Council approves first-reading cap on retail cannabis dispensaries; ordinance limits retail (class 5) licenses to 16

Atlantic City council introduced and approved on first reading an ordinance on Sept. 17 that sets a cap on retail cannabis dispensary licenses (class 5), with a recommended cap of 16 licenses — 12 annual licenses and 4 micro licenses.

The ordinance was moved by Councilman Shabazz and seconded by Councilwoman Bailey during the meeting’s first-reading session. Council members asked for and received clarifications from administration staff: the cap applies only to retail dispensaries (class 5), not to other cannabis license classes, and the administration said the recommendation it had received was for a total cap of 16 retail outlets, split as 12 full annual licenses and 4 micro licenses. A city official explained that delivery-only operators (class 6) are permitted under state rules and could operate separately, and that deliveries originating outside Atlantic City cannot be prohibited by the city if state law allows them.

Council members asked the administration to provide the referenced report supporting the ordinance before second reading. During roll call there was some confusion about the vote count: an initial roll-call announcement declared eight votes in the affirmative, then council staff and members reconciled and recorded that one member did not cast a vote; the final tally for first reading recorded seven votes in favor with one council member not voting on the item. No specific numeric license fee or zone-by-zone allocation was provided in the council backup during the meeting.

Administration staff characterized the ordinance as a local limit on the number of retail dispensaries for planning purposes and said other classes of cannabis-related businesses are regulated separately under state and local rules. The ordinance proceeds to second reading where the council requested the underlying report and additional clarifications be provided before final action.