Happy New Year!

This month’s newsletter covers several important cannabis-related issues in Hoboken. An update is provided on the Blue Violets legal disputes, which are reshaping the zoning laws. The City Council also voted on a questionable agenda item impacting local governance. Finally, cannabis tax revenues through the 3rd quarter of 2024 are reported, along with insights into the ongoing delays surrounding the Story Dispensary.

The Appellate Court sided with Blue Violets in a precedent changing ruling. HRC will petition the Supreme Court to hear the case.

In late December, the Appellate Court ruled in favor of Blue Violets, overturning the lower court’s decision and establishing a new legal precedent for the Municipal Land Use Law. The court determined that the Cannabis Review Board (CRB) functions as an “arm” of the Planning Board rather than an advisory board or a step in the approval process. This ruling allowed the CRB application - submitted by Blue Violets before the school proximity law was amended - to be legally recognized as the “application for development,” rather than the later Planning Board application.

Numerous land use attorneys unaffiliated with this case have advised that the ruling was deeply flawed. This issue has grown far beyond whether Blue Violets can operate near a school. The ruling established a sweeping statewide precedent, permitting advisory boards - for example the Historical Preservation Commission and the Environmental Commission - and their applications to be treated as extensions of the Planning Board. This change disproportionately benefits developers, undermining laws designed to protect citizens. Consequently, HRC will file a petition with the New Jersey Supreme Court. However, the Supreme Court must first agree to hear the case, and the entire process could take several months and offers no guarantees.

HRC’s legal argument has consistently been that the Hoboken Planning Board lacked the authority to approve Blue Violets’ application. The application was submitted late and incomplete, well after the 600-foot school proximity law had gone into effect. HRC maintains that local and state laws must be upheld, especially when such laws are enacted to safeguard children.

This case is often mischaracterized as a debate about cannabis legalization, safety, or medical benefits, stirring unnecessary community hysteria among those unfamiliar with the specifics. HRC will not comment on this matter outside of the HRC Newsletter, due to the volume of misinformation, the lack of rational discussion, and the unusual political interference and involvement. The resolution rests with the courts.

City Council votes down ordinance to “grandfather” Blue Violets under old school proximity law.

Councilmembers Phil Cohen and Joe Quintero co-sponsored the ordinance, which would amend the cannabis law specifically to benefit Blue Violets, shielding the business from an anticipated unfavorable appellate ruling. The City Council voted 4-4 on the ordinance. Councilmembers Cohen, Quintero, Jabbour, and Russo voted in favor, while Ramos, Fisher, Presinzano, and Doyle opposed the ordinance, defeating it on first reading.

Councilman Ruben Ramos, who opposed the ordinance, addressed residents’ concerns which were posted on social media, stating:

"The City Council’s role in this matter is to uphold our laws and ensure consistent application for all businesses. Grandfathering Blue Violets would not just affect one business—it would undermine the principle that laws apply equally to everyone. It could also set a concerning precedent where exceptions are made retroactively, creating uncertainty for all businesses and residents about the stability of our legal framework.”

To summarize, changing an ordinance for a single business is not good governance.

This is the second attempt by Councilmen Cohen and Quintero to amend the cannabis law specifically for Blue Violets. The first time attempt was pulled from the agenda before reaching a council vote. With multiple dispensaries already accessible within Hoboken’s mile-square walkable community, the current cannabis laws are effectively serving the city’s residents.

Cannabis Sales Tax Update

With three dispensaries now open for business, cannabis sales tax revenue is steadily growing. However, it remains unclear which social equity programs are benefiting from this revenue.

Cannabis taxes are paid quarterly, with payments received by the end of the month following each quarter. The full tax figures for the 2024 calendar year will be available in early February.

The Story Dispensary remains in limbo, but we may learn more soon.

The Story Dispensary settled its litigation with the condo association more than a year ago—so why hasn’t it opened yet? The reason appears to be that the dispensary still lacks a state license while it is our understanding that the NJ Attorney General is investigating the circumstances around their municipal approval.

However, we may learn more about Story Dispensary in the near future. A court recently allowed a lawsuit filed by Nature’s Touch against Hoboken to proceed into the discovery phase, which could provide new details.

In a separate lawsuit filed in May 2024, Leo Pellegrini alleged that Mayor Bhalla blocked the approval of Nature’s Touch’s dispensary application at the request of Jersey City Mayor Steven Fulop. Pellegrini claimed this was part of a quid pro quo arrangement in which Mayor Bhalla’s law firm received a Jersey City contract. This allegation gained further credibility when the contract in question was uncovered.

We will continue monitoring this situation closely.

Upcoming CRC Meeting

The state Cannabis Regulatory Commission will meet on February 6th at 11 a.m. Deadline to register to speak will be Tuesday, February 4th at 5 p.m. Register HERE.