Tahoe Hemp filed the lawsuit in state court Jan. 15 and is accusing Carson City of breaching a contract with the property’s former owner, according to the news outlet.
The company wants to grow hemp on a portion of the former Buzzy’s Ranch property, which used to be a public outdoor recreation area.
The Carson City Board of Supervisors has argued that when the city purchased some of the property in 2010, it used, in part, money it had received from a state land grant, which prohibits any use of the land aside from preserving the open space or its cultural or wildlife resources, Washington Times reported.
Tahoe Hemp has argued that the previous owner of the property, Jarrad Trust, maintained agricultural rights on the land when the city purchased it, according to the news outlet. Trust entered into a leasing agreement with Tahoe Hemp, and the company then applied with the Nevada Department of Agriculture to grow hemp on 100 acres of the property.
When the state agriculture department requested approval from Carson City to move forward in the licensing process, the city sent Tahoe Hemp a cease and desist order, Washington Times reported.
The company is now seeking up to $15 million in damages and lawyer fees, according to the news outlet.