Middle Township says no to second cannabis business

MIDDLE TOWNSHIP — A month after the township supported one license application for a cannabis retail site, the Township Committee this week formally denied support to another cannabis business seeking a state license.

Officials indicated at Monday’s committee meeting that they expect a lawsuit in connection to the decision.

At the same meeting, committee members heard from skeptics of legal cannabis sales. Some objected to the very idea, but others cited concerns with increased traffic in the Rio Grande section, saying they had similar concerns when a new Starbucks opened and began attracting customers.

In a unanimous vote, the governing body said no to a request from C3 Middle Township LLC for local endorsement of a Class Five cannabis license, which would have allowed the sale of cannabis and products containing cannabis to those over 21.

Township officials did not release any information about the company. A search online found that the limited liability company was formed this year, but there was no contact information and the LLC does not appear to have a website or social media presence.

Mayor Tim Donohue said litigation is likely in connection to the decision, which denied local support for a state license for C3 Middle Township to sell retail cannabis to those over 21.

The licenses are issued by the New Jersey Cannabis Regulatory Commission. For now, there are no legal places to buy cannabis in Cape May County. The closest option is in Egg Harbor Township.

In October 2021, the committee adopted an ordinance allowing a single Class Five license in the township and setting a process for deciding whom the township would support to receive a state license. According to officials, several companies had expressed interest in applying for a license in Middle Township.

Of the two that applied for local support, the Massachusetts-based company Insa came out on top, according to township officials.

For years, that company has been working with the township on plans to convert a former seafood processing plant on Indian Trail Road in the Goshen section of the township into a cannabis growing and processing plant.

Originally, the plan was to grow for the medical marijuana market there, but as New Jersey laws changed, the proposal was expanded to include growing for the wholesale market for adult use.

Retail sales are not planned at that site.

Instead, the company plans to build a dispensary at 3402 Route 9 South in Rio Grande, the site of the former Four Seasons Diner. The property is currently vacant.

At previous meetings, Rio Grande residents said there are already significant problems with drugs in that section of the township, and expressed concerns that a cannabis business would only exacerbate them.

On Monday, a group of Rio Grande neighbors attended the meeting to discuss their concerns, which centered on the likely increase in traffic in an already busy area.

That section of Rio Grande is one of the major commercial zones for the county, with national chain retail stores, restaurants, a brewing company and more.

Mayor Tim Donohue said Insa does not yet have a state license; in fact, there is no guarantee it will receive a license. Once a license is approved, the proposal would still need to go through the normal local approval process, which could mean an appearance before the Zoning Board if a variance were requested, or to the Planning Board for site plan approval.

“So here’s the rub: Based on current New Jersey law, this is a legal business,” he said. “You could object to their application based solely on the merit of the zoning or planning application. You certainly have a right to go to that public hearing.”

“So if it goes through and we still don’t like it, what do we do, picket?” asked Sharon Denault. “I mean, I picketed in the ’60s, so I’m willing.”

“You have a right to oppose it, in any peaceful, legal way that you can do so,” Donohue said. “What you have to remember is if we didn’t allow this in Middle Township, that doesn’t mean people wouldn’t be going in to Lower Township two miles away and purchasing marijuana and sitting on their front porch and smoking it.”

Lower Township and West Cape May have both approved allowing retail sales of cannabis. Towns that allow sales are also allowed to impose a local tax, which could mean a new local revenue source.

Denault said she does not have a problem with legal marijuana, although some of the residents who spoke did express concerns. Her primary concern was with the likely traffic impact.

Donohue said he was skeptical of legalization, but a majority of township residents supported the 2020 referendum.

Comments from neighbors focused on the potential traffic impact of a new business, including the possibility that potential customers could park in the retail area across Route 9 and attempt to walk across the busy road.

According to Donohue, the township left it up to the applicant to decide the best location for a cannabis retail shop, as long as it was in a commercial zone.

Insa does not yet have a provisional license for the Indian Trail Road location, according to Steve Reilly, the co-owner and one of the founders of the company. The proposal still needs approvals for the building plans as well. The site plan is set to be heard by the township Zoning Board on Thursday.

Reilly hopes to have the necessary approvals in place to start construction in the spring.

The retail location will take longer, he said, both for the licensing process and for the construction approvals.

“I suspect that would be summer,” Reilly said.