WORLD WORLDWIDE USA New York NY New York City NYC the city THE CITY News Journal Update - State Loans for Cannabis Stores Are Loading Licensees With Steep Costs

 

Dear New Yorkers,

Back in January 2022, Gov. Kathy Hochul outlined a vision for the social-equity goals of New York’s new cannabis law: The state would create a $200 million fund to build out dispensaries for retail licensees with past cannabis-related convictions.

This, lawmakers and regulators agreed, was a chance for those who had been most harmed by decades of racist drug policies to not only participate in the legal market — but to thrive from it.

But nearly two years later, financing documents obtained by THE CITY reveal that the 10-year loans it offers to dispensary owners are highly restrictive and potentially burdensome. Until now, the details of the loan agreements have been largely unknown.

The loan documents, which licensees are required to sign in order to obtain financing, show that the state’s public-private fund is authorized to rack up significant expenses without consulting the borrower. Their interest rates can climb to 18% for the costs of building out a business that licensees don’t fully control.

And if licensees want to pay off their loan early, they still owe the fund a portion of the interest for the full 10-year terms – which could amount to hundreds of thousands of dollars.

In other states where cannabis is legal, there are social equity programs with aims similar to New York’s, but with vastly different loan terms.

Read more here

Weather scoop by New York Metro Weather Thursday’s Weather Rating: 9/10. OH MY! Sunny and relatively warm, with high temperatures in the lower 60s and a light breeze. What more can you ask for in mid-November? The vibes are SO good out there.

Our Other Top Stories

Speaking of the state’s beleaguered cannabis rollout, THE CITY has a guide to legal weed in New York. It includes a list of all the open legal commercial dispensaries in the five boroughs — plus, information about the entirely separate medical cannabis dispensaries, and expansions to the eligibility criteria that qualify New Yorkers for a medical card. New York State is moving to combat deed theft, as Gov. Kathy Hochul signed a bill into law that gives prosecutors more latitude to go after fraudulent real estate transactions — and keep homeowners in their homes. As THE CITY has reported, deed theft happens when the title to a home is stolen without the homeowner’s approval or knowledge. It can involve forgery, fraud or other tricks. Plus, scammers often target older and nonwhite New Yorkers, especially in gentrifying neighborhoods. When New York banned single-use plastic bags in 2020, environmental activists hailed the new law and vowed to push for more eco-friendly legislation. But more than three years later, they say a lack of robust enforcement has allowed scores of stores, including several major chains, to continue handing out plastic bags to customers. “For some reason they are not enforcing the law in hundreds of stores,” said Anne Bassen of the advocacy group Beyond Plastics. “We don’t really know why.”

Things To Do

Here’s what’s going on around the city this week.

Thursday, Nov. 16: Kelp Cultivation in NYC, a half-day conference about ecological restoration in New York Harbor. Tickets from $23.18 (sliding scale available), 9:30 a.m. to 12:30 p.m. at Pratt Institute Research Yard in Brooklyn. Thursday, Nov. 16: Cara Fitzpatrick with Wesley Morris: “The Death of Public School,” discussion about the Pulitzer-winning Chalkbeat editor’s new book. Free from 6:30-8 p.m. at the Stavros Niarchos Foundation Library in Manhattan, and online via Zoom.  Saturday, Nov. 18: Queens Botanical Garden birding event with NYC Audubon. Tickets $8-10, which includes garden admission, from 9:30-10:30 a.m.

THE KICKER: The results are in for the Museum of the City of New York (MCNY) gingerbread bakeoff competition. The winner is an Upper West Side resident whose recreation of the Museum of Natural History is made from 75 pieces of gingerbread, and took more than 60 hours to complete. That entry and others are on view at MCNY through Jan. 15.

Thanks, as always, for reading. Make it a great Thursday.

Love,

THE CITY

PS. Love THE CITY? Our nonprofit newsroom runs on support from readers like you. Donate here.

THE CITY's work is made possible, in part, through the support of our sponsors. Interested in becoming a sponsor of THE CITY? Contact us here.  Copyright © 2023 THE CITY, All rights reserved.