WORLD WORLDWIDE US USA - New York NY - New York City NYC - the city THE CITY - No new state cannabis leases, National Grid bill hike for biogas

 

Dear New Yorkers,

A state authority announced it has stopped issuing new leases for its “social equity” cannabis retailers, following THE CITY’s recent reporting on high-interest loans for the spaces that borrowers said set them up to fail.

Using our coverage as a springboard, state senators grilled Robert Rodriguez, the acting chief of the state Dormitory Authority, about elements of the loan program as part of his confirmation hearing on Tuesday. Gov. Kathy Hochul appointed Rodriguez, formerly New York’s secretary of state, as acting president of the Dormitory Authority last month.

The governor had put the authority in charge of creating a $200 million cannabis “social equity” fund that would be used to lease and construct cannabis dispensaries for licensees previously impacted by drug convictions.

The state contributed $50 million to the fund and approved up to $150 million from Chicago Atlantic, a private equity investment fund, last June. The state kept tight wraps on the terms of Chicago Atlantic’s investment in the cannabis fund despite requests from lawmakers and public records requests until THE CITY obtained a copy of the document last month. It showed that the state assumed significant financial liability that was previously undisclosed to the public.

Borrowers, attorneys and state sources had told THE CITY the state loans were virtually impossible to pay off, thanks to unrealistic projections for sales of legal marijuana products and inflated construction costs.

Read more about the fund and the suspension of the state retail lease program here.

Weather scoop by New York Metro Weather Wednesday’s Weather Rating: 9/10. Another summer-like day, with high temperatures in the low to mid-80s and partly sunny skies. A bit warm out there at times, but we’re not complaining. Keeping an eye on a few late-evening storms, but the vibes are very good today!

Our Other Top Story

The utility National Grid wants to expand its efforts to heat its customers’ homes and businesses with gas generated from the digestion of human and food waste. It also wants you to pay for those efforts, which are part of a rate hike it is requesting from state regulators. National Grid says the proposal is part of its efforts to go green. But some environmental advocates are warning against it.

Reporter’s Notebook

Charting Course for Nonprofit PILOTs

New York City could raise as much as $690 million a year by requiring the wealthiest hospitals and universities to make payments in lieu of taxes (PILOTs), according to a report released Tuesday by the Center for New York City Affairs at the New School.

The Center’s study found that the 14 largest institutions, whose holdings each have a market value of at least $500 million, own properties with a total market value of $21 billion. The study offered sample formulas for PILOTs that could generate between $390 million and $690 million a year in revenue for New York.

Cities including Boston, New Haven and Chicago have tried this approach with varying degrees of success. Since the New York institutions’ tax-exemption is part of the state constitution, any change would require approval in two consecutive legislatures and by voters in a statewide election.

— Greg David

Signature Housing Deal

The city’s main employee pension fund will invest up to $60 million toward preserving 35,000 apartments, 80% of which are rent-regulated, that were at risk following last year’s collapse of Signature Bank, elected officials announced Tuesday.

Comptroller Brad Lander, joined by Mayor Eric Adams and Public Advocate Jumaane Williams, hailed the investment. “We’re reaching the best possible outcome on this portfolio of loans,” said Lander, adding that the deal “has required a huge collective effort, and it will continue to do so.”

Signature had been the largest lender to rent-regulated buildings. Last year, THE CITY reported that one-third of the 100 property owners on Williams’ “Worst Landlords” list had obtained loans from the bank.

The city’s retirement system will now be a partner with the nonprofit Community Preservation Corporation, one of two institutions picked by the Federal Deposit Insurance Corporation to manage the property loans. They’re required to preserve housing availability and affordability.

— Gabriel Poblete

Things To Do

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

Saturday, May 25: NYC beaches open for the season. Saturday, May 25 and Sunday, May 26: “Waves, all that Glows Sees,” a special interactive family performance celebrating the sea. Tickets are $10-17 (Saturday shows begin at 1 and 3 p.m., and the Sunday show at 2:15 p.m.) at Flushing Town Hall in Queens. Monday, May 27: Green-Wood Cemetery’s Memorial Day Concert, featuring the high-school musicians of the ISO Symphonic Band at Third Street, led by music director Paul Corn and hosted by guest conductor Brian P. Worsdale. Free ($10 suggested donation) from 2 to 3:30 p.m. at Green-Wood Cemetery.

THE KICKER: The Governors Island sheep are back in action for the summer!

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

Love,

THE CITY

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

Want to view Scoop in your web browser? Click 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 © 2024 THE CITY, All rights reserved.