Complaint,Petition: Garden Greenz, Llc Vs Jersey City

On January 12, 2024 a Complaint,Petition was filed involving a dispute between Garden Greenz, Llc, and Jersey City, for Actions In Lieu Of Prerogative Writs in the District Court of Hudson County.

Preview
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LAW OFFICES OF TISHA ADAMS, LLC
Tisha Adams, Esq. Attorney ID#027262001
60 Park Place, Suite 1103
Newark, New Jersey 07102
(973) 645-1145
Advocating4u@ LawOfficesofTishaA damsLLC.com
Attomey for Plaintiff Garden Greenz, LLC
-- a
SUPERIOR COURT OF NEW JERSEY
GARDEN GREENZ, LLC, LAW DIVISION: HUDSON COUNTY

Plaintiff, DOCKET NO. HUD- L-

Vv. Civil Action

JERSEY CITY, TANYA MARIONE, Complaint
CITY PLANNING DIRECTOR, In Lieu of Prerogative Writs (Mandamus)
ACTING DIRECTOR OF THE DIVISION
OF ZONING AND ACTING ZONING
OFFICER, in her official capacity,
MAYNARD WOODSON, DIRECTOR
OF THE DIVISION OF COMMERCE,
in his official capacity,

Defendants
-a eae

Plaintiff, Garden Greenz, LLC, by way of Complaint against defendants, say:

PARTIES

1 Plaintiff is a state licensed Class 5 cannabis retail microbusiness with its principle place
of business located at 190 Newark Avenue, Jersey City. (ExhibitA)

2 Defendant Jersey City is a municipality located in Hudson County, New Jersey. Its
municipal council conducts meetings located at 280 Grove Street in Jersey City and the offices
of individual council members are located at 280 Grove Street.

3 Defendant Jersey City has a Division of Zoning. The Division of Zoning is located at 1
Jackson Square, 2"¢ Floor, Jersey City. Tanya Marione is the City Planning Director, Acting
Director of the Division of Zoning and the Acting Zoning Officer.

4 Defendant Jersey City also has a Division of Commerce. Maynard Woodson is the
Director of the Division of Commerce. The Division of Commerce is also located at 1 Jackson
Square, Jersey City.
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BACKGROUND

5. The Municipality of Jersey City voted to allow the sale of cannabis within certain
districts in the municipality.

6 The Municipality used the New Jersey Cannabis Regulatory Enforcement Assistance and
Marketplace Modernization Act (hereinafter referred to as the “NJ CREAMM Act”) as a model
for its zoning ordinance and its legal governance regarding the sale of cannabis.

7 The NJ CREAMM Act requires cannabis businesses and applicants for a cannabis
business to obtain a resolution of support from the municipality where the cannabis business will
operate prior to the State licensing authority, the NJ Cannabis Regulatory Commission, issuing a
license to operate a cannabis business in the municipality.

8 First, an application to the Cannabis Control Board (“CCB”) is required. The CCB is
administered by Division of Commerce. After CCB approval is received, an application from
the Division of City Planning is required for Licenses 1 to 5. (An entity seeking a Class 6 license
does not have to make an application to the Division of City Planning but it must submit an
application to the Cannabis Control Board and seek a Zoning Determination letter from the
Division of Zoning.) Following a favorable approval by the Planning board the Division of
Commerce will initiate a resolution of support to be sent to the Municipal Council. After gaining
local support, proof of State License approval is required to pull permits with the Division of
Zoning and the Construction Code Official.

9 Representatives of the municipality, including Mr. Maynard of the planning board, told
plaintiff that individuals and entities “first in time” to apply to the municipality to operate a
cannabis business and obtain a resolution of support from the municipality would receive “a pin
in the map” and the benefit of enforcement of ordinances by the municipality to regulate
applicants seeking to open a cannabis retail establishment in the areas zoned for retail cannabis
business.

FIRST COUNT
Action In Lieu of Prerogative Writs (Mandamus)

10. Plaintiff repeats the allegations of the proceeding paragraphs as if set forth at length
herein.

11. On approximately August 8, 2022, Garden Greenz, LLC submitted an application to
defendant Jersey City Cannabis Control Board for a preliminary resolution of support. The
Cannabis Control Board approved plaintiffs application on approximately September 12, 2022.

12. The NJ Cannabis Regulatory Commission approved Garden Greenz, LLC’s application
for a condition license on September 12, 2022. (Exhibit B)
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13. Perennial Group Corporation aka Cream Retail Dispensary (hereinafter referred to as
“Cream’) is a cannabis retail business and its proposed business location is 284-286 First Street,
Jersey City., 07302. Cream applied for a preliminary resolution of support from the Cannabis
Control Board on approximately September 12, 2022.

