D
asheeda Dawson, New York City's marijuana czar, recently attended MJBizCon to highlight the city's new initiatives aimed at supporting licensed dispensaries. The Cannabis NYC office has introduced two programs: low-interest loans for licensees and direct assistance in finding compliant real estate.

    The loan program was launched last month, while NYC Lease debuted as a database of vacant storefronts suitable for conversion into legal marijuana shops. Dawson stated that these programs were designed to address the shortcomings of the state's $200 million Cannabis Social Equity Investment Fund, which had only funded 20 dispensaries by mid-September despite its goal of financing 150.

    Dawson emphasized that locating compliant real estate in New York City has been a significant challenge for many licensees. The city requires dispensaries to be at least 1,000 feet away from schools, churches, and other competing shops. As a result, the operationalization rate – the percentage of licensed businesses actually opening – was struggling.

    New York City had submitted over half of the state's applications during the first licensing window but saw only 38% of those businesses open. Dawson expressed optimism that enforcement efforts, including Operation Padlock, have been effective in shutting down unlicensed shops and boosting the legal market.

    To overcome real estate hurdles, some licensees are offering creative incentives to landlords, such as revenue sharing or equity stakes in exchange for tenancy. Dawson believes that integrating former underground legacy businesspeople into the newly legal trade is crucial for the industry's success.

    The city's underground supply chain, worth "multiple billions of dollars," drives the economics of the New York market. Dawson emphasized the importance of transitioning this unlicensed sector into the legitimate market to ensure the industry's long-term viability.