Since the legalization of marijuana in New Jersey in November 2020, the NJ commission established its first set of rules for the sale of marijuana in August 2021. Hoboken has recently approved its first recreational cannabis shop and has two pending for review.
On February 24, 2022, The Cannabis Review Board approved the city’s first recreational cannabis retail shop that will be located on 51-53 14th Street. Story Dispensary of Hoboken, LLC will replace what was previously Hudson Tavern and will have a 6,000 square foot blueprint on the first floor and basement. According to the application brought before the board, the shop will be open 9 a.m. to 10 p.m. daily and staffed by 10-20 employees.
The CEO, Samantha Silva, is a Hoboken resident and bartender at City Bistro. She has done extensive research on the cannabis business — she toured cannabis dispensaries in New Jersey, Delaware, and Colorado. Silva’s business partner, Aaron Epstein, will be providing management services and has already overseen cannabis operations in five different states.
There has been misinformation spread about the kind of retailer Story will be. In Mayor Bhalla’s Update on March 1, he informed the public that, “the current application for a cannabis dispensary is for retail only. No consumption/lounge license was requested by the applicant, and none will be permitted. If approved, only the retail sale of cannabis will be permitted, no cannabis will be consumed on site.”
Each cannabis applicant is required to submit a Neighborhood Impact Plan underlining its mission and other details like safety, traffic mitigation, noise and odor, and its general impact on Hoboken. After the Board meeting, Story agreed to several conditions to move forward with their planning; a deed restriction specifying that it will never become a consumption license holder, funding one Hoboken police officer’s salary each year, a $50,000 contribution to the Affordable Housing Trust Fund, and covering the cost of a city-wide cannabis education program.
In addition to the conditions mentioned above, all cannabis retailers will pay a local cannabis transfer tax and user tax that has been amended to the City of Hoboken’s chapter on taxation. The ordinance stated that there will be a two percent transfer tax on any medical cannabis dispensed by a medical cannabis dispensary, a one percent tax of the receipts from each cannabis wholesaler, and a two percent tax of the receipts from each sale by a cannabis retailer, including sales transacted by a cannabis delivery service. 75% of the annual cannabis tax will be used to support social justice initiatives, cannabis education programs, the special improvement district, community policing, and related social programs.
While Story had a unanimous vote to continue their planning phase, there have been mixed opinions on this new market. Tiffanie Fisher, Second Ward Councilperson, supports decriminalizing marijuana but does not believe it has a place in Hoboken. In a Hoboken Girl article, Fisher said “We have a complex community that blends commercial and residential uses on every block and most doorsteps. How can we allow these types of businesses into an occupied, residential building?”
No notice of buying the space to residents is required prior to the Cannabis Review Board and Story did not feel that it had to at that time whereas the other two retailers did. After the Board meeting, Mayor Bhalla looked to amend the cannabis ordinances to require a notice to residents within 200 feet prior to any approval; disclosing that a cannabis shop is proposing to purchase and operate a storefront within or neighboring their building. Residents were upset and felt blindsided when they were not informed that a cannabis retailer would reside in their building prior to the hearing. Furthermore, there have been complaints about the transparency of the process.
The owner of the Hudson Tavern, Tom Brennan, said the retail space was supposed to be a physical therapy location and he did not hear about the switch. “At the last moment, the first time we’ve heard about this as far as change of usage was Tuesday [February 22]. Is that fair?” said Brennan.
Many residents are also concerned about the effect these shops will have on youth. A Hoboken resident started a petition called “Protect Hoboken Families and Children from Cannabis Dispensary Dangers” directed toward the Hoboken Cannabis Review Board, the Hoboken City Council, the Hoboken Planning Board, and the Mayor’s office.
The ordinance states that the zones where cannabis establishments are permitted cannot be on the same block frontage as a primary or secondary school and there must be a minimum of 500 feet between cannabis retail and/or medical cannabis dispensary locations.
While the City Council planned to hear all three applicants on February 24, the first and second readings will now be March 9 and March 23.
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