Greeley City Council enacted a strict regulatory ordinance to hinder businesses that wish to offer psychedelic substances before the enactment of Proposition 122 on Wednesday, which decriminalizes and regulates the use of psychedelic plants and fungi.
The proposition was on the Colorado state ballot in 2022 and passed with 53% of the vote. It will go into effect as the new year begins. Under this new rule, business owners can acquire licenses from the state to start a business selling a psychedelic experience.
To the council’s knowledge, there are no businesses currently seeking to acquire a license and offer this service within the city.
For adults 21 and older, possessing, growing, sharing and using psychedelic plants and fungi will no longer be considered illegal in the state of Colorado so long as their use is supervised. This means that businesses wishing to enter this enterprise will offer supervised experiences of psychedelic substances that can last from six to eight hours. They will not be selling them for take-home recreational use.
“This is not a dispensary,” assured Greeley Planning Supervisor Caleb Jackson.
On Wednesday, psilocybin and psilocin — which are derived from psychedelic mushrooms — will be decriminalized. Psilocybin is a chemical found naturally in more than 200 types of mushrooms that, when consumed, metabolizes into psilocin and causes euphoria, changes in perception, a distorted sense of time, perceived spiritual experiences and hallucinations.
In 2026, state officials may choose to expand the definition of “natural medicine” to other plant-based psychedelic substances — dimethyltryptamine, ibogaine and mescaline — thereby decriminalizing their use as well.
Marijuana, which the city prohibits the sale of within city limits, does not fall under the definition of natural medicine, which is described in the ordinance as raw forms, sources and products containing psilocybin or psilocin.
Unlike when marijuana was legalized, localities cannot prohibit what are being called “natural medicine businesses.” However, Greeley does have the ability to control restrictions on the time, place and manner of these businesses.
The council voted to restrict natural medicine businesses to industrial medium and high-density zones. While the state proposition only imposes a 1,000-foot buffer between these businesses and child care centers and schools, city council members have added to the list of buffer properties: residential properties, museums and art galleries, natural areas, gyms, animal care facilities and other natural medicine businesses, as well as dispensaries and liquor stores.
As a result, the areas where natural medicine businesses can be located are few and far between, making it difficult but not prohibitive to establish natural medicine businesses within Greeley, according to city staff. For the most part, the only place a natural medicine business could take up shop is in the eastern side of Greeley, mostly falling in Wards I and II, which are represented by Councilman Tommy Butler and Councilwoman Deb Deboutez.
Residents of Ward I and II have lower household incomes on average than residents of the other wards in Greeley, according to census data.
“This might matter to some folks in our community a lot. Particularly if they’re going through something that this therapeutic use might be for,” Butler said. “I wish we had time for a more robust discussion, but with the timeline given to us by the state, this is the most responsible thing to do.”
Deboutez asked Jackson if the city had consulted any health experts to explore those therapeutic treatments that Butler had mentioned. Jackson informed her that city staff had not consulted any health experts or organizations at this time but also added that there are studies out there that suggest the use of psychedelic substances can help treat individuals suffering from post-traumatic stress disorder or other trauma.
In addition to the 1,000-foot buffer, natural medicine businesses wishing to set up shop in Greeley will have to adhere to the same rules and regulations as other businesses. They will also be subject to regulations against detectable odors and will not be allowed to have secondary buildings. Failure to comply with these regulations will result in the rejection of the business’ license to operate in Greeley.
Mayor John Gates expressed his dissatisfaction with the proposition.
“This is just another state mandate that I’m fairly unhappy with,” he said.
Gates, however, ended his expression of displeasure there.
Greeley City Council members unanimously passed the ordinance, hoping to lessen the impact of natural medicine businesses within the city.
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