14, Representatives of Garden Greenz, LLC appeared at the meeting of the Cannabis Control
Board on October 17, 2022 and advised the Board that Jersey City Municipal Ordinance 21-053,
Article V-Zoning and Design Standards, §345-60.5, #4.D.b.c. provides that, “[t]he main entry
door of any Cannabis Establishment subject to a class 5 license (including microbusinesses) shall
be separated from one another by a distance of at least six hundred (600) feet.” (Exhibit C)
Representatives of Garden Greenz, LLC further stated that applications of cannabis retail
establishments, such as Cream, whose proposed location violates the Jersey City Municipal
Ordinance, should not receive approval of a preliminary resolution from the Cannabis Control
Board.

15. Despite Garden Greenz, LLC’s verbal objection, the Cannabis Control Board approved
Cream’s application fora preliminary resolution on October 17, 2022. Ironically, page 11 of the
preliminary resolution for Cream states that “[t]he Board evaluated the factors contained in the
cannabis ordinances, including...the number of cannabis establishments within close proximity
(less than 1000 feet) to the applicant, ...compliance with local rules and regulations governing
cannabis...” Notwithstanding the fact that Cream is located within 322.58 feet of Garden
Greenz, LLC, in violation of the municipal ordinance, the Cannabis Control Board approved
Cream’s application. (Exhibit D)

16. Plaintiff received a resolution of support from defendant Jersey City Municipal Council
on October 26, 2022.

17. On November 9, 2022, representatives from Garden Greenz, LLC appeared at the
defendant Jersey City Council meeting and verbally objected to Cream receiving a resolution of
support from the defendant Jersey City Municipal Council because Cream’s proposed business
location of 284-286 First Street, Jersey City is a distance of 322.58 feet from plaintiff, in
violation of municipal ordinance 21-053. (Exhibit E) Despite Garden Greenz LLC’s objections,
defendant Jersey City Municipal Council voted to approve a resolution of local support for
Cream on November 9, 2022.

18. On January 17, 2023, Cream received approval for its application for a conditional
license from the NJ Cannabis Regulatory Commission. (Exhibit F)

19. Local Modiv, LLC a/k/a/ Grand Innovations, LLC (hereinafter referred to as (“Local
Modiv, LLC”) is a cannabis retail business with its principle place of business located at 201
Montgomery Street, Ste. 263, Jersey City, NJ 07302 and a proposed business address of 155
Newark Avenue, Jersey City.
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20. On January 20, 2023, Garden Greenz, LLC sought enforcement of the zoning ordinance
from defendants. Garden Greenz, LLC forwarded an email to defendant Jersey City’s municipal
council, defendant Jersey City’s corporation counsel, and defendant Maynard by way of the
Commerce department email, explaining that Local Modiv, LLC was not in compliance with the
ordinance and a copy of the zoning ordinance and a letter from a land surveyor stating that Local
Modiv, LLC is 528.96 feet from Garden Greenz, LLC was attached to the email.

21. On January 23, 2023, January 30, 2023, February 7, 2023, and February 8, 2023, Garden
Greenz, LLC provided written notification of Local Modiv, LLC and Cream’s violation of the
zoning ordinance to defendants. (Exhibit G — 1/23/23 Email & 2/7/23 Email) Representatives of
Garden Greenz, LLC also appeared at municipal council meetings and gave public testimony
verbally requesting that defendant Jersey City enforce municipal ordinance 21-053 and to notify
the NJ Cannabis Regulatory Commission that Cream is not in compliance with the local
ordinance.

22. Local Modiv, LLC filed an application for a conditional license to operate as a Class 5
Cannabis Retail business with a proposed business location of 155 Newark Avenue, Jersey City,
Block 11405, Lot 6.

23. Defendant Jersey City requires that an applicant for a conditional license to operate a
cannabis retail establishment state whether the proposed business location is less than 600 feet
from an existing class 5 retail license location.

24. Local Modiv, LLC’s proposed business location of 155 Newark Avenue, Jersey City is a
distance of 528.96 feet from plaintiff, in violation of ordinance 21-053.

25. On April 26, 2023, defendant Jersey City approved a resolution of local support for Local
Modiv, LLC.

26. On June 6, 2023, Garden Greenz, LLC received approval from the NJ Cannabis
Regulatory Commission to convert from a conditional license to an annual license.

27. On August 18, 2023, counsel for Garden Green, LLC forwarded a notice to cease and
desist operations to Local Modiv, LLC and Perennial Group Corporation aka Cream. Neither
business was deterred. Counsel for each business clearly stated that each entity intended to
remain at its present location and will continue to seek local approvals and State licensure.
(Exhibit H)

28. On August 18, 2023 and August 22, 2023, counsel for Garden Greenz, LLC forwarded
written notification to Mr. Peter Baker, defendant Jersey City’s corporation counsel, requesting
enforcement of ordinance 21-053 and the NJ CREAMM Acct. (Exhibit I — 08/18/23 Letter)
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29. Defendant Jersey City did not respond to the August 18 or August 22, 2023 written
communications directed to counsel Peter Baker.

