The second licensed adult-use cannabis retailer is set to open in Smacked Village, New York State. The cannabis “pop up” shop in Greenwich Village will be run by Roland Conner, a person impacted by a marijuana-related conviction, making it the first retail outlet in the state to fulfill a longtime legalization promise. The opening of the dispensary marks a new chapter in the cannabis industry in New York, which has been struggling to build out dispensaries while the illicit market continues to thrive.
Conner’s store is located on Bleecker Street two blocks south of Washington Square Park, and it is owned and operated by him. He expressed his joy at the opportunity to legally sell cannabis products, stating that it is an “amazing feeling” and that his family is here to support him. However, Conner’s ambitions will have to be put on hold for a few weeks, as Smacked Village will shut down for three to five weeks in February 20th for state contractors to build shelving and outfit a permanent retail space.
The stop-and-go rollout of the cannabis industry in New York is due to the state Dormitory Authority, which controls the leasing and construction of storefronts. Despite the efforts of the state to put formerly convicted individuals first in line to sell cannabis legally, only one dispensary, Housing Works’ dispensary at Astor Place, has opened its doors so far. Unlike licensed entrepreneurs like Conner, the nonprofits were free to sign their own store leases and were able to start opening sooner.
The March 2021 law legalizing cannabis in New York prioritized people like Conner who had been caught in the crosshairs of cannabis prohibition. The state tied their licenses to dispensaries to be leased and constructed by a state-controlled social equity investment fund. Dormitory Authority CEO Reuben R. McDaniel III stated that the pop-up concept will be available to other licensees to help them jump-start retail sales, so they can make money while design, permitting and building are hammered out. The build-out cost for dispensaries could range from $900,000 to $1.5 million, which licensees will pay off over a 10-year period.
The opening of the second state-authorized dispensary comes at a time when New York City and municipalities across the state are grappling with a thriving illicit cannabis market. The new legal retailers, who are limited to selling licensed New York-grown product, now have to compete with those unlicensed retailers. The state Office of Cannabis Management has committed to issue 150 business licenses and up to 25 licenses for nonprofits. Despite the crowded market, Conner remains enthusiastic about the cannabis industry in New York and considers it a “great program”.
The pop-up concept is a shift from the Dormitory Authority as it struggles to get retailers like Conner into business swiftly. State officials have begun to allow licensees to offer delivery services while they wait for retail spaces. In December, the Office of Cannabis Management told operators for the first time that they could choose their own retail spaces.
Last June, the Dormitory Authority awarded Social Equity Impact Ventures a contract to manage the fund, tasked with raising $150 million from the private sector. Neither the state nor the firm has since disclosed any details about funding. Ultimately, the state fell short of opening the 20 dispensaries that Governor Kathy Hochul said would be in business by the end of 2022.
