One third of NYC dispensaries may now have to close

Just when New York’s cannabis industry was finding its groove, state regulators have thrown a serious wrench into the mix. A total of 89 licensed cannabis dispensaries across the five boroughs, including some of the city’s first and best-known shops, were told this week they may need to pack up and find new homes. The reason? They’re suddenly too close to schools.

Until now, the state Office of Cannabis Management (OCM) had measured the required 500-foot buffer from a shop’s door to a school’s door. But under a recent “oops, our bad” policy correction, they’ll now measure from the dispensary’s entrance to the nearest edge of a school’s property line, meaning dozens of locations that were once fine are now in legal limbo.

The ruling affects 108 businesses across New York State, including 89 in the city and more than 60 that are already open and operating. In Manhattan alone, 40 dispensaries could be forced to relocate, a nearly impossible task in a borough where real estate that meets all zoning requirements (not near a school, church or another dispensary) is nearly mythical.

Coss Marte, founder of Lower East Side dispensary ConBud, says the news could cost him everything. He’s locked into a $40,000 per month lease and fears losing both his shop and his license. “I just feel like I was heading toward generational wealth and now I’m heading toward generational debt,” he told Gothamist.

OCM says it will work with lawmakers to fix the law—but not until the legislature returns in January. In the meantime, impacted licensees face expiring permits and no clear guarantees. The agency has set up a $15 million relief fund to help affected businesses, but it only goes so far.

Critics, including the law’s original sponsor, Senator Liz Krueger, are baffled by the sudden shift. “It’s like a government-invented crisis,” she said. “There’s no reason for the immediacy and the hysteria.”

If legislation doesn’t pass in time, many dispensaries may have to shut their doors—or go through a costly and time-consuming relocation process. For New York’s equity-focused cannabis entrepreneurs, who were promised a shot at redemption and prosperity, the new rule feels more like a betrayal.

Let’s just say: This blunt interpretation is hitting hard.