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Salem City Council adopts ordinance to allow limited retail cannabis and delivery services
Summary
On July 15, 2024 the Salem City Common Council adopted Ordinance 24-18 to amend local code governing recreational cannabis, authorizing up to two retail cannabis businesses and two delivery businesses, establishing local licensing and fees, and setting application and enforcement requirements. The measure passed 5–1.
The Salem City Common Council on July 15 adopted Ordinance 24-18, amending the municipal code to regulate recreational cannabis and to permit limited retail and delivery operations within city limits.
The measure, introduced for a public hearing earlier on the agenda, passed on a roll-call vote with Council member Groce voting no and Council members Kellum, Loatman, Long, Smith and Councilman Earl Gage voting yes. The motion to adopt was made by Council member Kellum and seconded by Council member Groce.
The ordinance replaces the City's prior Chapter 10 (Cannabis Review Board) with a new Chapter 10 titled “Cannabis,” establishes the City Council and the Economic Development/Community Development Committee (with an Administrative Officer) as the local licensing authority, and sets out application, review and enforcement procedures. Key provisions recorded in the minutes and ordinance text include: a $5,000 annual local license fee for state-licensed cannabis retailers and delivery businesses; a $2,500 nonrefundable administrative application fee (plus $1,000 for each additional license class sought); and a $3,000 escrow to cover review costs. The ordinance caps operations "to no more than two (2) cannabis retailer businesses and two (2) cannabis delivery businesses" in the city.
The ordinance outlines zoning and land-use requirements, requires a zoning compliance affidavit prior to issuing a resolution of local support, and directs local licensing applicants to submit detailed plans on security, inventory control, environmental practices and community commitments. It preserves the requirement that no cannabis consumption or smoking be allowed on premises without an explicit municipal consumption endorsement; the ordinance text states, "No consumption or smoking of any Cannabis products shall be allowed or permitted on the premises or adjacent grounds of the Business without a consumption endorsement issued by the City." (Ordinance text recorded in the minutes.)
Resident Janice Roots questioned why the ordinance initially allows only a Class 5 retail license; Solicitor Ranieri responded in explanation of the statutory process and local review steps recorded in the minutes. The ordinance also gives the City authority to suspend or revoke local licenses for specified violations, including false application information, failure to comply with state or local regulations, failure to maintain records, or operating without a state license.
Why it matters: the ordinance creates a municipal licensing pathway and an explicit local permitting framework intended to coordinate city oversight with state licensing. It also commits local cannabis fee revenue for public education and increased public safety in areas surrounding licensed establishments, while limiting the number of retail and delivery businesses allowed to operate.
What comes next: the ordinance takes effect upon final passage and publication as provided by law; applicants seeking local endorsement must follow the application, escrow and review process described in the ordinance, and any request for a municipal consumption endorsement would require a separate City review and state approval.
Votes and formal action: Motion to adopt Ordinance 24-18: moved by Council member Kellum, seconded by Council member Groce; roll-call outcome: Groce — No; Kellum — Yes; Loatman — Yes; Long — Yes; Smith — Yes; Gage — Yes (adopted).
