After being accused of unfairly charging $4.6 million in fees, the city of Fall River is counter-suing cannabis company Northeast Alternatives, saying the city is itself owed unpaid fees and damages.

 

The dollar amounts sought are not specified in a brief filed Oct. 26 in Bristol County Superior Court.

 

In June, Northeast Alternatives filed the civil lawsuit claiming the city unfairly charged “community impact fees” for more than three years. Named as defendants are the city of Fall River and Mayor Paul Coogan in his official capacity.

 

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 fees from April 2019 to September 2022 without explaining what specifically it was charging those fees for.

 

Northeast Alternatives’ Host Community Agreement was initially granted by former mayor Jasiel Correia II; three years later, Correia was convicted of extorting potential cannabis company operators and sentenced to federal prison.

 

The city has retained the New Bedford law firm of Mead, Talerman & Costa to handle the lawsuit.

 

In its response, the defense denies all charges in Northeast Alternatives’ complaint.

 

But it further lodges a counterclaim against the company for breach of contract.

 

According to its filing, the city claims Northeast Alternatives agreed to make “certain payments” as the city worked to shepherd the company through the permitting and licensure process.

 

See more at heraldnews.com.