Editor’s note – Many local communities including Somers Point, Linwood, Ocean City and Upper Township have voted to ban cannabis businesses. Northfield has been going back and forth on the issue.
NORTHFIELD — City Council signaled its support for cannabis retail businesses during its meeting Tuesday, Nov. 9, with five of seven members voting to move forward.
The cannabis business subcommittee, consisting of Council President Tom Polistina, Councilman Paul Utts and Councilman Frank Perri, came up with amendments to Ordinance 7-2021, which would allow retail marijuana businesses to operate on part of Tilton Road.
Changes include limiting the number of retail licenses to three and allowing each to also offer delivery.
“We came to a general agreement on what we thought would be suitable for Northfield if we were to allow cannabis retail,” Utts said, noting they dropped cultivation from the proposal.
To encourage storefront rental, the city would limit delivery to those who have a retail license and storefront in the Regional Commercial Zone, which extends along Tilton Road from Deborah Avenue to the border with Egg Harbor Township, excluding the movie theater plaza. That would prevent home-based delivery businesses. Out-of-town delivery services would be permitted.
The city would charge a $500 nonrefundable application fee, which would be rolled into the $2,500 licensing fee for successful applicants. A delivery license would be an additional $1,000. Annual renewal would be $2,500/$1,000.
“The Cannabis Regulatory Commission allows for multiple licensing, so if you have a retail business and want to add delivery, there would be additional administrative needs and possible enforcement needs, so that justifies the extra $1,000 for delivery licenses,” Utts said.
Hours of operation would be set for 9 a.m. to 10 p.m., the same as liquor stores.
“We wanted to have general consensus before we took the time and the cost of drafting this ordinance, so we would like input from current council if they think this fits Northfield’s idea of retail cannabis,” Utts said.
Councilwoman Barbara Madden asked if the number of licenses should be greater since the city is tying delivery to retail.
“Delivery can occur from outside the city?” Madden asked.
“I have no doubt that some companies will specialize purely in delivery,” Utts said, noting he originally was in favor of more licenses.
“People are afraid of it and anxious about this coming to Northfield,” Utts said, noting a resident asked if the city would be hiring more police officers with the revenue from the 2 percent tax on sales.
“My answer to that was, ‘Did we need to hire more police officers when Bootleggers (liquor store) opened?’ No. And I think it will be the same with cannabis. Once the initial hoopla is over, it will be just another retail store. At that time, when residents start to see that the revenue generated is helping our town and it’s not creating issues that are problems, then we can expand licensing,” Utts said.
Polistina noted that the city cannot prohibit delivery into the town from other communities that approved cannabis businesses.
Utts said allowing only retail businesses to offer delivery would help grow the local merchants.
“It is specifically designed, the delivery option for retail businesses, to support the retail businesses that decide to locate in Northfield, to give them a little edge up, a little help in developing a business,” Utts said.
Polistina noted that the city would be charging a 2 percent tax.
Perri said there is no reason to move forward without five votes in favor since that would prevent a veto from the mayor. It was decided to take a straw poll to gauge support.
“If we don’t have five affirmative votes, why move forward?” Perri said.
Polistina suggested allowing only two licenses. Councilman Dave Notaro said the city has only two packaged goods liquor stores and suggested cannabis retail be limited to two.
Utts said price collusion could happen with two and that three would encourage competition.
It was agreed to stick with three licenses.
Councilman Greg Dewees said there is a lot of sentiment against allowing the businesses.
“In the last couple of months, I have heard from a lot of my constituents in regards to this ordinance and only one person in favor of this, so this is something we need to pay attention to,” he said.
Notaro said he has heard from people on both sides.
“It’s not an easy decision. From an economic standpoint, this could increase traffic flow on Tilton Road, which could ultimately increase business on Tilton Road, could increase national chains on Tilton Road,” he said. “If we do this it could help and it could hinder.”
But he added that if the businesses were located in Heathercroft or Kensington Square, two retail locations just across the border in Egg Harbor Township, “the only difference is we don’t get the revenue from it. It’s essentially the same area. It’s going to happen with or without us.”
Utts said another benefit would be a regulated product that is safer for ingestion.
“If you ask a high school kid what’s easier to get, liquor or cannabis, most will tell you they can find cannabis. What they can’t tell you is where that cannabis came from, whether it was treated with pesticide or treated with some adulterant,” he said.
Utts also argued that legal sales will ultimately collapse the black market.
“We had Prohibition with alcohol, but how often can you find a bottle of moonshine now? We have legal liquor. I think the underground market will continue to thrive for a time, because those networks are already established, but eventually those market will not be profitable. These adulterated products that do find our children will start to dwindle and cease,” he said.
“The only thing we will solve is taxpayer relief, jobs, economic growth and advancement. It is going to be all around us so it will come to us one way or the other, and this way we can have some control over it and it may lead to more businesses. It is going to be here and the only thing we will miss out on is the economic benefits,” Madden said. Polistina, Utts, Perri, Madden and Notaro voted in favor of moving forward, while Dewees and Councilman Brian Smith voted against. City solicitor Kris Facenda is expected to have a new ordinance ready for introduction at the next City Council meeting, scheduled for 7 p.m. Tuesday, Nov. 23.
“I think you’ll find it’s not so scary once it’s here,” Utts said.
Sign changes
City Council also discussed recommendations for “business-friendly” changes to the city’s sign ordinance.
Polistina said he requested feedback from other council members on ways to relax the rules and got none, so he looked at the typical complaints and infractions cited and came up with some suggestions.
He recommended allowing businesses to have a sail-type sign limited to 8 feet tall and one every 100 linear feet regardless of the number of businesses in that area.
“As business neighbors, they can figure it out,” Polistina said of which business would get the sign. “We don’t want one for every business.”
Smith said allowing only one sign per 100 feet would likely lead to conflict among businesses and suggested a rotating system.
“What happens if they can’t work it out?” Smith asked.
Polistina said maybe the sail signs should be allowed only for grand openings and/or only for 90 days or fewer.
Eliminating blinking signs from the prohibited list also was suggested, as long as the signs did not face traffic.
Perri said he sees no need for blinking signs, especially those that may be facing homes. He said he does not want to create a distraction and that blinking signs are tacky.
It was decided to keep blinking signs on the prohibited list.
Also suggested was allowing flags and banners, which currently are prohibited.
Utts asked about if they didn’t lose their effectiveness when kept up perpetually and suggested it would be better to limit their time as well.
Council plans to send the recommendations to the Planning Board for its review before introducing an ordinance amendment.
In other business, a new entrance to the Police Department at City Hall is in the planning stages.