Newark City Council Debates Cannabis Expansion Amid Security Concerns and Development Projects
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Meeting Type:
City Council
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Meeting Date:
09/04/2024
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Recording Published:
09/04/2024
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Duration:
159 Minutes
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State:
New Jersey
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County:
Essex County
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Towns:
Newark
- Meeting Overview:
The Newark City Council meeting on September 4, 2024, saw discussions on various issues, including cannabis regulations, property redevelopment, and parking enforcement. The most debate centered on a proposed ordinance to expand cannabis business licenses within the city.
The Council spent considerable time discussing an ordinance aimed at amending the city’s cannabis regulations. This would permit and regulate adult-use cannabis establishments by increasing the number of licensed locations from five to fifteen. Council members expressed concerns about the security measures required for these establishments, particularly in light of recent break-ins at cannabis retailers. One Council member emphasized the need for robust security measures, stating that the financial viability of cannabis businesses could be impacted by high security costs. The balance between community safety and business sustainability was a recurring theme throughout the discussion.
A Council member highlighted the urgency of increasing cannabis revenue for Newark, comparing the city’s current revenue generation to other cities. They noted that Newark only has three operational cannabis locations, whereas New York City reportedly generated over $200 million in cannabis revenue. This member remarked, “The city of Newark is way behind in terms of revenue generation,” suggesting that increasing the number of cannabis locations could help the city secure essential funds.
There were also calls for data regarding the performance of existing cannabis businesses. Several Council members stressed the need for information on traffic, security incidents, and overall operational effectiveness before moving forward with expanding licenses. Concerns about illegal cannabis sales and establishments operating without proper licenses were also raised, with one member noting, “I cannot understand why places violate by selling illegal products… and we allow them to open back up.” This sentiment underscored frustrations with enforcement processes and perceived inconsistencies in addressing illegal operations.
Processing delays for cannabis licenses were another point of contention. Council members acknowledged the lengthy and challenging path applicants face to secure licenses, which often involves financial investment. It was noted that individuals had been waiting for appointments with the Cannabis Committee despite having made substantial preparations to launch their businesses. One member highlighted that “people spend an exorbitant amount of money to try to get this done” and urged for more frequent meetings of the Cannabis Committee to facilitate the process.
Concerns about the saturation of cannabis businesses were also voiced, with calls for the Council to exert more control over the types of businesses allowed in the city. The zoning process was critiqued for its lack of oversight regarding the proliferation of convenience stores and smoke shops selling cannabis, with suggestions made for legislative changes to address these issues. The discussion culminated in a consensus on the necessity for a more streamlined licensing process while ensuring that enforcement measures are robust enough to deter illegal operations and maintain the integrity of the cannabis market in Newark.
In another discussion, the sale and redevelopment of city property to Bygones LLC for over $4 million was debated. The proposal involved developing 500 units of mixed-income residential rental housing, 30 units of permanent supportive housing, and replacing 20 units of transitional housing from Hope Village 1. Questions were raised about the specifics of the land sale, including the square footage and the price per square foot. The Director of Economic and Housing Development explained that the location was chosen through a public solicitation process, emphasizing the importance of inclusionary zoning, with 20% of the new units designated as affordable housing.
Council members sought clarity on the impact of this development on existing plans for the Department of Public Works site in the area, with assurances given that the DPW site would not be part of the transaction. Infrastructure planning was also discussed due to the anticipated increase in housing units—up to 2,000—over the next 24 months in the area, which had previously been blighted. The developer, Mr. Gomes, was recognized for his contributions to the area without seeking tax abatements, with average rent below 80% of the area median income, contributing to the city’s affordable housing goals.
Parking for the new residential units was another concern, with questions about how the influx of new housing would affect traffic and congestion. The Council expressed a desire for detailed proposals.
The meeting also addressed an ordinance related to the distribution ratio between the city and the Newark Parking Authority, prompted by changes to parking fines and penalties. The current ordinance aims to restore the revenue split back to the historical ratio of 60% in favor of the city and 40% for the parking authority, which had been altered to approximately 69% for the city and 31% for the parking authority following a resolution passed in November 2022 that increased fine fees. The rationale for this restoration is to ensure that the parking authority receives the anticipated increase in revenue that was expected prior to the changes in the fine structure. This additional revenue is intended to address the authority’s increased debt service charges anticipated for 2025, establish a capital fund for meter maintenance and replacement, and contribute to their pension fund to mitigate their pension liability.
Concerns were raised regarding the effectiveness of the authority in generating revenue, specifically citing the collection rate of parking fines, which has reportedly dropped to about 68%. This percentage reflects the proportion of tickets paid compared to those issued, with many tickets being dismissed in municipal court. A high accuracy rate in ticket issuance was noted, countering claims of erroneous tickets by individuals.
The Council also deliberated over various resolutions concerning property redevelopment and transfer, highlighting the need for transparency and alignment with community needs. Items such as creating side yards, constructing affordable housing, and rehabilitating existing homes were discussed, with some members calling for deferrals on certain items.
Finally, the meeting addressed transportation improvements, including a budget allocation for the Ferry Street Improvement project, aimed at enhancing pedestrian infrastructure and traffic calming measures. The Council sought clarification on the expenditure, emphasizing the importance of transparency and community engagement in the redevelopment process.
Ras J. Baraka
City Council Officials:
Michael J. Silva, Dupre L Kelly, Louise Scott-Rountree, Luis A. Quintana, C. Lawrence Crump, LaMonica McIver, Patrick O. Council, Anibal Ramos Jr., Carlos M. Gonzalez
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Meeting Type:
City Council
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Committee:
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Meeting Date:
09/04/2024
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Recording Published:
09/04/2024
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Duration:
159 Minutes
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Notability Score:
Routine
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State:
New Jersey
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County:
Essex County
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Towns:
Newark
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