INQUIRY INCLUDES CANNABIS SALES IN SCHOOL ZONE

July 4, 2023 — The future remains cloudy for an attempt to legally sell cannabis for delivery from a school-zone storefront retail space a half dozen blocks from St. Vartan Park (above, with the proposed space’s entrance door on the right).

But a new development may bring some clarity. 

Yesterday afternoon, the local community board publicly reported that the state has put up for public review and comment through July 31 a slate of regulations proposed by the New York Office of Cannabis Management (OCM). If one particular proposed regulation is adopted, it would allow the proposed 201 East 30th Street location to circumvent state law and conduct cannabis retail business within 500 feet of a school. 

Proposed to start as delivery only, the dispensary would be on a residential-heavy street within 500 feet of entrance to The Epiphany School building on East 29th Street.

The 2021 New York State cannabis law mandates that a legal cannabis dispensary can not be located within the 500-foot measurement. Epiphany's 29th Street school building — for Epiphany's youngest students, including for its pre-K classes — is one of the school's three buildings exclusively used as a school.

The proposed OCM regulations posted by Manhattan Community Board 6 (CB6) yesterday — available here — includes one (on page 37) that states that cannabis sales within 500 feet of a school would only apply in the future if the school within that measurement is also on "the same road."

Members of the public can share their comments with OCM for the agency to consider before any regulations are finalized. Reports CB6, "The deadline for submitting a formal comment for public review is July 31st. Comments on the proposed regulations should be directed to regulations@ocm.ny.gov or mailed to New York State Office of Cannabis Management PO Box 2071 Albany, NY 12220."

One local news network, which interviewed The Epiphany principal about the East 30th Street application, reported that the East 29th Street school building is “just over 400 ft. away.” In the Straus News story for Our Town outlets, principal Kate McHugh says the state’s original 500-feet code should not be doctored, and priority given to “keep our children safe and keep our communities safe, and deal with quality of life concerns for the community. They need to clarify what those rules are and how they will apply them, before any dispensaries are licensed.” Epiphany has more than 400 students.

Located near Third Avenue on a stretch co-named Big Brothers Big Sisters of NYC Way, the address of the proposed dispensary is the only one to date that CB6 has considered for cannabis business in the CB6 district that covers most of East Midtown Manhattan between 14th and 59th Streets. The building, with The Parkoff Organization of Great Neck, New York, displayed as owner and manager, houses Banc Café and residences.

The application was first addressed publicly by CB6 in April in this discussion in its Business Affairs and Licensing Committee meeting.

In the meeting, Heidy Palmer — a representative of applicant Smiley Exotics and Smiley Exotics owner Michael D. Gant — addressed the business’ desire to transition from delivery only to a full retail dispensary, explaining, “we will put in the petition to convert it into a full dispensary if we get the approval from OCM.” On any potential issue with being too close to the public Kips Bay Library around the corner between 30th and 31st Streets, the representative concluded, “There is a probability that due to the library we might not get the approval for the full dispensary.”

At the May 10 CB6 full board meeting, a claim that the cannabis regulations had already been “finalized” was followed by a vote on a resolution that recommends that the state grant the business a license to sell and deliver cannabis from the storefront to consumers’ addresses. Twenty-nine of the board's 38 voting members voted in favor. Yesterday, the OCM public-comment period was announced by CB6 on its website and in its July newsletter.

The storefront space (above), formerly for the retail salon Waxing Studio NYC, is not in operation at the address. The OCM public-comment period may well determine the outcome of the application.

WEDNESDAY MAY IMPACT SCHOOL-ZONE CANNABIS LAW

July 14, 2023 — In five days, the state will hold a meeting in Manhattan that may alter the course of cannabis in the St. Vartan Park community. 

The session will allow the public to weigh in on an attempt by a New York business to legally sell cannabis for delivery from a school-zone storefront retail space a half dozen blocks from the park.

The July 19 meeting was announced yesterday with this information on registration and other details. As reported on by the Conservancy here last week, the state previously had only offered a mail option for public input.

The occasion is a meeting of the New York State Cannabis Control Board, which is responsible for approval of state cannabis rules and regulations. 

The board is considering a slate of proposed regulations. If one particular one is adopted, it would allow the proposed 201 East 30th Street location to circumvent state law and conduct cannabis retail business within 500 feet of a school.

