tv High Profits CNN June 14, 2015 10:00pm-11:01pm PDT
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we, as a town, have been disingenuous a bit. in the end, who really wins here? >> marijuana, pot, grass, whatever you want to call it, is probably the most dangerous drug in the united states. >> i shall continue to oppose efforts to legalize marijuana. >> i inhaled it, frequently. that was the point. ♪ >> what we're doing now is creating the next big tobacco of our time. >> this is a highly-regulated business. >> we're talking about daylighting a black market activity. >> we are on the cutting edge of a brand-new industry. >> this is absolutely the next gold rush. this is the green rush. >> now the dominoes are falling,
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especially with this economic revenue. >> there's $2 billion to be had next year. i plan to take more than my fair share. >> where are you guys going to move? >> about 2 miles away. >> that's one of the main reasons i'm here. >> it's convenient. the driving. >> what if someone sat out front? >> i'd go out back and buy from them. that's what i did before this was legal. >> what's up? >> i don't know what makes me feel worse, the cold i've got going here or this election result. that's pretty crappy. >> when the desis was passed along by the voters, town council said all right. we will move a business that's
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been a legal business and get them out. and for legalization, that's a very slippery slope. >> is there anything that can be done in the meantime to push back our deadline so that maybe we could ask the voters the right question, which is, should the cannabis club be allowed to stay put? >> ask the lawyers if there's something we can do. i got about ten things in my toolbox. that we can put to work. >> hi, ally. hi, y'all. hi. mm. okay. hi. okay. i brought you a present. >> oh, sorry. this is for your staff, and you. >> awesome. >> it's southerner in me. nothing helps bad time the like sugar and butter and fattening stuff. >> that's nice. >> just all went, i feel like, so fast. we didn't really have time, even
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though there were weeks between the meetings to really step back and think about what this would do. and i think we're going to have some unintended consequences. and we're going to now have drug dealers, like, downtown. >> i believe even in this conservatively favored special election with record turnout for a special election but still not -- >> it's record turnout for any election in breckenridge. most of these people were people who were asked to turn in their ballot. there was a strong, strong campaign behind that. >> it was one thing that i didn't think we needed to hire a campaign manager, but now i'm kicking myself in the butt because this worked out for them. >> they're local and amazing, and they knew, like, yeah, i'm sorry, y'all.
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i mean. >> it doesn't mean it's your fault. >> no, i know. it just sucks. i hate that i'm a part of it. i just feel bad for you all. it's like, your life. we're essentially sending good people out of -- >> don't they realize, like, because i think i'm a good person. and that seems like, it's just like this bigger picture that i think people aren't looking at. and you guys were such a part of this vibrant downtown. i regret how our town acted. i regret that people spent $25,000 on an issue campaign that was filled with lies. >> 70/30 is not a mistake. that's a clear message to leadership in the community that for now people don't want to have retail stores on main street. when marijuana's mainstream in
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the u.s., then let's talk about it being on main street in breckenridge, but not until then. >> i was surprised. i thought it was going to be close. people were concerned about the "what-if" this hurts our brand if we end up with four or five shops in downtown. >> the town council shouldn't cede their responsibility to voters every time a question is hard. that's what they've done. they kicked it to voters with this political engineering, by rich interest in the town. >> there's still some hard feelings in the town, but i hope we can put it behind us and move forward, and we'd like our citizenry to move forward with us. >> i think they have a strong legal claim and need to stand up for that. and i think we can win. totally shocking. every time we've gone to a vote,
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it's 70% in favor. you got bamboozled. >> they linked us in with mystery stores. >> like they wanted the amsterdam five stores of breckenridge. i think a court would give us an injunction. but that doesn't solve your total problem. >> the current law says february 2nd. so we have to change or would an injunction, could it provide relief from that ordinance? >> sure. we would sue and say you can't treat bcc any different than a tee shirt shop, anybody that you allow and prohibit later. you've got to let the existing continue. we would ask the court, stop -- >> i could postpone that meeting. that was the earliest available
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meeting. >> if it takes them three or four weeks to come out and inspect and we don't have our appointment to schedule the inspection until the first week in january, we could be out of business for seven, ten, 20, 30 days. >> i could file a suit for you by friday. >> i think we have to. it's up to you. >> i just don't know what to do. >> i told you, look, here's the strategy. sue the town, and let's postpone the shut down date. >> at this point, after months and months and months of our livelihood being threatened, we've still played nice, and this is what we get for it. we're getting kicked out of our location. so i guess we're suing the town of breckenridge. >> as awful as it sounds, that's what has to happen. ♪ an hors d'oeuvre for the table?
