Cannabis company Northeast Alternatives is suing the city of Fall River for $4.6 million, claiming it was unfairly charged “community impact fees” for more than three years.

 

The lawsuit, filed in Bristol County Superior Court in June, names the city and Mayor Paul Coogan, in his official capacity, as the defendants.

 

Community impact fees are intended to pay specific costs a city incurs when a cannabis company operates. Northeast Alternatives alleges the city broke the terms of its Host Community Agreement by charging the fees from April 2019 to September 2022, but not explaining what specifically it was charging those fees for.

 

Instead, the lawsuit asserts, the city’s host community agreement with NEA “mandated flat percentage-based fees calculated as a percentage of gross sales, with no tether to any documented or anticipated municipal expense.”

 

As of Aug. 11, the city has not filed any responses. A Superior Court judge on Aug. 10 allowed the appointment of a special process server to serve the city with documents related to the suit.

 

See more at heraldnews.com.