Update: The State Board of Education on Feb. 15 dismissed an appeal from Vega Collegiate Academy and told the school to go through the mediation process outlined in its contract with the district.

A charter school looking to move out of a church basement as it expands into more grades next year has halted its plans after the Aurora school district rejected the school’s desired location — near a pot shop.

City and district officials say it’s the first time the issue has come up in Aurora since marijuana retail businesses began opening in the fall of 2014.

State law prevents marijuana stores from opening within 1,000 feet of a school, but it doesn’t address schools opening near existing marijuana businesses. Vega Collegiate Academy’s contract with the district states the superintendent must approve any relocation. In this case, he didn’t.

Vega officials had already spent $40,000 on traffic studies, building plans, and deposits for the space at Colfax and Galena, about a mile from its current location in a church in northwest Aurora. Many parents had seen some plans and were excited about the expansion and larger space that might allow for more programming such as yoga or art.

Charter school officials appealed the denial – first to the school district and now to the State Board of Education. The final purchase of the site, and the remodeling that would have had to taken place to have students move in this fall, are on hold.

Kathryn Mullins, the founder and executive director of Vega, told the school board last week that the denial sends a bad message to the school’s students.

“Your denial of our space has told our children and families that it’s O.K. to live there, just not to go to school there,” Mullins said. “That is unacceptable.”

Because of the pending legal challenge, Aurora Public School officials said they would not comment on the denial. But in a letter to the school, Superintendent Rico Munn said the location – 300 feet from a marijuana dispensary – raises concerns. In trying to reconsider his decision, he noted he reviewed parent support letters, maps, crime data, and research about crime near marijuana dispensaries.

“I continue to have concerns,” Munn’s letter states. “I have not found anything to change my original denial.”

Vega school officials said that finding a location for the school was “a Herculean accomplishment in Colorado’s tight commercial market,” according to appeal documents.

The proposed building, a three-story retail building most recently housing a barber shop, is next to a Dollar General and was attractive in part, because it is close to where families of current students live and because of the large size.

“Our children deserve to go to a quality school close to their home,” Mullins told the board. “Our children and families should not be punished because of where they live or what facilities currently exist in our community.”

Proposed location at 10180 E. Colfax Ave.

Vega opened in August, enrolling almost 100 kindergarten and fifth graders. The plan is to expand by two grade levels a year until the school serves kindergarten through eighth grade. A high percentage of families in the northwest Aurora area live in poverty — a population Vega officials want to serve.

The proposed school site on Colfax has an entrance in the back that opens south onto a parking lot so that students would not have to enter from Colfax. An alleyway connects the parking lot to a strip mall with a Starbuds dispensary whose entrance faces west.

Reached on Friday, Brian Ruden, one of the owners of the Starbuds pot shop, said he was not aware of the possibility of a school relocating there.

In Denver, analysis done by the city and by the Denver Post in 2016 found more than 20 schools that are located within 1,000 feet of a marijuana store. In most cases, the schools moved in after the marijuana shop.

DPS officials did not respond to a request for comment about how they make decisions for school locations near marijuana shops.

The connection between crime and marijuana has been contentious and definitive evidence does not exist.

The 1,000-foot buffer was created by the state in 2012 after federal officials sent letters to medical marijuana shops informing them that they would enforce federal drug laws near schools. Federal prosecutors have generally followed a policy of not going after businesses that follow state law, but it’s not clear how aggressive the current administration will be on imposing federal enforcement in states that have legalized marijuana sales.

Vega employees, parents, and community members also spoke to the Aurora school board Tuesday about the decision. Mullins, the founder, said more than 200 parents, employees, and community members packed the board meeting, many with signs in support of Vega’s relocation. Thirty-five people signed up to speak, but because of the lengthy list, the school board limited the speakers to four.

“It would be very close to my home and so would make life a lot easier for me as an older person raising kids,” one grandmother told the school board.

The woman, who said she has lived in the neighborhood for decades, said she knows the area has a bad reputation, but said locating a school in a building that has often been empty could help change that.

Another mother, Arely Suarez, who said her fifth-grade daughter attends the school, told the school board in Spanish that the students need the bigger space.

“The kids have a right to a good education,” Suarez said. “As far as the marijuana dispensaries, this is a factor at the state level, it’s not just a factor that is affecting the Aurora school district.”

The legal challenge the state must first consider is whether it has jurisdiction for the appeal. Vega officials asked for the appeal, saying the district is imposing unreasonable conditions on the charter school.

But the Aurora district argued in filings that they have authority over the decision. The filings state the state board does not have jurisdiction because the superintendent, not the Aurora school board, made the decision, and because the dispute is not an unreasonable condition. The district argues the charter school should first remedy the conflict according to a process outlined in their contracts that would include mediation.

Either process could stretch out for months.

This story was updated to reflect more accurate information about the building.