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♪ so you want tight, dense buds. >> it's super frosty. this plant looks beautiful. >> should we get started? >> yeah. now it's getting late. ♪ >> i think it's all starting to come together up here in oak creek. >> today's huge, you know, this is our first harvest out of this garden. it should keep us afloat for a month or so. after a year it's great to see we've come this far with this
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facility. it's operational and producing some good weights. this should be close to a 24-pound harvest. >> this is going to hopefully spear our concentrates and kitchen into full effect. >> after we run this bud through the trimming machine, it's going to go on these dry racks over here until the bud is dry. it has to be weighed again. placed into packages with a batch number. >> from seed to sale. there's always a camera on there. you can look at our cameras anytime you want to. and they're going to see us dancing, having a good time. >> i have sonny shake it. >> yeah. >> final electrical inspection was today. we passed. >> pretty close to done. obviously we going to be waiting on licensing. >> basically, we realized that we've been talking to the wrong
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people and getting the wrong information. the assumption we have been operating under was that we had to partner with a dispensary. everything we've been told has been completely false. they said it's 46-90 days for approval. >> mm-hm. >> they said to expect more like 90 right now. let's say a month before we even get an appointment. three months before the paperwork is approved and processed. then plants go in the next day. and then two months to first harvest. is that what we're talking about? >> no. >> one month? >> two months of flowering. so we're looking at three to four months. >> all i want to do is go home and get high and crawl into bed, so desperately. so it's months, if everything started tomorrow. >> right. >> when i originally got into this deal, the date that we
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spoke about was halloween. so we're talking -- >> just to give you an idea, when i got into this building, i was looking at having a salable product last december. >> i don't know what i'm going to do. i have no money left. i have basically zero dollars at this point. if we had been on our timeline, we would be bringing in something like $250,000 a month out of this facility. >> yeah. bottom line is we're a good ways to having a product to take out to the dispensaries. >> [ bleep ]. >> it's so white. >> it is. >> i want it to be green. >> i do too. >> i want it to be green. >> it will be. it will be. >> they are looking sexy. >> now it's going to be getting important since we got booted off main street. it's going to make competition stiffer. so we need to always have the best product. >> the first harvest out of this
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garden, great outcome. >> smells so good. this has, like, such a loud bubble gum smell to it that the terps should be beautiful. >> i can't wait until this next flower is built up. double this at harvest. 50 pounds of weed rockin'. get to see the fruits of all your labor. >> thinking about getting a snowmobile? >> like to. it's my next big purchase. >> i would too. >> yeah? let's go shoppin'. [ laughter ] ♪ >> town of brek does about a million dollars a month. we're going to take a million dollars and split it. if revenue gets cut in half, we needless than half of the employees we have right now. it's going to be very difficult
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to get moved in 60 days. there may be a period where the breckenridge cannabis club has zero sales. >> in the middle of winter. >> in the middle of winter. this is how i feel about council right now. this is exactly how i feel. total bull [ bleep ]. >> they had this american dream. they did everything perfect to get themselves there. and then when it was, you know, that close to being here, the rug was pulled out from under them. >> two years ago today it was a peaceful little pot shop. i was selling to the med patients. i would have never guessed that two years later i would be here not knowing if i even have a future with this company anymore. >> you know, i got 20 employees whose jobs aren't as important as the image of breckenridge
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tourists. who do i cut? do i ask council to fire all my employees now? >> remember when we had this built? >> exactly. i'm thinking about all the work we had to do. >> we have to tear down all this ducting, get a permit. >> this mural, i guess, will go. we never did paint joints in the mouths of all the animals like we all the talked about. tear all this stuff down. all these lights and this whole situation, really. >> i hope we can sell it all. >> i don't know if we can. we have so much of it for sale. >> like 100 pieces of lights. >> we just need to move forward with the process of getting moved down here, you know, it takes several months to schedule an appointment anyways. we need to start that process and hope for the best and hope that if we go through with this lawsuit situation it works out in our favor and that way if something goes terribly wrong with our other plan, we won't be
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effectively shut down. i will be furious if we have to be shut down for one day. >> me too. me too. it's unbelievable. out on the veranda, we enjoy finger sandwiches and other assorted dainties. i wear nothing less than the finest designer footwear. wherever i go, the paparazzi capture my every move. yes, i am rich. that's why i drink the champagne of beers.
