Part of a city grant to help small businesses using federal recovery funds has gone to a Downtown rooftop bar affiliated with a cannabis dispensary and owned by a former city councilor.

Apex Bar and Lounge received $100,000 through a Boston SPACE Grant, a federally funded program intended to help small businesses in industries most affected by the COVID-19 pandemic and revitalize Downtown.

Apex Bar and Lounge is situated on top of Apex Noire, a cannabis dispensary located at 150 State St., near Faneuil Hall. Cannabis dispensaries are not eligible to receive government funding, and the two establishments are legally separate entities.

There are, however, significant overlaps between them. For example, 150 State Street has seven stories. Apex Bar and Lounge occupies the sixth and seventh floors of the building, according to its liquor license issued in 2022. Apex Noire, the dispensary, describes itself on its website as a “7 Story Dispensary with Edible Factory and Roof Top Lounge.” Apex Noire frequently lists dispensary events on its website which are hosted in the bar. The earliest event listing the bar was in 2023, when the dispensary invited customers to a yoga class in “our gorgeous new 7th Floor Bar and Lounge spot.” The bar also does not have its own website or phone number.

Both Apex Noire and Apex Bar and Lounge are owned and managed by Tito Jackson, a former Boston city councilor and outspoken supporter of Mayor Michelle Wu.

When asked for comment, Jackson confirmed that, “Apex Noire and Apex Rooftop Bar and Lounge are two separate businesses, each with its own distinct operations, identity and mission.”

A spokesperson for the Mayor’s Office of Economic Opportunity and Inclusion, which administers the SPACE Grant program, stated that, “Decisions took into account the strength of an applicant’s business plan, the industry represented, where the applicant was looking to locate, and other factors to ensure a diverse and broad representation of business owners.”

“Because these are two separate legal entities, we only needed to take into account the aforementioned factors for reviewing applications,” the spokesperson continued. “We ensured that this entity submitted necessary documentation to demonstrate that it was a separate legal entity and to confirm that funds would only be used for the new bar and lounge space.”

Jackson said that Apex Bar and Lounge would use the grant to cover its rent, new equipment purchases, and “ongoing business development.” “For small businesses like ours, securing funding, especially in the competitive environment we’re in today, can be a game changer,” he said.

“This funding will help us continue to create jobs, support local vendors, and provide a welcoming environment where everyone can feel at home.”

Nine other businesses in Boston’s central neighborhoods received SPACE Grants in the most recent cycle, with funding ranging between $50,000 and $200,000.

The grant was informally aimed at new or expanding businesses, according to Michael Nichols, the president of the Downtown Boston Alliance, which has helped the city identify businesses for the project. The Alliance also received funding in order to build a new community space.

“[Some] businesses were already open that were applying for a SPACE Grant, but they were doing something to expand or change their business,” Nichols said.

Apex Bar and Lounge has been open since at least November of 2023.