Atlantic City, New Jersey officials have closed a members-only cannabis club due to lack of permits, the Press of Atlantic City reports. Michael Walsh, the owner of the Rekt Café told the Press that he had obtained the proper permits prior to the opening but indicated he would take the necessary steps to meet the city’s requirements and reopen as a CBD café under the name “Lifted Café.”
In order to meet the city’s demands, Walsh must paint parking spaces, remove an outdoor tent, and build a wall separating food sales from any cannabis-related activities.
The club had allowed members to consume cannabis on-site and the club gifted cannabis products to members who bought other products, the report says. People could become a member by simply signing in when entering the establishment.
Over the summer, the state Attorney General’s Office sent cease-and-desist letters to four businesses over the practice of cannabis gifting.
City Councilman Kaleem Shabazz, who opposes cannabis legalization and represents the ward where the café opened, said regardless of the business, individuals “have to follow the rules to open any business in Atlantic City.” He added that Rekt Café had also received a cease-and-desist letter from the Attorney General’s Office.
Rebekah Mena, a spokesperson for Atlantic City Mayor Marty Small Sr., told the Press that the city licensing department had issued the business a summons for operating without a required mercantile license, and the Casino Reinvestment and Development Authority has also cited the owner of the building for land-use violations, the report says.
Atlantic City Police said they were not involved in closing Rekt.
Walsh said he plans to apply for a cannabis business license once the state starts accepting applications on December 15.
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