City Council unanimously passed legislation that would allow five of six types of cannabis licenses locally — everything but retail sales — following the Planning Board’s approval.

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During a brief special meeting on Thursday, the governing body unanimously (7-0) adopted an ordinance  (O-24-21) on second reading, following a public hearing where no comments were made. For details on the ordinance, see this earlier post. Earlier in the week, the Planning Board on Tuesday night unanimously agreed that the ordinance complies with the city’s master plan, following about a 20-minute discussion that included support to eventually allow retail licenses.

Planning Board Attorney Karl Kemm explained to board members that the board’s primary responsibility is to review zoning and land use and determine whether the ordinance complies with the city’s master plan.  Board members also can review the ordinance generally and consider any recommendations to the mayor and City Council. The city’s review of the master plan a few years ago did address cannabis use and reported favorably on it, Kemm said.

The ordinance allows what Kemm called “back office” operations, such as growing, selling, distribution and delivery but not retail sales. “You couldn’t walk in and purchase something.” It also stipulates land use regulations, such as signage, where it can be located, hours of operations, and odor mitigation.

“Everything I’ve seen so far, we’re trying to stay in compliance best we can,” Planning Board Chairman William Hering said. “Personally, as a commissioner, I like the fact that there is no retail sale” of cannabis but strictly limited to industrial areas of town and only for growing or distribution.

Commissioner Jeffrey Brooks was a proponent for retail sale, pointing to only four towns in Union County so far that have approved retail sales: Plainfield, Roselle, Roselle Park and Scotch Plains. He believes retail sales could make Rahway more of a destination from which local businesses could benefit. “It’s open to debate but it could be a benefit that comes along with it. Certainly there’s great public interest with regard to how it could benefit the local economy,” he said.

The city’s ordinance sort of “split the baby” on the retail use, Kemm said. “It allows delivery so there is a degree of a retail element. It’s a happy medium, so to speak: It gives the city a chance to see how this pans out and determine if they want to change it in the future and allow retail.”

Planning Board Secretary Ann Marie Williams suggested creating a brief fact sheet — a sort of Cliffs Notes — of the ordinance because every department in City Hall is likely to get phone calls from people interested in more information.

Planner Leigh Fleming explained that the ordinance outlines what would be permitted under the licenses, subject to certain conditions, including no window signs, no licensees within 200 feet of each other (unless vertically integrated, i.e., doing both growing and manufacturing), and requiring 24-hour security.

If an applicant meets all conditions in the proposed ordinance, they would come before the Planning Board for a site plan review to show they meet all the conditions, Kemm said. If they do not meet the conditions, they would have to go before the Zoning Board of Adjustment because it would be a conditional use variance.

“Leaving out [retail] seems to indicate, we want it in Rahway but don’t want people to know it’s in Rahway — which is alright,” board member Alex Shipley said. “No matter what street, if it looks like a warehouse, I don’t think anyone’s going to bother.”

Brooks argued that the classes allowed under the ordinance give him the impression that it speaks to corporations and “totally ignores the little man,” leaving “no room for young African-American entrepreneurs to pursue a micro-dispensary.”

Fleming countered that it’s not just retailers that can be micro-businesses under state law, allowing them in each class but tied to details like square footage.

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