea; Bronchiole-dilator and expectorant; Reduces intra- ocular pressure; Relieves headaches and migraines; Reduces inflammation; Reduces anxiety and stress. Sativa Effects: Sativa dominant strains are known to have stimulant qualities, and be effective in appetite stimulation, relieving depression, migraines, chronic pain and nausea. Sativas generally have a higher level of THC than Indicas, which results in a psychoactive and energetic effect. Because sativa strains may cause feelings of alertness and optimism, many patients prefer to medicate with this type of cannabis during the day. Potential Benefits: Reduces nausea; Energizes and stimulates; Promotes creativity; Stimulates appetite; Relieves headaches and migraines; Fights depression; Relaxes muscles; Relieves pain; Acts as an expectorant. Hybrids Hybrids and cross-breeds of indica and sativa strains produce varieties that carry some characteristics of each parent. For example, adding sativa to indica strains adds mental clarity and decreases sedation effects. Adding indica to sativa strains can decrease or even eliminate the sativa tendency to stimulate anxiety. Instead of using pure indica or pure sativa, many patients can benefit from the use of hybrid strains. ASK YOUR DOCTOR! Medical marijuana is a versatile medicine that can help with the side effects and symptoms of countless medical conditions. Ask your doctor which medical marijuana strain is best for your medical condition. Delivery Svstems The effects of cannabis may be obtained from smoking, vaporization, eating cannabis infused food, tinctures, or topical application of lotions, creams or patches. 2 The goal is to select the right delivery system to achieve the proper dose of medication for the best relief for the longest period of time. Smoking: Smoking cannabis is probably the most commonly used delivery method, but it may not be the most effective. An advantage is the rapid absorption into the system, which makes dosing easier. However a big disadvantage is irritation to the respiratory system. Smoking anything, including cannabis, is not beneficial for your lungs or respiratory system. The onset of action is 1-5 minutes, with a duration of 1-4 hours. Vaporization: Like smoking, vaporization doses can be more easily titrated (effects measured, dose increased or decrease by small intervals) by inhalation. The effectiveness can be determined within a few minutes. Patients can more readily control the dose to achieve the desired effect. Since vapors are generally much less irritating to the lungs than smoking, patients that have historically smoked cannabis might not realize the amount that they are consuming while vaporizing because it doesn't feel like smoke. The onset of action is quick - 2 to 5 minutes, with a duration of 1-4 hours Edibles: The effects of cannabis consumed orally (eating) typically last longer and generally fade more slowly than either smoked or vaporized cannabis. The absorption, however, is much slower and more unpredictable due to stomach acids & digestive enzymes. Dosing of edible cannabis can be difficult to achieve because of this slow absorption. It is difficult to know if you have taken the right dose. The best rule for purchased edible products is to cut them into 4-8 pieces & eat 1 piece to start. If there's no effect within 30-60 minutes, repeat the dose. If you are feeling relief, do not repeat the dose. The best rule for edibles is to start with a small amount and repeat the dose if needed. Most patients will experience some effect within 30-90 minutes, but it may take up to 180 minutes with peak effect in about 2 hours. The effect might last approximately 6-8 hours. Tinctures: Tinctures are concentrated extracts made with alcohol, oils or glycerin. They can be fast-acting, as they are absorbed directly into the bloodstream. Place the tincture drops under your tongue, and hold the tincture in your mouth for 30-60 seconds before swallowing. Tinctures are a popular delivery system because they are convenient, discrete (minimal odor), and easy to dose correctly. The onset of action is generally about 5-15 minutes, with a peak effect in about 30 minutes and an expected duration of 1-6 hours. Topicals: Topical medication may be delivered quickly and effectively due to the large number of receptors in the skin. The medication is absorbed directly through the skin, and enters the bloodstream quickly. 3 Since there is a possibility of an allergic reaction to topical products, caution should be used when starting this therapy. Apply a test dose, and watch for a rash or reaction over the next 24 hours or so. In spite of some people having an allergic reaction to topical products, it is generally a well-tolerated delivery system. Dosing Dosing of this powerful drug is very individualized, and probably the most important part of a successful therapy. Start low and titrate until the proper dose is achieved. The right dose is actually the smallest effective dose needed to achieve the desired relief. More is not better when we are talking about cannabis. Overmedicating cannabis may cause an unpleasant experience. Monitoring the Effects Patients may respond differently to the medication. Although the ingestible products, lotions and patches have known concentrations of the active ingredient(s), it is only an estimate of how much medication you are taking with smoking cannabis (which is not suggested) or using a vaporizer. You will need to be responsible for recognizing and recording the effects of the cannabis. You will be given a strain journal that may, over time, help you determine what the best product is for you. In all situations, please start with the lowest dose possible and use it infrequently. Dosage and frequency can be increased as the effects of the medication become known. There are many different strains of cannabis with different chemical compositions and different effects on the body and brain. We hope you and your physician can use your medical history and experience with cannabis to help determine what strain is best for you with the fewest side effects. Potencv of Mariivana How Strong is Marijuana? The main ingredient in marijuana responsible for its psychoactive, or mood altering, effects is a cannabinoid called delta-9-tetrahydrocannabinol, or "THC" for short. In combination with other cannabinoids, the amount of THC in marijuana determines the strength of the effect of the drug. The level of THC in marijuana is not always the same. It can vary depending on the strain or variety of the plant, the way in which the plant is grown, the part of the plant that is used, and the way the plant is prepared for use and how it is stored. Strain and Cultivation Technique The way marijuana is grown can affect the amount of THC in the plant, and therefore its potency. Cannabis sativa is the species of plant that most commonly produces the drugs known as marijuana, hash, or hashish. Normally, the male cannabis plant fertilizes the female plant. If female plants are grown in isolation, then the flowering tops of the plant remain unfertilized. 