Efforts continue in Old Orchard Beach to establish a retail cannabis store: Controversies, Lawsuits, and Some Progress

The town of Old Orchard Beach has been navigating a complex and contentious path towards permitting a retail cannabis store within its limits over the past few years. After many months of controversy, lawsuits, and a special citizens’ referendum, the town – and applicant -- may be inching closer to achieving this goal.

A significant hurdle must be addressed within the next several weeks, however, and to date no one seems sure that will happen. The one applicant that has progressed beyond the initial application stage with the town, Theory Wellness of Maine, LLC was granted a conditional license by the State of Maine in May of last year. The license will expire May 8, 2025.

This allowed Theory Wellness to move forward at the local level by seeking a conditional use permit through the planning board, which was granted in October 2024. The final step necessary at the town level is review and approval by the town council. As of this week, no application has been submitted.

“Theory completed the conditional use process and secured PB approval late last year,” said Town Planner Jeffrey Hinderliter via e-mail last week. “Their next, and final step, as related to town review (excluding building, electrical, plumbing type permits) is Council consideration.” This would be the final local approval required before the applicant can return to the state for final approval and the go-ahead to establish OOB’s first retail cannabis storefront.

Last year, three businesses applied for the town's sole license to operate a commercial, retail cannabis store. Of these applicants—Exit 710, LLC; Old Orchard Beach Provisions, LLC; and Theory Wellness, LLC—Theory Wellness was selected by the town to proceed to the planning board for a conditional use permit. During the review process, Theory Wellness earned additional points for operating a compliant adult-use marijuana or medical marijuana store in another state for two or more years. This criterion was pivotal in the town's decision-making process, elevating Theory Wellness above its competitors.

This decision, however, sparked legal battles as the other two applicants filed lawsuits against the town.

At the time, Attorney Hannah King, who represented Old Orchard Beach Provisions, LLC, argued against town officials disqualifying her client's application for being incomplete. King’s client challenged the disqualification, seeking reconsideration of the application.

In the meantime, Exit 710, LLC doing business as Beach Boys Cannabis has moved forward with preparing the space at 11 Ocean Park Road in one regard: the windows facing the road are covered over, including the message, “Coming Soon Beach Boys.”

“At this point, there’s no definitive answer on the future of cannabis in OOB as there are a couple things up in the air,” stated Thomas Mourmouras, a principal with Exit 710, LLC, in an e-mail over the weekend. “We should have some clarity and an update for you in May.”

Theory Wellness, LLC had not been responded to an email request for comment by press time.

In addition to the slow progress, a significant complication emerged during the review period. Based on town ordinances, only one location meets the criteria for establishing a retail cannabis store. However, both Theory Wellness and Exit 710 claim to have secured leases on the property at 11 Ocean Park Road.

During a 2024 workshop meeting, Mourmouras asserted that his family had secured a six-year lease on the property. Meanwhile, Theory Wellness also claimed to have a lease on the same property, creating a potential impasse that contributed to delays in the review process.

The ongoing legal battles and lease complications highlight the challenging regulatory landscape for establishing retail marijuana operations in Old Orchard Beach. Highlights of the process to date:

October, 2022 – Mourmouras collected over 600 signatures on a citizen petition to the town, seeking to limit adult use marijuana businesses to a 1,000 square foot or less building sited on no larger than a 21,780 square foot (0.5 acre) parcel.

March, 2023 – Town accepted applications for a one week period in early March for the single adult use marijuana business license available.

April, 2023 – An injunction is issued by the York County Superior Court in order to “safeguard(ing) the effectiveness of the petition and referendum process articulated in the town charter.” Mourmouras filed for the injunction, claiming that the town was pushing through an approval process that was disregarding the citizen petition scheduled for June of that year.

More than one player in the regulatory process pointed to the wording of the referendum as being “an abuse” of the citizen referendum process.

“If you read it (the petition) it clearly favors just one applicant,” said Larry Mead, a former OOB town manager who at the time had retired and was serving on the town council. “The interesting thing is that what it doesn’t say is that the only appropriate location is a place already secured by Mr. Mourmouras.”

June, 2023 – Voters approved the referendum question by an 805-354 margin, thereby imposing the building and lot size limits originally suggested by town planning staff: a 1,000 s.f. building and a half-acre lot.

October 24, 2024 – A conditional use permit for an adult use marijuana store was granted by the planning board, with conditions: that if the lease submitted by applicant Theory Wellness, LLC as a demonstration of right, title and interest in the property at 11 Ocean Park Road should be found invalid, the approval shall likewise become invalid; that approval shall be obtained from the Maine DOT for pavement markings (Yield indicators) on Ocean Park Road; that parking spaces on the site shall be identified and reserved for each of the uses on the property; sight lines for entering and exiting vehicles shall be maintained; and, the applicant must secure necessary state and local approvals prior to opening the business.

The effort to permit a retail cannabis store in Old Orchard Beach exemplifies the complexities and controversies surrounding cannabis legislation at the local level. Statewide, about 80 communities have opted-in – as made possible under state law -- to allow the sale of adult use marijuana within their borders, or about 16.6% of Maine’s 482 towns, cities and townships.

Bob Hamblen can be reached at rhh0918@gmail.com. Randy Seaver contributed to this story.