The Epiphany School's 29th Street school building — for Epiphany's youngest students, including those in school's pre-K classes — is exclusively used as a school. The red-brick building (far left, above) and the East 30th Street tan building that's proposed for the storefront cannabis operation (far right) are each near Third Avenue. 

EPSTEIN TESTIFIES ON LOCAL CANNABIS CONCERNS

July 28, 2023 — On July 19 in Harlem in front of the New York State Cannabis Control Board, State Assembly Member Harvey Epstein testified about local concerns regarding cannabis sales. Epstein (above during the testimony) has St. Vartan Park in his district.

Epstein focused his spoken comments on the "proliferation of illegal shops" and better communication about enforcement, "Communicating that to us in a regular ongoing way would be really helpful... Getting emails that we can really get out to the community... and making sure this meeting and all meetings are transparent and open."

The board opted to hold for future debate proposed cannabis rules and regulations the state is considering through this month. As reported on in this Conservancy story, if one particular regulation is adopted, it would allow a location a half dozen blocks from St. Vartan Park to circumvent state law and conduct cannabis retail business within 500 feet of a school.

Epstein recently met with representation from the school about its concerns. Members of the public have through Monday (July 31) to email feedback to the state on the proposed regulations, to regulations@ocm.ny.gov.

YESTERDAY’S CANNABIS HALT MAY IMPACT EAST 30TH

August 8, 2023 — Following a lawsuit filed last week in the state's Supreme Court, a judge yesterday issued a temporary injunction that halts future state-supported cannabis sales authorizations. The case may impact the first proposed state-licensed cannabis operation in Kips Bay, for 201 East 30th Street a half dozen blocks from St. Vartan Park.

The entrance to the proposed East 30th Street cannabis operation is under the black awning of the tan building on the far right

As NY1's Ryan Whalen and Luke Parsons reported last night, the lawsuit filed by four veterans "claims the Office of Cannabis Management usurped the rulemaking authority of the state Legislature... A judge will hear arguments Friday in Kingston before deciding if the current iteration of the state's cannabis program is constitutional. On Monday, he issued a temporary injunction stopping the state from issuing any new licenses or approving any new dispensaries to open."

 The outcome could have wide ramifications. Locally, as the Conservancy most recently reported on in the July 28 issue of this newsletter, the Office of Cannabis Management has shown support for the East 30th Street venture that would stand within 500 feet of a school.

Proposed to open as a delivery-only cannabis business, the 30th Street venture is part of the state's conditional adult-use retail dispensaries initiative, the program that sparked the lawsuit. 

JUSTICE’S RULING FURTHER ICES KIPS BAY CANNABIS

August 18, 2023 — Last week, a New York State Supreme Court justice continued his injunction that prevents the opening of any new state-supported cannabis retail businesses. The case may impact the first proposed state-licensed cannabis operation in the Kips Bay area, for 201 East 30th Street a half dozen blocks from St. Vartan Park.

The entrance to the proposed cannabis operation is under an awning (black triangle-shaped obtrusion) that appears in the middle of this East 30th Street view, down the street from the Remnant Neighborhood Center

Proposed to open as a delivery-only cannabis business, the 30th Street venture is part of the state's conditional adult-use retail dispensaries initiative. That program sparked a lawsuit that led to the injunction.

On August 11 in a hearing at Ulster County Supreme Court, Justice Kevin Bryant was expected to rule if the state's Office of Cannabis Management (OCM) was constitutional in its approach to the state cannabis law that was enacted in 2021. At last week's hearing, plaintiff attorney Brian Burns argued, "When a regulatory agency acts directly contrary to what a statute requires, it’s a violation of the separation of powers and it’s impermissible."

Bryant extended by two weeks an injunction he had issued on August 7, setting the next court appearance for August 25.

 The ultimate outcome could have wide ramifications. Locally, as the Conservancy most recently reported on in the August 8 issue of this newsletter, OCM has shown support for the East 30th Street operation that would stand within 500 feet of a school. The 2021 cannabis law prevents that proximity.

At the hearing, Bryant asked both sides in the lawsuit to look for solutions together before returning to court next week. But talks between the parties have ended without agreement. A spokesperson for one of the plaintiffs, Coalition for Access to Regulated & Safe Cannabis' Rev. Kirsten John Foy, reports that the state's Attorney General's Office has pulled out of discussions. 