30. On October 17, 2023, counsel for Garden Greenz, LLC forwarded an email to
Mr. Slattery of defendant Jersey City’s corporation counsel, requesting enforcement of the
zoning ordinance and compliance with the NJ CREAMM Act. (ExhibitJ)

31. Defendant Jersey City failed to respond to the October 17, 2023 email.

32. Defendants have failed to enforce municipal ordinance 21-053 and have failed to comply
with N.J.S.A. 24:61-45.b (NJ CREAMM Acct), particularly, NJ.A.C. 17:30-5.1(d) and (g). New
Jersey Administrative Code 17:30-5.1(d) states in pertinent part:

Within 28 days of receipt of a license application from the
Commission, a municipality shall inform the Commission
Whether such license application complies with its ordinance
or regulation, as may be applicable. Failure of a municipality
to respond to the Commission within the designated time period
may result in the Commission deeming the license application
in compliance with any pertinent ordinance or regulation.

33. Defendants failed to investigate within 28 days of receipt of Cream’s application and
Local Modiv, LLC’s application from the NJ Cannabis Regulatory Commission whether Cream
and Local Modiv, LLC complied with municipal zoning ordinance 21-053. Neither Cream or
Local Modiv, LLC complied; both proposed locations are less than 600 feet from Garden
Greenz, LLC.

34. Defendants Jersey City, Tanya Marione, and Maynard Woodson’s duty to enforce the
municipality’s zoning ordinances is legally clear.

35. Defendants Jersey City, Tanya Marione, and Maynard Woodson’s failure to enforce the
zoning ordinance is evidence of a pattern of indifference.

WHEREFORE, plaintiff seeks to correct public misdoing and compel performance of
public duty and hereby demands that defendants Jersey City, Tanya Marione, and Maynard
Woodson be required to enforce Jersey City Municipal Ordinance 21-053 against Perennial
Group Corporation aka Cream, Local Modiv, LLC, and all other cannabis establishments in
violation of the ordinance, and plaintiff further demands that defendants comply with NJ.S.A.
24:61-45.b (NJ CREAMM Act), NJ.A.C. 17:30-5.1(d) and (g) by means of immediately
notifying the NJ Cannabis Regulatory Commission of Perennial Group aka Cream Retail
Dispensary’s violation of the zoning ordinance and Local Modiv, LLC’s violation of the zoning
ordinance prior to the issuance of an annual license to either applicant.
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TRIAL ATTORNEY DESIGNATION

Tisha N. Adams, Esq. is hereby designated as trial attomey.

Dated: January 12, 2024 LAW OFFICES OF TISHA ADAMS, LLC

By: __[s| TISHA N. ADAMS, ESQ. a
TISHA N. ADAMS, ESQ.
Attomey for Plaintiff,
Garden Greenz, LLC

CERTIFICATION PURSUANT TO R. 4:5-1

Pursuant to R. 4:5-1, the undersigned certifies that to the best of her knowledge, the
within matters in controversy are not the subject of any other action pending in any other Court
or of a pending arbitration proceeding nor is any action or arbitration proceeding contemplated
nor are other parties required to be joined in this action.

Dated: January 12, 2024 LAW OFFICES OF TISHA ADAMS, LLC

By: __[s| TISHA N. ADAMS, ESQ. a
TISHA N. ADAMS, ESQ.
Attomey for Plaintiff,
Garden Greenz, LLC
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LAW OFFICES OF TISHA ADAMS, LLC
Tisha Adams, Esq. Attorney ID# 027262001
60 Park Place, Suite 1103
Newark, New Jersey 07102
(973) 645-1145
Advocating4u@LawOfficesofTishaAdamsLLC.com
Attorney for Plaintiff Garden Greenz, LLC

SUPERIOR COURT OF NEW JERSEY
GARDEN GREENZ, LLC, LAW DIVISION: HUDSON COUNTY

Plaintiff, DOCKET NO. HUD- L-

Vv. Civil Action

JERSEY CITY, TANYA MARIONE, ORDER TO SHOW CAUSE
CITY PLANNING DIRECTOR, FOR A PRELIMINARY INJUNCTION
ACTING DIRECTOR OF THE DIVISION PURSUANT TO R. 4:52
OF ZONING AND ACTING ZONING
OFFICER, in her official capacity,
MAYNARD WOODSON, DIRECTOR
OF THE DIVISION OF COMMERCE,
in his official capacity,

Defendants

THIS MATTER being brought before the Court by Tisha N. Adams, Esq., attorney for

plaintiff, Garden Greenz, LLC, seeking relief by way of preliminary injunction at the return date

set forth below pursuant to R. 4:52, based upon the facts set forth in the verified complaint filed

herewith and for good cause shown.

