MIDDLE TOWNSHIP — It’s been a little more than a year since representatives of a Massachusetts-based firm pitched a proposal for a medical marijuana facility in a former seafood processing plant on Indian Trail Road.
After a lengthy presentation by representatives of Insa of Easthampton, Massachusetts, the Middle Township Committee voted to support the use, which is part of the application process to receive a state license for medical marijuana.
New Jersey approved medical marijuana in 2010, the 14th state to do so. The number has grown, with marijuana remaining completely illegal in only eight states. The rest have approved some form of medical use, decriminalized possession or have legalized it for recreational use by adults.
But for now, nothing seems to have changed at the former La Monica processing plant, set slightly apart from a cluster of other businesses in the Burleigh section of the township. The wide lawn in front of the building has been cut, but dense growth surrounds the walls, and sections of the facility appear to be in bad condition.
Insa still has an agreement of sale for the property, according to Steve Reilly, a co-owner and one of the founders of Insa. But the company won’t move forward until it has the needed state permit.
“There’s an injunction in place at the state level,” Reilly said, “We’re kind of treading water. Right now we’re conducting our due diligence.”
There are six licensed medical marijuana facilities in New Jersey, which the state’s Division of Medicinal Marijuana has concluded in its most recent biennial report is not enough to meet the growing demand.
Plans were to expand the number of facilities, with 24 new licenses set to be approved. Published reports state there were 190 applications submitted by the deadline of August 2019, but that process has stalled.
A lawsuit has delayed a planned new round of state permits. The suit relates to five applications for new state licenses for medical marijuana facilities that were rejected because officials could not open the attachments.
“Until all of this is resolved, nothing is happening,” said Middle Township Mayor Tim Donohue. He said township officials have been in contact with the company. “They’re kind of frozen at this point.”
The novel coronavirus slowed the legal process, extending the delay, according to Scott Rudder, the president of the New Jersey Cannabusiness Association. Not just for Insa but for all of the new permit applicants.
“We’re expecting some action in October,” Rudder said. “It’s an unfortunate delay, but that’s all it is: A delay.”
Reilly says Insa is in a good position to get one of those 24 licenses, once the approval process starts up again. There are no other facilities in Cape May County.
The closest is in Egg Harbor Township, which this year received approval to expand with a dispensary location in Atlantic City. Listed on state documents as the Compassionate Care Foundation, the facility now uses the name The Botanist.
Reilly also cited the economic impact, especially the potential for new jobs. Cape May County’s seasonal economy means it is one of the poorest counties in the state. Plans are to invest about $15 million in the project, he said, with more than 100 employees when it is operational.
The former La Monica plant likely will be replaced with a new building, he said. He toured the existing building, which has been vacant for years, and found some sections exposed to the elements, in addition to leaks and other issues.
“Most likely, it’s going to be a knockdown. We’re looking at it as a new facility,” he said.
As part of its consideration of writing a letter of support for the facility last year, Middle Township officials visited Massachusetts to see Insa locations there. Police Chief Christopher Leusner also spoke with police in Egg Harbor Township. He said he was not concerned about locating the facility in Middle Township, saying at a public meeting that other locations have not been linked to an increase in crime.
If it gets the needed license, Insa plans to offer both the flowers of the plant as well as other products. In Massachusetts, the company offers cannabis-infused tinctures, edibles and concentrates.
“We’d like to offer our full menu of products,” Reilly said. The marijuana would be grown and processed on site. Under current laws, marijuana cannot be shipped between states, even between adjoining states that have both legalized its use.
Marijuana remains classified as a Schedule I drug by the federal government, the category reserved for substances with a high potential for abuse and no medical benefits.
Advocates for legalization, including Rudder, estimate New Jersey could see $300 million a year in additional revenue from legal marijuana. New Jersey hopes to take that next step this year, with a ballot question to amend the state constitution to create a taxed and regulated market for adult use of marijuana expected to pass in November.
That could mean adult use will be in place before Insa opens a Middle Township location. In Massachusetts, Insa offers both products to medical patients and to other adults, but Reilly said there is currently no proposal for recreational marijuana in Middle Township.
“In terms of adult use, it’s so driven by the local municipality,” he said. The company would have to discuss the possibility with local officials.
In a recent interview, Donohue, the township’s mayor, said he would have to weigh the question, but he did not reject the possibility out of hand.
“We’d have to see exactly what the law would say,” Donohue said. He said he would consider the possibility of an adult use site in the township if marijuana is generally available and the site is managed well, comparing it to a liquor store. Rejecting the idea would mean a loss in local revenue, he said. Under the proposal, towns will be able to impose an additional local tax on marijuana sales.
“It’s going to be a hot-button issue, but if it’s going to be happening in towns all around you and you’re just saying ‘no’ for whatever reason, then frankly you’re going to lose out on that business and that revenue,” Donohue said. “Look, it’s going to bring people to your town. It’s a lot to figure out.”
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