Jonathan Starkey

The News Journal

A Lewes lobbyist and former aide to U.S. Sen. Tom Carper is negotiating with the state Health Department to operate Delaware's first medical marijuana dispensary, which could be located in an industrial park south of Wilmington.

Health officials sent a letter last month to Mark Lally, president of First State Compassion Center, initiating negotiations.

"Negotiations on the contract for the compassion care center are ongoing," said Jill Fredel, a Health Department spokeswoman. "Our priority is to have a safe and secure center open as soon as possible."

Opening of the dispensary could be delayed by a Chancery Court lawsuit filed by former Lewes Councilman Judson Bennett against Lally. In an amended complaint filed this month, Bennett claims he hired Lally to help win the medical marijuana contract, only to have Lally eventually work with a competing, Massachusetts-based firm, Sigal Consulting, to win the right to operate the state's sole dispensary.

The Associated Press first reported on Lally's contract negotiations.

Bennett said in court documents that he paid Lally $25,000 to act as "spokesperson and lobbyist" for his venture, Sussex County Compassion Care Center. He claims Lally breached terms of their contract and is seeking an injunction from the court. He claims that the unfair competition deprived his venture of millions of dollars in estimated revenue.

Court documents show that Lally sought zoning approval in April for a medical marijuana dispensary at 37 Germay Drive, south of Wilmington.

Lally is a retired state trooper who headed the executive protection unit for then-Gov. Tom Carper. He later worked as Sussex County director for Carper after he was elected to the U.S. Senate. Lally works as a lobbyist representing the Rehoboth-Dewey Chamber of Commerce, the Delaware League of Local Governments and other clients.

In a written statement, Lally said "First State Compassion Center continues to work with the Department of Health and Social Services on plans for a compassion center in Delaware. We commend the Department for its diligence and continued progress on this project. We look forward to formally announcing our organization's plans in the near future."

Contact Jonathan Starkey at 983-6756, on Twitter @jwstarkey or at jstarkey@delawareonline.com.