Atlantic City council introduces ordinance capping retail cannabis dispensaries; staff says cap would be 16
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Summary
On first reading the council introduced an ordinance to cap retail (Class 5) cannabis dispensary licenses in Atlantic City; city staff told council the proposed cap would be 16 total licenses (12 full annual and 4 micro licenses) and that delivery services are regulated separately.
Atlantic City on Sept. 17 introduced an ordinance that would limit the number of retail cannabis dispensary licenses in the city. The council considered the ordinance on first reading; the transcript records a hearing of questions and staff answers from planning and licensing staff.
City staff explained the proposed cap applies to retail (Class 5) dispensaries and described the recommended limit as 16 total licenses: 12 full annual retail licenses and four micro retail licenses, which restrict floor area and staffing. A city staff member answering council questions said the cap recommendation came from an external report referenced in the ordinance and asked that councilmembers be provided a copy of that report before second reading.
Staff also clarified that delivery services (a separate license class) operate under a different regulatory regime and can pick up product from a licensed retail point and deliver statewide; the city cannot prevent delivery vehicles based outside Atlantic City from delivering to Atlantic City addresses, staff said.
Why it matters: capping retail dispensaries affects market entry, business location decisions, and neighborhood impacts, while leaving delivery services regulated separately could allow additional providers to serve Atlantic City customers without a local storefront.
Council action: the ordinance was introduced on first reading and received a recorded roll-call on first reading; the transcript shows seven members voted in favor on the initial motion for first reading (one member did not vote). City staff requested council receive the report cited in the ordinance before the second reading and requested clear language that the cap applies to specific license classes.
Outstanding items: staff asked for the referenced report to be distributed to all councilmembers prior to the second reading and for clearer ordinance language specifying which license classes the cap covers. The transcript does not show final adoption; further council action is required for second reading and final passage.
