It’s time for common-sense cannabis regulation in Jersey City

After a year-long moratorium to address Jersey City’s chaotic cannabis licensing process, the City Council will vote on the second and final reading of the cannabis ordinance amendment on Thursday (Oct. 17).

Unfortunately, the updated proposal does not address the three key issues that led to the pause in the first place.

1. Oversaturation of cannabis pharmacies

2. Close proximity of weed shops to schools

3. Transparent approval process

We ask the Council to oppose this change and seriously address these concerns. We are not against cannabis companies, but rather demand common-sense solutions that are fair to residents and the cannabis industry, especially small businesses.

And just like Councilman Frank Gilmore (Ward F) said, as reported by NJ.comNobody wants to see “pharmacies in every little corner of the station”.

Here’s a deeper dive into the three main themes of the proposed regulation:

1. Oversaturation of cannabis pharmacies

The proposed cap is the highest in the country and will make Jersey City the “weed capital” of the United States

The proposed cap of 48 licenses, 8 per municipality, does not include the 46 licenses already approved.

In theory, Jersey City could have over 90 cannabis dispensaries in a city of 286,000 residents. This would place Jersey City at the top of the nation in cannabis retailers per 100,000 residents. Even with a cap of 48 pharmacies, Jersey City would outperform all other metropolitan areas nationwide.

Marijuana retailers / 100,000 residents (fully legal cities)

1. Jersey City, NJ: 7/16

2. Portland, OR: 7/13

3. Denver, CO: 10.4

4. Boston, MA: 4.6

5. San Francisco, California: 3.4

6. Seattle, WA: 3.1

7. Kansas City, MO: 3.0

8. Phoenix, AZ: 2.7

9. Sacramento, California: 2.7

10. Buffalo, NY: 2.5

Source:

Taking into account the 46 licenses approved, the total of 94 would be insanely high at 32.9 per 100,000 residents, which is 13x more than the national average in fully legal cities (2.5).

Apparently, proliferation and supersaturation were not addressed.

A common argument for letting the market decide is an irresponsible approach. Not only does this flood some neighborhoods with dispensaries, but it is also unfair and detrimental to small business owners who have worked incredibly hard to fund expensive businesses to open and operate their facilities and are now competing with other cannabis retailers right next door have to, for example on Central and Newark Avenues [see map of cannabis retailers Jersey City Council approved].

A cluster of eight licensed cannabis dispensaries along Central Avenue in Jersey City Heights (Ward D) violated the city’s ordinance requiring retailers to maintain a 600-foot distance between front doors.

The council can learn from Oregon’s oversaturation problems, which forced many businesses to operate on low margins and extreme pressure, prompting the state to now impose new caps limiting licenses. The damage has already been done in Oregon as many smaller retailers are going out of business while the big players keep winning.

Let’s not let this happen to small business pharmacies in Jersey City.

2. Close proximity of weed shops to schools

At 200 feet, Jersey City has the lowest school distance requirement in the country.

When the state of New Jersey legalized personal cannabis use, regulations were put in place that made protecting children a top priority.

The NJ.gov website cites a warning from the Center for Disease Control (CDC) that “cannabis use that begins in the teens or younger can impair brain development, which can affect thinking, memory and learning.” primarily to limit young people’s exposure to cannabis.

With this in mind, the council should not build pharmacies right next to schools. At 200 feet, Jersey City currently has the lowest school distance in the country [see data].

Many municipalities, including the weed-friendly communities of Portland and Denver, have adopted a 1,000-foot distancing rule that follows the federal definition of a “drug-free school zone.” Our neighbors in New York and Hoboken have a minimum distance of 500 feet.

Pharmacies should be out of reach of schools. The new change must create a larger buffer zone between schools and marijuana dispensaries to protect our children.

3. Transparent approval process

Removal of the city’s planning department from the cannabis permitting process.

The apparent removal of the city’s planning department from the cannabis permitting process, which we understand would remove any obligation to notify citizens of plans to open a dispensary in their neighborhood.

It would be logical if citizens were more involved in the process. However, due to the nuances (or ambiguities) of the approval process in the updated regulation, it is difficult to say how, if at all, citizens will be informed about new cannabis dispensaries.

We ask the Council to specifically specify in the ordinance how the public and immediate neighborhood will be notified and included in the approval process for new cannabis dispensaries.

Mayor Fulop and the City Council maintain that they have worked hard over the years to implement thoughtful local policies that benefit both cannabis business owners and citizens. The work isn’t done yet. You still have more work to do.