It is on this day of January, 2024 ORDERED that defendants Jersey City, Tanya

Marione, and Maynard Woodson appear and show cause before the Superior Court at the

Hudson County Courthouse in Jersey City,

New Jersey at o’clock or as soon thereafter as counsel can be heard, on the

day of January 2024, why an order should not be issued preliminary enjoining and restraining

defendants from:
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A Permitting the build out, opening and operation of any cannabis establishment that

is less than 600 feet from Garden Greenz, LLC in violation of Jersey City Municipal Ordinance

21-053, Article V-Zoning and Design Standards, §345-60.5; and

B Permitting the cannabis establishment Local Modiv, LLC, aka Grand Innovations,

LLC, from opening and operating a cannabis establishment at the Jersey City approved proposed

location of 155 Newark Avenue, Jersey City, NJ 07302, which is 528.96 feet from Garden

Greenz, LLC; and

Cc Permitting Perennial Group Corporation aka Cream Retail Dispensary, located at

284 First Street, Jersey City, New Jersey, 07302, from opening and operating a cannabis

establishment 322.58 feet from Garden Greenz, LLC; and

D. Failing to comply with N.J.S.A. 24:61-45.b (NJ CREAMM Act),
N.J.A.C. 17:30-5.1(d) and (g) and failing to immediately notify the NJ Cannabis Regulatory

Commission of Perennial Group aka Cream Retail Dispensary’s violation of the zoning

ordinance and Local Modiv, LLC’s violation of the zoning ordinance prior to the issuance of an

annual license to either applicant; and

E. Issuing resolutions of local support for cannabis businesses in the municipality of

Jersey City without first investigating and determining whether the cannabis business or

applicant for a license to operate a cannabis business is currently in violation of municipal

ordinances and failing to report all violations of municipal ordinances to the New Jersey

Cannabis Regulatory Commission;

F Granting such other relief as the court deems equitable and just.

And it is further ORDERED that:

1 A copy of this order to show cause, complaint, legal memorandum and
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any supporting affidavits or certifications submitted in support ofthis application be served upon

the defendants’ counsel by means of electronic filing, first class mail and certified mail within

days of the date hereof, in accordance with R. 4:4-3 and R. 4:4-4, this being original

process.

2 The plaintiff must file with the court its proofof service of the pleadings on the

defendant no later than three (3) days before the return date.

3 Defendants shall file and serve a written response to this order to show cause and

the request for entry of injunctive relief and proof of service by , 2024.
The original document must be filed with the clerk of the Superior Court in the county indicated

above. A director of these offices is available in the Civil Division Management Office in the

county listed above and online at njcourts.gov. You must send a copy of your opposition papers

directly to Judge whose address is

New Jersey.

You must also send a copy of your opposition papers to the plaintiff's attorney whose name and

address appears above, or to the plaintiff, if no attorney is named. A telephone call will not

protect your rights; you must file your opposition and pay the required fee of $

and serve your opposition on your adversary, if you want the court to hear your opposition to the

injunctive relief the plaintiff is seeking.

4 The plaintiff must file and serve any written reply to the defendant’s order to

show cause opposition by , 2024. The reply papers must be filed

with the Clerk of the Superior Court in the county indicated above and a copy of the reply papers

must be sent directly to the chambers of Judge
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5 If the defendant does not file and serve opposition to this order to show cause, the

application will be decided on the papers on the return date and relief may be granted by default,

provided that the plaintiff files a proofof service and a proposed form of order at least three days

prior to the return date.

6. If the plaintiff
has not already done so, a proposed form of order addressing the

relief sought on the return date (along with a self-addressed return envelope with return address

and postage) must be submitted to the court no later than three (3) days before the return date.
7
Defendant(s) take notice that the plaintiff has filed a lawsuit against you in the

Superior Court of New Jersey. The verified complaint attached to this order to show cause states

the basis of the lawsuit. If you dispute this complaint, you, or your attorney, must file a written

answer to the complaint and proofof service within 35 days from the day of service of this order

to show cause; not counting the day you received it.

8 These documents must be filed with the Clerk of the Superior Court in the county

indicated above. A directory of these offices is available in the Civil Division Management

Office in the county listed above and online at njcourts.gov. Include a $ filing fee

payable to the “Treasurer, State of New Jersey.” You must also send a copy of your Answer to

the plaintiffs attorney whose name and address appear above, or to the plaintiff, if no attorney is

named. A telephone call will not protect your rights; you must file and serve your Answer (with

the fee) or judgment may be entered against you by default. Please note: opposition to the order

to show cause is not an Answer and you must file both. Please note further: if you do not file

and serve an Answer within 35 days of this Order, the court may enter a default against you for

the relief plaintiff demands.