STATE JUSTICE: DON'T OPEN KIPS BAY CANNABIS SHOP

August 26, 2023 — Yesterday, New York State Supreme Court Justice Kevin Bryant ruled that a state-authorized cannabis business can't open in Kips Bay as planned.

Justice Kevin Bryant

The business now in legal jeopardy has been aiming to open a storefront cannabis-delivery operation at 201 East 30th Street within 500 feet of a Kips Bay school building.

The school proximity was one of the issues plaintiffs raised with Bryant at a state-lawsuit hearing yesterday in Ulster County. The lawsuit alleges that the state's Office of Cannabis Management (OCM) is acting unconstitutionally.

The plaintiffs flagged as legally burdened the Kips Bay cannabis bid and another six in the state. The 201 East 30th Street storefront (below, on May 1) is a half dozen blocks south of St. Vartan Park.

Bryant had asked OCM to prepare for yesterday's courtroom meeting a list of cannabis shops that hadn't opened but that had met all state requirements before the justice's August 7 deadline.

From the list of 30 that OCM provided, the plaintiffs said seven were ineligible to open and tagged Kips Bay as the most problematic with two license deficiencies. Bryant ruled that the 23 others on the list are the only ones he could green-light to open.

After yesterday's hearing, a national cannabis financial outlet shed light on the school-proximity news. Green Market Report notes that to plaintiff attorney Brian Burns, "at issue is a license issued to Michael D. Gant... who reportedly plans to open a cannabis shop called Smiley Exotics. Since Gant’s proposed location in Manhattan is within less than 500 feet of the Epiphany School’s Early Childhood Center on 29th St.... that license should also be prohibited from opening."

The plaintiffs also stated that the East 30th Street business is at legal risk because the venture claims it will open as a delivery-only service. The plaintiffs argued that six delivery locations on the OCM list can't open because they each missed a necessary license requirement.

The businesses that Bryant didn't approve, including the Kips Bay venture, are now indefinitely on hold. The justice has scheduled the next hearing on the lawsuit for September 15.

Also as part of yesterday's proceedings, the plaintiffs shared with the court written testimony that State Assembly Member Harvey Epstein made to OCM in July regarding Epiphany and his disappointment with OCM.Epstein, whose district includes the school, raised "concern related to the potential licensure of Smiley Exotics, an applicant seeking a license to operate a temporary delivery-only location at 201 E. 30th St, which appears to be less than 450 ft. from the Epiphany School, in violation of the cannabis law. My office brought this to OCM's attention over two months ago and we still have yet to receive a response. I am disappointed with the lack of enforcement efforts, transparency, communication, and accountability that have plagued this rollout.”

Epstein’s statement concludes, “We worked diligently in the state budget to provide additional funding and authority to OCM to enable better enforcement efforts. Today, I call on you to close these illegal shops, ramp up enforcement efforts, and provide more transparent communication with New Yorkers. In addition, my office reached out to testify at this hearing and my staff was not even given the courtesy of being told when the public session was being held at today's meeting. This issue was not resolved until I personally got involved. That is not an appropriate way to deal with elected officials or the public at large. You should have your agenda posted a week before the meeting so that the public can plan to attend at the appropriate time."

WILL STATE "S***SHOW" TABLE EAST 30TH CANNABIS?

September 25, 2023 — A searing investigation published five days ago by NY Cannabis Insider on unsafe state-approved consumer cannabis and a rash of related problems may place on further hold a first legal retail dispensary in the Kips Bay-Murray Hill area.

Tweeted Brad Racino, the reporter behind the story, "From start to finish, it's a s***show."

The health concerns exposed in the story and other deficiencies will be part of a state legislative hearing, reports State Senate Subcommitte on Cannabis chair Jeremy Cooney.

The lede of Racino's September 20 piece: "A NY Cannabis Insider investigation has uncovered systemic public health failures at every level of the state’s legal cannabis industry, from farmers to labs to state regulators, that experts say may pose a serious health threat to consumers."

