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Council introduces ordinance to cap number of retail cannabis dispensaries; members asked for report before second reading
Summary
On first reading the council introduced an ordinance to cap retail cannabis dispensaries (retail Class 5), with members requesting the supporting report before second reading and discussing delivery and license-class interactions.
Atlantic City Council, on first reading, introduced an ordinance to cap the number of retail cannabis dispensaries in the city. The council will consider the ordinance again on second reading before final adoption.
Councilmember Shabazz moved the ordinance and Councilmember Bailey seconded. Members asked the administration for the report referenced in the ordinance before the second reading. Council members questioned whether the proposed cap applied to all cannabis license classes or only to retail outlets; city staff clarified the cap pertains to the retail class (Class 5) and that the administration's recommendation was for a cap of 16 retail outlets, divided as 12 annual licenses and 4 micro-licensees.
City staff also explained how delivery services operate: a delivery business (Class 6) can transport product from a retail location to a customer and, under state rules, delivery may originate outside Atlantic City and still deliver here; the city cannot prohibit deliveries to addresses within the city if state law allows it. Staff said delivery-only businesses can exist separately from retail dispensaries.
Why it matters: the ordinance will shape local market structure for cannabis sales, influence brick-and-mortar locations and neighborhood impacts, and prompt regulatory and enforcement questions about delivery uses and zoning. Council members asked for the referenced report so they can examine the recommendation and numbers ahead of second reading.
The first-reading vote was taken; roll-call procedures recorded seven affirmative votes on the introduction with one member not recorded as voting on the first reading. The administration and councilmembers said they will circulate the referenced report to the full council before the next meeting.
Ending: Council members signaled urgency for the report and a request to legal and planning staff to spell out precisely which license classes the cap covers before second reading.