4 These unfertilized flowering tops, known as "sinsemilla," have particularly high THC levels. Crossbreeding and genetic selection can also produce strains of the cannabis plant with particularly high levels of THC. Some argue that cannabis grown hydroponically or under artificial light is stronger than cannabis grown outdoors in natural light. Because the amount and quality of resin produced depends on temperature, humidity, light, and soil acidity. Cannabis grown outdoors varies considerably in potency, whereas intensive indoor cultivation, often done with female plants and clones, under artificial light, and without soil, produces optimized cultivation conditions and cannabis of a consistently higher potency (UNODC, 2009). Some users of the drug say they can tell when they are using "hydro" cannabis versus "bush weed" because the effects are so much stronger. However, some people do not believe it is hydroponic cultivation itself that makes cannabis stronger; large scale hydroponic cultivators may simply be more likely to use more potent strains and grow plants to their full potential. Part of Plant Used The flowering tops, or "buds" of the female cannabis plant have the highest concentrations of THC, followed by the leaves. Much lower THC levels are found in the stalks and seeds of the cannabis plant. Preparation for Use The cannabis plant can be prepared in different ways for use, and these different forms have different potency. The strongest preparation is known as "hash oil," which is made by extracting THC from the cannabis plant in oil. Hash oil has been found to contain 15% to 30% THC. The resin secreted from the plant can be dried to make "hash," which is the second strongest preparation. Hash has THC concentrations ranging from 10% to 20%. The form with the lowest THC level is the dried buds and leaves of the plant, commonly known as marijuana. Marijuana is the most common form of cannabis available in the USA and can vary widely in potency from less than 1% to 20%. Has Marijuana Become Stronger? The marijuana used today is stronger than it used to be, but not as strong as has been written in some media reports (claiming marijuana is 30 times stronger today than during the 1970s). Depending on how analysis was conducted and the sample analyzed, marijuana strength has increased by 2 to 7 times since the 1970s, measured by THC levels. Another difference between then and now is that marijuana users in the 1970s were more likely to smoke the leaves and to initiate use around 20 years of age. Marijuana users today, however, often start in their mid-teens and prefer to smoke the more potent flowering tops, (buds) of the plant. Research shows that young, regular (daily or near daily) users are most at risk for many of the adverse effects of marijuana, including mental health problems and dependence. So What's the Story? Anecdotal reports as well as measurement in lab tests suggest that cannabis used today is stronger than in the past. Based on available scientific evidence, it would appear that the strength of marijuana has increased to some extent over the last 25 years, though far less than is sometimes claimed. Instead, it is likely that the main difference today is the part of the plant people smoke and the age at which people begin regular use. It is more common for people today to smoke the 5 flowering heads of the plant which are much more potent than the leaf product. These changes in the patterns of use may result in users of today taking in higher levels of THC than in the past. Additionally, the younger age at which people start, and the more regularly they use, the more likely they are to be adversely affected by marijuana. Simply focusing on marijuana potency may obscure the fact that young regular users are most at risk of marijuana related harm. References: • Cascini F, Aiello C, Di Tanna G. Increasing delta-9-tetrahydrocannabinol (A-9-THC) content in herbal cannabis over time: systematic review and meta-analysis. Curr Drug Abuse Rev. 2012 Mar;5(1): 32-40. doi: 10.2174/1874473711205010032 • McLaren J, Swift W, Dillon P, Allsop S. Cannabis potency and contamination: a review of the literature. Addiction. 2008 Jul;103(7):1100-9. doi: 10.1111/i.1360-0443.2008.02230.x • Mehmedic Z, Chandra S, Slade D, Denham H, Foster S, Patel AS, Ross SA, Khan IA, ElSohly MA. Potency trends of A9-THC and other cannabinoids in confiscated cannabis preparations from 1993 to 2008. J Forensic Sci. 2010;55(5):1209-17. doi: 10.1111/i.1556-4029.2010.01441.x • Sevigny EL. Is today's marijuana more potent simply because it's fresher? Drug Test Anal. 2013 Jan;5(1):62-7. doi: 10.1 002/dta.1430 • United Nations Office on Drugs and Crime. Why does cannabis potency matter? World Drug Report 2009 Series. httr)://www.unodc.ora/unodc/en/frontr)acle/2009/June/whv-does- cannabis-r)otencv-matter.htmI See more at: httD:Hadai.uw.edu/mariivana/factsheets/r)otencv.htm#sthash.ulG8vJNi.dr)uf Drua Interactions There's more documentation of drug interactions with oral cannabis than with other delivery systems but caution should be used with all forms. The drug interactions can either increase or decrease the effects of the drug or the cannabis. This is a list of drugs that are known to increase the effects of orally administered marijuana: Amiodarone, Clarithromycin, Diltiazem, Erythromycin, Fluconazole, Isoniazid, Itraconazole, Ketoconazole, Miconaole, Ritonavir, Verapamil. This is a list of drugs that can decrease or interfere with orally administered marijuana: Carbamazepine, Phenobarbital, Phenytoin, Primodone, Rifabutin, Rifampicin, St John's Wort. Also, cannabis increases the effects of alcohol, benzodiazepines and opiates whether smoked, vaporized or orally ingested. Adverse Effects Please tell your health care providers about all medications that you are taking, including cannabis and other complimentary products you are using. Generally, it is best practice to consume as little medicine as possible to achieve the desired effect. New patients or elderly patients must approach this therapy with caution and supervision. The most important thing to remember if you are dealing with a side effect is to remain calm, breathe deeply and relax. 