OLD ORCHARD BEACH — The company that ushered through a referendum this summer that made it the only eligible candidate for the town’s sole adult-use marijuana business license is fighting to defend the ordinance against a lawsuit from its competitors.

Exit 710 LLC, led by Thomas Mourmouras, and Priscilla Rowell, a private citizen, are asking a U.S. district judge in Portland to let them intervene and defend the ordinance Old Orchard Beach voters passed in June that limits the size of marijuana stores in town to less than 1,000 square feet.

In their request to intervene, Mourmouras and Rowell say Old Orchard Beach officials were “hostile” during the referendum process – they filed a lawsuit in March that forced the town to hold off on awarding the marijuana business license until after the election. And they doubt the town will adequately defend the law and fear town leaders might even consider settling with Old Orchard Provisions to eliminate the building size restriction.

Old Orchard Provisions sued the town over the restriction in July, alleging the changes unfairly benefited Exit 710 LLC, whose application included plans for an 800-square-foot building while theirs called for a 3,800-square-foot space, which they argued would only include 1,000 square feet of business use.

Exit 710 acknowledged in court records Friday that the restriction makes it the only eligible applicant for the license, but the company denied allegations that the ordinance was developed for its sole benefit.

Hannah King, who is representing Old Orchard Provisions, said Monday they plan to object to Mourmouras’ motion. She said that he and Rowe have no more standing than any other resident who voted on the ordinance.

“What’s interesting about their motion to intervene is that they concede one of our arguments,” King said. “They’re conceding that with this ordinance in place, they become the only eligible applicant for the license.”

Rowell, who said she has no stake in Mourmouras’ business, helped petition for the referendum. She wanted “to ensure that large-scale marijuana retail stores would not open in Old Orchard Beach,” according to an affidavit she signed in March.

Rowell could not be reached Monday through the attorney she shares with Mourmouras.

Mourmouras wrote in an email that he has “no confidence” the town will “represent the will of the voters.”

He said the town hasn’t resumed the licensing process since the vote. Old Orchard Provisions asked the federal judge this month to order the town to hold off on issuing the license until the court considers its lawsuit. The judge hasn’t ruled on the request.

“We feel there is a strong possibility that a settlement could be reached with the other applicant or the Town may not adequately defend the lawsuit in order to potentially allow Old Orchard Provisions back into this process,” Mourmouras wrote. “We would like to stress that we are again putting our own money on the line to make sure that our fellow citizens have a voice in this process, and that their vote is respected by this council.”

Town Manager Diana Asanza and attorney Zachary Brandwein did not respond to calls Monday asking about the latest court filing and whether the town would defend the ordinance. They have yet to file a response as defendants to the complaint.

Old Orchard Beach has been working on the licensing process for adult-use recreational marijuana since the spring of 2021. In October, the town added more criteria, creating a points-based system to review applicants which Mourmouras has argued was crafted to avoid awarding his company the license.

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