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injustice, you know, then we're, then we're in. >> well, yeah, you know, i talked to the town attorney, and, you know, some things more of the facts have come out, and i am a little concerned. the point is we had this medical system for those years when you guys started. and then this recreational thing came around. and it really is a new regulatory structure. we're fighting an uphill battle in front of judges that have spent 50 years putting people in prison for marijuana. and now we're asking them to treat marijuana dealers like other business people. i think there is some danger here that they're going to say well, we told from you the beginning you couldn't be here. and we know that will be their argument. look, i'm not saying you don't have a lawsuit. you do have a lawsuit. i guess what i'm saying, the more i see the facts, i'm a little concerned that we're not going to have as strong of a case. what i think you guys should do is start gathering the
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signatures, put together a balance lot petition which we already have. sue the town. i mean, you've got to decide what your bottom line is, but even keeping you open through the ski season is going to be hundreds of thousands of dollars. we already have the lawsuit. we've got this ballot, and if you keep it open until the end of the season we'll drop it all. >> right now, everybody pretty much beats us. so on one hand, why not go ahead and sue, but on the other hand, i don't want to make them hate us even more. >> i don't think they hate us. >> i feel like they do. is your confidence rate that we would win the suit. >> the likelihood of litigating this to the end and of winning is probably a tossup. i feel like you can't win if you don't play. and i'm not pushing you guys in that direction, because obviously, i'm not the one doing the day to day stuff. but i think that's the only hope if you want to stay longer.
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>> i just do not like the language he kept using. he never once, you know, said it was something we're going to win. i don't want to sue just to stay for a couple months. we're just going to piss everybody off in town. we've been fighting for so long, and i don't want to take on a fight or battle that we can't or may not win. >> hey, we're going to sue you unless you give us three more months. >> i don't want an extension. i want to stay in the location we chose five years ago. i'm so sick of people saying, you know, you're not planning, like they already gave you an extension. they why already nice enough, like, that's not what happened. we were supposed to have stayed there forever. it's pretty short-sighted to only be concerned about the next two months when we're trying to be in breckenridge for years. we're trying to be in colorado for years. we're trying to be in the marijuana industry for years. >> we have oak creek now.
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we have plans for expansion in both those areas. if we were to sue frivolously, we're just as a way of dragging this out for short-term profits, our long-term profits would suffer. people would not shop at our store, just because we sued the town. so we don't want to sue the town. and now we aren't going to. instead, we are continuing our focus on just moving as quickly as possible. 60 days. to move. and here we are three or four weeks into that. >> so [ bleep ], that's bull [ bleep ]. >> i think our plan is pretty solid. we will retain the majority of the sales we have on main street and that when we go to airport road, we will also take advantage of that parking lot market. it was half the market. i think it's win-win all the way around. i don't want to call it giving
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up. i want to call it the end of the road. there's just nothing else to do that's appropriate at this point in time. >> i don't really want to have to sue anybody anyways. >> that chapter's over. our store's no longer on main street. we're just going to airport road and we're going to compete down there. >> we only have three and a half wreaks to tear down these walls, build the new place, get inspected and be open for business. >> woo! look at all that damage i did. >> coming through. >> i'm a soccer player. >> mm-hm. ♪ >> down the ceiling.
