ATLANTIC CITY – Does a city known for having 48 blocks have room for 50 cannabis operations?
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In 2023, some members of the Casino Reinvestment Development Authority Board of Directors began to balk at the number of weed stores brought before them. The state agency has planning authority within the city’s Tourism District.
At one point, the city agreed to slow things down, but applications were soon back in force, with potential weed businesses making up most of the planning applications in the Tourism District.
Board member Mike Beson has been the most consistent critic of the expanding cannabis market in Atlantic City, and with each application, asks CRDA Planning and Development Director Lance Landgraf how many applications the CRDA has received. Landgraf said the authority has approved more than 30, and all told, including the ones yet to be approved, there are about 50 applications so far.
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Nine businesses are currently in operation, Landgraf said, which appeared to be considerably more than Beson expected, and city officials say there have been a total of 13 licenses approved.
“I think it’s enough,” Beson said. “It’s unfair to these business owners that are putting their hard-earned savings, in some cases to operate next to each other.”
Some of the applications heard at the Tuesday meeting are either near another already approved cannabis business, or else right next door. In one block, there are four cannabis businesses proposed.
“I call on the city to reconsider the application process and to add buffers,” he said.
Mayor Marty Small Sr., who is a member of the CRDA board but did not attend the recent meeting, has pushed for more cannabis businesses, not less. His administration has a stated goal of making Atlantic City the cannabis capitol of the East.
Getting a cannabis business up and running is an expensive process, with some in the industry estimating a million-dollar investment. An early step is the application to the city, which in Atlantic City comes with a $25,000 fee.
New Jersey’s Cannabis Regulatory Commission must approve all licenses, which is an extensive process and requires a letter of support from the municipality. Some towns have opted to ban any weed businesses, while others have set strict limits on where and how many, often deciding on one or two.
Atlantic City has approved a “Green Zone,” covering a significant amount of the city’s commercial districts, where cannabis is an explicitly permitted use. The city did keep recreational cannabis sales off the Boardwalk.
Outside of safety concerns, Landgraf said, there is little room for the board to reject a planning application for a permitted use.
Small and other city officials have touted the potential for economic development from cannabis, bringing jobs and fresh investment to the city. The impact can be seen around town, where formerly vacant properties are now dispensaries, and others have built new structures, with much more construction in the planning phase.
But Beson argues there is no way a city of Atlantic City’s size can support an unlimited amount of weed sales, and that investors could find themselves in trouble.
“Is that our job in making land use decisions, to decide if people should be taking a risk with their own money? We’re going to substitute our commercial judgement for theirs?” asked board member Michael Hanley.
“Yeah, I think so,” Beson responded. “We’re here for economic development.”
Beson and fellow board member Brett Matik said it does not help the local economy to have a business open only to fail and soon be left vacant again. Hanley suggested the board’s role is not to be an investor’s parent, but to look at the proposals from a land use perspective.
“We’re getting investment in the neighborhoods. We’re improving properties,” Hanley said.
Landgraf said he makes clear to each applicant the amount of competition in the local market, and asks about the business plan. Each believes their product will be better, or other factors will allow them to thrive.
On Tuesday, there were five cannabis business applications before the board, all approved, but one took an extra vote. Tambre LLC received approval for a dispensary with a consumption lounge at 1217 Pacific Ave., what is currently the Atlantic City Bar and Grill. That business is directly adjacent to a Methodist church.
Cannabis near churches and other houses of worship has been another area of contention on the board. There is no buffer zone in city code, but clergy and congregations have raised objections, including in this case, in which a minister and City Council Vice President Kaleem Shabazz spoke against the application.
As CRDA members pointed out, Shabazz did vote in favor of the application when it came before City Council earlier this year.
In the first vote, both Beson and Matik voted no. Beson has become regular no vote against cannabis businesses, and Matik cited its proximity to a church.
“And it is currently a bar,” said Chris Brown, who attends the board meetings on behalf of Jacquelyn Suarez, the commissioner of the state Department of Community Affairs.
In response to questions from the board, Landgraf said the business could not retain the licenses to sell alcohol and serve drinks along with cannabis.
The majority of the board voted in favor, but with several members absent and with member Christopher Glaum abstaining, there were not the nine votes needed for approval.
The board had already rejected the applicant’s proposal for another location, the former Los Amigos restaurant at 1926 Atlantic Ave. That was the first, and so far the only cannabis application the board has rejected, in a vote last March.
CRDA Chairman Mo Butler cited the opposition of the nearby AtlantiCare Regional Medical Center, but Landgraf said he wanted to be careful, emphasizing that the plan was rejected over safety concerns related to the loading zone.
The matter is still in court on appeal, and Jack Plackter, an attorney representing Tambre LLC at the meeting, suggested the latest vote would also end up in court. Butler called for the board to rescind the first vote, and in a second vote, Matik and Beson voted yes, stating that they wanted to avoid further litigation.
Other applications approved, with a “no” vote from Beson, included Farmers NJ LLC for a dispensary at 1618-1622 Pacific Ave.; Mr. Nice Guys AC LLC for a cannabis business at 1622 Atlantic Ave., to include manufacturing, a dispensary and a delivery business; Juniper Lane Cannabis Corp. for a dispensary at 2305 Atlantic Ave.; and Slamn Sammy’s LLC for a dispensary at 2616 Pacific Ave. with an apartment upstairs.
Butler said the CRDA would again speak with the city about the volume of cannabis applications and the potential for creating buffers between businesses.
“}]] Members of the Casino Reinvestment Development Authority had five weed business votes on Tuesday. There are nine businesses now open, and more than 30 approved, with Atlantic City in line for a potential 50 businesses. City officials like the investment and potential jobs boom, but members of the CRDA board again questioned when enough will be enough. Read More