Cannabis company challenges Kittery licensing process in state high court

A year after applying for a license to open a recreational cannabis store in Kittery, a Maine business is challenging the town over its application process.

High Maine LLC alleges in its appeal to the state’s highest court that Kittery’s lottery-style system for awarding recreational marijuana store licenses unfairly benefited another company, GTF Kittery 8, which High Maine says failed to follow all of the town’s rules — including one requiring such businesses to offer locations at least 1,000 feet from a school.

The lawsuit was dismissed in January by a York County Superior Court judge, who ruled that the company lacked standing to sue because it had not shown how it had been personally harmed.

High Maine claims it was prejudiced because it would have been placed higher on the waiting list if the city had rejected GTF’s “defective application.” The company appealed that decision to the Maine Supreme Judicial Court in February. The court is scheduled to hear arguments on Sept. 10.

Cameron Ferrante, the city’s attorney, said Tuesday that officials believe GTF’s application is fully compliant with city rules and that the approved location is not within 1,000 feet of a school or daycare. And even if High Maine wins its appeal, it would not change anything, the attorneys wrote, “without a realistic path to obtaining a marijuana license from the city.

GTF Kittery 8 is not named as a defendant.

Kittery, like other Maine towns, allows only one recreational marijuana store per “permitted” zone in town — three commercial zones as of 2022.

In 2021, the city welcomed “pre-applications” from businesses interested in opening a store. In October of that year, the city randomly selected three pre-applicants. It then added the rest of the applicants to a waiting list, in case the selected businesses were not approved.

According to court documents, GTF Kittery 8 and High Maine were both on that waiting list when GTF Kittery 8 was selected in February 2023 to formally apply. The town’s attorneys said in court documents that High Maine applied after the other applicant, GTF Kittery 8, and that’s why GTF was selected.

In September 2023, the city’s Planning Board approved GTF Kittery 8’s application.

““Had the town properly denied GTF’s application, High Maine would be much higher on the waiting list,” High Maine’s attorneys wrote in court filings. “Now, however, it is forced to remain on the waiting list behind an improperly authorized licensee.”

Lawyers for the company did not respond to a voicemail or email Tuesday.

According to court documents, High Maine was still on the waiting list as of June 27. The town manager did not respond to an email Tuesday requesting information about the waiting list and approved recreational businesses.

Kittery has received other complaints about its lottery from other recreational cannabis companies, but none have reached the high court.

In March 2022, Eliot-based Sweet Dirt said the city’s application process favored applicants who could afford to spend money on multiple “pre-applications,” buying them multiple spots on the waiting list.

At the time, Theory Wellness’ two co-founders were both allowed to apply for two of the three available licenses. However, according to court documents, one application failed and GTF Kittery 8 was asked to apply for one of their areas.

The Maine Attorney General’s Office investigated the town’s proceedings and, in a March 31, 2022, letter to Kittery’s attorney, said it did not intend to pursue legal action.