An Essex Superior Court judge has denied a cannabis shop's request to avoid paying $356,000 to Haverhill unless the city provides detailed documentation of how the money will be spent. Caroline Pineau, owner of the pot shop Stem on downtown Washington Street, sought permission to place the money in an escrow account instead of paying it as a fee to ease the shop's impact on the city.
During a court hearing on Monday in Essex Superior Court in Newburyport, Pineau's lawyer Thomas MacMillan asked for a preliminary ruling allowing the court to hold the money in escrow until a final decision is made on Pineau's lawsuit against Mayor James Fiorentini and the city. On Tuesday, Judge James Lang refused Pineau's request to not pay the fee until the city provides detailed information on how her shop impacts the city.
After the judge's decision, Pineau said she will pay the money to Haverhill so she is not in default. A Host Community Agreement signed by Pineau and the mayor requires the payment, but she argued the city should first provide documentation of specific impacts that justify that amount of money.
"We are not discouraged or surprised by this preliminary ruling," Pineau said. "The law clearly states that impact fees must be directly related to a cannabis establishment’s operations and must be documented and made public."
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