As many aware of the present standing and points going through New York State hashish and particularly the conditional grownup use retail dispensary (“CAURD”) licenses know, there are a mess of issues that CAURD Licensees are going through and a few of them are fed up. To that extent, on Might 9, 2023, at the least eight (8) CAURD Licensees despatched an open letter to the Dormitory Authority of the State of New York (“DASNY”), the Workplace of Hashish Administration (“OCM”) and the Hashish Management Board (“CCB”) voicing their issues within the hopes of getting a gathering with these authorities to iron out some points which have arisen because the awarding of their respective CAURD licenses.
Points confronted by CAURD licensees
Beneath is a non-exhaustive abstract of a number of the points raised in the letter at difficulty. This abstract is consultant of a number of the challenges the CAURD licensees are going through.
One of many greatest challenges for CAURD Licensees is discovering and constructing out their retail house. DASNY can reject proposed areas based mostly on info solely they’ve entry to, with none unbiased oversight. DASNY whereas being tasked with securing areas for the CAURD licensees can also be the identical governmental company approving areas for licensees opting to not take part in its location project initiative. Such a system gives DASNY with an efficient monopoly over the place the Licensees can lease house or function. Although the OCM has allowed licensees to safe their very own location, licensees nonetheless should compete with DASNY, which has extra leverage and energy in the true property market.
Furthermore, DASNY has been painfully sluggish to reply, if in any respect, to web site plan approvals or present any perception into the method or monetary phrases for the leased areas. Upon acceptance of a dispensary location, Licensees are then compelled to make use of contractors recognized by DASNY and are supplied with no perception into the scope of buildouts, nor the small print of budgeting for the buildout prices they are going to be accountable for paying over the time period of the lease. It’s mentioned that these contractors are quoting effectively above market costs and the Licensees haven’t any skill to barter these prices.
The one actual property choices made out there by the Fund appear to have extraordinarily excessive rents, the place success will not be potential given the sluggish early adoption of authorized retail outlets in opposition to the numerous illicit options
Extremely, the governmental entities are asking CAURD licensees to comply with leases referencing financing agreements with out ever being supplied with these financing agreements. It’s common sense that no diligent and accountable enterprise proprietor might be anticipated to signal a contract beneath these situations.
What’s subsequent for CAURD?
We sincerely hope DASNY, OCM and CCB take the issues recognized within the Might 9 letter severely. We’ve been following many of those points on the weblog for some time now, and we have now been coping with them on behalf of shoppers from right here in our New York workplace.
For extra normal info on New York hashish program timelines, together with guidelines and licensing, see our abstract of CCB’s assembly final week right here.