Gilroy police served MediLeaf with a cease and desist order Wednesday evening, two days after the medical marijuana dispensary opened in northwestern Gilroy without a license and to the surprise of city leaders. Representatives from MediLeaf would not say that they would close down, and some city officials worry a legal battle will ensue.

Sgt. Kurt Ashley of Gilroy Police Department served the order at 1321-B First St. about 5:30 p.m., according to Eric Madigan, who is serving as an ombudsman for the dispensary. A copy of the order sent to council members called on MediLeaf to immediately stop selling marijuana and to cease operating a medical marijuana dispensary at its present location and anywhere within the city of Gilroy.

If not, "... the City will be free to take any and all legal actions necessary to enforce your compliance with the law ... " the order read.

City Administrator Tom Haglund, City Attorney Linda Callon and Development Center Manager Kristi Abrams signed the document.

It was addressed to MediLeaf directors Neil Forrest and Batzi Kuburovich and to San Jose residents Mike and Kulwinder Kaur Atkar, who own the building that houses MediLeaf.

The order cited MediLeaf for operating without a business license, operating in a district that was not zoned for a dispensary and violating federal law.

MediLeaf's opening caught city officials by surprise Monday, as the dispensary opened in spite of a City Council ruling against an ordinance that would have allowed it to operate.

Kuburovich said he could not talk about the cease and desist order for legal reasons. However, Madigan said that Ashley had delivered the document in a courteous manner.

Kuburovich said Monday that his attorney advised him that the dispensary could operate without a business license because it was a nonprofit. However, Police Chief Denise Turner said that logic was not true and that the business was "illegal."

A few council members on Wednesday said they expected a legal battle to ensue.

"It's so darn frustrating that the council didn't have the foresight to see this would be the immediate outcome of what they did," Councilman Perry Woodward said.

Woodward voted in favor of an ordinance on Oct. 12 that would have allowed for zoning for medical cannabis dispensaries.

He anticipated that the city may have to spend hundreds of thousands of dollars in legal fees if it chooses to fight MediLeaf in court.

"They're setting this thing up," he said. "They had to know they're getting a cease and desist (order)."

Medical marijuana facilities have operated in other communities without causing an uproar, he said.

Some other council members, such as Dion Bracco, expressed ire with MediLeaf for opening without a permit.

"I'm glad we didn't allow them in," he said. "This shows what kind of people they are."

He said he had received 20 to 30 e-mails from people who were opposed to the dispensary opening this week, while only one woman had e-mailed him to say it should stay.

"People are ticked," he said. "People are hot right now."

Councilman Bob Dillon also was upset with the dispensary operators. He said his immediate reaction would have been to have city code enforcement staff place a lock on the door.

Madigan said City Council members should come to the dispensary and see the local residents who are receiving aid at MediLeaf.

"I've seen brutal, brutal stuff - people who know they only have one year to live," Madigan said.

More than 40 people visited the dispensary the first day, Madigan said, and people continued to stream to the business Tuesday and Wednesday.

Madigan maintained that MediLeaf opened without a business license upon legal advice from the cooperative's attorney, who said it should be able to do so as a nonprofit.

Madigan was convinced that city officials eventually would see things their way.

"We set a standard that's so high, that they're going to say, 'This is it,'" he said.

However, council members who opposed the ordinance appeared even more set in their stance Wednesday.

If MediLeaf operated without a license, than others would start ignoring city licensing requirements as well, Bracco said.

Meanwhile, Dillon figured it would take more than a cease and desist order for the dispensary to close.

"The cease and desist order is a piece of paper," he said. "I don't really know how effective that's gonna be."

Read more about resident reaction and the inside of the store here.