Curaleaf Sues Hanover Over $630K in Marijuana Fees

A marijuana dispensary is taking the town of Hanover to court, claiming it was improperly charged more than $630,000 in "community impact fees" without evidence to back them up.

Curaleaf, which operates a dispensary on Washington Street, filed a lawsuit in Massachusetts Superior Court seeking a refund of fees paid between 2019 and 2023. The company argues that Hanover failed to document how the money was used or show any connection to actual costs caused by the business – a requirement under state law.

The dispensary also wants a court order to stop the town from collecting any more fees or spending the money it already received.

What’s at Stake?

Massachusetts allows towns to charge marijuana businesses impact fees of up to 3% of their gross sales. These fees are intended to cover real costs, like extra police or traffic management, related to hosting the businesses. But the law is clear: towns must document those costs and make the records public.

Curaleaf says Hanover hasn’t done that. The company claims it repeatedly asked the town to provide documentation in 2020, 2022, and 2023 but got little or no response. In one instance, Hanover reportedly admitted it had no costs tied to the dispensary’s operations.

The Dispute

Curaleaf opened its Hanover location in July 2019 after signing a Host Community Agreement (HCA) with the town. Under the deal, the company agreed to pay $125,000 annually after an initial $50,000 fee during its first year.

By the end of 2022, Curaleaf had paid about $632,000 in impact fees, but the company claims the payments were never linked to any documented town costs. Instead, the lawsuit alleges, the money went straight into Hanover’s general fund without justification.

According to the lawsuit, this violates state law and guidance from the Massachusetts Cannabis Control Commission, which requires towns to tie fees directly to costs and keep them reasonable.

Curaleaf’s Demands

The dispensary is asking the court to:

• Refund the fees it paid since 2019.

• Stop Hanover from spending the disputed funds until proper documentation is provided.

• Block the town from collecting future fees until costs are substantiated.

A Budget Crisis Brewing

This lawsuit comes as Hanover faces significant financial challenges. The town recently announced steep budget cuts due to a projected $4.2 million deficit in fiscal year 2025, driven by rising costs and a lack of new revenue sources.

With Curaleaf’s payments making up a notable portion of Hanover’s general fund, the loss of these funds—or being forced to refund them—could deepen the town’s budget woes. Town leaders have already warned of potential layoffs, service reductions, and postponed projects if the financial situation doesn’t improve.