6 A common side effect is postural or orthostatic hypotension or feeling faint. This may cause a loss of consciousness or lightheadedness when standing from a sitting or lying position. This is a common occurrence for people that suffer from high blood pressure. Some short-term therapy side effects are: rapid heartbeat, dry mouth, coughing (usually from smoking or vapor therapy), confusion, panic attacks, anxiety, dry eyes, dry mouth and paranoia or feelings of suspicion. Long-term therapy side effects - especially for heavy long-term smokers - may be severe or chronic bronchitis, along with cognitive and memory impairment. Patients with high blood pressure, heart disease, angina or irregular heartbeat, chronic obstructive pulmonary disease, an immune disorder, severe depression, bipolar disease or schizophrenia should discuss these issues with their physician prior to initiating therapy. Cannabis is unsafe in pregnancy and likely unsafe if breastfeeding. Other effects are euphoria (feeling high), increased appetite, rapid heart rate, a general weakening of the immune system making it more difficult to fight an infection, and may worsen lung problems if the cannabis is smoked. It has been recommended to stop the use of cannabis 2 weeks before anesthesia, but certainly tell your doctors about all the medications you are taking. It is recommended not to combine cannabis with sedatives as it may cause excessive sleepiness or drowsiness. Cannabis may decrease the effectiveness of Theophylline(for asthma). There are also interactions with Antabuse, SSRI's(anti depression medications), and Coumadin or Warfarin (blood thinners). It is against the law to drive or operate equipment while using cannabis. Ingestible cannabis is in a form that may be attractive to children and animals. Care must be taken that the medication is stored properly and cannot be accessed by anyone except those who the medication is intended for. One needs to be aware that dependence and addiction can occur with Marijuana use. Mariivana addiction can be defined as: • Tolerance, as defined by: A need for markedly increased amounts of the substance to achieve intoxication or desired effect. However, tolerance can occur without addiction. • Tolerance, as defined by: Markedly diminished effect with continued use of the same amount of the substance. • Withdrawal, as manifested by: The characteristic withdrawal syndrome for the substance. Characterized by "irritability, sleeplessness, decreased appetite, anxiety, and drug craving." • Taking the substance often in larger amounts or over a longer period than was intended. • Having a persistent desire or unsuccessful efforts to cut down or control substance use. 7 • Recurrent substance use resulting in a failure to fulfill major role obligations at work, school or home. • Recurrent substance use in situations in which it is physically hazardous. • Recurrent substance-related legal problems. • Continued substance use despite persistent or recurrent social or interpersonal problems caused or exacerbated by the effects of the substance • You don't need to have all of those symptoms, but if you do, you need to tell your doctor, call a substance abuse program or tell us and we can help you find a program. Substance Abuse Signs and Svmptoms Signs, Symptoms, and Help for Drug Problems and Substance Abuse Some people are able to use recreational or prescription drugs without ever experiencing negative consequences or addiction. For many others, substance use can cause problems at work, home, school, and in relationships, leaving you feeling isolated, helpless, or ashamed. If you're worried about your own or a friend or family member's drug use, it's important to know that help is available. Learning about the nature of drug abuse and addiction—how it develops, what it looks like, and why it can have such a powerful hold—will give you a better understanding of the problem and how to best deal with it. Understanding drug use, drug abuse, and addiction People experiment with drugs for many different reasons. Many first try drugs out of curiosity, to have a good time, because friends are doing it, or in an effort to improve athletic performance or ease another problem, such as stress, anxiety, or depression. Use doesn't automatically lead to abuse, and there is no specific level at which drug use moves from casual to problematic. It varies by individual. Drug abuse and addiction is less about the amount of substance consumed or the frequency, and more to do with the consequences of drug use. No matter how often or how little you're consuming, if your drug use is causing problems in your life—at work, school, home, or in your relationships—you likely have a drug abuse or addiction problem. Why do some drug users become addicted, while others don't? As with many other conditions and diseases, vulnerability to addiction differs from person to person. Your genes, mental health, family and social environment all play a role in addiction. Risk factors that increase your vulnerability include: • Family history of addiction • Abuse, neglect, or other traumatic experiences in childhood • Mental disorders such as depression and anxiety • Early use of drugs • Method of administration—smoking or injecting a drug may increase its addictive potential 8 Drug addiction and the brain Addiction is a complex disorder characterized by compulsive drug use. While each drug produces different physical effects, all abused substances share one thing in common: repeated use can alter the way the brain looks and functions. • Taking a recreational drug causes a surge in levels of dopamine in your brain, which trigger feelings of pleasure. Your brain remembers these feelings and wants them repeated. • If you become addicted, the substance takes on the same significance as other survival behaviors, such as eating and drinking. • Changes in your brain interfere with your ability to think clearly, exercise good judgment, control your behavior, and feel normal without drugs. • Whether you're addicted to inhalants, heroin, Xanax, speed, or Vicodin, the uncontrollable craving to use grows more important than anything else, including family, friends, career, and even your own health and happiness. • The urge to use is so strong that your mind finds many ways to deny or rationalize the addiction. You may drastically underestimate the quantity of drugs you're taking, how much it impacts your life, and the level of control you have over your drug use. How drug abuse and addiction can develop People who experiment with drugs continue to use them because the substance either makes them feel good, or stops them from feeling bad. In many cases, however, there is a fine line between regular use and drug abuse and addiction. Very few addicts are able to recognize when they have crossed that line. While frequency or the amount of drugs consumed don't in themselves constitute drug abuse or addiction, they can often be indicators of drug-related problems. • Problems can sometimes sneak up on you, as your drug use gradually increases over time. Smoking a joint with friends at the weekend, or taking ecstasy at a rave, or cocaine at an occasional party, for example, can change to using drugs a couple of days a week, then every day. Gradually, getting and using the drug becomes more and more important to you. • If the drug fulfills a valuable need, you may find yourself increasingly relying on it. For example, you may take drugs to calm you if you feel anxious or stressed, energize you if you feel depressed, or make you more