Jersey City to Cap Consumption Lounges at 6, Reform Licensing

Jersey City cannabis consumption lounges limit and dispensary cap reviewing by City Council

The Jersey City Council reviewed a new cannabis ordinance proposal to cap consumption lounges at 6, limit dispensaries, and reform the licensing process

The cannabis dispensary cap ordinance has been tabled for months.

No lounges have opened yet. Several Jersey City dispensary license owners want a lounge. A few are unhappy that the broken CCB process seems to be delaying them. Some have already built out their potential lounge space.

During their Monday Caucus, Acting Corporation Counsel Brittany Murray explained the new cannabis ordinance during their Monday caucus.

Cannabis Consumption Lounge Questions

“Has the State opened up the cannabis consumption process?” Ward E Councilman James Solomon asked.

“Yes, they did,” Murray said.

Solomon noted the 600-foot distance between dispensaries rule has become a problem since enforcement became difficult.

The Jersey City Council and Control Board have used the problem to block a few dispensaries that would like to open.  

“Eight people could apply at the same time,” he added about lounges.

“We should create a very clear process with deadlines on how to do that,” Solomon added. “I assume it will be a pretty lucrative license to award.”

“Is there any way we can just cap it (lounges) at 6? I don’t want a distance issue to occur where you have a consumption lounge on a border of 2 different wards,” Ward F Councilman Frank “Educational” Gilmore said.

Gilmore noted redistricting could affect that and, in theory, could leave no lounge in one ward.

“It’s up to the Council if you want to do that,” Murray said.

“Do we have to have a 2nd review of the cannabis control board for a consumption license?” Ward D Councilman Yousef Saleh asked. “A lot of the cannabis retail people, they made their intention known when they were before the committee that they were going to go for a consumption license.”

“We did receive some interest, but those applications were bifurcated. They really weren’t considered at the time,” Commerce Director Maynard Woodson explained.

He noted that more than one dispensary owner wants a lounge in several wards. So, Woodson said a new application requiring an open dispensary should be required.

“That may eliminate some…,” he added.

Cannabis Control Board Reform and Dispensary Licensing

Murray explained how they were changing the licensing process and the CCB.

“The Ward cap is the same for class 5 retailers. We’re still at 48. Although we spoke about how some people might be grandfathered. So, it would go beyond that cap …,” she noted.

Murray added there is a cap on the other license types too.

But there is less demand to open them in Jersey City, where space is very expensive.

“We’ve removed a 2nd appearance before the Cannabis Control Board. So, they’ll only have to go once and then come up for their annual renewal,” she added.

Murray explained that the CCB will now be a 7-member board instead of 5 to ensure a quorum on a regular basis.

“There is now a Jersey City residency requirement,” she noted.

“We do have a board member who might not have residency…. He will be able to continue with his membership… but every new appointee will have to be a Jersey City resident going forward,” Murray stated.

She added that they listed licensing and some of the licensing requirements the CCB has been using.

“So, the council has all the information they need…,” Murray said. “They have to check them off.”

“There is still a 200-foot requirement for schools. We did change the definition though… which only includes up to secondary (high) schools,” she explained.

“We’ve removed the Planning (Board) requirement. So, they can go get Zoning (Board) determination letters instead of appearing before Planning,” she said.

Jersey City Cannabis Licensing Questions

Murray added that if there’s less than 6 dispensaries in a ward, the Department of Commerce could open a time-limited application round.

“Can we put a resolution to make it enacted immediately?” Saleh asked.

He noted many dispensary owners have been asking about an updated ordinance for some time.

Business Administrator John Metro noted that it is only done in emergency situations.

“People need their weed,” Saleh joked.

The ordinance passed its first reading without debate at their formal Council meeting on Wednesday. It now must be passed on second reading in two weeks to become law.

While many existing dispensary owners have been unhappy with the Jersey City cannabis process, none spoke at the meeting.

Very few cannabis company owners have been happy with the local process throughout the State. Most complain that the town process is slow. Some want thousands of dollars to apply and renew a local license if they can find space in a tiny corner of town and survive being exposed to predatory landlords.

According to some rumors, the worst are succeeding through a terribly corrupt process in true Jersey Style.

(Heady NJ is holding a Craft Cannabis Celebration in Jersey City on Saturday May 3rd!)

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