Brookhaven BZA hears contested requests for cannabis retail near existing approvals; board holds cases

The Town of Brookhaven Board of Zoning Appeals on May 14 heard extended argument over two linked cannabis retail special-permit requests that applicants say should be treated as separate state and local processes.

The debate centered on whether a previously approved BZA grant tied to 33 Old Dock Road prevents a new, nearby proposal at 28 Sawgrass Drive from receiving municipal approval and state “proximity” protection. Attorneys for the Sawgrass applicant said the state’s Office of Cannabis Management (OCM) will treat the identified justice-impacted individual as the controlling licensee and can transfer the applicant ID to a new LLC, while opponents warned the earlier BZA approval could still block or complicate licensing.

The matter matters because Brookhaven’s special-permit criteria for cannabis retail include proximity limits and recent town code changes shortened the period a local grant remains effective. At the hearing, attorney Thomas G. Spanos, representing the Sawgrass applicant, cited OCM regulations and said the justice-impacted individual who holds the applicant ID must have sole control of the license and “the rules are clear” about that control requirement. He added that OCM treats the applicant ID and the justice-impacted individual as central to final licensure decisions.

Larry Davis, counsel for one of the applicants, told the board his client is seeking to transfer the state applicant ID from Top Shelf Aficionados to a new entity, PSUW LLC, so the license would be associated with the justice-impacted individual and moved to 28 Sawgrass. “We are transferring it from 33 Old Dock Road to 28 Sawgrass Drive,” Davis said, and argued that the prior 33 Old Dock matter has no practical path to completion because the parcel was sold to a new owner and is now occupied by Precision International.

Attorney Thomas Spanos told the board the Office of Cannabis Management requires sole control by the justice-impacted individual and that any contrary claims in a letter submitted by another lawyer amounted to a threat to violate the state rules. “The letter…is nothing short of his intention to violate the cannabis law and regulations,” Spanos said, describing why his client’s proposed transfer should be recognized by OCM.

Board members pressed how the state and local processes interact, noting the town recently shortened the duration of local special-permit grants from three years to one. Members also asked how a previously granted special permit for 33 Old Dock Road could affect a new application when state proximity protections and ownership changes are in play.

No final determination was made on either Sawgrass or the linked Old Dock matter. The board voted to close the public hearing and “hold” both matters so members can review the legal and factual submissions and prepare written findings. Chair Howard Berkson moved to close and hold; the motion carried.

The filings already in the public record include an affidavit from the justice-impacted individual stating he will not pursue the 33 Old Dock location, an OCM email about applicant ID transfer procedures, counsel letters on both sides and site photographs. The board’s next formal action is expected after staff compiles the record and legal counsel summarizes the municipal-state interaction.

Brookhaven residents and local interest groups may be notified when the board posts its written decisions to the town meeting records; the board indicated it will prepare written findings before issuing a final vote.