A year ago, ZenLeaf in Elizabeth was one of 13 dispensaries that officially opened for recreational marijuana sales in New Jersey. Since then, sales have been nonstop, according to general manager Sonny Achrekar. “We’re always get new people in and now that the weather is getting better, we’re going to get all the people flying in because we get all the airport traffic. So it’s just consistent,” he said.
There are now 25 dispensaries selling recreational cannabis across the state, all of which were initially medical dispensaries before the Cannabis Regulatory Commission approved their expansion into the adult-use market. That’s a major concern for some, since social-equity applicants and those impacted by the criminalization of marijuana were supposed to be prioritized in the development of a cannabis industry in New Jersey.
Another issue for many small applicants to become part of the industry is funding. The Economic Development Authority is now offering grants of $250,000 to help cover the cost of legal fees and other expenses related to getting into the industry.
Finding a location to set up in business is also a challenge. Chirali Patel, founder of the Blaze law firm, said, “We still have the bulk of 70% plus of towns that have opted out. So real estate is very limited. Zoning makes it really restrictive. And so you can’t afford these hefty deposit, because real estate is still expensive.”
Experts predict cannabis could become a billion dollar industry in the next few years. The state raked in roughly $20 million last year from the sales tax on recreational marijuana alone. To date, more than 1,100 licenses have been awarded, but Sen. Vin Gopal (D-Monmouth) said the state’s Cannabis Regulatory Commission isn’t doing enough. He also criticized the CRC’s decision to renew a license for the Curaleaf dispensary days after it had initially rejected the application.
“When we see the CRC canceled their May meeting but hold an emergency meeting for a corporation, that’s violating collective bargaining rights and I got countless small businesses throughout my district … that are waiting to get an agenda with no clarity. Something’s not working,” said Gopal, who plans to introduce legislation that would take control of the state’s cannabis industry from the CRC, placing it instead under the control of the Department of Health or Department of Treasury.
