The state has finalized negotiations with First State Compassion Center to run Delaware’s first medical marijuana dispensary, despite an ongoing lawsuit against the company.

In a letter to Sen. Margaret Rose Henry (D-Wilmington East), a sponsor of the original legislation, and New Castle County Executive Tom Gordon, DHSS officials say the growing operation is expected to start this fall, with sales beginning in early 2015.

First State Compassion Center and its president Mark Lally, former Sussex County Regional Director for Sen. Tom Carper (D-Delaware) inked the deal Monday.

In the letter, Dr. Karyl Rattay, Director for the Division of Public Health, says the site at the Germay Industrial Park in Wilmington “offers easy access for licensed patients and caregivers,” noting it’s within walking distance of two bus routes.

DHSS officials will monitor customer demand over the first year and possibly recommend licensing further dispensaries.

First State Compassion Center’s contract expires in two years, but can be renewed after a state review.

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