confident in social situations if you normally feel shy. Or you may have started using prescription drugs to cope with panic attacks or relieve chronic pain, for example. Until you find alternative, healthier methods for overcoming these problems, your drug use will likely continue. • Similarly, if you use drugs to fill a void in your life, you're more at risk of crossing the line from casual use to drug abuse and addiction. To maintain healthy balance in your life, you need to have other positive experiences, to feel good in your life aside from any drug use. • As drug abuse takes hold, you may miss or frequently be late for work or school, your job performance may progressively deteriorate, and you start to neglect social or family obligations. Your ability to stop using is eventually compromised. What began as a voluntary choice has turned into a physical and psychological need. The good news is that with the right treatment and support, you can counteract the disruptive effects of drug use and regain control of your life. The first obstacle is to recognize and admit 9 you have a problem, or listen to loved ones who are often better able to see the negative effects drug use is having on your life. 5 Myths about Drug Abuse and Addiction MYTH 1 : Overcoming addiction is simply a matter of willpower. You can stop using drugs if you reallv want to. Prolonged exposure to drugs alters the brain in ways that result in powerful cravings and a compulsion to use. These brain changes make it extremely difficult to quit by sheer force of will. MYTH 2: Addiction is a disease: there's nothing you can do about it. Most experts agree that addiction is a brain disease, but that doesn't mean you're a helpless victim. The brain changes associated with addiction can be treated and reversed through therapy, medication, exercise, and other treatments. MYTH 3: Addicts have to hit rock bottom before thev can get better. Recovery can begin at any point in the addiction process—and the earlier, the better. The longer drug abuse continues, the stronger the addiction becomes and the harder it is to treat. Don't wait to intervene until the addict has lost it all. MYTH 4: You can't force someone into treatment; thev have to want help. Treatment doesn't have to be voluntary to be successful. People who are pressured into treatment by their family, employer, or the legal system are just as likely to benefit as those who choose to enter treatment on their own. As they sober up and their thinking clears, many formerly resistant addicts decide they want to change. MYTH 5: Treatment didn't work before, so there's no point trvinq again. Recovery from drug addiction is a long process that often involves setbacks. Relapse doesn't mean that treatment has failed or that you're a lost cause. Rather, it's a signal to get back on track, either by going back to treatment or adjusting the treatment approach. Signs and symptoms of drug abuse and drug addiction Although different drugs have different physical effects, the symptoms of addiction are similar. See if you recognize yourself in the following signs and symptoms of substance abuse and addiction. If so, consider talking to someone about your drug use. Common signs and symptoms of drug abuse: • You're neglecting your responsibilities at school, work, or home (e.g. flunking classes, skipping work, neglecting your children) because of your drug use. • You're using drugs under dangerous conditions or taking risks while high, such as driving while on drugs, using dirty needles, or having unprotected sex. • Your drug use is getting you into legal trouble, such as arrests for disorderly conduct, driving under the influence, or stealing to support a drug habit. • Your drug use is causing problems in your relationships, such as fights with your partner or family members, an unhappy boss, or the loss of old friends. • You've built up a drug tolerance. You need to use more of the drug to experience the same effects you used to attain with smaller amounts. • You take drugs to avoid or relieve withdrawal symptoms. If you go too long without drugs, you experience symptoms such as nausea, restlessness, insomnia, depression, sweating, shaking, and anxiety. • You've lost control over your drug use. You often do drugs or use more than you planned, 10 even though you told yourself you wouldn't. You may want to stop using, but you feel powerless. • Your life revolves around drug use. You spend a lot of time using and thinking about drugs, figuring out how to get them, and recovering from the drug's effects. • You've abandoned activities you used to enjoy, such as hobbies, sports, and socializing, because of your drug use. • You continue to use drugs, despite knowing it's hurting you. It's causing major problems in your life—blackouts, infections, mood swings, depression, paranoia—but you use anyway. Warning signs that a friend or family member is abusing drugs Drug abusers often try to conceal their symptoms and downplay their problem. If you're worried that a friend or family member might be abusing drugs, look for the following warning signs: Phvsical warnina sians of drug abuse • Bloodshot eyes, pupils larger or smaller than usual • Changes in appetite or sleep patterns. Sudden weight loss or weight gain • Deterioration of physical appearance, personal grooming habits • Unusual smells on breath, body, or clothing • Tremors, slurred speech, or impaired coordination Behavioral sians of drua abuse • Drop in attendance and performance at work or school • Unexplained need for money or financial problems. May borrow or steal to get it. • Engaging in secretive or suspicious behaviors • Sudden change in friends, favorite hangouts, and hobbies • Frequently getting into trouble (fights, accidents, illegal activities) Psvcholoaical warnina sians of drua abuse • Unexplained change in personality or attitude • Sudden mood swings, irritability, or angry outbursts • Periods of unusual hyperactivity, agitation, or giddiness • Lack of motivation; appears lethargic or "spaced out" • Appears fearful, anxious, or paranoid, with no reason Warning Signs of Commonly Abused Drugs • Marijuana: Glassy, red eyes; loud talking, inappropriate laughter followed by sleepiness; loss of interest, motivation; weight gain or loss. • Depressants(including Xanax, Valium, GHB): Contracted pupils; drunk-like; difficulty concentrating; clumsiness; poor judgment; slurred speech; sleepiness. • Stimulants(including amphetamines, cocaine, crystal meth): Dilated pupils; hyperactivity; euphoria; irritability; anxiety; excessive talking followed by depression or excessive sleeping at odd times; may go long periods of time without eating or sleeping; weight loss; dry mouth and nose. • Inhalants(glues, aerosols, vapors): Watery eyes; impaired vision, memory and thought; 11 secretions from the nose or rashes around the nose and mouth; headaches and nausea; appearance of intoxication; drowsiness; poor muscle