Found a solution. 

You cannot have jersey jar files deployed with app. They must reside
in$TOMEE_HOME/lib directory. 

Also, Edit file $TOMEE_HOME/conf/system.properties and add this line:

com.sun.jersey.server.impl.cdi.lookupExtensionInBeanManager = true

After doing above app deploys correctly and I'm able to successfully have my
endpoint respond correctly.
Now on to using JPA to persist my data objects.

Hat tip to Frank Martinez for this solution.
http://www.fdmtech.org/2012/07/tomee-1-0-jersey-jax-rs-cdi



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