A local company has been cleared to open a recreational marijuana shop on the Lynn/Saugus line as litigation between the two municipalities was resolved last week.

The settlement between the two municipalities and Massachusetts Green Retail, the company planning to operate a shop on Boston Street, was reached nearly a year after the town of Saugus filed a lawsuit in an attempt to block the store from opening.

According to court documents, the lawsuit was dismissed last Thursday. The settlement agreement upholds the special permit for the business that was approved by the Lynn City Council in March 2019 and was the source of the appeal from the town of Saugus.

“It’s unfortunate that it’s taken this long, but it’s a positive step in the right direction and I’m excited and happy that it’s been dismissed,” said Jordan Avery, president and CEO of Massachusetts Green Retail.

“I want to thank both the City of Lynn and Saugus special Town Counsel for being willing to work this out and come to a resolution to finally open a shop in Lynn where Lynn will generate revenue and the community will have a place (that’s) easily accessible to purchase safe, clean lab-tested cannabis product.”

In its Land Court filing against the Lynn City Council and Massachusetts Green Retail last April, the Town of Saugus argued that about 10 inches of the Boston Street building, which will house the marijuana shop, a third of the deck, most of the parking spaces, and an existing dumpster are all in an industrial district in Saugus.

Recreational marijuana establishments are explicitly prohibited in every zoning district in Saugus, according to the complaint that had been filed by the Saugus Board of Selectmen and the town’s building commissioner.

The Board of Selectmen voted against allowing recreational marijuana stores in 2016, a decision that was upheld by Town Meeting members two years later.

The terms of the settlement, which were ultimately reached after the two sides sought mediation in December, prohibit any of the store’s business from occurring on the Saugus portion of the property, which includes barring customers from parking on the town’s side of the lot.

“We’re pleased that everybody was satisfied and the special permit has been upheld and Massachusetts Green Retail will be able to open when it is ready,” said George Markopoulos, Lynn’s city solicitor. “Much credit must be given to Council President Darren Cyr and Councilor Jay Walsh in their leadership and for the settlement that was reached.

“The City Council worked cooperatively with the Town of Saugus and the applicant, Massachusetts Green Retail, so that the City Council special permit was upheld and the Town of Saugus’s concerns were addressed appropriately.”

Arthur Kreiger, special town counsel for Saugus, said he had recommended a settlement to the town, but would not comment on the terms of the agreement as he considers them to be “self-explanatory.”

“We’ll see how it plays out,” said Kreiger. “I think it was a reasonable result for the town and both sides. Settlement is always a good thing rather than more litigation.”

Some of the terms of the agreement include:

No activities related to the dispensary, including consumption of marijuana products, parking and access/egress, shall occur in Saugus.

The company will stripe the parking lot along the entire Lynn/Saugus border.

The company will post signs prohibiting dispensary customers, employees, delivery drivers, and others from parking or driving in Saugus.

The company will use a stickering system to ensure that anyone who parks in the Saugus part of the parking lot will not be allowed to enter the dispensary.

No customer or employee of the dispensary may use any part of the building’s deck.

The company shall build out and operate in the building in such a way that the dispensary does not occupy any interior space in Saugus.

Saugus shall not appeal any reconfiguration of the parking on the site in Lynn, as long as any reconfigured parking and travel is limited to Lynn.

Saugus shall not appeal any other permit or approval issued by the City of Lynn for the dispensary as it is currently approved.

Saugus zoning or other officials may enter the parking lot at the site at reasonable times to ensure the company is abiding by the agreed-upon measures.

If Massachusetts Green Retail breaches the agreement, Saugus will be presumptively entitled to appropriate injunctive relief.

Avery said he plans to abide by those terms.

“We’re going to take every step from preventing customers from parking in the Saugus-owned part of the parking lot,” said Avery. “These were all things that I noted before that we would cooperate with local authorities from both communities (on) and follow all regulations of the state (Cannabis Control Commission).”

The resolution brings a “long, stressful” year to a close for Avery, who was unable to secure an occupancy permit for his business due to the ongoing litigation.

The lawsuit slowed down his business plans considerably, he said, but he has been able to start demolition on the building, commonly known as the former O’Brien’s Pub, and the dismissal will allow him to file an application for final approval from the state’s Cannabis Control Commission.

He concedes that he may encounter additional delays from the coronavirus, but is hopeful his shop will open within the next six months.

“We want to get in there and get open as soon as possible,” said Avery.