An enforcement detail was deployed there after police said several complaints were received from residents alleging unpermitted cannabis products were being sold, including to individuals under the age of 21.
“We corroborated it and confirmed it when we sent someone in there and they were able to purchase marijuana,” Spencer said.
Furthermore, Spencer said the sale of recreational cannabis products to an individual 21 or older would have been unlawful without required licenses or permits from the state Office of Cannabis Management (OCM). He confirmed activities at the business remain under investigation.
“When people are not following the regulations, there is always the opportunity for malfeasance to occur and that’s what we found in this case,” Spencer said. “They were selling cannabis illegally and not checking identification for who was coming into their building.”
“We’re working with [OCM] — making them aware of what we’re finding within our jurisdiction — and we have been working with the owner of the building and making it known to him the proper steps within the law, if that is his ultimate goal to become a licensed dispensary,” he added.
Matthew Burke, owner of Higher Grounds, said he had no knowledge of the alleged cannabis sale.
“I rent the venue out to different people,” Burke said when reached for comment Monday. “I don’t really have control of what somebody does when they rent the building.”
However, Burke confirmed he had been hosting a bingo game at the business. He was ticketed on Saturday for violating city code by holding the unauthorized game.
Spencer declined to say when police became aware of the unsanctioned game that has been held at the business since at least May, based on social media posts. He said Burke was provided with all paperwork required to apply for a permit when the ticket was issued.
“The goal is not to be hyper enforcement or to be a bully to businesses. What we’re looking for is compliance,” Spencer said. “Our goal here is to get everybody playing by the same rules.”
Although he now plans to apply for a bingo permit, Burke questioned why he was never previously warned, including when his business was approved by the Planning Commission last February.
“I didn’t know I had to go any further,” Burke said.
Higher Grounds was described in the site plan application as an indoor commercial amusement venue for individuals 21 and older, featuring “trivia, arcade games, corn hole, ping pong, chess and checkers.” There was no mention of plans to host bingo.
Giving three ounces of cannabis as a bingo prize — as promoted in past social media posts by Higher Grounds and Burke — is also unlawful when a fee is charged to play, Spencer said.
“As we continue to investigate, there may be more charges based on the totality of the circumstances,” Spencer said.
Meanwhile, Burke claims he is being “harassed” by police, complaining about the undercover officer who entered the business during the bingo game and tickets he has been issued for unlicensed vehicles he is trying to sell.
“I haven’t done anything wrong,” Burke said. “Anything they want me to do in the city, I always do for them.”
While he denies knowing of unlawful cannabis sales at Higher Grounds, Burke confirmed he is seeking an adult-use microbusiness license that would authorize the cultivation, processing, distribution and retail sale of cannabis products. He said he applied when OCM began accepting submissions on Oct. 4.
“We want to make this a destination in Amsterdam where people want to go,” Burke said. “To provide a safe and fun atmosphere for people to be at.”
Reiterating the focus is compliance, Spencer noted there have been no complaints about the city’s first licensed dispensary, Amsterdam Cannabis, which opened in December.
“There is a lawful way to do it and an unlawful way to do it,” Spencer said.
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