The City of Menominee and City Manager Brett Botbyl are facing a federal lawsuit over the city’s marijuana licensing process.

JGB Holdings and an affiliated property company filed the nine-count complaint in U.S. District Court. The companies say JGB received a provisional license in May of 2025 to construct a recreational marijuana store.

The lawsuit alleges Botbyl told the company a retail license would be issued after construction, inspections and an occupancy permit were completed. Relying on that assurance, the plaintiffs say they purchased property for one-point-seven-five-million dollars and began planning the development.

The complaint also challenges a waiver JGB says it was required to sign before receiving its provisional license. The company claims that waiver improperly required applicants to surrender their right to challenge the city’s licensing decisions in court.

JGB argues its provisional approval came before voters approved a nine-store limit in November of 2025 and says that cap should not prevent the business from receiving a retail license.

The plaintiffs are asking the court to block Menominee from issuing another marijuana license while the case is pending, declare JGB entitled to a license once all requirements are met, and award financial and punitive damages.

The case has been assigned to U.S. District Judge Paul Maloney. The allegations have not yet been proven in court.