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City introduces ordinance to cap Atlantic City retail cannabis licenses; staff says cap applies only to retail dispensaries and cannot stop delivery services
Summary
City Council introduced an ordinance limiting the number of retail cannabis dispensary licenses. Staff said the proposed cap targets the retail class (class 5), recommending a cap of 16 (12 annual, 4 micro), and clarified delivery services and out‑of‑city operations are not blocked by municipal caps.
Atlantic City — The City Council introduced an ordinance Sept. 17 to cap the number of retail cannabis dispensaries the city will license, and city staff clarified the draft targets only retail storefront licenses while delivery and other license classes are governed differently.
The ordinance (labeled 9c in the council agenda) was moved by Councilwoman Shabazz and seconded by Councilwoman Bailey at the meeting’s first reading. Council members asked for staff analysis and the report referenced in the ordinance before second reading.
City staff explained the proposed cap applies to retail (class 5) licenses only. A staff member described the recommendation as a cap of 16 retail permits: 12 full annual retail licenses and 4 micro retail licenses limited in space and employees. The staff member said delivery activity can be done by a retailer for its own transactions, and noted a separate ‘class 6’ delivery license can operate statewide and would not necessarily be stopped by a municipal cap.
“Delivery is something where if someone has a retail, they can deliver… but you could also have a delivery stand‑alone delivery business, which is class 6,” the staff member said. The staff explanation noted that delivery origin may be outside the city and that municipalities generally cannot prevent delivery businesses licensed elsewhere from servicing customers in Atlantic City.
Council questions: Council members requested a copy of the report cited in the ordinance prior to second reading so members could review the basis for the cap and the license split. At the first reading the clerk recorded seven affirmative votes and one member did not register a vote at that moment; the ordinance was introduced for further consideration.
Next steps: The council will hold a second reading and vote at a subsequent meeting, after staff provides the requested report and any recommended language adjustments to clarify which license classes are capped.
