Oakland to revisit cannabis cultivation application, hopes to avoid $6.8M tort claim

Marsha A. Stoltz, NorthJersey.com
·2 min read

OAKLAND — The Borough Council voted 4-1 on Wednesday to put a cannabis cultivation application back on the table in hopes of ending a $6.8 million tort claim with a vote at its March 22 meeting.

Kusala Care LLC filed the tort claim on Dec. 22 after the council failed to act for four months on its Aug. 22 application to open a marijuana-growing facility on Muller Road. The application was based on ordinances unanimously approved by the council in December 2021 that created four zones where five types of non-retail cannabis businesses could operate, including cultivation.

Newly elected Councilman John McCann has been a vocal opponent of any cannabis business operating in the borough since taking office in January, regardless of its legalization being approved in a November 2020 statewide referendum.

However, residents spoke in favor of a vote Wednesday, citing the burden of a lawsuit on borough taxes and the financial benefit to be derived from cannabis businesses in the borough. Cannabis businesses pay 2% of their gross income, which would help pay down the borough debt.

George Lutfey and Justin Lee filed suit against Oakland in December after Borough Council stalled on their August application to open a cannabis cultivation facility on Muller Road.
George Lutfey and Justin Lee filed suit against Oakland in December after Borough Council stalled on their August application to open a cannabis cultivation facility on Muller Road.

"Let's get this rolling," said former council President Frank DiPentima. "It's ridiculous we're incurring money unnecessarily. We've got crumbling infrastructure. We've got road issues. Approving that agreement would allow us to generate money that would actually help pay that future debt service."

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Council members have expressed reservations about shifting state guidelines under which the municipalities must oversee their cannabis businesses, and whether the borough should in fact rescind its ordinances until the state's direction is better defined. However, residents at the meeting were more focused on the 2% benefit.

Oakland Council unanimously approved four areas in which non-retail cannabis businesses could locate in December 2021.
Oakland Council unanimously approved four areas in which non-retail cannabis businesses could locate in December 2021.

"This ordinance will offer passive income and relief to the taxpayers," said Mike Guadanino, who sat on Mayor Linda Schwager's cannabis committee. "Rather, we're wasting our time not taking advantage of this."

Council President Steven Saliani, Councilmen Pat Pignatelli, Kevin Slasinski and Russell Talamini voted to untable the application. McCann was absent, and Councilmen Eric Kulmala cast the only no vote.

This article originally appeared on NorthJersey.com: Oakland NJ reconsidering legal weed cultivation application