New Castle County has passed new restrictions on the recreational marijuana industry that are significantly less stringent than some other areas in the state.
Ordinance 24-138 which was passed during a New Castle County Council meeting on Tuesday, Dec. 10, outlines zoning requirements and restrictions for the budding industry.
Some municipalities in New Castle County have opted out of allowing retail marijuana stores to set up shop in their jurisdictions, and Sussex County in particular has set restrictive limits on where stores can be located.
New Castle County, on the other hand, does not have the option to opt-out of allowing retail marijuana stores, but restrictions can be set.
Here are the details on New Castle County’s retail marijuana landscape.
Why is this ordinance needed?
Retail marijuana shops are expected to opening their doors starting in April 2025.
To understand why this county ordinance is required in the first place, prior legislation related to marijuana needs to be understood.
Last April, the state adopted the Delaware Marijuana Control Act, which requires counties to allow retail marijuana stores and cultivation facilities.
However, counties are permitted to set regulations on where these operations can set up, the number of shops allowed within the county and the manner by which they operate.
This act allows municipalities within each county to prohibit the operation of marijuana cultivation facilities, product manufacturing facilities, testing facilities or retail marijuana stores. Some municipalities in New Castle County such Middletown have chosen to opt-out from allowing retail marijuana in their jurisdiction.
What does the New Castle County ordinance say?
Ordinance 24-138, sponsored by county council members Janet Kilpatrick an David Tackett, sets the following restrictions to be put in place on prospective retail marijuana stores in New Castle County.
Retail marijuana stores would not be permitted within…
These restrictions are similar to requirements for liquor stores in Delaware’s state code, which are intended to prevent over-concentration of stores and protect the neighboring communities without being exclusionary.
Retail marijuana stores would be allowed in commercial neighborhood districts as special use buildings and in commercial regional and industrial zoned areas as a limited use.
Prior to the construction of any retail marijuana store, the applicant also must provide written notice to any landowners within 1,000 feet of the proposed storefront. Storefronts also cannot also serve as residences.
Any medical marijuana building in New Castle County that was established before July 1, 2024 also would be allowed a retail license. However, Patibanda explained that the most likely scenario is that the medical marijuana centers will continue operating as medical facilities a majority of the time.
One floor amendment was introduced to the ordinance, which updated the definition of marijuana cultivation to an agricultural use rather than a light industry use.
The ordinance as amended passed with nine council members voting yes.
Councilmen Jea Street and Penrose Hollins voted no on the ordinance and County Council President Monique Johns opted out of the vote. Councilwoman Valerie George was absent.
High interest in industry in Delaware
Although all counties are required to allow retail marijuana sales in their jurisdictions, Sussex and Kent Counties have imposed stricter regulations to constrain where marijuana retail shops can go.
Sussex County’s ordinance prohibited retail marijuana shops from being with three miles of municipality borders, churches, schools, substance abuse treatment centers or other retail marijuana shops – a much stricter regulation that New Castle County’s proposed ordinance.
Kent County has permitted marijuana stores to operate with similar zoning rules as tobacco businesses in the county.
Despite these restrictions, demand for retail marijuana is high. The Office of the Marijuana Commissioner received over 1,260 applications for marijuana business licenses between Aug. 19 and Sept. 30; the Office made over $4 million on these applications alone.
The applications have begun to be approved by a lottery system, which began Oct. 24.
Application process explained:Over 800 applications are vying for Delaware's 30 marijuana retail licenses
It is estimated that around 18 of the state’s 30 retail marijuana permits will be given to New Castle County.
According to the Office of the Delaware Marijuana Commissioner website, the Commissioner’s Office began issuing up to 30 product manufacturing licenses to Delawareans as of Dec. 1.
Molly McVety covers community and environmental issues around Delaware. Contact her at [email protected]. Follow her on Twitter @mollymcvety.