9 If you cannot afford an attorney, you may call the Legal Services office in the
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county in which you live or the Legal Services of New Jersey Statewide Hotline at 1-888-LSNJ-

LAW (1-888-576-5529). If you do not have an attorney and are not eligible for free legal

assistance you may obtain a referral to an attorney by calling one of the Lawyer Referral

Services. A directory with contact information for local Legal Services Offices and Lawyer

Referral Services is available in the Civil Division Management Office in the county listed above

and online at njcourts.gov.

10. The court will entertain argument, but not testimony, on the return date of the

order to show cause, unless the court and parties are advised to the contrary no later than

days before the return date.

TSC.
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LAW OFFICES OF TISHA ADAMS, LLC
Tisha Adams, Esq. Attorney ID# 027262001
60 Park Place, Suite 1103
Newark, New Jersey 07102
(973) 645-1145
Advocating4u@LawOfficesofTishaAdamsLLC.com
Attorney for Plaintiff Garden Greenz, LLC

SUPERIOR COURT OF NEW JERSEY
GARDEN GREENZ, LLC. LAW DIVISION: HUDSON COUNTY

Plaintiff, DOCKET NO. HUD- L-

V. Civil Action

JERSEY CITY, TANYA MARIONE ORDER
CITY PLANNING DIRECTOR, ACTING
DIRECTOR OF THE DIVISION OF
ZONING AND ACTING ZONING
OFFICER, in her official capacity,
MAYNARD WOODSON, DIRECTOR OF :
THE DIVISION OF COMMERCE, in his
official capacity,

Defendants

This matter having been opened to the court by the Law Offices of Tisha Adams, LLC.

by Tisha N. Adams, Esq., attorney for the plaintiff, Garden Greenz, LLC, by way of an Order to

Show Cause, and the court having considered the Complaint in Lieu of Prerogative Writ, and

good cause having been shown for the entry of this Order:

IT IS on this day of 2024

ORDERED that defendants enforce Jersey City Municipal Ordinance 21-053

Article V-Zoning and Design Standards, §345-60.5,#4.D.b.c. and prohibit all retail cannabis

establishments less than 600 feet from plaintiff from building out, opening or operating,

including but not limited to Local Modiv, LLC aka Grand Innovations, LLC that has a proposed
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location of 155 Newark Avenue, Jersey City, which is 528.96 feet from plaintiff, in violation of

the municipal zoning ordinance; and

IT IS FURTHER ORDERED, that defendants prohibit Perennial Group Corporation aka

Cream Retail Dispensary, whose proposed location is 284-286 First Street, Jersey City, which is

322.58 feet from plaintiff, in violation of the municipal zoning ordinance; and it is further

ORDERED that a copy of this order shall be served on defendant with days of

the entry of this order.

JS.C.

() Opposed

C) Unopposed
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EXHIBIT A
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STATE OF NEW JERSEY
CANNABIS REGULATORY COMMISSION
OFFICE OF LICENSING

FINAL RECOMMENDATION FOR
ANNUAL
CLASS 5 - RETAILER

LEGISLATION STATEMENT AS IT PERTAINS TO EACH TYPE OF LICENSING

UNDER THE AUTHORITY OF THE NEW JERSEY CANNABIS REGULATORY, ENFORCEMENT ASSISTANCE.
AND MARKETPLACE MODERNIZATION ACT, P.L.2021, C.16 (C.24:61-31 ET AL.), THE CANNABIS
REGULATORY COMMISSION HEREBY ISSUES THIS LICENSE TO OPERATE A CANNABIS BUSINESS FOR
THE PURPOSE OF RETAILER TO:

FACILITY NAME: GARDEN GREENZ
LICENSE FACILITY ADDRESS: 190 NEWARK AVE, , JERSEY CITY, HUDSON Nu - 07302
LICENSE NUMBER: RE000133
EXPIRATION DATE: 10/03/2024

an at
LA fr
fe =Nj=
A

DIANNA HOUENOU JEFF BROWN “Sony co
COMMISSION CHAIR EXECUTIVE DIRECTOR
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EXHIBIT B
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State of & me Jersey
CANNABIS REGULATORY COMMISSION
PHILLIP D, MURPHY P.O. BOX 216 Dianna HOUENOU, Chair
Governor TRENTON. N.J. 08625-0216 SAMUEL DELGADO, Vice Chair
KRISTA NasH, Commissioner
SHEILA Y, OLIVER Maria DeL Cip-Kosso, Commissioner
Lt Governor CHARLES BARKER, Commissioner
Jerr BROWN, Executive Director

September 12, 2022

GARDEN GREENZ
Brian Markey
a a

a
Re: FINAL AGENCY DECISION
APPROVAL OF CONDITIONAL LICENSE APPLICATION

Dear Brian Markey:

Congratulations! The New Jersey Cannabis Regulatory Commission (“NJ-CRC”) has received and
reviewed your application for a Class 5 Cannabis Retailer to operate an adult personal-use cannabis
business in the state of New Jersey. Upon the completion of the NJ-CRC’s review, your application for a
conditional license has been approved.

