A plan to open an adult-use cannabis dispensary inside a Harlem Avenue building in Riverside appears dead.

Dr. Milad Nourahmadi, who has had a sales agreement in place with Mint IL LLC since late 2021, said he’s terminating that contract this month and is putting the property back on the market for sale or lease.

“At this point, I’m not holding my breath anymore,” Nourahmadi said in a phone interview late last week. “There are too many pieces stuck in limbo for me to feel comfortable financially waiting.”

Nourahmadi said he’s open to revisiting a deal if the state of Illinois approves Mint IL LLC’s site application. The Riverside Village Board on Dec. 1 voted unanimously to extend, for the third time, its sales agreement with Nourahmadi for the purchase of village property at 2710 Harlem Ave. until March 31, 2023.

However, neither Nourahmadi nor Omar Fakhouri, owner of Mint IL LLC, expressed confidence in the state approving Fakhouri’s preferred site application.

“I have no idea if and when [the site approval] is going to go through,” Nourahmadi said. “Given how long the whole process is taking, I’m beginning to market the property to other businesses as well.”

Fakhouri, the owner of Mint IL LLC, also cast doubt on the property housing his dispensary.

“I believe the site will fly for a basic layout, but the limited space and with how I want to design/lay it out, I don’t think it will work and was trying to get feedback from the state,” Fakhouri said in a text message.

Asked if that meant a dispensary would not be happening at the Riverside location, Fakhouri said, “For me, probably not.”

Nourahmadi, who purchased 2704 Harlem Ave. in December 2020, said he’d be interested in selling the property to another cannabis dispensary, but said it would be marketed for lease. It has served as a COVID-19 testing site on and off since June 2021.

The plan had been for Nourahmadi to sell 2704 Harlem Ave. to Mint IL LLC and at the same time acquire the village-owned vacant lot to the south at 2710 Harlem Ave. Nourahmadi also owns the strip mall property at 2720 Harlem Ave., and his plan was to convert the village-owned parcel, which sits between Nourahmadi’s two parcels, into parking that could serve both his strip mall and the cannabis dispensary.

He has already obtained village approval for a special use permit and two zoning variances to build the new parking lot, but the entire deal hinged on selling 2704 Harlem Ave. to Mint IL LLC.

Nourahmadi said it still may be possible for him to acquire the village-owned parcel at 2710 Harlem Ave. if he is able to sell 2704 Harlem Ave. to another buyer, depending on the eventual use for that property.

“I’ve spoken to the village, and they said they would look at it on a case-by-case basis,” Nourahmadi said. “Their goal was to bring in a business that would generate a lot of sales tax revenue for the village.”

It wasn’t clear just how much a cannabis dispensary would have brought Riverside at that location, but the village would collect sales taxes totaling 6 percent on cannabis sales at 2704 Harlem Ave. – the state’s 1-percent retail sales tax, Riverside’s 1-percent non-home rule sales tax, a 1-percent tax on all retails sales within Riverside Business District 1 where the building is located and Riverside’s 3-percent cannabis retailer occupation tax.

A cannabis dispensary in Oak Park generates close to $400,000 annually via that village’s 3-percent cannabis retailer occupation tax.