GAZETTE STAFF/STEPHANIE MURRAYFormer Adventure Outfitters building where Hampshire Mosque is under construction on Russell Street in Hadley.
GAZETTE STAFF/STEPHANIE MURRAYFormer Adventure Outfitters building where Hampshire Mosque is under construction on Russell Street in Hadley.

HADLEY — The fate of the town’s first medical marijuana dispensary remains up in the air as investors discuss whether they will appeal a decision by the Planning Board that squashed the project earlier this week.

James A. Counihan, president and CEO of Happy Valley Compassion Center, said he is in discussion with cofounders and investors to determine what’s next for the project in response to the board’s decision. The company will have 20 days to appeal the decision once it is filed with the town clerk by Planning Board Clerk William E. Dwyer Jr. next week.

“We’re considering all our options right now. We are in conversations with our investors to determine the best use of our time and money,” Counihan said. “The potential for all options is on the table.”

Counihan said it is unclear whether Happy Valley will seek a new location in Hadley or take their business elsewhere. He said the company’s goal is to open a medical marijuana dispensary in the area “as soon as possible,” and will decide the next step within two weeks.

The North Easton-based company that has also applied to site a medical marijuana dispensary at 155 Main St. in Greenfield.

In March, Happy Valley applied for a special permit to convert the former Sunoco station site at 457 Russell St. into a medical marijuana dispensary. Though the project is the only application of its kind in Hadley, four companies have applied to build a cluster of dispensaries near the University of Massachusetts campus on University Drive and Amity Street in Amherst.

According to Dwyer, there was little opposition to the project in past months, with only two people offering comment during the public hearings. The project seemed to be sailing toward approval until a public hearing Tuesday night when concerns that the dispensary would be too close to a nearby mosque where children will gather divided the board.

Hampshire Mosque board clerk Naz Mohamed submitted two letters to the Planning Board July 25 stating the mosque, set to finish construction by the end of the year, plans to hold religious education classes for children at the site. According to Department of Public Health regulations, a medical marijuana dispensary cannot be within 500 feet of a place where children congregate in an organized way.

The Planning Board considered the letters at the meeting and voted 3-2 in support of the project. Despite the majority vote, the application was denied because medical marijuana dispensaries need a four-vote majority to be approved, according to state law.

Dwyer, Chairman James Maksimoski and Michael Sarynsnki voted in support of the project, arguing the project should be considered with information available at the time of the application. Members John Mieczkowski and Joseph Zgrodnik voted against the project, saying that the mosque should be considered because it is already under construction.

“We respect the Planning Board’s decision. It was ironic because despite the majority, there were not enough votes for the project,” Counihan said. “We are definitely disappointed, but we will keep considering our options.”

Counihan stressed that the board’s decision was strictly a zoning issue, and said his company bears “no ill will” toward the mosque and wishes them the best moving forward. Mohamed aired concerns in her letter that in the current political climate, the mosque could be the target of vandalism if seen as the reason the dispensary was voted down.

Counihan said he disagreed with the board’s decision because his company’s application was submitted before he was aware the mosque would be a place where children gather. He said the dispensary would have befitted the town by creating 10 to 15 new jobs, paying taxes despite being a non-profit organization, paying the town a $50,000 host community payout annually and donating to charities.