Pursuant to N.J.A.C. 17:30-7.2(f), the NJ-CRC shall approve a conditional license application where the
applicant (1) has submitted a complete conditional license application in accordance with N.J.A.C, 17:30-
7.3 and the notice of application acceptance pursuant to N.J.A.C. 17:30-6.1; (2) has scored sufficiently
high to be issued a conditional license in accordance with the criteria included in the notice of application
acceptance pursuant to N.J.A.C. 17:30-6.1 and 7.3; (3) is qualified to hold a conditional license pursuant
to N.J.A.C. 17:30-7.4; and (4) has submitted application fees pursuant to N.J.A.C. 17:30-7.17. The above-
referenced entity has satisfied all criteria.

Following this written notice of aj roval, the license a ant must notify the NJ |-CRC within five (5
e or
business days whether it will accept the ‘license. or if it will abandon the license. Acceptanc
abandonment of the license can be supplied by a letter from the applicant's listed primary contact,
submitted electronically to cre.licensing@cr cov, Pursuant to N.J.A.C. 17:30-7.5(c), failure of the
applicant to notify the NJ-CRC of its decision to accept or abandon the license by the specified
deadline shall result in the license being deemed abandoned.
in
Should you choose to accept this license, the NJ-CRC will continue to verify information contained

1
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your application and notify yo uu when to submit the required conditi
onal license application approval fee
established at N.J.A.C. 17:30-7.17. Following receipt of the conditi
onal license application approval fee,
to the applicant.
the NJ-CRC will issue the conditional license and provide the same
application approval fee, and issuance of
Acceptance of the license, subm ission of the conditional license
the beginning of the conditional license
the conditional license by the N J-CRC to the applicant triggers license
phase, the conditional
phase as established at N.J.A.C. 17:30-7.6. During t he conditional license develop and
holder must (1) establish controlof the proposed site: (2) gain municipal approval; and (3)
license phase commence: s on the date
submit a conditional license conversion application. The conditional
120 calendar days. Pursuant to
the condition: al license is issued to the license applicant and expires after
onal license phase of any applicant for an
N.J.S.A. 24:61-36b.(2)(d)(i) the NJ-CRC may extend the conditi
er efficiency and to support new applicants,
additional 45 calendar days at its discretion. To create bett
l license phase for the above-listed applicant
the NJ-CRC will automatically extend the conditiona
may satisfy the conditional license phase and begin
for an additional 45 calendar days. The applicant
to the end date for the conditional license
the process to convert to an annual license at any time prior
to prevent the necessity of the
phase. The additional 45 calendar days are o} ffered as a courtesy and
applicant submitting a formal request for extension.
shall not engage in purchasing,
holder shane
During the conditional license phase, the conditional license
cannabis or cannabis products. N.J.A.C.
possessing, selling, cultivating, manufacturing, or selling
subject thi ¢ applicant to adverse action by the
17:30-7.6(e). Failure to adhere to this restriction may
action.
Commission and may expose the applicant to law enforcement
phase:
The following activities are permitted during the conditional license
adding new loans or gifts from
1 The conditional license holder may obtain additional funding by
license application. Conditional
new or existing financial sources not listed i n the conditional
phase, the NJ-CRC may
license applicants are reminded, h owever, that during the conversion
applicant , its owners, principals, and
investigate and may conduct probi ity review of the license
related entities and their finances, ownership, and control structur
e (See N.J.A.C. 17:30-7.7(€)),
execute any ad ditional financing
and conditional license holders are therefore advised to not
agreements that have not been received and reviewed by the NJ-CRC;
of the cannabis business, and
The conditional license holder may change he proposed location
conversion application;
such new location shall be reflected in the conditional license
The conditional license holder may notify the NJ-CRC of its intention to abandon the license,
which will then be returned to the Commission; and
shall remain the same as at the
The majority share of the ownership interest in the license hol der
time of license issuance, however:
may transfer ownership
a. An owner or passive investor of the con ditional license holder
interest to another qualified party; and
principals.
b. The conditional license holder may add new qualified owners and

restrictions:
Certain businesses are subject to the following additional
not make any ownership interest
1. A Diversely-Owned Business conditional license holder shall
the Diversely-Owned business
transfer that causes the license applicant to no longer comply with
criteria, pursuant to N.J.A.C. 17:30-6.4;
not make any ownership interest transfer
2. AnImpact Zone Business conditional license hol Ider shall

