HRC March Newsletter
Thank you HRC and Hoboken residents for your activism! In February, HRC reported that many residents contacted www.hobrc.org complaining about smoke shops in town, pretending to be legitimate and regulated cannabis dispensaries, and selling illegal marijuana. We notified the City Council of the issue, which initiated a law enforcement investigation of Hoboken Exotics (521 Washington Street). As a result, the Hoboken Police Department arrested the owner, an employee, and a minor on multiple charges related to the illegal distribution of marijuana. The Zoning Department revoked the Hoboken Exotics’ Final Certificate of Zoning Compliance and Certificate of Occupancy and instructed them to close immediately. HRC has advocated that state-licensed, legitimate cannabis dispensaries should not have to compete with an overt black market. It isn’t safe. It doesn’t contribute to the city’s tax revenue, and more importantly, it is illegal. The arrests at Hoboken Exotics are a step in the right direction to creating a level playing field for Hoboken’s cannabis retail.
We still have a lot of work to do and would appreciate your support. You can support by donating financially to HRC or by volunteering to work on a project. There seems like a never-ending “to-do” list, and we could use your help.
March Highlights
The Story Dispensary litigation seemed like it couldn’t get any worse, but it has. Here are a few highlights from the most recent filings on the public docket.
Fulop/Nussbaum LLC has refused to produce relevant discovery as court ordered to the Condo Association attorneys. Not only have they not produced significant paper discovery e.g. emails and other documents, they have also instructed third-parties not to comply with depositions and Nussbaum, Fulop, and Mayor Fulop have not complied with scheduled depositions. Whether it is a stalling tactic or they have something to hide, who knows? But the June 12th court date has not changed.
The Fulop/Nussbaum LLC is suing the residents of the Condo Association. In a new lawsuit, Docket No. HUD-L-769-23, Fulop/Nussbaum claims: Count 1: Conversion of Retail Assets; Count 2: Violation of the N.J. Oppressed Shareholder Statute; Count 3: Civil Conspiracy; Count 4: Breach of Fiduciary Duty. In short, Fulop/Nussbaum doesn’t like the fact that they have been paying condo fees, since they purchased the property, yet don’t have condo membership and claim those monies have been mismanaged. In addition, Fulop/Nussbaum believes the Condo Association has been conspiring and “inflicting a wrong” against them. The Condo Association attorneys describe the lawsuit as “vindictive”. It is another effort for Fulop/Nussbaum to stall or deflect from the case against them.
Village Dispensary (516 Washington Street) was approved by the Planning Board despite being approximately 460 feet away from Hoboken Middle School. HRC attended Village’s Planning Board hearing where they presented a detailed business plan which demonstrated they had the experience to run a safe cannabis business. Unfortunately, we were disappointed to discover that this dispensary violates the 600-foot school buffer. Common Sense Cannabis regulations state that a cannabis dispensary can not operate within 600 feet in all directions from a school, yet Village was approved despite its proximity to Hoboken Middle School. Village’s argument is that they were protected by the “time of application” statute.
State law grants applicants to a “land use board” (planning or zoning) the right to be subject to whatever laws are in effect when they submit a completed application – known as the “Time of Application” rule. Village submitted its application to the Cannabis Review Board prior to the Common Sense Cannabis regulations going into effect and submitted its application to the Planning Board after the regulations went into effect. HRC believes the Cannabis Review Board is an advisory board, not a land use board, and does not benefit from the “Time of Application” rule and is currently litigating this with the Hoboken Planning Board and Blue Violets.
Blue Violets’ and Village’s cases are legally identical, but some of the details are different. Blue Violets faces All Saints Episcopal Day School and Hoboken Charter School and violates the 600-foot rule no matter how you measure it. Village is, on the other hand, around the corner from Hoboken Middle School and isn’t visible from the school grounds. A surveyor representing Village presented to the Planning Board the “walkable” distance from the dispensary to the school as just over 600 feet, but the ordinance states 600 feet in all directions which this measurement doesn’t satisfy.
In an effort to provide full transparency on the issue, HRC sent a letter to the Board of Education, Superintendent, and Principal of the Hoboken Middle School with the expectation that the broader school community would be notified. The Blue Violets court date in July could decide the fate of both dispensaries but might depend upon residents formally opposing Village dispensary in the courts. Village Dispensary must still be approved by the City Council before it gets full endorsement from Hoboken and can apply for a state license. The Council meeting to consider Village’s application hasn’t been scheduled but could be as soon as the next meeting on April 3rd. Please keep your eyes out for the agenda.
Smoke shops continue to be a problem. This past month, we have received more emails from concerned residents regarding smoke shops and their advertising. In addition to the issues with Hoboken Exotics, Frank’s Spot has a sandwich board advertising “pre-rolls” and “edibles” across the street from two schools.
HRC notified the zoning department and was told everything they are doing is legal. If the legal dispensaries have to be regulated, then it would make sense that smoke shops should abide by some regulations, as well. HRC is going to look at these business zoning applications along with the ordinances the town has to regulate them. If we need to amend or propose new ordinances, we will work with the City Council to do so. We are looking for additional volunteers to work on this project. Contact www.hobrc.org if you are interested.
There is nothing new regarding the Blue Violets litigation. Defendant opposition briefs are due on May 8th, and the court date is scheduled for July 18th.
CRC Upcoming Meetings – The state Cannabis Regulatory Commission will meet on April 13th at 1 p.m. to consider another group of dispensaries for state licensing. The agenda has not been posted. https://www.nj.gov/cannabis/about/meetings/
Register to speak here. The deadline to register to speak at the April 13th meeting will be Tuesday, April 11th at 5 p.m.