In August, as the result of a lawsuit against the state's Office of Cannabis Management (OCM), New York State Supreme Court Justice Kevin Bryant halted any more state-approved cannabis retail operations from opening, including one proposed for a location half dozen blocks from St. Vartan Park.

In violation of state law passed in 2021, the 201 East 30th Street cannabis location (above) is within 500 feet of a school — The Epiphany School's Early Childhood Education Center for pre-K and other young students.

On September 20, the day the NY Cannabis Insider investigation was published, the OCM defendants made a motion to Justice Bryant that again asks that Michael D. Gant, the would-be East 30th Street business operator, be given "an exemption" to allow a shop to open at the address.

The plaintiffs have until October 6 at 9:30 a.m. to respond to the OCM request — a motion that the plaintiffs had previously declined in part because of the school proximity issue.

COURT KEEPS INJUNCTION ON KIPS BAY CANNABIS BID

October 10, 2023 — On October 6, following a state request to lift an injunction on 30 proposed legal cannabis stores, New York Supreme Court Justice Kevin Bryant activated the licenses of five businesses on the list but not another on the list for 201 East 30th Street a half dozen blocks from St. Vartan Park.

The rulings are part of a lawsuit filed by four military veterans that contends OCM is acting unconstitutionally on management of legal cannabis in the state.

The Kips Bay operation would be the first legal recreational cannabis dispensary in East Midtown Manhattan's Community District 6.

In contradiction of state law passed in 2021, the Kips Bay storefront location is within 500 feet of a school — The Epiphany School's Early Childhood Education Center for pre-K and other young students.

In a filing to the court on October 3, the plaintiffs' lead attorney Brian Burns wrote that one of the reasons the East 30th Street conditional adult-use retail dispensary (CAURD) license should not be exempted from the injunction is the applicant's "temporary delivery only location" status.

Wrote Burns, "OCM created the 'temporary delivery only' licenses in violation of New York's Administrative Procedure Act. OCM's own (unconstitutional) CAURD regulations do not provide for a separate 'delivery only' CAURD license (whether on a temporary basis or otherwise)." 

HEAR ASSEMBLY MEMBER, MECA TALK ILLICIT CANNABIS 

December 11, 2023 — To address the ongoing concern about cannabis sales near schools and the continued opening of illegal cannabis stores, New York State Assembly Member Harvey Epstein (whose district includes St. Vartan Park) has scheduled a press conference for tomorrow (December 12) on the Lower East Side. The public is welcome to attend.

Kevin O'Keefe, president of St. Vartan Park Conservancy-aligned nonprofit Manhattan East Community Association, has accepted an invitation from Epstein to deliver remarks at the event. The storefronts near St. Vartan Park selling illegal weed include an operation that opened last week at Second Avenue and 31st Street (above) near Mary Lindley Murray school (P.S. 116).

Tomorrow's press conference will start at 11 a.m. outside the unlicensed cannabis shop Go Green (above on December 8) at 162 First Avenue at 10th Street. The illegal sales there are near East Village Community School (P.S. 19).

The state's first-ever legal recreational cannabis store was opened by nonprofit Housing Works on Broadway and East 8th Street last year. This fall, noted cannabis-affairs attorney Paula Collins pegged the number of unlicensed cannabis shops in the city at well over 7,000.

The licensed operations may be increasing the growth of illicit stores.

At the State Senate's first public hearing on cannabis, on October 30, a representative of the historic first state-approved shop — Anthony Feliciano, Housing Works' vice president of community mobilization — testified, "We're surrounded by many illegal dispensaries. It is hard to even compete... I have a 12-year-old son. He can walk down the block on 12th Street and he's hitting five dispensaries — all illegal. And customers come to us and say, 'I don't know how to tell the difference.'"

The new illegal shop at 31st Street is on the same block of a cannabis storefront licensed by the state nearly a year ago but that hasn't opened because of legal and other issues.

MECA BRINGS VOICE TO YOUTH CANNABIS PROTECTIONS 

December 18, 2023 — At a December 12 press conference and rally, the St. Vartan Park Conservancy-aligned nonprofit Manhattan East Community Association (MECA) stepped up its advocacy on behalf of thousands of community members — to keep cannabis sales outside of school zones and to shutter illegal cannabis storefronts.

