Seaford holds first reading on adult-use marijuana licensing and draft fee schedule

City staff delivered a first reading of draft code amendments to add an Article 6 adult-use marijuana business license to Seaford’s municipal code.

Staff explained the proposals are intended to dovetail with recent zoning changes that permit up to two retail adult-use cannabis locations in certain zoning districts, subject to 2,000-foot setbacks from protected uses and other locational limits. The draft license form, staff said, is intended to give municipal departments (police, building official, public works, electric) an annual contact and point of responsibility for permitted locations.

Staff said license transferability is prohibited in the draft (a new license must be issued on change of ownership) and noted municipalities are not authorized to levy the state’s cannabis excise tax; the presenter said the state collects a 3% tax at the state level under current law. Council members raised questions about community impacts, odor and public education about legal retail versus homegrown use; they generally supported having a licensing framework in place to address public-safety and code-enforcement details should retail locations be permitted in the city.

This was a first reading; staff said the fee schedule revision (proposed $1,000 license fee) and ordinance will be presented for a second reading and formal vote at a later meeting.