South Jersey Community passes ordinances for new cannabis retail outlet

Ever since non-medical cannabis was approved by New Jersey voters and signed into law over five years ago, legal marijuana sales have become an almost billion-dollar industry, only outpaced by the sports gambling industry in New Jersey.

However, the number of Recreational marijuana dispensaries is much lower in New Jersey's southernmost county than the rest of the state. At the end of 2025, there was only three licensed cannabis dispensaries in Cape May County.

One South Jersey community has taken the first steps to allow a cannabis dispensary in their municipality, but with an interesting stipulation that is creating a lot of speculation in the local community.

Where Will The Next Recreational Marijuana Dispensary Open In South Jersey?

Upper Township Committee has approved the creation of a new " overlay zone" that would allow cannabis retail sales in a specific area of the community.

The section of Roosevelt Boulevard (County Route 623) between the Garden State Parkway and the Ocean City 34th Street Bridge has been designated as the overlay zone for a new marijuana dispensary. This will be the first one of these retail businesses located in northern Cape May County.

New ordinances creating this new area for a retail cannabis store also created a two percent local tax on cannabis sales in Upper Township, along with an annual license fee of $7,500. This local municipal license fee is separate from state regulated operating license that dispensaries must acquire in order to open the business.

Locals are speculating that one of two currently abandoned buildings could be the location for this new marijuana retail outlet:

*formerly Pappy's Restaurant, which is located within a few hundred feet of the Garden State Parkway entry ramp
*formerly Obadiahs/ Sketties restaurant across the street from Yesterday's Creekside Tavern

According to reports, Upper Township officials have said no official site has been selected for the new marijuana dispensary. But considering most of this section of Roosevelt Boulevard is bordered by protected wetlands, it is doubtful that a new property or building would be constructed along this new overlay zone.

The Three Cannabis Retail Outlets Open in Cape May County:

-Coastline Dispensary (1580 Route 9 North) Middle Township
-Sea & Leaf (3860 Bayshore Road Suite 7) Lower Township
-Shore House Canna (124 Sunset Boulevard) West Cape May