22
HUD-L-000146-24 01/12/2024 6:18:12 PM Pg4of4 Trans ID: LCV2024115326

that causes the license applicant to no longer comply with the Impact Zone Business criteria,
pursuant to N.J.A.C. 17:30-6.5;
A Social Equity Business conditional license holder shall not make any ownership interest transfer
that causes the license applicant to no longer comply with the Social Equity Business criteria,
pursuant to N.J.A.C. 17:30-6.6;
A Microbusiness conditional license holder shall not make any ownership interest transfer that
causes the license applicant to no longer comply with the Microbusiness criteria, pursuant to
N.J.A.C. 17:30-6.7; and
A conditional license holder shall not violate the limitations on owners and principals, pursuant to
N.J.A.C. 17:30-6.8.

Prior to the end of the conditional license phase, the applicant must submit its conditional cannabis
business conversion application pursuant to N.J.A.C. 17:30-7.8. If granted, the license will be converted
from a conditional license to an annual license, subject to all conditions set forth in N.J.A.C. 17:30-7.9
through 7.14.

As a conditional license awardee, you are subject to the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization (*CREAMM”) Act as well as all regulations implementing
the CREAMM Act, set forth at N.J.A.C. 17:30. The NJ-CRC recommends that you familiarize yourself
with those sections of the regulation pertaining to conditional cannabis licenses, specifically N.J.A.C.
17:30-7.2 through 7.8.

Again, congratulations on your successful application and thank you for your interest in working with the
NJ-CRC to establish a safe and equitable cannabis industry for the state of New Jersey. Should you have
any questions regarding this correspondence, please submit your inquiry to the NJ-CRC Licensing inbox
at cre.licensing@crc.nj.gov.

Sincerely,

Dianna Houenou
Chairperson
New Jersey Cannabis Regulatory Commission
HUD-L-000146-24 01/12/2024 6:18:12 PM Pglof8 Trans ID: LCV2024115326

EXHIBIT C
HUD-L-000146-24 01/12/2024 6:18:12 PM Pg2of8 Trans ID: LCV2024115326

Ordinance of the City of Jersey City, N.J.
File No. Ord. 21-053 feSER SS
Agenda No. 3.2 (Ist Rea
Agenda No. 4.2 (2nd Reading and Final Passage)
J

AN ORDINANCE AMENDING CHAPTER 84 (ALCOHOLIC BEVERAGES), CHAPTER 160 (FEES
AND CHARGES), CHAPTER 304 (TAXATION) AND CHAPTER 345 (ZONING) AND CHAPTER 3
(ADMINISTRATION OF GOVERNMENT) TO ESTABLISH REGULATIONS FOR CANNABIS
ESTABLISHMENTS AND CANNABIS DISTRIBUTORS AND AUTHORIZE A TRANSFER TAX AND
USER TAX ON THE SALE/TRANSFER OF CANNABIS OR CANNABIS ITEMS BY A CANNABIS
ESTABLISHMENT.

COUNCIL AS A WHOLE offered and moved adoption ofthe following ordinance:

WHEREAS, in 2020 New Jersey voters approved Public Question No. 1. which amended the New Jersey
Constitution to allow for the legalization of a controlled form of marijuana called “cannabis” for adults at least
21 years of age: and
WHEREAS, on February 22. 2021, Governor Murphy signed into law P.L. 2021, c. 16, known as the “New
Jersey Cannabis Regulatory forcement Assistance, and Marketplace Modernization Act” (the “Act”), which
legalizes the r reational use of marijuana by adults 21 years of age or older, and establishes a comprehensive
regulatory and licensing scheme for commercial recreational (adult use) cannabis operations, use and possession;
and
WHEREAS, the Act establishes six classes of licensed cannabis businesses that may operate within a
municipality:
. Class | Cannabis Cultivator license. for facilities involved in growing and cultivating cannabis;

Class 2 Cannabis Manufacturer license, for facili involved in the manufacturing, preparation, and
packaging of cannabis items;
Class 3 Cannabis Wholesaler lice for facilities involved in obtaining and selling cannabis items for
later resale by other licensees:

Class 4 Cannabis Distributer license, for businesses involved in transporting cannabis plants in bulk from
‘on licensed cultivator to another licensed cultivator, or cannabis items in bulk from any type of licensed
cannabis business to another;

Class 5 Cannabis Retailer license for locations at which cannabis items and related supplies are sold to
consumers; and

