Paterson City Council Rejects Cannabis Expansion Ordinance

Strategic Insights -

In a contentious 6-5 vote, the Paterson City Council rejected a proposal to expand the city's cannabis industry, effectively blocking plans to increase the number of cannabis retail licenses from three to six. The council's decision came three weeks after initially approving the expansion, raising questions about the fate of three retail cannabis licenses that had gained support from the council on July 18. Mayor Andre Sayegh has touted cannabis businesses as a vital source of revenue for the city, with estimates suggesting the one existing dispensary will generate around $2 million in taxes.

Key Takeaways:

  • The Paterson City Council rejected a proposal to expand the city's cannabis industry by increasing the number of cannabis retail licenses from three to six.
  • The 6-5 vote was a reversal of the council's initial approval of the expansion three weeks prior.
  • The rejected ordinance would have eliminated a prohibition against cannabis businesses operating within 300 feet of homes and reduced the distance from churches and schools from 300 feet to 200 feet.
  • Voting in favor of the cannabis expansion were Council Members Ruby Cotton, Maritza Davila, Shahin Khalique, and Alex Mendez.
  • Opposed were Council Members Al Abdelaziz, Michael Jackson, Lilisa Mimms, Md Forid Uddin, and Luis Velez.
  • The council's rejection of the ordinance may impact the fate of three retail cannabis licenses that were approved on July 18, with some businesses considering a Superior Court hearing on their license applications.
  • Mayor Andre Sayegh has repeatedly emphasized the importance of the cannabis industry as a source of revenue for the city, citing estimated tax revenues from the existing dispensary.

Statistics:

  • 6-5: The margin by which the Paterson City Council rejected the cannabis expansion ordinance.
  • $2 million: Estimated annual tax revenue expected from the one existing dispensaries in Paterson.
  • 300 feet: Initial distance between cannabis businesses and homes, which would have been reduced to 200 feet under the rejected ordinance.
  • 3: Number of cannabis retail licenses currently permitted in Paterson.
  • 6: Number of cannabis retail licenses proposed by the rejected ordinance.

Sources:

  • Paterson Press, "Mayor's cannabis plan faces resistance at City Hall"
  • "New Jersey Cannabis Regulatory Commission"