Council advances ordinance capping retail cannabis shops; staff says cap targets retail class only

The Atlantic City Council on Sept. 17 advanced an ordinance that proposes a cap on retail cannabis dispensaries in the city, with staff explaining the measure applies to retail Class 5 licenses and not to delivery‑only operations.

City staff told the council the recommended cap is 16 total retail outlets: 12 full annual licenses and 4 micro retail licenses, for the retail (Class 5) category. The staff response said the ordinance language targets retail only; delivery businesses (Class 6) are separate and, under state rules, may operate without being limited by a municipal cap on retail dispensaries.

Council and staff discussed whether the ordinance’s backup materials — including an initial market report referenced in the ordinance — should be circulated to council before second reading; a council member asked for that report ahead of the next meeting. Questions also probed how delivery services interact with a retail cap. Staff explained that delivery providers can be standalone (Class 6) or be associated with a retail license; a delivery entity can pick up product from a licensed retail location and deliver across municipal boundaries under state rules.

The ordinance passed first reading with a council roll call recorded during the hearing. During the public dais discussion staff confirmed the cap applies to the retail class only and advised council to review the referenced market report before final action.

No final licensing allocations or individual awards were made at the Sept. 17 meeting; the ordinance will return for second reading and a final vote after council members receive the report requested in the meeting.