Class 6 Cannabis D very license, for busi sses providing courier services for consumer purchases that
are fulfilled by a sed cannabis retailer in order to make deliveries of the purchases items to a
consumer. and which service would include the ability of a consumer to make a purchase directly through
the cannabis delivery service which would be presented by the delivery service for fulfillment by a retailer
and then delivered to a consumer.
WHEREAS. the Act authorizes municipalities to prohibit the operation of any one or more classes of cannabis
establishment, or cannabis distributors or cannabis de! ery service. but not the delivery of cannabis items and
related supplies by a delivery service, within the juris ‘tion of the municipality: and
‘WHEREAS, the Act authori municipal s to adopt regulations governing the number of cannabis
establishments, cannabis distributors or cannal delivery services allowed to operate within their boundaries,
well as the location manner and times operation of such establishments. distributors, but the time of operation of
delivery services shall be subject only to regulation by the State: and
APPROVED AS TO LEGAL FORM

4
PAN tb.
‘Corporation Counsel
Business Administrator
Page | off(-ertification Required
HUD-L-000146-24 01/12/2024 6:18:12 PM Pg 3of8 Trans ID: LCV2024115326

Ord. 21-053

An ordinance amending Chapter 84 (Alcoholic Beverages), Chapter 160 (Fees and Charges), Chapter 304
(Taxation) and Chapter 345 (Zoning) and Chapter 3 (Administration of Government) to establish
regulations for cannabis establishments and cannabis distributors and authorize a transfer tax and user
tax on the sale/transfer of cannabis or cannabis items by a cannabis establishment.

pursuant to t Article and any re} ulations set forth by the City and State. The Cannabis Fund Committee makeup
shall be determined in future| gislati
B. The 's Bus Admi rator cluding his or her designee and/or agent, shall deposit the revenues from
the Recreational Cannabis Transfer and User Tax into a Cannabis Fund on a quarterly basis.

D. Chapter 345 (Zoning) is hereby amended as follows:
CHAPTER 345 — ZONING
ARTICLE IV -FEES, DEPOSITS AND INSPECTIONS
§ 345-33. — Fees.
A. Applicable Fees.

B. Schedule of fees.

Fee Table I

Application Type Application Fees
Planning Board and Board of Adjustment
Non-Refundable
Applications

Cor tional Use — Cannabis Establishm: jents $2,500.00

Conditional Use~ All others $200.00

ARTICLE V -ZONING AND DESIGN STANDARDS
§345-60.5. — Cannabis Establishment Regulations.
1—
Purpose.
A. Pursuant to N.J. S.A. 24:61-45(a) “State Law”), Jer: ‘sey City may enact ordinances governing the number
of nabii lish ents as well as the lo ion, manner, and times of oj of these
The put se of tI chi tet s to regulate cannabis establis nts in ner that w! ize te
verse acts of such establishments and to mote the ublic health, safer ene!
welfare.
2 — Definition:

A. Definitions promulgated in N.J.S.A. 24:61-33 shall apply to this section of the Jersey City Municipal Code.
‘or the oses of local re: trictions, the following definitions shalls lement or ve t specificity
to the terms used in this section of the Municipal Code.
a. Cannabis Establishment — means a cannabis cultivator (Class | license), a cannabis manufacturer
(Class 2 lice! ), a cannabis wholesaler (Class 3 license), or a cannabis retailer (Class 5 license).
Cannabis Distributor — means a Class 4 license.
Cannabis Consumption Area —means a designated location operated by a licensed cannabis retailer
or permit holder for dispensing medical cannabis, for which both a State and local endorsement
has been obtained, that is either: (1) an indoor, structurally enclosed area of the cannabis retailer
or permit holder that is separate from the area in which retail sales of cannabis times or the
disy nsit of edical cannabis occurs: or (2) an exterior structure on ¢ sami remises as the
cannabis retailer or permit holder, either separate from or connected to the cannabis retailer or
permit holder. at which cannabis items or medical cannabis either obtained from the retailer or
permit holder , or brought by a person to the consumption, may be consumed.

Page 10 of 90
HUD-L-000146-24 01/12/2024 6:18:12 PM Pg4of8 Trans ID: LCV2024115326

Ord. 21-053

An ordinance amending Chapter84 (Alcoholic Beverages), Chapter 160 (Fees and Charges), Chapter 304
(Taxation) and Chapter 345 (Zoning) and Chapter 3 (Administration of Government) to establish
regulations for cannabis establishments and cannabis distributors and authorize a transfer tax and user
tax on the sale/transfer of cannabis or cannabis items by a cannabis establishment.

d, Microbusiness ~ means a person or entity licensed as a cannabis establishment that shall meet the
fol

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