SUNLAND PARK, N.M. (KFOX14/CBS4) — A contentious zoning proposal that would have allowed a new dispensary near the New Mexico-Texas state line was rejected by the Sunland Park City Council.

The decision came after a packed meeting where residents and business owners voiced strong opposition.

Dan Arvizu, spokesperson for the Sunland Park Cannabis Coalition, said, “That’s why all these other folks are here, is they want to voice their opinions that they think, first of all, this is really too close to the state.”

Many attendees wore shirts with slogans like “Vote No: To Cronica and Station X,” expressing their disapproval of the proposed development.

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Dan Arvizu, director of the Sunland Park Cannabis Coalition, expressed concerns about the project’s potential impact on the community and the cannabis industry.

“We are being responsible in the way in which the cannabis industry is evolving,” Arvizu said.

He emphasized that the development, which he claims includes plans for a sports bar, marijuana consumption lounge, dispensary, and possibly a strip club, is not in the best interest of Sunland Park or the industry.

Arvizu highlighted the lack of transparency and clarity surrounding the project, describing it as a “mega complex” with unclear intentions.

“It’s being not very clear to us on what is being planned and how it’s being planned,” he said.

The coalition, along with concerned residents from Texas, voiced their objections, citing the project’s potential strain on local infrastructure and its proximity to a congested intersection on the state line.

“Our colleagues and our visitors and our neighbors from Texas are also of that concern because they really haven’t had a voice to say their objections,” Arvizu said.

Concerns were also raised about the land, owned by Independent Nation, potentially housing more than just a dispensary, including a possible strip club.

Amit Bijlani, principal of Independent Nation, addressed these allegations, stating, “I can assure you that 3801 Emery Lane—that is an existing building there. We have full designs. We plan to turn that into a beautiful place called Cronica. It will not be a strip club.”

Bherjani, also expressed optimism for the outcome of the city council decision.

“We’re hoping what will happen is just what the law kind of dictates, which is that they’ll pass it smoothly,” said Bherjani.

He emphasized that Independent Nation has worked closely with the Cannabis Control Division and the Alcohol Control Board to ensure compliance with all regulations.

Bherjani addressed concerns from community members about the nature of the development, which some fear could include a strip club. “The allegations are completely unfounded,” he said. “Independent Nation is in no way, shape or form going to be a strip club.”

The dispensary, located at 3801 Emery Lane, has also faced scrutiny due to its proximity to the Texas-New Mexico state line.

Bherjani clarified that the entire facility, including the parking lot, is situated in New Mexico, countering claims that it would extend into Texas, stating, “None of our dispensaries have parking lots that are in Texas. That’s not true.”

The city council’s decision will be crucial for Independent Nation’s plans, as the dispensary is considered a significant economic driver for the broader development.

“We’re confident that the city of Sunland Park and the council will do their duty and follow the law,” Bherjani said.

RELATED: Residents protest proposed strip club near family venues in Sunland Park

Bijlani further emphasized the family-friendly nature of their plans, saying, “If you actually look at our real plans, what we’ve actually designed, Independent Nation is the farthest thing from that. We are actually a place for families. We have arcades. We have axe throwing… And so we really are built around community.”

Ultimately, the Sunland Park City Council denied all current zoning requests associated with Independent Nation’s proposed cannabis additions of business to their entertainment venue.

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