control; changes in appetite; anxiety; irritability; lots of cans/aerosols in the trash. • Hallucinogens (LSD, PCP): Dilated pupils; bizarre and irrational behavior including paranoia, aggression, hallucinations; mood swings; detachment from people; absorption with self or other objects, slurred speech; confusion. • Heroin: Contracted pupils; no response of pupils to light; needle marks; sleeping at unusual times; sweating; vomiting; coughing, sniffling; twitching; loss of appetite. Warning signs of teen drug abuse While experimenting with drugs doesn't automatically lead to drug abuse, early use is a risk factor for developing more serious drug abuse and addiction. Risk of drug abuse also increases greatly during times of transition, such as changing schools, moving, or divorce. The challenge for parents is to distinguish between the normal, often volatile, ups and downs of the teen years and the red flags of substance abuse. These include: • Having bloodshot eyes or dilated pupils; using eye drops to try to mask these signs • Skipping class; declining grades; suddenly getting into trouble at school • Missing money, valuables, or prescriptions • Acting uncharacteristically isolated, withdrawn, angry, or depressed • Dropping one group of friends for another; being secretive about the new peer group • Loss of interest in old hobbies; lying about new interests and activities • Demanding more privacy; locking doors; avoiding eye contact; sneaking around Getting help for drug abuse and drug addiction • Visit a Narcotics Anonymous meeting in your area. See Resources & References below. • Call 1-800-662-HELP in the U.S. to reach a free referral helpline from the Substance Abuse and Mental Health Services Administration. Recognizing that you have a problem is the first step on the road to recovery, one that takes tremendous courage and strength. Facing your addiction without minimizing the problem or making excuses can feel frightening and overwhelming, but recovery is within reach. If you're ready to make a change and willing to seek help, you can overcome your addiction and build a satisfying, drug-free life for yourself. Support is essential to addiction recovery Don't try to go it alone; it's all too easy to get discouraged and rationalize "just one more" hit or pill. Whether you choose to go to rehab, rely on self-help programs, get therapy, or take a self- directed treatment approach, support is essential. Recovering from drug addiction is much easier when you have people you can lean on for encouragement, comfort, and guidance. Support can come from: • family members • close friends • therapists or counselors • other recovering addicts • healthcare providers • people from your faith community 12 When a loved one has a drug problem If you suspect that a friend or family member has a drug problem, here are a few things you can do: • Speak up. Talk to the person about your concerns, and offer your help and support, without being judgmental. The earlier addiction is treated, the better. Don't wait for your loved one to hit bottom! Be prepared for excuses and denial by listing specific examples of your loved one's behavior that has you worried. • Take care of yourself. Don't get so caught up in someone else's drug problem that you neglect your own needs. Make sure you have people you can talk to and lean on for support. And stay safe. Don't put yourself in dangerous situations. • Avoid self-blame. You can support a person with a substance abuse problem and encourage treatment, but you can't force an addict to change. You can't control your loved one's decisions. Let the person accept responsibility for his or her actions, an essential step along the way to recovery for drug addiction. Don't • Attempt to punish, threaten, bribe, or preach. • Try to be a martyr. Avoid emotional appeals that may only increase feelings of guilt and the compulsion to use drugs. • Cover up or make excuses for the drug abuser, or shield them from the negative consequences of their behavior. • Take over their responsibilities, leaving them with no sense of importance or dignity. • Hide or throw out drugs. • Argue with the person when they are high. • Take drugs with the drug abuser. • Feel guilty or responsible for another's behavior. Adapted from: National Clearinghouse for Alcohol& Drug Information When your teen has a drug problem Discovering your child uses drugs can generate fear, confusion, and anger in parents. It's important to remain calm when confronting your teen, and only do so when everyone is sober. Explain your concerns and make it clear that your concern comes from a place of love. It's important that your teen feels you are supportive. Five steps parents can take: • Lay down rules and consequences. Your teen should understand that using drugs comes with specific consequences. But don't make hollow threats or set rules that you cannot enforce. Make sure your spouse agrees with the rules and is prepared to enforce them. • Monitor your teen's activity. Know where your teen goes and who he or she hangs out with. It's also important to routinely check potential hiding places for drugs—in backpacks, between books on a shelf, in DVD cases or make-up cases, for example. Explain to your teen that this lack of privacy is a consequence of him or her having been caught using drugs. • Encourage other interests and social activities. Expose your teen to healthy hobbies and activities, such as team sports and afterschool clubs. 13 • Talk to your child about underlying issues. Drug use can be the result of other problems. Is your child having trouble fitting in? Has there been a recent major change, like a move or divorce, which is causing stress? • Get help. Teenagers often rebel against their parents but if they hear the same information from a different authority figure, they may be more inclined to listen. Try a sports coach, family doctor, therapist, or drug counselor. Reference: The drug addiction and symptom information above was attained from the following website: httiD://www.heliDauide.ora/articles/addiction/drug-abuse-and-addiction.htm 14 Local Substance Abuse Treatment Programs: 1. Cab Health & Recovery Services 27 Congress Street Suite 105 Salem, MA (978) 745-8890 www.cabhealth.ora Cr' 2. North Shore Medical Center/Salem Hosp 81 Highland Avenue Salem, MA 1970 1-800-394-4220 3. St Jeans House 21 Salem st Salem MA 01970 1-800-394-4220 4. Health and Education Services Inc 800 Cummings Center Beverly, MA 1915 1-800-394-4220 5. Veterans Center for Addiction Trt 200 Springs Road Bedford, MA 1730 1-800-394-4220 15 ALTERNATIVE THERAPIES GROUP Cannabis Strain Journal STRAIN NAME: AVERAGE DURATION OF EFFECT: Are you usina other Medications at this time? If Yes, please list: TYPE: Indica Sativa Hybrid STRENGTH: Mild Medium Strong FORM: Vaporizer Edible Tincture Topical Smoke EFFECT: MAKES ME FEEL Creative Euphoric Uplifted Energetic Lazy Focused Happy Talkative Giggly Tingly Hungry Sleepy MEDICAL: HELPS RELIEVE Migraines Nausea Insomnia Pain Anxiety Stress Stomach Cramping Lack of Appetite Muscle Spasms Joint Pain NEGATIVES— UNFORTUNATELY, 1 EXPERIENCED Anxiety Headaches Paranoia Dizziness Dry Eyes Dry Mouth Severe Fatigue Other 16 DAILY JOURNAL: AMOUNT INGESTION DURATION DESIRED BRIEF DATE/TIME STRAIN CONSUMED METHOD OF EFFECT COMMENTS (DOSAGE) EFFECT ACHIEVED? 