Two Phoenix residents were arrested on felony charges stemming from what the Jackson County Illegal Marijuana Enforcement Team believes was a black-market cannabis growing operation outside Phoenix city limits.

Steven Robert Mialocq, 47, and Alyssa Monique Vaverde, 34, each were arrested on charges of unlawfully possessing, distributing and manufacturing a marijuana item, according to a release issued by the Jackson County Sheriff’s Office on behalf of the multi-agency IMET team.

IMET investigators joined Oregon State Police detectives and sheriff’s deputies to issue a search warrant on the suspected growing operation in the 4400 block of Colver Road in rural Phoenix, according to the release.

On site, police say they found 850 illicit marijuana plants, 40 pounds of what police believe to be processed unlicensed cannabis, and an assortment of THC and psilocybin mushroom products.

According to IMET, the property had no licenses for any type of cannabis growing, handling or processing.

Jackson County Code Enforcement separately issued a total of $44,000 in fines related to the alleged grow operation. The sheriff’s office states that fines issued covered building code violations, non-permitted electrical installations and for failing to get land use approval for marijuana production.

The Oregon Water Resources Department’s enforcement section is also expected to issue civil and criminal penalties on grounds that a well was used to water the cannabis crop.

IMET is a multi-agency task force funded by an Oregon Criminal Justice Commission grant that focuses on black-market marijuana in Jackson County. It includes personnel from the sheriff’s office, U.S. Department of Homeland Security Investigations, OSP, Medford police and the Jackson County District Attorney’s office.