Wilmington Council imposes 90-day suspension on cannabis business licenses

WILMINGTON – The Wilmington City Council passed Ordinance 25-004, which temporarily suspends the issuance of business licenses for retail marijuana stores for 90 days.

The ordinance aims to allow proper zoning and community input. The council voted, supporting the 90-day pause to ensure appropriate planning and community engagement.

The ordinance being passed means the suspension of issuance of business licenses for retail marijuana stores for the next 90 days.

Councilman Alexander Hackett introduced the legislation to allow time for the city to discuss potential zoning changes. Hackett urged for a collaborative approach to ensure what’s best for  the community.

“I think the licenses were getting ready to air March 1 or April, and, before they got into the city of Wilmington, we needed to go back and rezone and make sure they went to the right places in the city, to make sure that they weren’t going to negatively affect our city. -that’s all I’m doing—putting a moratorium on the licenses until we finish up on the zoning,” Hackett said in an interview.

Hackett said they have “buffers” already in place to prepare to give out licenses for retail marijuana stores in Wilmington.

“We needed to go back and do better zoning to ensure it doesn’t negatively affect our communities—not in the residential areas. And that’s what this is all about, making sure we correctly zone for the city of Wilmington and its residents, and we need more time to do that,” he said.

Cannabis legalized in Delaware 

In April 2023, Delaware became the 22nd state to legalize recreational cannabis when Governor John Carney allowed HB 1 and HB 2 to become law without his signature.

• HB 1 legalized possession of up to one ounce of cannabis for adults 21 and older but does not include home cultivation.
• HB 2 regulates and taxes cannabis sales for adults in the state.

Cannabis Business Licensing in Delaware

In 2024, Governor Carney signed HB 408 into law, allowing existing medical dispensaries, known as “compassion centers,” to apply for conversion licenses to serve adult-use consumers. These licenses, valid for 48 months, require businesses to prioritize medical cannabis access before renewing as an open license.

The Delaware Office of Marijuana Control (OMC) received over 1,200 applications for 125 available marijuana business licenses before the Sept. 30 deadline. New Castle County alone has 59 available licenses.

The OMC believes the high number of business license applicants shows the potential for Delaware’s marijuana market. 

“The robust response to the new license application process is a very positive sign that people are interested in creating a marijuana business in Delaware,” the OMC wrote in a statement to Delaware Live. 

Due to the high volume of applications, licenses will be awarded through a phased lottery system. To be eligible for the lottery, applicants were required to meet minimum qualifications set forth in § 1331, of Title 4 of the Delaware Code.

“99% of the 1,271 applications received met those minimum standards and proceeded to the lottery.”

The first lottery phase winners will be announced via Facebook Live on Oct. 24th.

“The lottery system promotes a fair and transparent licensing process, ensuring equal opportunities for applicants to participate in Delaware’s emerging marijuana industry.”

The OMC expressed the main barriers to entry for new marijuana businesses mainly revolve around local zoning concerns, as some municipalities have chosen to ban adult-use marijuana sales within their jurisdictions. 

Understanding Zoning Laws

Local governments use zoning laws to minimize the impact of cannabis businesses on surrounding areas.

Common regulations include:

• Buffering (setting distance from schools, parks, churches, etc.)
• Density limits (restricting the number of businesses in an area)
• Operational rules (hours, odor control)
• Storefront guidelines (lighting, signage, displays)
• Additional land use rules (building size, height, purpose)

The Network For Public Health Law: Cannabis Regulation Fact Sheet

Zoning legislation in Wilmington

Councilmember Maria Cabrera, introduced a proposal last year, to establish zoning districts for cannabis businesses, aiming to provide safe access to cannabis products while optimizing economic benefits for the city.

Cabrera noticed the early opposition leading to an attempt to compromise and by identifying locations that would be more acceptable to the community.

She emphasized that misconceptions about dispensaries persist, comparing them to liquor stores, which have different regulations.

“When people see how dispensaries run, that fear factor that’s alive right now is going to be gone,” Cabrera said.

She also expressed concern over Wilmington’s slow response to legalization; “Why does Wilmington need more time?”

While she remains supportive of future legislations, she made it clear she will not be leading the effort this time.

“I made it very clear that I would not be taking the lead this time around.” he stressed that delays hurt businesses that have already invested in the city. “This does hurt the companies that did get licenses and are trying to find spaces in Wilmington.”

The push to prohibit marijuana sales

The OMC strongly believes that the marijuana industry will create jobs, boost the local economy, and generate significant tax revenue, which will have a positive financial impact on Wilmington.

However, others think the legalization and expansion of marijuana in Wilmington will have a negative impact on the community. Specifically the city’s image and the impact it could have on young children and teens.

In November of 2024, Council Member Nathan Field and  Council President Congo Cosponsors and  Council Members White Spadola, sponsored the AN ORDINANCE TO AMEND CHAPTER 5 OF THE CITY CODE TO PROHIBIT THE OPERATION OF RETAIL MARIJUANA BUSINESSES IN THE CITY OF WILMINGTON, DELAWARE, which would allow municipalities to prohibit or limit the operation of marijuana sales.

With legal sales set to begin in April 2025 in Delaware, Wilmington faces increasing pressure to finalize regulations governing cannabis businesses. Since the 90 day hold is in tact, there will be a hold on all processes of cannabis businesses until all these factors are still to be determined.

THIS STORY WILL CONTINUE TO BE UPDATED.