Site control is paramount when considering any type of cannabis facility. The most recent New Jersey Department of Health Request for Applications (RFA) in 2019 made evidence of site control and support of the local community mandatory elements of the application process, which required proof of lease or ownership, approval of the entity by the local governing body, and either confirmation by the town or analysis supplied by the applicant that the location chosen is in compliance with all local codes and ordinances and outside of a drug-free school zone. Those with sites already in possession were well-positioned to respond.
It should be anticipated that any future RFA under the medical cannabis program or an application for a commercial license (should adult use be legalized) will have a site control requirement. Thus, site selection is critically important, and businesses contemplating entering the New Jersey cannabis market should already be engaging this process.
The location and acquisition of a site will be dependent primarily on the type of operations that will occur at the facility. For example, a vertically integrated medical cannabis facility (cultivating/processing/dispensing) requires a large footprint but also has significant infrastructure needs and requires ease of access for patients and caregivers. By comparison, an entity looking solely to dispense medical marijuana may desire a storefront, while a processing licensee may need a more industrial space. Each one of these entities will also need to address the state’s licensing requirements for security, patient and employee safety, and other criteria specific to the business’ function.
To complicate matters further, local control over the issue of siting cannabis businesses is an important factor in the selection process. This is where a business’ operational need will intersect with the applicable land use and zoning laws, regulations, and ordinances.
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