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Dear New Yorkers,

Last June, Gov. Kathy Hochul’s counsel wrapped up negotiations on a $150 million deal that made a Chicago investment firm the major financier of the state’s cannabis legalization program.

But within the state’s Office of Cannabis Management (OCM), doubts about the agreement flared intensely.

That’s according to emails in a trove of more than 500 obtained by THE CITY that show agency officials repeatedly criticizing many of the decisions that wound up shaping New York’s troubled cannabis legalization program — as those decisions were being made.

“This is BAD,” wrote Matt Greenberg, an OCM financial analyst. “I would not advise them to sign this.”

But after almost a year of failing to strike a better agreement, they decided this was the only way to fulfill Hochul’s 2022 pledge to create a massive loan program that would allow people affected by years of racially discriminatory drug laws to flourish as owners of legal cannabis stores.

After THE CITY unearthed a near-final copy of the still undisclosed contract in April, several state legislators and financial experts said the deal smacked of predatory lending. And when Hochul called the cannabis rollout a “disaster” in January, OCM officials were privately stunned, since their repeated warnings had often gone unheeded by the governor’s office.

Read more about what was revealed in the hundreds of emails obtained by THE CITY here.

Weather scoop by New York Metro Weather Tuesday's Weather Rating: 9/10. The beat goes on! High temperatures in the mid-70s with low dew points and a comfortable north breeze. We'll have a few periods of clouds today and maybe an isolated shower, but they won't be a big deal. The vibes are still very good!

Our Other Top Stories

New York is one of the only U.S. cities where tenants have to pay for a broker they did not hire. Those fees can range from one month’s rent up to 20% of the annual rent depending on the market. And in this rental market, those additional fees could be a barrier preventing people from moving. Now, some City Council members are trying — again — to ban broker fees. Here’s everything you need to know. The fledgling union at a Staten Island Amazon warehouse — which defied the odds, and successfully organized workers — is moving to affiliate with the Teamsters. The merger would give the union a major boost as it works to secure a first contract with Amazon. But first, workers need to ratify the plan. On the latest episode of FAQ NYC, host Katie Honan and transportation reporter for THE CITY Jose Martinez discuss Gov. Kathy Hochul’s recent reversal on congestion pricing and its consequences, plus the state's pattern of advancing the plan and then procrastinating indefinitely. Listen here.

Reporter’s Notebook

MTA Shrinks Plans

In his first public appearance since Gov. Kathy Hochul put an indefinite pause on congestion pricing, MTA honcho Janno Lieber said his focus was on maintaining the robust public transit system he runs even without the influx of cash.

“We need to keep capital investment going to make sure the system is reliable and convenient for everybody,” he told reporters as he outlined a plan to “reprioritize, resequence and shrink” the MTA’s current capital program.

The MTA’s grand plans were shattered last week after news broke that Hochul planned to halt the congestion pricing plan, which was set to begin June 30. That tolling plan was estimated to flood the MTA with billions of dollars each year to upgrade signals on subways, continue maintenance work and purchase new train cars and zero-emission buses.

Lieber’s pivot to a leaner budget includes bringing back former MTA chair Tom Prendergast to help determine which capital projects will now take precedence in terms of critical safety.

“We need to focus on those most important to maintain the system,” Lieber said.

Pressed by THE CITY, the MTA Chair declined to discuss any of his conversations with the governor, or how he or the MTA board were notified about her about-face last week.

— Katie Honan

Things To Do

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

Tuesday, June 11: Sneaker Revamp, a free workshop to prep, design, paint and finish your shoes with a new look. Bring your own shoes. Free from 4 to 5 p.m. at the Poe Park Visitor’s Center in The Bronx. Wednesday, June 12: The Dream Machine, an interactive virtual reality concert experience. Choose from five experiences at various times. Pay what you wish (tickets required) at Lincoln Center’s Kenneth C. Griffin Sidewalk Studio, David Geffen Hall, in Manhattan. Saturday, June 15: Saddles and Soul: A Juneteenth Black Western Celebration with music, art and food. Free with admission from 12 to 8 p.m. at the Brooklyn Museum.

THE KICKER: The state Legislature has approved a bill directing the MTA to rename the Christopher Street-Sheridan Square station in honor of the Stonewall riots. It will be renamed Christopher Street-Stonewall National Monument Station.

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

Love,

THE CITY

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