Council advances ordinance to cap retail cannabis dispensaries; council seeks report and clarity on delivery rules

The City Council advanced a first‑reading ordinance that would cap the number of retail cannabis dispensary licenses in Atlantic City’s jurisdiction, limiting retail (Class 5) licenses to a recommended total of 16 — proposed as 12 full annual licenses and four micro licenses.

Council members asked for a copy of the report referenced in the ordinance before the second reading; Councilman Kurtz asked staff to provide that report in advance so members could review the methodology used to set the cap. Municipal staff explained the cap applies only to the retail class (dispensaries) and not to other cannabis license types. Staff also answered members’ questions about delivery services, saying delivery may occur across municipal boundaries and that deliveries can be made by licensed retail providers or by a separate delivery‑only license (Class 6). Staff noted the city cannot prevent a delivery business licensed outside Atlantic City from delivering to addresses inside the city.

During the discussion, council members raised concerns about possible circumvention of a retail cap through delivery‑only companies and asked legal staff to confirm how local licensing limits interact with statewide delivery practices. The ordinance was moved forward on first reading; council members requested the referenced report and additional clarifications before the second reading.

The meeting transcript does not show a second‑reading vote or a final adoption; the first reading advanced and council members asked staff to provide the supporting report and clarify whether delivery operations would effectively bypass a local cap.