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>> we're down here tearing insulation and walls down to build out our store on airport road. and meanwhile, on main street -- >> i have the door. that's in front of our store right now. >> out the door? >> out the door. go get'em. i hope we have a line that long out here. >> i know. no matter where he's hosting. ♪ an hors d'oeuvre for the table? ♪ perhaps even an elegant gesture for the neighbors. ♪ stella artois host beautifully
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♪ no one in their right mind would build out a whole new store before the election in preparation for a no-joet. they would wait for the vote to happen and we're doing our best to get it done in 60 days. i can't imagine asking any other business to move from one location to another with 60 days' notice. i'm not 100% shern we'certain wg to make it but i'm fairly certain. we'll probably close early that day, 8:00 or 9:00 so we have four or five hours to get everything here before midnight. we only have to do it one time. can't have it in both places. it has to go with the permit and be at the new location.
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and that one is no longer open as a weed store. what we're going to try and experiment with is keep the cannabis club where it's at and use it as a referral program. doing business as name is breckenridge cannabis club. it's just going to remain hanging. >> we use that space as a gift shop and it becomes a second business with bcc tee shirts and stickers. >> people are going to go there expecting marijuana. and when they get there and are disappointed, we can tell them our sob story but how they still allow a shop that sells cannabis-related materials here. we give them a map with directions and the bus route to our store on airport road. on the other side, it's good for 10% off offr 15% off. if they have the card in their hand, why would you go in any other shops.
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>> the biggest benefit is marketing to tourists. >> they're not going to know where to go unless someone's telling them where to go. i think we have to do it. >> we'll still be the breckenridge cannabis club, but we'll be like a head shop. we'll be two miles down the road. >> a little farther away. >> okay, cool, so ail still shop? >> i get it. it's become a family environment. it is right on main street. so i can respect that. i am personally in disagreement of it. however, i do understand the other side of the coin. so if i have to walk two extra blocks down the road to pick that up, i'm okay with that. it seems like a fair compromise, but i would have preferred to have it stay here. oh, wow, two miles, i thought you said two blocks. that's a drive. i mean, having to walk down to the industrial district wouldn't have been feasible for me today.
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so, there you go. ♪ >> in the last 24 hours, we learned that we may not be able to open on february 2nd like we initially anticipated. we went down to the marijuana enforcement division and applied to change from the main street location to this new location. they told us it might be 45 or 60 days to approve an application that we thought would only take a couple of days at the most to approve. >> what is today? tuesday? six days to move. 45 to 60 days is just not do-able for us to have to, like, shut down our store and not be open. >> that would be 12 employees of ours that wouldn't have an income for two months during the time of year when they have their best income. >> i don't really know how i feel right now.
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>> we are now going to go to the town council in breckenridge and ask for an extension beyond february 2nd. >> i really just wish we didn't have to show up in council chambers tonight and ask for an extension. like one of, besides shutting down, it's the last thing i want to do. >> okay. the breckenridge town council regular meeting will come to order on tuesday, january 27th. please come down and state your name for the record, and we'd like to hear what you have to say. just me. >> high name's brian rogers. the breckenridge cannabis club is asking the town council for an extension to remain for 60 days or 48 hours after they receive the permit to change locations, whichever is shorter. we've never been closed one day in the history of the company. and i'd hate for something other
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than market forces for the bureaucracy of the situation to close us down for the first time ever. we've been in for a modification of prem igs application four times, and they've all been approved while we sat there during the application process. again, this was very new and surprising to us that this was not happening immediately. and i'm here tonight asking please help us not be shut down. >> there's some language into what constitutes an emergency ordinance. the extension for a retail organization may not fit that bill. >> it's unfortunate. it's just, i wish we could have predicted the days better. >> i personally do not feel like it rises to the level of an emergency. >> i don't think anybody's intention is to put anybody out of business. i hope not. it's not anybody's intention. we're in a real tough situation. i think the group of us thought -- >> appreciate it's an emergency
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ordinance and that there's no room for the opposition. i was hoping there was room for the fact that it was the opposition who asked for 60 days after i asked for 90, and we brought that back down to 60, because i was trying to anticipate this, and now i do feel a little jaded that we asked for 90 to be fair and honest to the process, and this process is long and unknown. arduous, we've never been through this in this town ever. so this is a unique situation that i was hoping that we could find a way to unite around an emergency to employ the 12 people for any number of days that they may be out of work and for a situation that's never been seen in this town before. >> i'd like to see if there is anybody who would like to make a motion to add this to our agenda. >> i'm very sympathetic to your situation. i don't think it rises to the level of an emergency. an emergency ordinance. i'm sorry. >> so we will close this matter, brian. thank you for coming to us and talking to us.