17 OVERALL IMPRESSION NOTES: 18 ALTERNATIVE THERAPIES GROUP Patient's Anti-Diversion Statement and Sianature Alternative Therapies Group, Inc.'s mission is to provide registered, qualifying Massachusetts patient's access to safely-cultivated and responsibly-dispensed alternative forms of pain and symptom management, in strict compliance with Department of Public Health regulations. Alternative Therapies Group, Inc. (ATG) is committed to providing safe, high quality marijuana for medicinal purposes, to registered qualifying patients and registered qualifying patients only. ATG views its responsibility to keep its products out of unintended hands as a top priority of the organization. Each and every member of the ATG organization is tasked with doing his/her part in consistently meeting this goal. Additionally, State law restricts registered qualifying patients and/or caregivers from re- distributing the registered qualifying patients' marijuana to any other individual. Patients that engage in the diversion of marijuana will be subject to immediate termination of patient access and possible prosecution by law enforcement. State law also requires that patients return all unused, excess, or contaminated product back to Alternative Therapies Group, Inc. for disposal I attest that I, , will not engage in the diversion of marijuana. I have read and understand the State's regulations regarding patient rights, limitations, and responsibilities. Patient Signature Date 19 Alternative Therapies Group 3 Yr. Patient Ramp and Revenue Projections Year 1 (July 1,2017-June 30,2018) Q1 Q2 Q3 Q4 Total Area Population: Watertown 34,000 34,000 34,000 34,000 34,000 Added Population from Underserved Communities--some portion of Waltham and Belmont 45,000 45,000 45,000 45,000 45,000 Total Population: 79,000 79,000 79,000 79,000 79,000 Penetration Rate: 1.00% 1.25% 1.35% 1.50% #of Patients: 790 988 1,067 1,185 1,185 Price Per Ounce of Flower $300 $300 $300 $275 $ 275 Average Patient Purchase Per Month=1 oz of flower 1.00 1.00 1.00 1.00 1.00 Revenue $ 711,000 $ 888,750 $ 959,850 $ 977,625 $ 3,537,225 Year 2(July 1,2018-June 30,2019) Q1 Q2 Q3 Q4 Total Area Population: Watertown 34,000 34,000 34,000 34,000 34,000 Added Population from Underserved Communities--some portion of Waltham and Belmont 45,000 45,000 45,000 45,000 45,000 Lost Population due to Cheaper Medicine in Neighboring Communities (20,000) (20,000) (20,000) (20,000) (20,000) Total Population: 59,000 59,000 59,000 59,000 59,000 Penetration Rate: 1.75% 2.00% 2.00% 2.25% #of Patients: 1,033 1,180 1,180 1,328 1,328 Price Per Ounce of Flower $275 $275 $250 $250 $250 Average Patient Purchase Per Month=1 oz of flower 1.00 1.00 1.00 1.00 1.00 Revenue $ 851,813 $ 973,500 $ 885,000 $ 995,625 $ 3,705,938 Year 3(July 1,2019-June 30,2020) Q1 Q2 Q3 Q4 Total Area Population: Watertown 34,000 34,000 34,000 34,000 34,000 Added Population from Underserved Communities--some portion of Waltham and Belmont 15,000 15,000 15,000 15,000 15,000 Lost Population due to Cheaper Medicine in Neighboring Communities (20,000) (20,000) (20,000) (20,000) (15,000) Total Population: 29,000 29,000 29,000 29,000 34,000 Penetration Rate: 2.25% 2.50% 3.00% 3.25% #of Patients: 653 725 870 943 943 Price Per Ounce of Flower $250 $225 $200 $200 $200 Average Patient Purchase Per Month=1 oz of flower 1.00 1.00 1.00 1.00 1.00 Revenue $ 489,375 $ 489,375 $ 522,000 $ 565,500 $ 2,066,250 ATG Pre-Year 1 Costs Buildout: New Entrance $ 40,000.00 Internal Buidout $ 450,000.00 Finishes (fixtures, counters etc.) $ 150,000.00 Furniture and Systems $ 30,000.00 Security Equipment and Install $ 130,000.00 Other Related Costs: Various Permits, Licensing Application Fees (Local and DPH) $ 95,000.00 Rents to Hold Property: $ 40,000.00 Professional Fees(drawings, legal, etc.): $ 30,000.00 Total: $ 965,000.00 ATG 3-Year Profit/Loss: 1QYr-1 2QYr-1 3QYr-1 4Q Yr-1 Year-1 1QYr-2 1QYr_2 1QYr_2 1QYr_2 Year-2 1QYr-3 1QYr-3 1QYr-3 1QYr-3 Year-3 Income Total Sales $ 711,000.00 $ 888,750.00 $ 959,850.00 $ 977,625.00 $ 3,537,225.00 $ 851,812.50 $ 973,500.00 $ 885,000.00 $ 995,625.00 $ 3,705,937.50 $ 489,375.00 $ 489,375.00 $ 522,000.00 $ 565,500.00 $ 2,066,250.00 Total Income $ 711,000.00 $ 888,750.00 $ 959,850.00 $ 977,625.00 $ 3,537,225.00 $ 851,812.50 $ 973,500.00 $ 885,000.00 $ 995,625.00 $ 3,705,937.50 $ 489,375.00 $ 489,375.00 $ 522,000.00 $ 565,500.00 $ 2,066,250.00 Cost of Goods Sold $ - $ - $ - Cultivation Equipment&Supplie $ 37,566.29 $ 37,566.29 $ 37,566.29 $ 37,566.29 $ 150,265.14 $ 39,358.20 $ 39,358.20 $ 39,358.20 $ 39,358.20 $ 157,432.79 $ 30,699.39 $ 30,699.39 $ 30,699.39 $ 30,699.39 $ 122,797.57 Employment Expense $ - $ - $ - Healthcare $ 9,994.55 $ 9,994.55 $ 9,994.55 $ 9,994.55 $ 39,978.18 $ 10,471.28 $ 10,471.28 $ 10,471.28 $ 10,471.28 $ 41,885.14 $ 8,167.60 $ 8,167.60 $ 8,167.60 $ 8,167.60 $ 32,670.41 Total Employment Expense $ 9,994.55 $ 9,994.55 $ 9,994.55 $ 9,994.55 $ 39,978.18 $ 10,471.28 $ 10,471.28 $ 10,471.28 $ 10,471.28 $ 41,885.14 $ 8,167.60 $ 8,167.60 $ 8,167.60 $ 8,167.60 $ 32,670.41 Equipment rental $ 5,377.50 $ 5,377.50 $ 5,377.50 $ 5,377.50 $ 21,510.00 $ 5,634.01 $ 5,634.01 $ 5,634.01 $ 5,634.01 $ 22,536.03 $ 4,394.53 $ 4,394.53 $ 4,394.53 $ 4,394.53 $ 17,578.10 Insurance Expense $ 4,087.35 $ 4,087.35 $ 4,087.35 $ 4,087.35 $ 16,349.40 $ 4,282.32 $ 4,282.32 $ 4,282.32 $ 4,282.32 $ 17,129.27 $ 3,340.21 $ 3,340.21 $ 3,340.21 $ 3,340.21 $ 13,360.83 Packaging $ 2,611.58 $ 2,611.58 $ 2,611.58 $ 2,611.58 $ 10,446.30 $ 2,736.15 $ 2,736.15 $ 2,736.15 $ 2,736.15 $ 10,944.59 $ 2,134.19 $ 2,134.19 $ 2,134.19 $ 2,134.19 $ 8,536.78 Paraphanelia $ 2,433.95 $ 2,433.95 $ 2,433.95 $ 2,433.95 $ 9,735.78 $ 2,550.04 $ 2,550.04 $ 2,550.04 $ 2,550.04 $ 10,200.18 $ 1,989.03 $ 1,989.03 $ 1,989.03 $ 1,989.03 $ 7,956.14 Pest control $ 232.50 $ 232.50 $ 232.50 $ 232.50 $ 930.00 $ 243.59 $ 243.59 $ 243.59 $ 243.59 $ 974.36 $ 190.00 $ 190.00 $ 190.00 $ 190.00 $ 760.00 Professional Fees $ 46,942.02 $ 46,942.02 $ 46,942.02 $ 46,942.02 $ 187,768.08 $ 49,181.15 $ 49,181.15 $ 49,181.15 $ 49,181.15 $ 196,724.62 $ 38,361.30 $ 38,361.30 $ 38,361.30 $ 38,361.30 $ 153,445.20 Depreciation Expense $ 33,750.00 $ 33,750.00 $ 33,750.00 $ 33,750.00 $ 135,000.00 $ 35,359.88 $ 35,359.88 $ 35,359.88 $ 35,359.88 $ 141,439.50 $ 27,580.70 $ 27,580.70 $ 27,580.70 $ 27,580.70 $ 110,322.81 Regulatory Expense $ 8,794.19 $ 8,794.19 $ 8,794.19 $ 8,794.19 $ 35,176.74 $ 9,213.67 $ 9,213.67 $ 9,213.67 $ 9,213.67 $ 36,854.67 $ 7,186.66 $ 7,186.66 $ 7,186.66 $ 7,186.66 $ 28,746.64 Rent Expense $ 74,823.21 $ 74,823.21 $ 74,823.21 $ 74,823.21 $ 299,292.84 $ 78,392.28 $ 78,392.28 $ 78,392.28 $ 78,392.28 $ 313,569.11 $ 61,145.98 $ 61,145.98 $ 61,145.98 $ 61,145.98 $ 244,583.90 Utilities $ 45,370.95 $ 45,370.95 $ 45,370.95 $ 45,370.95 $ 181,483.80 $ 47,535.14 $ 47,535.14 $ 47,535.14 $ 47,535.14 $ 190,140.58 $ 37,077.41 $ 37,077.41 $ 37,077.41 $ 37,077.41 $ 148,309.65 Total Cost of Goods Sold $ 238,234.07 $ 238,234.07 $ 238,234.07 $ 238,234.07 $ 952,936.26 $ 249,597.83 $ 249,597.03 $ 249,597.83 $ 249,597.83 $ 998,391.32 $ 194,686.31 $ 194,686.31 $ 194,686.31 $ 194,686.31 $ 778,745.23 Gross Profit $ 472,765.94 $ 650,515.94 $ 721,615.94 $ 739,390.94 $ 2,584,288.74 $ 602,214.67 $ 723,902.17 $ 635,402.17 $ 746,027.17 $ 2,707,546.18 $ 294,688.69 $ 294,688.69 $ 327,313.69 $ 370,813.69 $ 1,287,504.77 Expenses $ - $ - $ - Advertising and Promotion $ 1,492.50 $ 1,492.50 $ 1,492.50 $ 1,492.50 $ 5,970.00 $ 1,563.69 $ 1,563.69 $ 1,563.69 $ 1,563.69 $ 6,254.77 $ 1,219.68 $ 1,219.68 $ 1,219.68 $ 1,219.68 $ 4,878.72 Automobile Expense $ 2,946.84 $ 2,946.84 $ 2,946.84 $ 2,946.84 $ 11,787.36 $ 3,087.40 $ 3,087.40 $ 3,087.40 $ 3,087.40 $ 12,349.62 $ 2,408.18 $ 2,408.18 $ 2,408.18 $ 2,408.18 $ 9,632.70 Bank Service Charges $ 9,516.26 $ 9,516.26 $ 9,516.26 $ 9,516.26 $ 38,065.02 $ 9,970.18 $ 9,970.18 $ 9,970.18 $ 9,970.18 $ 39,880.72 $ 7,776.74 $ 7,776.74 $ 7,776.74 $ 7,776.74 $ 31,106.96 Computer and Internet Expenses $ 6,828.90 $ 6,828.90 $ 6,828.90 $ 6,828.90 $ 27,315.60 $ 7,154.64 $ 7,154.64 $ 7,154.64 $ 7,154.64 $ 28,618.55 $ 5,580.62 $ 5,580.62 $ 5,580.62 $ 5,580.62 $ 22,322.47 General Administrative Expense $ 28,125.00 $ 28,125.00 $ 28,125.00 $ 28,125.00 $ 112,500.00 $ 29,466.56 $ 29,466.56 $ 29,466.56 $ 29,466.56 $ 117,866.25 $ 22,983.92 $ 22,983.92 $ 22,983.92 $ 22,983.92 $ 91,935.68 Interest Expense $ 32,752.58 $ 32,752.58 $ 32,752.58 $ 32,752.58 $ 131,010.30 $ 34,314.87 $ 34,314.87 $ 34,314.87 $ 34,314.87 $ 137,259.49 $ 26,765.60 $ 26,765.60 $ 26,765.60 $ 26,765.60 $ 107,062.40 Meals and Entertainment $ 4,408.25 $ 4,408.25 $ 4,408.25 $ 4,408.25 $ 17,632.98 $ 4,618.52 $ 4,618.52 $ 4,618.52 $ 4,618.52 $ 18,474.07 $ 3,602.44 $ 3,602.44 $ 3,602.44 $ 3,602.44 $ 14,409.78 Office Supplies $ 5,136.05 $ 5,136.05 $ 5,136.05 $ 5,136.05 $ 20,544.18 $ 5,381.03 $ 5,381.03 $ 5,381.03 $ 5,381.03 $ 21,524.14 $ 4,197.21 $ 4,197.21 $ 4,197.21 $ 4,197.21 $ 16,788.83 Payroll Expenses $ 288.84 $ 288.84 $ 288.84 $ 288.84 $ 1,155.36 $ 302.62 $ 302.62 $ 302.62 $ 302.62 $ 1,210.47 $ 236.04 $ 236.04 $ 236.04 $ 236.04 $ 944.17 Company Contributions $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Health Insurance $ 5,434.05 $ 5,434.05 $ 5,434.05 $ 5,434.05 $ 21,736.20 $ 5,693.25 $ 5,693.25 $ 5,693.25 $ 5,693.25 $ 22,773.02 $ 4,440.74 $ 4,440.74 $ 4,440.74 $ 4,440.74 $ 17,762.95 Total Company Contributions $ 5,434.05 $ 5,434.05 $ 5,434.05 $ 5,434.05 $ 21,736.20 $ 5,693.25 $ 5,693.25 $ 5,693.25 $ 5,693.25 $ 22,773.02 $ 4,440.74 $ 4,440.74 $ 4,440.74 $ 4,440.74 $ 17,762.95 Taxes $ 43,081.28 $ 43,081.28 $ 43,081.28 $ 43,081.28 $ 172,325.10 $ 45,136.25 $ 45,136.25 $ 45,136.25 $ 45,136.25 $ 180,545.01 $ 35,206.28 $ 35,206.28 $ 35,206.28 $ 35,206.28 $ 140,825.11 Wages $ 236,786.66 $ 236,786.66 $ 236,786.66 $ 236,786.66 $ 947,146.62 $ 248,081.38 $ 248,081.38 $ 248,081.38 $ 248,081.38 $ 992,325.51 $ 193,503.48 $ 193,503.48 $ 193,503.48 $ 193,503.48 $ 774,013.90 Total Payroll Expenses $ 28S,S90.82 $ 285,590.82 $ 285,S90.82 $ 28S,590.82 $ 1,142,363.28 $ 299,213.50 $ 299,213.S0 $ 299,213.S0 $ 299,213.50 $ 1,196,854.01 $ 233,386.S3 $ 233,386.S3 $ 233,386.S3 $ 233,386.53 $ 933,546.13 Postage and Delivery $ 75.00 $ 75.00 $ 75.00 $ 75.00 $ 300.00 $ 78.58 $ 78.58 $ 78.58 $ 78.58 $ 314.31 $ 61.29 $ 61.29 $ 61.29 $ 61.29 $ 245.16 Rent-Dispensary $ 151,250.00 $ 151,250.00 $ 151,250.00 $ 151,250.00 $ 605,000.00 $ 96,250.00 $ 96,250.00 $ 96,250.00 $ 96,250.00 $ 385,000.00 $ 98,175.00 $ 98,175.00 $ 98,175.00 $ 98,175.00 $ 392,700.00 Repairs and Maintenance $ 13,092.30 $ 13,092.30 $ 13,092.30 $ 13,092.30 $ 52,369.20 $ 13,716.80 $ 13,716.80 $ 13,716.80 $ 13,716.80 $ 54,867.21 $ 10,699.11 $ 10,699.11 $ 10,699.11 $ 10,699.11 $ 42,796.42 Sales Tax $ 3,600.00 $ 3,600.00 $ 3,600.00 $ 3,600.00 $ 14,400.00 $ 3,771.72 $ 3,771.72 $ 3,771.72 $ 3,771.72 $ 15,086.88 $ 2,941.94 $ 2,941.94 $ 2,941.94 $ 2,941.94 $ 11,767.77 Trade association $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 9,000.00 $ 2,357.33 $ 2,357.33 $ 2,357.33 $ 2,357.33 $ 9,429.30 $ 1,838.71 $ 1,838.71 $ 1,838.71 $ 1,838.71 $ 7,354.85 Travel Expense $ 3,709.85 $ 3,709.85 $ 3,709.85 $ 3,709.85 $ 14,839.38 $ 3,886.80 $ 3,886.80 $ 3,886.80 $ 3,886.80 $ 15,547.22 $ 3,031.71 $ 3,031.71 $ 3,031.71 $ 3,031.71 $ 12,126.83 Uniforms $ 1,442.22 $ 1,442.22 $ 1,442.22 $ 1,442.22 $ 5,768.88 $ 1,511.01 $ 1,511.01 $ 1,511.01 $ 1,511.01 $ 6,044.06 $ 1,178.59 $ 1,178.59 $ 1,178.59 $ 1,178.59 $ 4,714.36 Total Expenses $ 552,216.55 $ 552,216.55 $ 552,216.55 $ 552,216.55 $ 2,208,866.18 $ 516,342.65 $ 516,342.65 $ 516,342.65 $ 516,342.65 $ 2,065,370.60 $ 425,847.27 $ 425,847.27 $ 425,847.27 $ 425,847.27 $ 1,703,389.07 Net Operating Income $ 79,450.61 $ 98,299.39 $ 169,399.39 $ 187,174.39 $ 375,422.56 $ 85,872.02 $ 207,559.52 $ 119,059.52 $ 229,684.52 $ 642,175.58 $ 131,158.57 -$ 131,158.57 -$ 98,533.57 -$ 55,033.57 $ (415,884.29) Other Expenses $ - $ - $ - Community Host Fees $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 Total Other Expenses $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 6,250.00 $ 25,000.00 Net Other Income $ 6,250.00 -$ 6,250.00 -$ 6,250.00 -$ 6,250.00 $ (25,000.00) .$ 6,250.00 -$ 6,250.00 -$ 6,250.00 -$ 6,250.00 $ (25,000.00) $ 6,250.00 -$ 6,250.00 -$ 6,250.00 -$ 6,2S0.00 $ (25,000.00) Net Income $ 85,700.61 $ 92,049.39 $ 163,149.39 $ 180,924.39 $ 350,422.56 $ 79,622.02 $ 201,309.52 $ 112,809.52 $ 223,434.52 $ 617,175.58 $ 137,408.57 $ 137,408.57 $ 104,783.57 $ 61,283.57 $ (440,884.29) Federal Corp Tax(45%to capture IRS Rule 280E) $ (38,565.27) $ 41,422.23 $ 73,417.23 $ 81,415.98 $ 157,690.15 $ 35,829.91 $ 90,589.28 $ 50,764.28 $ 100,545.53 $ 277,729.01 $ (61,833.86) $ (61,833.86) $ (47,152.61) $ (27,577.61) $ (198,397.93) Cash Flow(NI- Taxes+Depreciation) $ (13,385.34) $ 84,377.16 $ 123,482.16 $ 133,258.41 $ 327,732.41 $ 79,151.99 $ 146,080.11 $ 97,405.11 $ 158,248.86 $ 480,886.07 $ (47,994.01) $ (47,994.01) $ (30,050.26) $ (6,125.26) $ (132,163.55) TOWN OF WATERTOWN AND ALTERNATIVE THERAPIES GROUP, INC. HOST COMMUNITY AGREEMENT THIS HOST COMMUNITY AGREEMENT ("AGREEMENT") is entered into this day of 2017 by and between Alternative Therapies Group, Inc., a Massachusetts not-for-profit corporation with a principal office address of 24R Pleasant St, Unit 2, Newburyport, MA, 01950 ("the Company"), and the Town of Watertown, a Massachusetts municipal corporation with a principal address of 149 Main Street, Watertown, MA 02472 ("the Town"), acting by and through its Town Manager. WHEREAS, the Company wishes to locate a Registered Marijuana Dispensary ("RMD") dispensing facility (but not a cultivation or processing facility) in the Town in accordance with regulations issued by the Commonwealth of Massachusetts Department of Public Health ("DPH"); and WHEREAS, the Company intends to provide certain benefits to the Town in the event that it receives a license from the DPH to operate an RMD dispensing facility (the "DPH License") and receives all required local permits and approvals; NOW THEREFORE, in consideration of the provisions of this Agreement, the Company and the Town agree as follows: 1. The Company shall annually contribute to Watertown public charities in an amount no less than a sum of$25,000, said charities to be determined by the Company in its reasonable discretion. 