HALLOWELL — The Hallowell City Council failed to comply last week with the rules of the city charter and state law when it approved a pause on new cannabis businesses, leaving potential applicants in limbo.

Ward 3 Councilor Benjamin Gagnon proposed the six-month temporary ban last Monday during discussion at the City Council meeting on the city’s system for awarding licenses for marijuana businesses.

Other councilors, including Ward 5 Councilor Lauren McPherson, who joined the council in January, quickly expressed support for the pause to explore reducing the number of licenses available for cannabis businesses in the city.

At-Large Councilor Walter McKee made a motion to approve the pause, and it was approved in a 7-0 vote.

It is unclear, however, what legal force that vote had because city councilors followed none of the processes outlined in state law and the city charter for establishing a temporary ban.

‘WEED CITY’

Hallowell limits cannabis businesses in the downtown district to three. One closed recently, and the City Council agenda suggested the city’s elected officials would discuss the process for awarding the third license, which happens through a lottery system.

But when that discussion began, Ward 2 Councilor Michael Frett said residents had raised concerns to him about how cannabis businesses are impacting the city’s reputation, culture and other businesses downtown. He said he was especially concerned about McAllister Real Estate, near the corner of Water and Central streets, where Frett said customers for downtown cannabis shops often park illegally and loiter.

“This is not the first time that people have brought to my attention that they have some issues about Hallowell acquiring this reputation of being ‘Weed City,'” Frett said. “I think this might be a good opportunity to revisit the whole issue in a council discussion.”

McPherson said she wanted to explore reducing the number of available licenses for marijuana businesses from three to two. Gagnon then suggested the moratorium to keep the licenses at two, while the City Council considers McPherson’s proposal.

“There seems to be a will on the council, and if there is that will, this is the time to be having those conversations — while there’s a free license,” Gagnon said.

Hallowell Mayor George Lapointe Joe Phelan/Kennebec Journal file

Mayor George Lapointe said he also hears regularly from residents concerned about the number of marijuana stores in Hallowell. The council’s discussion, he said, reflected that general feeling among residents.

“(Residents) question just how many marijuana stores are needed,” Lapointe said. “I think they also discuss it in the context of the Augusta region. If you’re driving 10 miles in any direction from Hallowell, there’s a ton of stores.”

Farmington-based recreational cannabis store Canna Cabana had already applied for the open license in December, according to public records. The application indicated the business hoped to open a location at 156 Water St. in February or March.

But Lapointe said because the city has not openly advertised the open slot, no application review needs to begin while the City Council considers passing a moratorium ordinance over the next month.

City Clerk Lisa Gilliam said after the vote Monday that she would contact the applicant about the vote to pause licenses.

“For the one person who has already expressed interest, I would give them an update, saying, ‘Yes, you put your name on list, but a moratorium may be put in effect before we take any action on it,'” Lapointe said.

He said he expected the City Council to move forward with an official moratorium once details are worked out, and he said he planned to speak with City Manager Gary Lamb about scheduling a special meeting before the council’s next scheduled meeting March 10 to approve an emergency moratorium ordinance.

STATE LAW AND CITY CHARTER

Pauses like the one city councilors intended, called a moratorium, are defined under state law as ordinances, the local government version of a law, according to Kate Dufour, the Maine Municipal Association’s director of advocacy and communications and a former Hallowell city councilor. Moratoriums are temporary and cannot be in effect for more than 180 days, unless an extension is approved by the council or at a town meeting.

Under the Hallowell City Charter, new ordinances must be approved on two separate days, unless the City Council includes an emergency clause defining a need for quicker action. These emergency declarations also allow the new ordinance to go into effect immediately, instead of after the normal 10-day waiting period.

Gary Lamb Joe Phelan/Kennebec Journal file

No moratorium ordinance, nor any emergency clause, was drafted before Monday’s meeting. The idea was introduced by Gagnon and approved by the City Council over a four-minute span, with no members of the public commenting.

Lapointe said during a brief discussion before the vote that he recalled previous moratoriums had been enacted by ordinance and needed to go through more than one reading, but Lamb said he thought the City Council could approve a moratorium without an official ordinance.

“I would hope we would not need an ordinance for a moratorium here,” Lamb said. “It takes four months. We should just be able to do it by state statute.”

In fact, two previous pauses on marijuana business licenses that were enacted by ordinance by the Hallowell City Council in 2017 and 2018 used emergency power and included a section justifying the emergency declaration.