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>> i wish they would recognize 12 people going without work for any number of days as an emergency. clearly, i think our government's lost its way a little bit around here our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business. the uncertainties i don't wantof hep c.with or wonder... ...whether i should seek treatment. i am ready. because today there's harvoni. a revolutionary treatment for the most common type of chronic hepatitis c. harvoni is proven to cure up to 99% of patients... ...who've had no prior treatment. it's the one and only cure that's...
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what are you doing? are we going to go up? >> is there an emergency shut-off valve? >> we've neutralized our name, it's back country cannabis company. it definitely helps the momentum forward as far as expanding into other mountain towns. >> it's hard to bring in the name breckenridge. everyone's proud of their ski town. new beginnings. >> back country cannabis. >> people run their towns probably wonder why in the hell are there so many weed stars in one parking lot and nowhere else in town. imagine this was all liquor stores. we don't even have sidewalks or a bus stop. the bus stop's almost out of sight all the way up there. and the sidewalk we do have is on the other side of the street. >> i've already planned out a
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speech in my head. i know you really don't care about the marijuana community at all. but it's a public safety issue. >> did you hear about the lady getting hit by a car. and this lady in the paper was, like, you put all these marijuana stores down there and they tested her, and she was drunk. it looks great. we have48 ho 48 hours to go. >> basically what happens is if the m.e.d. can't issue us a new license, we'll have to shut down. >> we basically stop making money, and this place could sit collecting dust for 60 days. just sit doing nothing. >> if they don't come through for us and that doesn't work, i'm going to have to probably lay off 12 people. >> if we're shut down for 60 days we'll go out of business. we'll go bankrupt for sure. >> do you have a lock up.
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>> you have been working your butt off? >> oh, yeah. >> does that mean you can retire now? >> i don't know. i don't know. there's part of me that wants to keep fighting. but part of me just knows that i can't keep going at this pace as well. i feel like i've already gone crazy. and it's been years of me being stressed out and telling brian, like i don't want to do this anymore. >> do you think you can walk away from it as long as he's involved. >> maybe it's one of those things where i can't walk away. this is our baby. and it is something that i have put my heart into and something i care about. and it just doesn't matter that i'm burned out because the company needs me. so here we are. as much as i would love to walk away, it's just not going to happen right now. >> i want to see something change for you. i want to see you be happy, not
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stressed all the time. >> me too. >> i want you to be happy. you are my sunshine. [ laughter ] >> attitude. >> in no, way, shape or form do i doubt that clever gin is going to be the premier brand. i just don't. >> no one has stepped up to be a brand yet. i'm sure there are people waiting in the wings to do so. but we have time now. we want to be the first brand out there. >> hi, i'm kathryn. great, nice to meet you. >> this is very soft. this is our soft launch. >> it's our opportunity to say here's what we're doing. we have a grow facility ourselves out in fair play that's prepped and ready to go. but the licensing process is this ex-ten sieve, miserable, takes forever situation.
