Oaklyn council moved to clear the haze around the future of cannabis when it introduced an eminent domain ordinance for the proposed site of Uncle Beez Greeneryz in an area of redevelopment on the White Horse Pike amid pushback from the property’s current owners at Tuesday’s meeting.

In April, council approved a first reading of an ordinance that, if approved on second reading, paved the way for the borough to take control of the property, which has been vacant for decades, at the same time it named Uncle Beez as redeveloper of the site. The second reading and public hearing were tabled in May so the planning board could further review language. Substantial changes were needed, said solicitor Tim Higgins, so a new ordinance was introduced Tuesday along with a resolution designating the property as a condemnation redevelopment area as recommended by the planning board.

Under the terms of the ordinance, Oaklyn will make an offer to purchase the property from DHSC Real Estate Owned LLC and engage in negotiations prior to filing condemnation action, but if those efforts are unsuccessful, “Oaklyn will be authorized to assert its rights of eminent domain and commence a condemnation action to acquire this property from DSHC Real Estate Owned LLC.” It includes approval for municipal officials to pursue litigation as needed for the property acquisition as well.

First readings do not have public hearings, but during the public comment portion of the meeting, Christine Senopoulos, one of the property’s owners, cautioned the governing body to carefully consider its next actions. She explained that her group, DHSC Real Estate Owned LLC, purchased the property in January 2021 and hired Colliers International to find a developer. After a three month study, Colliers valued the property at a sales price of $900,000 or a yearly land lease of $80,000.

The group later signed a lease with tenant Bryant Greene, who planned a cannabis dispensary, Uncle Beez Greeneryz, for the site. The contract was for $7,000 per month, which equates to $84,000 a year. “To us, that validated Colliers valuation,” said Senopoulos.

Senopoulos explained that she personally introduced Greene to a new set of lawyers, who she said helped him attain one of New Jersey’s first cannabis licenses from the new round of applicants. “We are supporters of Bryant. We always wanted him to succeed,” she said. The contract stipulated that Greene had exclusive rights to lease or buy the property through April 2023. It has since expired.

“Uncle Beez could have broken ground under the conditions of the contract,” said Senopoulos, and continued to lease the property for $7,000 a month plus an unspecified “cost of living adjustment.”

She did not feel eminent domain proceedings were fair. “We want to sell or lease to Uncle Beez and have from the very beginning. We are just asking for fair market value,” which she said Greene agreed to in 2021, when he leased the property for the amount Colliers advised at the time.

DHSC’s attorney, Timothy Duggan of Stark and Stark in Hamilton, sent a letter to mayor and council requesting members vote against declaring the property as a condemnation area. It alleges that the designation will harm the owners’ ability to attract other would-be developers to an attractive site. Additionally, Duggan writes, “If the borough decides to use the power of eminent domain to take the DSHC property and transfer it to Uncle Beez, the net effect is to take private property from one private party and give it to another private property owner solely because the new owner does not want to negotiate a fair price for the property. There is no public benefit or policy being advanced – just a land grab to benefit Uncle Beez.” The letter notes that other areas have been developed along the White Horse Pike, including Dollar General, the Oaklyn Villas and Wawa, without the use of eminent domain.

Duggan’s letter maintains that Uncle Beez first offered $275,000 to purchase the property and later $500,000. After that, “unbeknownst to DSHC, Uncle Beez asked to be designated as the redeveloper of the DSHC Property despite the fact that the DSHC Property was for sale and Uncle Beez was leasing the property from DSHC.”

The group now has a second buyer interested in the property, according to Duggan, but it cannot enter into a contract with potential eminent domain hanging over its head. As part of eminent domain proceedings, the borough commissioned an independent appraisal from J. McHale and Associates in Lumberton, which estimated the market value of the property at $680,000 as of May 8, 2023. The 72-page appraisal makes the “extraordinary assumption” that no environmental issues exist at the site, which is just under one acre and notes that appraisal could change if contamination is found.

In order to determine the potential premium paid for cannabis sites, the appraiser utilized paired sales analyses and interviewed local real estate brokers, who indicated that cannabis premiums vary widely, but he does expect them to trend downward as the market becomes saturated with dispensaries and new cannabis dispensary licenses become less available.

Council declined to ask Senopoulos any questions and no other meeting attendees spoke during the public comment session. A public hearing will be held following second reading at council’s meeting scheduled for 7 p.m. on August 8 at borough hall.

Newton Dredging Update

In other business, councilman Chuck Lehman shared during his committee report that he and mayor Greg Brandley recently met with county parks director Maggie McCann Johns about the Newton Lake dredging project. “We brought her attention to a number of areas where Oaklyn is concerned that the project is not meeting the standards promised before dredging began,” he said. Lehman reported that McCann Johns understood their concerns and empathized with them, particularly relating to the Goff Ave. inlet which has not been dredged. Funding may be available through the mosquito commission, so the problem areas could be addressed that way. “Nothing will happen overnight but we have our fingers crossed. We were reassured she would do everything in her power to release some funds and address our concerns,” he said.