MECA president Kevin O'Keefe (above, speaking at the gathering) was among the community leaders who addressed the issues at the media event that was fronted by State Assembly Member Harvey Epstein. The press conference, which focused on unlicensed shops, was held at an illegal First Avenue cannabis storefront near schools.

At the rally, Epstein announced that he has started to issue letters (including the one below) to landlords where illicit smoke shops reside. Landlords may be fined up to $10,000 per day at both the local and state level when an illegal shop is in operation. The notices advise the landlords of their responsibilities under the law and the penalties for failure to comply.

Since 2021, when O'Keefe learned from upset parents about an illicit smoke shop selling to students next to the public Simon Baruch Middle School (MS104) between First and Second Avenues, he has been a vocal community leader on the proximity issue.

In 2021, confusion emerged when the state legalized cannabis and many then interpreted the news as unrestricted weed sales. The 2021 law includes protection of youth with the guarantee that, as Epstein notes in a press release that accompanied the December 12 event, "Legal cannabis dispensaries are prohibited from operating within 500 feet of a school."

Community mobilization continues with a link to a video of the December 12 event on MECA's YouTube channel that has been shared with a mass network of parents, school administrators and other youth advocates.

The state's beleaguered Office of Cannabis Management (OCM) has licensed one cannabis operation in East Midtown Manhattan's Community District 6 that stretches from East 14th Street to East 59th Street. Nearly a year after the issuance, the licensed shop has failed to open at its address within 500 feet of a school for legal and other issues.

KIPS BAY CANNABIS AIMS TO OPEN DESPITE BOARD VOTE 

December 28, 2023 — A plan to open the first state-licensed cannabis retail operation in the community district that includes Murray Hill and Kips Bay has failed to gain the support of the district’s community board as the business now plans to open as a full-service retail dispensary.

In May, government agency Manhattan Community Board 6 (CB6) passed a resolution that strictly limits its support to a delivery-only license for the 201 East 30th Street storefront (above yesterday).

Despite the resolution, the owner of the business — Michael Gant of Smiley Exotics — confirmed to Manhattan East Community Association (MECA) representatives that he aims to open the storefront on or around January 5 as a full-service recreational cannabis store, with delivery services also to be offered.

Following MECA's discovery of the switch in the store's plan, the organization had a December 22 meeting with Gant (below left, alongside MECA's Kevin O'Keefe). Gant in the meeting and Smiley Exotics business representative Heidy Palmer during a call that followed confirmed the business' plan for walk-in sales on the residential-heavy side street also known as Big Brothers Big Sisters of NYC Way.

The dispensary building shares its address with a residential building, with each side of the cannabis storefront awning (below on December 10, underneath the BANC sign) next door to a residential entrance.

The state's beleaguered Office of Cannabis Management (OCM) quietly granted Smiley Exotics a full-service license "not even a month ago," according to Palmer. She said Smiley Exotics had not notified the community board, but that the business is now willing to work with MECA with CB6 to try to find resolution. The Smiley Exotics website still references only delivery services.

An opportunity to learn about the license during the December meeting of OCM's Cannabis Control Board was thwarted. The meeting scheduled for East 58th Street on December 20 with a public session that MECA planned to participate in was called off a couple hours before the gathering. The December meeting, which was announced with only two days notice, has not been rescheduled.

MECA (and St. Vartan Park Conservancy) president Kevin O'Keefe has become a lead community voice against cannabis misinformation, and for OCM transparency and for keeping cannabis away from kids. A supporter of legal and safe adult cannabis sales, he has voted for some other recreational cannabis licenses in the district in his separate roles as a member of CB6 and its Business Affairs and Licensing Committee (BALC).

In April's BALC meeting, after Smiley Exotics said it would open as delivery only, O'Keefe was the only committee member to not vote in favor of the license. He abstained because of unanswered questions about school proximity and a belief that the business would not open as promised as a delivery-only business at the location.

O'Keefe reported in the meeting that Smiley Exotics is "looking to make it a full-blown dispensary." Palmer countered that that those who pass by the storefront "are not going to know this is a dispensary at all."  

During pre-vote discussion in the May full board meeting, O'Keefe again tried to explain that the business "wants to turn it into a full-blown dispensary." A member of the CB6 executive committee responded that Smiley Exotics promised that any in-person sales would be at a different address. 

