New York approves nearly 100 new CAURD licenses

As we have previously discussed, the United States Court of Appeals, Second Circuit reduced the impact of the November Decision and lifted an injunction that had prevented the Office of Cannabis Management (“OCM”) licensing Conditional Adult Use Retail Dispensary (“CAURD”) licenses. As the court continues to hear the appeal, the OCM was able to issue licenses to businesses in Central New York and Western New York. The OCM had only issued 36 CAURD licenses in New York State, and only 4 in New York City. Many have complained that the OCM is increasing their licensing efforts.
The real estate impact of CAURD licenses
It will be interesting for OCM to examine how they deal with real estate issues associated with licensing new dispensaries. The OCM did not provide specific addresses or timelines for dispensaries when it granted additional CAURD licenses. The OCM had previously planned to locate, lease, and build-out real property spaces for dispensaries where they will place licensees. The OCM changed its mind after the slow rollout and delayed efforts of the Dormitory Authority of the State of New York (“DASNY”) and allowed CAURD licensees access to their real estate.
It is not clear how the OCM licensees and the new CAURD licensees will interact or compete for real estate properties that meet the requirements of the OCM or MRTA. It will be interesting to see whether landlords prefer renting directly to the State of New York, or these CAURD licensees.
Keep checking the Canna Law blog for updates. Give us a call if your interested in applying for a New York marijuana license or working as a landlord with one of these licensees.