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the industry sucks and i'm broke. $500 in liquor stores. $1,000 in catering. that's my rent, whatever. i am a strong-willed, ambitious businesswoman. i'm a risk taker. i should have some sort of caregiver myself. someone to say kathryn knows her own terrible risks. i don't slow down. i don't take breaths. we haven't even started the licensing process. we're, what, eight months? eight months from harvest. this whole [ bleep ] building is empty. >> excuse me! can everybody kind of gather in here? >> we are here to introduce clever gent. we are here to introduce the very first brand the cannabis. the perception in this industry is definitely, there's so much
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easy money to be made, it's drugs. drug dealers are all rich. come on. the lesson is, that's not even remotely true. so what we're here to do is to ensure the consumer can find a consistent, quality product, to make sure that no matter what dispensary you're walking into, you can pick up a little bud that you know you can trust. >> clever gent represents passion. >> in this industry, you get thrown a curve ball left and right all the time. and you have to figure out how to accommodate the situation you're sitting in. and this is the situation i'm sitting in, sitting in an empty room. no lie. this industry's [ bleep ] hard. like, this industry's mr. hard, that said, clever gent is here to stay. it's going to stand the test of time. when all is said and done and everybody's add together, this
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is a [ bleep ] million dollars a million dollars that is sitting here that can produce nothing. if we had taken that million dollar investment and put it in a [ bleep ] cd i would have an investment right now. what else am i going to do with this? hey, somebody want to come grow some tomatoes? i don't know, seriously. is that something that's going to be as profitable as marijuana? i don't know. marijuana's [ bleep ] profitable at this point. maybe we should look at growing something else in this facility right now. >> here, here! [ laughter ] ♪ ♪ ♪
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club, llc. yes. yes. >> is this all pretty much just pot over here? >> everything in this room is thc. >> let's for right now, before we even unlock that door get everything to the bottom of the stairs that we're taking. then that way it's that much closer. it's totally bitter sweet. we got to be here, and that's more than anyone else has gotten to say this whole time. where are lids to all these things? >> we did about 50% of all of breckenridge's sales out of this one store. we acquired the crest view center in that time period. we acquired a building to grow our new garden in, to put our lab in, our kitchen in, to brand our wholesale line. none of those things would have happened this quickly if we were not here on opening day like we planned. we needed this situation to springboard us into big competitor status. you have to have that idea to go from small potatoes to big
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player. this is not the ideal ending to what we've been trying to accomplish for the last year and a half. but got the edibles, the concentrates, the garden, all of our wholesale stuff. and that's bigger than this store was ever going to be. we're always dreaming big. sometimes bigger than maybe is even possible. but you aim high and get close. you're still way up there. ♪ ♪ all the empire's calling >> there's no looking back. after today, that's behind us, and it's full steam ahead. >> slowly but surely getting over to the new location. where we at? one minute we're on main street. this is a sad moment. >> i wouldn't want to watch that. ♪
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♪ and he sees if they exist february 2nd, day one, new location. yep. the image was the big question of this all along. breckenridge club was ruining our image of downtown. the irony of all this at the end of the day, that sign is not going anywhere. the tourists still see this. they still see it. nothing has changed from that aspect. by them staying here and selling souvenir-type things, they will have a large serviceual impact of marijuana than they did before. this is crazy. a year of so much money being
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spent on this campaign. and all the heartache. and it was heartache. and all of that seemed to just be a waste now. because that sign is still staying there. i kind of just want to look at the opposition and say you probably never thought about this, did you? in the end, who really wins here? >> we are not a cannabis shop anymore. we got moved. we're on airport road now. like city market, think city market's like a mile from here. and then just like a mile down airport road. this right here will be 10% off. >> i hope we see discount cards walk through that door. that way we know the referral service downtown is working. and the thousands of dollars to rent that space is paying for itself. we're referring customers, sure, to airport road, but to our
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business specifically. >> this is not a repudiation of the decriminalization of marijuana by any means. it is a repudiation of the location. >> we, as a town, have been disingenuous a bit. here we supported legalization of marijuana. but then now? we don't want our visitors to know that we support it. and, instead, we're losing some of our identity to look perfect. >> we're trying to craft a community that is a sustainable economy. and this crafting may homogenize our community. it may detract from that
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quirkiness that we've had for years and years and years. it is a government reaching in and saying this business doesn't belong. are we putting our guests, our tourists on some sort of pedestal? and valuing that person more than a downtown business? the short answer is yes. >> pie in the sky. just say no more. ♪
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-- captions by vitac -- www.vitac.com on the morning of february 20th, 1989, something terrible happened to janice johnson, a 35-year-old housewife and mother of two children. >> claire, i've got to go. i'll talk to you later, okay? >> the investigation into that morning's events would raise questions that persist to this day. clayton and janice johnson lived in the tiny coastal fishing village of shelburne,
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