To guard against the possibility that Smiley Exotics would do what it's now doing, the resolution that BALC passed and that was later passed by the full board notes, "no in-person retail sales will be allowed."

The resolution also proclaims, "the establishment’s proposed hours of operation are 9 AM to 11 PM, 7 days a week... will have blacked out windows, no signage... no cannabis licenses shall be granted for any premises within five hundred feet of school grounds as such term is defined in the education law... no [CB6] objection to the application so long as the Applicant adheres to all the representations made by the Representative to the committee." 

The resolution concludes, "if the application, however, contains a different method of operation than has been presented to CB6 as stated in this, including 'Hours of Operation', that differ in any way from those described above, then CB6 opposes the application based on such misrepresentation to Manhattan Community Board Six."

The Kips Bay store, now being built out, has public signage. Palmer says the shop is now planning to stay open beyond 11 p.m. The business is within 500 feet of Epiphany School's Early Childhood Center classroom building on East 29th Street for pre-K and other young students.

Although CB6 has not shown support for a full-service dispensary license for the location, its decisions can't cease the operation according to OCM. Said OCM executive Jason Salmon this year, "Community boards are advisory. They can’t stop the dispensary from coming into the community and opening up shop.”

The storefront building (above yesterday, the tan building on the far right) is in direct street view of the school building (the dark red-brick building on the far left).

In April, Palmer told BALC that Smiley Exotics chose the storefront address because "the location, the area, is very nice and quiet."

Last week, Palmer said the business is moving quickly before any additional lawsuits are filed. Smiley Exotics was one of a number of cannabis businesses that was under a recently lifted State Supreme Court injunction.

The lawsuit that led to the injunctions was filed by four disabled veterans who were denied a cannabis license application because OCM prioritized Gant and other applicants that were personally or had family members convicted of "marihuana-related offenses in New York State prior to March 31, 2021." The plaintiffs suggested to the court before they settled the case that the Kips Bay operation had multiple OCM license deficiencies.

KIPS BAY CANNABIS SHOWS MORE SIGNS OF DELAY

January 9, 2024 — Smiley Exotics, which could become the first legal recreational cannabis store to open in the community district that includes Kips Bay and Murray Hill, promised Manhattan East Community Association (MECA) on January 5 that it would delay that opening target date for at least a week as it addresses questions and comments submitted to MECA by community members.

As reported is Issue 60 of this newsletter, the storefront at 201 East 30th Street (above this morning) can move forward as a full-service dispensary with sole approval from the state's Office of Cannabis Management (OCM). The advancement is happening despite the local community board — Manhattan Community Board 6 — voting in clear opposition to in-person sales by Smiley Exotics at the address. Among various stipulations in the resolution is that no signage would be at the storefront.

One of the community's questions that Smiley Exotics business representative Heidy Palmer has addressed with MECA over the past week is the type of signage now at the business.

OCM regulations prohibit "advertising and marketing that is pleasing or appealing to persons under the age of twenty-one by using or including, among other things: Cartoons; bubble-type or other cartoon-like font; bright colors that are 'neon' in appearance." Palmer says she is following up with an individual she said is responsible for signage at the store.

In conflict with state recreational cannabis law passed in 2021, Smiley Exotics is within 500 feet of a school — a classroom building for pre-K and other young students.

REMARKS LEAD TO ARREST OF UNLICENSED OPERATOR

February 7, 2024 — State Assembly Member Harvey Epstein and Manhattan East Community Association president Kevin O'Keefe were reminded yesterday that public advocacy can deliver change. 

Less than two months ago during an Epstein-hosted press conference that focused on keeping cannabis sales away from children and schools, O'Keefe called out a particular school-zone shop for selling weed without a license (see this YouTube video from the press conference). The shop's address (below last year) is across the street from the entrance of The Epiphany School's middle school in Kips Bay.

Yesterday afternoon, New York City Sheriff Anthony Miranda through Epstein shared word that the operator of the unlicensed cannabis operation, Good Vibez Convenience, Inc., at 136 East 28th Street, has been "arrested and charged with Unlawful Sale of Cannabis."

“SIGNIFICANT CONCERNS” CLOUD KIPS BAY CANNABIS

April 3, 2024 — Last week, Kips Bay entered a new era in cannabis sales as the state's Office of Cannabis Management (OCM) allowed a recreational cannabis dispensary to open from 8 a.m. to 2 a.m. on a residential side street in a school zone within a half dozen blocks of St. Vartan Park.

