Jersey City Cannabis Board OKs 2 Consumption Lounges to Open

Xena Dispensary The Other Side Dispensary Cannabis consumption lounge

The Jersey City Cannabis Control Board (CCB) approved cannabis consumption lounges for Xena dispensary in McGinley Square and The Other Side Dispensary in the Heights.

Xena Dispensary Approved for a Consumption Lounge

Xena dispensary in McGinley Square on the West Side in Ward B was first up for a dispensary license renewal hearing and then a consumption lounge hearing.

Founder Haytham Elgawly explained he is a local underground legacy to legal entrepreneur who opened a thriving dispensary.

“We’ve proven everyone wrong!” he exclaimed.

Elgawly noted their 1st anniversary is April 1st.

“I do remember the approval process,” CCB Chair Jeff Kaplowitz noted.

“You mean battle,” Board attorney Ron Mondello joked.

St. Peter’s University sued Elgawly since they didn’t want a dispensary near their new dorm. However, he eventually won.

Progress Made

Elgawly explained they work with Rising Tide and the McGinley Square Special Improvement District (SID) on charitable events and non-profit initiatives.

He said he has also opened Chop Shop burger place across the street and wants to open a juice bar too.

“You guys aren’t talking to us about what we need,” Elgawly noted.

Mondello lamented a rule says CCB Commissioners aren’t allowed to speak to dispensary owners much.

Kaplowitz asked them how much they spent and how long it took to open.

Elgawly said it took $1.2 million to open, including $750,000 of his own money. After getting approval in September 2022 from the City Council and the NJ Cannabis Regulatory Commission (CRC) in June 2023, he opened in 2025.

“I went to PS 11 4 blocks away…. I risked it all, and here we are!” he declared.

Kaplowitz criticized former Mayor Steve Fulop for problems with the process.

Elgawly said he is on very good terms with the new St. Peter’s administration.

Mondello asked why they changed the name from Medusa.

Elgawly said someone threatened them with a lawsuit.

Their license was renewed 5-0.

Xena Consumption Lounge Details

“There have been no complaints…,” Xena attorney Rosemarie Moyeno Matos noted.

She noted their consumption lounge would be in the basement, which has a ventilation system worth $250,000 to cope with smoke.

“My staircase lights up as you walk down… My store is Greek themed,” Elgawly noted. “I have banquet-style seating installed.”

“My background comes from community advocacy and events,” he added.

“This is your space to meet like-minded people…,” Elgawly added.

He noted that about 50 people could fit in the lounge.

Kaplowitz asked if it was going to be time-limited.

Elgawly said they might only allow people to be there for an hour or 90 minutes when it’s busy.

Mondello noted medical cannabis could be brought into a lounge since many patients cannot legally consume at home.

“We can’t make money from the lounge. It’s an accessory,” Elgawly noted. “I see it as an anchor where we can host events… change the stigma.”

He said many customers say they walk around smoking weed because they have nowhere else to go.

Creating a Safe Hub

During public comment, Marianne Fam complained that a lounge could hurt the neighborhood.

Matos said they can judge if people are too high and limit purchases.

“We’re not the first consumption lounge in the State…,” Elgawly said.

Gynsyng in Merchantville, along with Sunnytien and High Rollers in Atlantic City, soft-opened consumption lounges last July 2025 in South Jersey. Urb’n opened one in Newark in February.

“If people are over-consuming, they’re falling asleep or getting really hungry,” he added.

Elgawly noted potheads are not like rowdy drunks.

Commissioner Daniela Pepe asked about their hours.

Elgawly said they have to close at 11 PM due to city law.

“You will be a welcome addition to Jersey City,” Kaplowitz declared.

The CCB approved them 4-0 with Vice Chair Patrick Patel absent to applause.

The Other Side Dispensary Consumption Lounge Approved

Owner Dr. Alyza Brevard-Rodriguez then testified for The Other Side Dispensary in the Heights in the north. She noted she received CCB approval in July 2022 and opened in October 2024.

Matos was also her lawyer and explained her lounge would be on their 2nd floor.

Mondello noted she was delinquent in her taxes for two months. He added that it wouldn’t prevent approval.

Brevard-Rodriguez said they held the location for 30 months and spent $211,000 on rent. She was very critical of Jersey City’s cannabis process that led to great costs. Brevard-Rodriguez said they raised $1.1 million and have paid $211,000 in fees.

“I had to sell everything to make this happen,” she added.

“We want to help you….” Kaplowitz said.

“I actually closed once upon a time. The State… gave me a grant to reopen the store,” Brevard-Rodriguez explained.

“We should give you back any fees,” Commissioner Arnold Stovell said.

“I really want it to be a community-oriented space. We can host yoga or more integrated wellness,” Brevard-Rodriguez said.

She said they need to make $100,000 a month to break even and noted many high costs, including having to pay for a guard.

Brevard-Rodriguez said she has written cannabis public policy papers that interested Kaplowitz.

The CCB approved them 4-0.

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