Middle Township says yes to one cannabis retailer | Local News

MIDDLE TOWNSHIP — The Township Committee on Wednesday unanimously approved two ordinances related to cannabis, one to allow a single retail cannabis license in the township and another setting a framework for how the municipality will evaluate license applications.

That ordinance also sets a nonrefundable fee of $2,500 for the review of applications for support of a cannabis business.

Under New Jersey’s cannabis regulations, a show of municipal support is part of the application process for a state license. So far, only those businesses that already held a license to distribute cannabis to those with medical marijuana cards have been approved to sell to the new recreational market, which means there are no dispensaries in Cape May County.

Middle Township has moved cautiously on legal weed. The Township Committee has supported an application for a medical marijuana facility, but last summer approved an ordinance banning any retail sales for the adult use market.

“I thought that as a group that you were not in favor of … recreational use marijuana being sold in the township. Now it appears that you are, with certain restrictions,” resident Stanley Doniger said at the meeting. “Could you help me to understand what changed your mind about that?”

“I was never on the record publicly as being opposed to a dispensary in Middle Township,” responded Mayor Tim Donohue. Rather, he said, the township did not have enough information about the state rules under which the new market would operate before a state-imposed deadline of Aug. 22 for towns to take action on the issue.

He said towns that enacted strict rules, such as Middle Township’s ban on retail sales, could ease those rules later, but they would not be able to enact stricter rules once voting to allow sales.

The state established six classes of licenses for the recreational cannabis market. Last October, the township approved allowing the cultivation and manufacturing of cannabis products in the township.

The new ordinance would allow a class five license, allowing sales to customers over 21.

In many communities, governing bodies have limited cannabis businesses to specific locations. Middle Township opted to leave that up to the business owner. According to Donohue, the business would be allowed in any commercial zone, as long as it followed established zoning restrictions and state laws.

Several potential business owners have asked about locating a cannabis dispensary in the township, Donohue said. Several beach communities, including each of the Wildwoods, have said no to allowing cannabis sales, so the township could someday be a prime spot for summer business.

West Cape May and Lower Township have also said yes to allowing retail weed sales, and West Cape May has already endorsed two applications. As Donohue put it, West Cape May has a head start, but even then, he said, the first store will likely not be open for at least a year.

New Jersey’s Cannabis Regulatory Commission has begun issuing licenses for grow facilities that will stock the new, legal market. Cannabis retailers will not be able to bring anything in from other states; it must be grown in New Jersey or businesses will run afoul of federal law.

Massachusetts-based cannabis company Insa has plans to locate a growing facility for medical marijuana and recreational cannabis on Indian Trail Road in the Goshen section of the township, at the site of a former seafood processing plant.

Steve Reilly, the co-owner of the company, attended the Wednesday meeting but did not speak publicly. After the meeting, he said the plans are being finalized for the building, but the project still awaits license approval from the Cannabis Regulatory Commission. He said he may hear more sometime this summer.

He said his company may be interested in applying for the dispensary license in the township. Once the township government lends its support to a license application, it would still need approval from the Cannabis Regulatory Commission.

At the meeting, Donohue said the township would continue to move slowly on the issue. If cannabis retail proves to be a good fit, he suggested the committee could look at allowing additional licenses in the future.

Communities are allowed to add local taxes to cannabis sales, which could mean a boost to future budgets.