Located on East 30th Street near Third Avenue, the controversial business named Smiley Exotics (in top photo under the dark awning) has been of concern to many in the community, including the community board that serves most of Midtown East, including the store address, but whose decisions OCM can ignore.

Not only did Manhattan Community Board 6 (CB6) stop short of voting for the walk-in business, but in a February letter to OCM's chief executive, it called out "significant concerns about the application, the applicant, and the process from the Cannabis Control Board." The Cannabis Control Board is OCM's approval and oversight body.

More than three years after recreational cannabis sales became legal in New York, the community is still without a CB6-supported store opening.

Such developments may explain why New York Governor Kathy Hochul has publicly proclaimed that the state's cannabis rollout is "a disaster," and why, the day before Smiley Exotics opened, the editorial board of the capital region's Times-Union railed, "New Yorkers needed competence and steadiness from OCM. Instead, we've been subjected to years of chaos... The agency is broken, and only a complete overhaul will fix it."

Nearby the East 30th Street store stands several storefronts that continue to sell unregulated cannabis — including the one in the bottom photo on the same block as Smiley Exotics that was lambasted by Manhattan East Community Association leadership at this press conference.

Smiley Exotics, which quietly opened on Good Friday, is within 500 feet of the East 29th Street Epiphany School classroom building for the Catholic school's youngest students, including for its pre-K classes.

State cannabis law dictates that cannabis businesses can't be within 500 feet of a school. Although OCM has led some parties to believe that a legal dispensary has to be both outside of 500 feet and on the "same road" as the school, more community leaders are calling out the beleaguered agency on the claim.

For example, Lower Manhattan's Community Board 1 in December passed a resolution that explains OCM's "'same road' standard lacks support within both the New York Cannabis Law and OCM’s own adopted Regulations." 

ILLEGAL CANNABIS SHOPS OPEN IN PAST WEEK IN KIPS BAY AND MURRAY HILL AS LINGERING ISSUES ADDRESSED 

August 25, 2024 — Unauthorized cannabis activity in the Murray Hill-Kips Bay area continues to stymie progress in the desire for safe and legal weed operations in the community.

Neighbors' ire is even being directed at East 30th Street's Smiley Exotics, the only cannabis operation in Kips Bay or Murray Hil to be licensed since recreational cannabis sales became legal in New York nearly three and a half years ago. The complaints include a Smiley's table with chairs located on the residential street outside the store's entrance (top left photo, in background and on left yesterday) and a nearby Smiley's bench where store clientele and others smoke pot. 

In response, the long-vexed Smiley's posted a sign at its East 30th Street storefront (top left photo on right yesterday) that reads, "Please be considerate of our neighbors, and do not smoke on our porch or outside the building,” located on a side street between two residential building entrances."

This weekend, the Smiley's street table in a former parking space was still being used for smoking. Smiley's, located within 500 feet of a pre-k school entrance, lists its business hours as 8 a.m.  to 2 a.m. daily.

Manhattan East Community Association (MECA) continues to hear from many parents on the issue. Yesterday, among the unlicensed cannabis shops doing business in the area are two where workers said storefront cannabis sales started less than a week ago: at 527 Third Avenue (right split-son image) within 750 feet of St. Vartan Park, and on Lexington Avenue between 23rd and 24th Streets (above under the Sweet Sour sign).


Two weeks ago in the neighborhood of the Lexington Avenue storefront, a press conference (first press conference photo above) to oppose illicit pot shops was held in front of an illegal East 23rd Street cannabis address. Weed sales had been happening inside, across the street from the public American Sign Language and English Secondary School.

At the gathering, elected officials — from left, State Senator Kristen Gonzalez, U.S. Congressman Jerry Nadler, State Assembly Member Harvey Epstein and City Council Member Carlina Rivera (at podium) — and Manhattan Community Board 6 Business Affairs and Licensing Committee chair Anton Mallner (third from right) expressed dissatisfaction with school-proximity cannabis sales. The unlicensed High Light business at the location is now shuttered as the business owner's due process plays out.

