By Stephen Appezzato
ATLANTIC HIGHLANDS– Cannabis shops may soon appear in Atlantic Highlands, as borough officials have introduced an ordinance that rewrites the town’s stance on the businesses. A public hearing is scheduled for June 2, where residents can express support or opposition to the proposal before an official vote is held.
The ordinance reverses a 2021 decision by borough officials that prohibited cannabis businesses from operating within Atlantic Highlands. If passed, it would allow up to two Class 5 cannabis retail business licenses and one Class 2 cannabis manufacturing license in designated zones.
According to the ordinance, a cannabis manufacturer is an entity that processes cannabis items by obtaining usable cannabis, then manufacturing, preparing, packaging and selling these items – optionally transporting them to other cannabis manufacturers, wholesalers or retailers, but not to consumers.
The manufacturing business would be permitted within the light industrial and historic business zones. Retail businesses would be allowed in the commercial business district, as well as the light industrial and historic business zones.
These businesses would be limited to operating during designated hours and within specified zones. They would be prohibited from operating within 500 feet of a school and from having frontage on First Avenue. All cannabis operations must submit an odor control plan compliant with NJDEP regulations as part of their license application. They must also provide on-site security during business hours, install security cameras, pay a $10,000 initial application fee and a $2,500 annual fee, and gain approval from both the borough planning board and the cannabis committee.
If the ordinance is enacted, a cannabis committee – composed of a police chief designee, a borough administrator designee, and three public members appointed by the mayor – would oversee cannabis business licensing and ensure compliance with state and local laws.
Cannabis products would also be subject to a 2% local cannabis tax in addition to regular sales tax.
The ordinance was introduced unanimously, with council member Jon Crowley abstaining. It was first discussed at a workshop meeting last month. The initial draft proposed four cannabis business licenses and a 1,000-foot buffer from kindergarten through 12th-grade schools. By the time the ordinance was formally introduced last week, the number of licenses had been reduced to three, and the school buffer zone was reduced to 500 feet.
Under the proposed rules, individuals under 21 years old would not be allowed to enter a cannabis business. These establishments would also not be allowed to sell alcohol or tobacco products. Cannabis use is prohibited on site.
During the most recent council meeting, some residents voiced questions and concerns during the public comment period.
“I would love for the mayor and governing body to consider the fact that in many states, property values have come down as much as 15%” following cannabis legalization, one resident said. “It’s going to have a big impact on our police services,” she added. “Please consider that,” she urged the council.
“I am against cannabis,” said another resident. “We’re only 29 miles from the city limits of New York City,” he noted, referencing the closure of more than 750 illegal and noncompliant cannabis shops in the city last year.
In contrast, representatives from The Canna Bar, a cannabis retail business in Matawan, spoke at the meeting to offer insights into local cannabis laws and the experience of operating in the industry.
“Having gone through this process over the last few years, I just wanted to make a comment that the perception of cannabis coming to new communities was pretty much the same three years ago,” said Jay Russel. But, “what we’ve been seeing, the revenue that it brings to the town, the things that we’re able to do with the community and work in close relation with the community, I think beats every type of negative connotation that would come with cannabis,” he said.
Russel emphasized that there are many “benefits” and “advantageous things that can help uplift communities” and property values, and added that “the perception (around cannabis) is not really what it is.”
At the meeting, Mayor Lori Hohenleitner made clear that the public would have further opportunities to provide input before the ordinance is put to a vote, including at the upcoming June 2 public hearing.
In 2020, New Jersey voters approved a ballot measure amend- ing the state constitution to legalize cannabis. The following year, Gov. Phil Murphy signed the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, which legalized recreational cannabis use for adults 21 and older and created a regulatory and licensing framework for cannabis businesses. The act establishes six classes of cannabis business licenses and allows municipalities to regulate or ban cannabis operations within their borders.
Most towns in the Two River Area, with the exception of Red Bank and Highlands, banned cannabis businesses in 2021.
The article originally appeared in the May 15 – 21, 2025 print edition of The Two River Times.