2. Should recreational marijuana sales become a viable option in Watertown for the Company, it agrees to work in good faith with Watertown officials on appropriate implementation plans, and comply with all local ordinances. 3. The terms of this Agreement shall be renegotiated by the Company and the Town in good faith following five (5) years of continuous operation of the RMD facility.The terms of this Agreement shall continue in full force and effect unless the parties reach accord on a subsequent agreement. Any renegotiation of this Agreement shall include a review of positive and negative impacts upon the Town, its residents, and businesses resulting from operation of the RMD, including, without limitation, community health, associated business growth, traffic, crime, use of Town resources, proximate property value impacts, and other documented impacts. 4. The provisions of this Agreement shall be applicable as long as the Company operates a RMD dispensing facility in the Town, pursuant to a license issued by DPH, subject to the provisions of Paragraph 7, below. 5. The Company will make efforts to hire qualified employees who are Town residents, and to utilize vendors based in the Town. 6. The Company agrees that the value of the real property of the RMD dispensing facility shall be treated as taxable and the Company shall not object to or otherwise challenge the taxability of such real property, but reserves any rights it might have with respect to the valuation of same. The Company, to the extent that it maintains its classification as a non-profit organization pursuant to applicable Massachusetts law, shall be exempt from the payment of taxes on personal property to the same extent as similar organizations and facilities operating within the Town. 7. The obligations of the Company and the Town recited herein are specifically contingent upon the Company obtaining the DPH License for operation of a RMD dispensing facility in the Town, and the Company's receipt of any and all necessary local approvals to locate, occupy, and operate a RMD dispensing facility in the Town. 8. This Agreement does not affect, limit, or control the authority of Town boards, commissions, and departments to carry out their respective powers and duties to decide upon and to issue, or deny, applicable permits and other approvals under the statutes and regulations of the Commonwealth, the General and Zoning Bylaws of the Town, or applicable regulations of those boards, commissions, and departments, or to enforce said statutes, Bylaws, and regulations. The Town, by entering into this Agreement, is not thereby required or obligated to issue such permits and approvals as may be necessary for the RMD dispensing facility to operate in the Town, or to refrain from enforcement action against the Company and/or its RMD dispensing facility for violation of the terms of said permits and approvals or said statutes, Bylaws, and regulations. 9. Neither the Company nor the Town shall assign or otherwise transfer any of its rights or obligations under this Agreement, in whole or in part, without the prior express written consent of the other. 10. The Company agrees to comply with all laws, rules, regulations and orders applicable to the RMD dispensing facility, such provisions being incorporated herein by reference, and shall be responsible for obtaining all necessary licenses, permits, and approvals required for the performance of such work. The Company agrees not to assert or seek exemption as an agricultural use under the provisions of G.L. c.40A, §3 from the requirements of the Town's Zoning Bylaws. 11. Any and all notices, or other communications required or permitted under this Agreement, shall be in writing and delivered by hand or mailed postage prepaid, return receipt requested, by registered or certified mail or by other reputable delivery service, to the parties at the addresses set forth on Page 1 or furnished from time to time in writing hereafter by one party to the other party. Any such notice or correspondence shall be deemed given when so delivered by hand, if so mailed, when deposited with the U.S. Postal Service or, if sent by private overnight or other delivery service, when deposited with such delivery service. 12. If any term or condition of this Agreement or any application thereof shall to any extent be held invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining terms and conditions of this Agreement shall not be deemed affected thereby unless one or both parties would be substantially or materially prejudiced. 2 13. This Agreement shall be governed by, construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, and the Company submits to the jurisdiction of any of its appropriate courts for the adjudication of disputes arising out of this Agreement. 14. This Agreement, including all documents incorporated herein by reference, constitutes the entire integrated agreement between the Company and the Town with respect to the matters described herein. This Agreement supersedes all prior and contemporaneous agreements, negotiations and representations, either written or oral, and it shall not be modified or amended except by a written document executed by the parties hereto. 15. This Agreement shall also be null and void in the event that the Company shall not locate a RMD dispensing facility in the Town or shall relocate such RMD dispensing facility out of the Town. In the case of any relocation out of the Town, an adjustment of funds due to public charities hereunder shall be calculated based upon the period of occupation of the RMD dispensing facility within the Town, but in no event shall a selected public charity be responsible for the return of any funds already provided to it by the Company. 16. This agreement shall become null and void if and when the Commonwealth of Massachusetts or the Town of Watertown adopts an excise tax, fee, or assessment that entitles the Town or public charities to revenue from the Company in addition to the charitable donation (section 1) and/or tax payments (section 6)set forth in this agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. TOWN OF WATERTOWN ALTERNATIVE THERAPIES GROUP, INC. By: By: Christopher Edwards Its: Its: Executive Director 3