A medical marijuana dispensary could soon be opening at this Lexington location

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A former Frisch's Big Boy in Lexington's popular Hamburg shopping district could soon be the site of a medical marijuana dispensary complete with a drive-thru and knowledgeable budtenders ready to answer questions.
That's according to Casey Flippo and Sean Clarkson, the two Arkansas entrepreneurs behind the project, who spoke to the Herald-Leader in a June 3 interview. In 2021, the two founded Dark Horse Cannabis, where Flippo is the CEO, and Clarkson, the chief financial officer.
The establishment comes as the private sector mobilizes following Kentucky's launch of a medical marijuana program earlier this year. The state's Office of Medical Cannabis has awarded limited but transferable licenses for production and sales, and as of Jan. 1, qualifying Kentuckians can apply for a medical cannabis card.
Recreational marijuana use remains illegal in Kentucky.
Flippo said the process for demolishing the interior of the former restaurant, situated in a shopping center between Sir Barton Way and Man O' War Boulevard, has already begun. It's located at 1849 Alysheba Way.
'We have been seeking permitting approval with the city of Lexington,' Flippo told the Herald-Leader, adding the plan is to 'open the doors mid-November at that facility.'
The 5,500-square-foot dispensary wants to offer 'compassionate care' discounts to qualifying patients, Flippo said. There's also potential to accept online orders for pick up via the drive-thru, so patients 'never have to get out of the car,' Clarkson added.
'It's a quick and easy process for our patients, especially those that are handicapped in some way, or elderly,' Clarkson said.
Clarkson anticipates patients will likely want to meet with dispensary staff in-store at least initially after its opening for questions about products and their use.
'As they're getting familiar with the product availability, they're going to want to talk to budtenders,' Clarkson said.
'I believe that we will probably end up employing somewhere between 30 and 40 individuals,' at the site, Flippo added.
The idea is for staff to be 'extremely knowledgeable about the medicinal applications and appropriate use of the cannabis that's being dispensed,' Flippo said.
That said, there will likely be many obstacles to clear before the business can open its doors to the public.
'It's historically pretty challenging to prop up cannabis markets' quickly, Flippo said.
Chief among the obstacles: finding a supplier who can stock the dispensary's shelves with products.
Kentucky's medical cannabis program only allows for edibles, oils, tinctures, vapes and raw plant material. State law requires the plant material, which must be produced and tested in the commonwealth, to be vaped — not smoked. Raw plant material packaged in Kentucky must be labeled 'not intended for consumption by smoking.'
State rules also require medical marijuana cultivators to stand up secure, indoor facilities for growing, cultivating and harvesting the plants. The state's first medical cannabis cultivator broke ground on a facility in Monticello this spring.
In Winchester, Cresco Labs cut the ribbon in April on a cultivation facility that promises to be the one of the state's largest. Phase one construction on that facility, which includes a 5,000-foot plant canopy, is expected to be completed by the fall.
'We believe … that the market should be set to open sometime in late Q4 of this year,' Flippo said, adding his dispensary is targeting an opening during that window.
KYLX Acquisition Company LLC now holds the state license for the dispensary planned at 1849 Alysheba Way in Lexington. KYLX recently acquired it from ZenLeaf LLC, which was the original licensee awarded via a state lottery held last year.
Kentucky held series of state-run lotteries last fall to award medical cannabis business licenses. The lottery to award Fayette County's two dispensary licenses was held in December.
In April, Kentucky Auditor Allison Ball announced a probe into the lottery process amid ongoing concerns out-of-state companies with deep pockets were able to flood it with applications, thus tilting it in their favor.
Dark Horse was identified as one of those companies in a series by Louisville Public Media, which also found Clarkson had ties to 350 of the new businesses created in the month leading up to the application deadline.
Asked for his response to concerns about too few Kentucky hemp farmers being awarded licenses, Flippo said he was 'very sympathetic' to those who did not win, especially given the application fees were thousands of dollars and were not refundable.
Ultimately though, Flippo defended the process for awarding the business licenses.
'Our experience with the [Office of Medical Cannabis] and the governor's office was nothing short of spectacular. I think that they put a phenomenal program together,' Flippo said.
In working with the Office of Medical Cannabis, Flippo said, 'I would argue that it's probably one of the most successful cannabis market launches in the U.S.'
Herald-Leader reporter Janet Patton contributed to this story.
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