06142023 CANNABIS FLOWER

The cannabis flower, from cbdoracle.com.

A Mount Laurel Township Council resolution that would have ended the municipality's support of daylite cannabis, a soon-to-open Route 73 cannabis retailer, was pulled from the agenda at the meeting on Tuesday.

But Council did unanimously approve on first reading an amended ordinance that details security standards for all cannabis businesses — including the possibility that the Police Department would require a recreational marijuana store to employ armed guards.

Daylite cannabis originally was granted unanimous Township Council support on December 12 to open a recreational marijuana store. The Zoning Board of Adjustment approved daylite's application on March 1 to open at 1136 Route 73.

Based in part on the required Township support, the New Jersey Cannabis Regulatory Commission early this month approved a license for daylite. That license was the first approved by the state for a Mount Laurel retailer and among the first few to win approval in the 70and73.com area.

The store's owner, Steve Cassidy, told 70and73.com in an interview last week that he had plans to open before July 1.

However, a dispute with the Township over security measures at the store prompted Council to add a resolution to the Tuesday agenda to remove the support — a move that would have put daylite's license in jeopardy and could have put it out of business.

George Morris, the Township attorney, confirmed for 70and73.com at the Council meeting that discussions are continuing with daylite. Cassidy could not be reached for comment Wednesday morning.

The Mount Laurel controversy, and additions to its cannabis business law, come as the infant recreational marijuana industry is just getting started in New Jersey. Although the state commission has security rules, the operating rules in different towns vary. 

The only mention of security in the Council resolution of support for daylite cannabis last December was a line that said the retailer would have to submit a security plan to the Police Department. No mention was made of police or security at the zoning meeting in March other than Cassidy saying he would consult with the Police Department about traffic control for his grand opening, according to the meeting minutes.

Council's amended ordinance with detailed security standards will be up for a second reading at the July 11 meeting after a public hearing. The first reading was approved Tuesday night with no questions asked or discussion by Council members.

A version of the amended ordinance released earlier this week did not discuss security guards.

The one approved on Tuesday night notes: "...the Mount Laurel Police Department may require that the licensee hire and maintain armed security to protect visitors and employees of the establishment. Any activity such as a robbery shall automatically require the use of armed security for the remainder of the licensing period."

Employing security, especially armed security, can significantly add to the costs of a start-up cannabis retailer. 

"This is a million-dollar mistake," Tony Gallo said about the confusion over daylite cannabis' security plans in Mount Laurel. Gallo is a national security consultant who has worked with more than 800 cannabis business clients, including some in New Jersey. 

"How does that happen other than lack of communication?" Gallo asked in a telephone interview Tuesday with 70and73.com. "A lot of these conversations should be happening way before you go before any city official."

Gallo said he has found that when recreational cannabis first comes to a community, the local Police Department sometimes is anxious about the crime possibilities.

"There is very much a learning curve in a lot of towns in the United States that haven't done cannabis," said Gallo, who grew up in New Jersey and now operates his firm, Sapphire Risk Advisory Group, from Dallas. After a couple of years with cannabis retailers, local police departments tend to be more relaxed, he added.

With marijuana retailers, "there's a misconception that they are going to be robbed and broken into all of the time," he said.

Gallo said his clients have never been robbed, but there have been break-ins. However, 80% of the loss at cannabis retailers is from internal theft, which is not very different from most retailers, he added.

One of the concerns in New Jersey has been the amount of cash that would be kept on hand at cannabis shops. Because cannabis is not legal with the federal government, credit cards cannot be used and some banks will not handle the cash.

Cassidy said daylite cannabis has an agreement with a bank and regular cash pick-ups will be made.

Capt. William Baskay of the Mount Laurel Police Department said the daylite cannabis security discussions now are between Township attorney Morris and Cassidy. Baskay said he could not discuss his review of any cannabis store because it might disclose security vulnerabilities.

However, citing two break-ins at New Jersey cannabis stores, Baskay said break-ins or robberies are "definitely a concern" in Mount Laurel.

At least three cannabis retailers want to operate on busy Route 73 in Mount Laurel, including one immediately next door to daylite cannabis and one a few hundred feet away, in the former Sage Diner.

Baskay explained that his department considers many factors when it recommends a security plan, including the location of the store. The Route 73 corridor through town is known to be an accident and crime area, he said.