Sunland Park council again rejects permits for Station X, Cronica cannabis dispensaries

SUNLAND PARK, New Mexico (KVIA) -- The Sunland Park City Council again denied special use permits for two proposed cannabis dispensaries after hours of testimony focused on zoning requirements, public safety concerns and access near the Texas border on Monday.

The council voted on permits for Station X Cannabis Dispensary at 420 Sunland Park Dr. and Cronica Cannabis at 3301 Emory Dr. during a quasi-judicial hearing ordered by a district judge earlier this year.

Both applications failed to secure the four affirmative votes required for approval of zoning matters by the governing body.

Station X received three votes in favor, two against and one abstention, while Cronica received three votes in favor, two against and two abstentions after Mayor Javier Perea cast a tie-breaking vote in support of the application.

The hearing followed a March ruling by District Judge Casey Fitch, who found the city’s earlier denial of the projects failed to satisfy due process requirements and ordered the council to reconsider the applications.

At the beginning of Monday’s hearing, Sunland Park City Attorney Spencer Edelman emphasized the proceedings were not intended to create new cannabis policy.

“This is a quasi-judicial process, not a legislative process today,” Edelman said. “Accordingly, the goal is to apply evidence to the existing ordinance, not make any new legislation or policy today.”

City planning staff recommended approval for both applications, saying the projects met zoning requirements under New Mexico’s Cannabis Regulation Act.

Planner Sander Montoya said the properties are zoned C2 and that the city received three letters opposing the projects.

Representing the applicants, attorney Raul Carrillo argued the council should focus only on evidence already in the record and not broader public opposition to cannabis businesses.

“The only evidence in the record now is that your city staff has approved all of the steps taken by my client,” Carrillo said.

Carrillo repeatedly referenced Fitch’s ruling, arguing the council was acting in a judicial capacity rather than as policymakers.

“What Judge Fitch points out in his order, though, is today you’re not sitting in that typical legislative capacity,” Carrillo said. “You’re not sitting as policymakers.”

Matthew Chadwick, representing Station X and Cronica Cannabis, said his company has maintained full compliance at all of its cannabis operations across New Mexico.

“We have met all legal requirements, not only from the city, but the state of New Mexico as well,” Chadwick said.

Opponents argued the applicants failed to satisfy city land use requirements and raised concerns about public safety, traffic and customer access routes that could lead directly into Texas, where marijuana remains illegal.

Former El Paso City Representative Cassandra Hernandez told the council the projects had unresolved issues involving utilities, easements and site access.

“The burden is on them to demonstrate how they have,” Hernandez said. “They have not.”

Attorney Brian Grayson, representing other cannabis businesses in Sunland Park, argued unresolved infrastructure concerns remained after the Elephant Butte Irrigation District denied a crossing request earlier this year.

“The parking lots can’t be connected as a result of the denial,” Grayson said.

Grayson also warned that customers leaving the dispensaries could unknowingly violate Texas law.

“This council has a duty to protect innocent persons who believe they are complying with the law, only to learn too late that they’re actually committing crimes,” Grayson said.

Several residents also spoke against the dispensaries, citing addiction concerns and the impact on children and families.

Sunland Park resident Rosalina Dias said her family had experienced marijuana addiction firsthand.

“We don’t need more dispensaries,” Dias said. “We need to get them out of here.”

El Paso City Rep. Alejandra Chavez also addressed the council remotely during the hearing, urging city leaders to require access routes that remain within New Mexico.

“Our position on this side in El Paso is that this could potentially create a safety concern for residents in District 1,” Chavez said.

Chavez said the cost of any new access road should be paid by the developer and not taxpayers.

During the discussion, Councilor Armando Mata said cannabis customers already travel from Texas into New Mexico to purchase marijuana products and argued adults are responsible for their own decisions.

“If they want to buy cannabis products, which are illegal in Texas, they should take full responsibility for that,” Mata said.

Mata also emphasized that Independent Nation, an entertainment venue frequently referenced during public comment, is a separate entity from the two dispensary applications.

Council members who voted against the projects were instructed to provide written reasoning for the denials so the city can formally notify the applicants.

ABC-7 has reached out to the Sunland Park Mayor's office as well as