Council advances ordinance to cap retail cannabis dispensaries; limits apply to one license class

The council on Sept. 17 took first reading of an ordinance that would cap the number of retail cannabis dispensaries in Atlantic City for one license class, a step council members said is intended to shape the local rollout of state‑licensed cannabis businesses. The ordinance (introduced as item 9c) addresses the city’s approach to local licensing for regulated cannabis. During council questions, a municipal attorney and staff clarified the draft applies to the retail license class (class 5) and would limit retail operations to a total of 16 outlets: 12 full annual licenses and four micro licenses. City legal staff explained that the cap specifically targets the retail class while other classes — including delivery services and standalone delivery operators (class 6) — are separately regulated by state law. The staff noted a delivery business can operate statewide and that a delivery dispatch located outside Atlantic City could deliver into the city under state rules; municipalities have limited authority to restrict deliveries that originate outside their borders. Council members requested the report referenced in the ordinance be provided before the ordinance’s second reading so members could review the legal and market analysis underlying the cap. One council member asked whether an uncapped delivery license would undercut a cap on retail outlets; city staff answered that a class‑6 delivery business is a separate license type and that delivery alone does not create a retail location within the capped class. The ordinance advanced on first reading with the vote count recorded in the minutes; a subsequent procedural note clarified the tally for the first reading as seven in the affirmative on a technical clarification, with the council to consider the ordinance on second reading at a later meeting.