A delayed hearing reported on in issue 74 of this newsletter, about an unlicensed Kips Bay pot shop on Second Avenue near another school, took place this month. The business owner was found in violation of cannabis law. The place remains padlocked.

Concerns about unlicensed cannabis stores include unknown makeup of products being sold and deprivation of tax revenue and community reinvestment funds.

During a Lower East Side press confereince ten months ago that called for punishment of landlords of illegal cannabis stores, State Assembly Member Grace  Lee and MECA's Kevin O'Keefe (bottom photo at the press conference with State Senator Brian Kavanagh on right) shared a claim that a Lower East Side cannabis store had sold cocaine over the counter to a customer.

That concern has increased. On August 9 within five blocks of where the press conference was held, members of the New York City Sheriff’s Joint Compliance Task Force seized more than 13 pounds of cocaine from a cannabis shop during a routine inspection.

Bridget Brennan, New York City’s special narcotics prosecutor, said of the seizure as well as the arrest of the Brooklyn resident who was minding the store when the authorities arrived, "This case demonstrates the importance of collaborative efforts to address the proliferation of illegal cannabis shops. We will continue to investigate whether cannabis shops are concealing dangerous narcotic drugs to protect the health and safety of our communities."

SUPPORT GROWS TO SAVE 22-YEAR-OLD NEIGHBORHOOD STORE THAT'S BEING FORCED OUT IN POT TAKEOVER BID

January 16, 2025 — Will New York City's lone Hallmark store, a beloved establishment located on Second Avenue eight blocks north of St. Vartan Park, be forced out its lease at the end of this month because the landlord has been offered a much higher rent from a licensed upstate cannabis business?

Does Amreen's Hallmark (above and below in October), the Second Avenue store that's been run by a husband and wife for 22 years without any known issue, have any recourse?

The landlord is indicating yes to the first question and no to the second. Kuljot Bhasin, president of the Hallmark retail store alongside his wife Amrita, says he is holding out hope the couple can keep running the store but that their chances are slim.

In November, Manhattan Community Board 6 (CB6), whose district includes the store address, passed a resolution against the pot takeover attempt. The state may dismiss the resolution, as community boards are advisory-only government entities.

The CB6 resolution notes that the reasons for the opposition include the name of the business — Syracuse's FynnStoned Cannabis Company, "a clear reference to the well-known cartoon The Flintstones" — and the proposed Second Avenue location being within 500 feet of two kindergarten-to-12th-grade schools, "unsuitable for a cannabis dispensary." The CB6 resolution passed with 32 in favor and seven opposed.

On January 9 at the monthly meeting of the New York State Cannabis Control Board (NYCCB) in Manhattan, community members spoke out against the proposed FlynnStoned move-in. NYCCB has not given a green light to the business opening in the large Amreen's Hallmark space, but could.

 During in-person testimony, CB6 chair Sandra McKee (above left at the meeting) said that FlynnStoned business owner Mike Flynn, “has prevailed upon the landlord... to permanently terminate the lease of the current business held by a long-term business owner of color in our community and forcibly evict him to bring the shop to our district."

East Midtown residents Joan Boyle (above center) and Ann Seligman (right) also took to the mic to support Amreen's Hallmark. Boyle said that there are a number of empty storefronts in the community and that FlynnStoned's attempt to take over the active 820 Second Avenue storefront space renders FlynnStoned "a predatory business."

Declared Seligman, "We are not anti-cannabis, but there were many discrepancies in his application to the community board, including a statement that there was an executed lease when there was not. He’s now actually being sued for defamation by the current tenant for making false statements about the tenant's payment history.” In addition to a sign of thanks to the community that the Hallmark retail operation placed in a store window in September, Bhasin now has urgent signs regarding the store's January 31 removal by the landlord (signs below).

Manhattan East Community Association (MECA), which follows a mission to "find solutions and get positive results through grassroots engagement," is among those in the community who have been throwing their support behind the local gift and card store.

This week, MECA leadership asked Bhasin what action he would like toward saving the shop. Bhasin — above left on January 12 with MECA president Kevin O'Keefe on the second floor of the store — says advocates should email the landlord, against "the forced closing of our store by Philips International." 

 Bhasin continued, "We feel so blessed by the support we have gotten from our community ever since we became aware of Mike Flynn coercing Philips International to terminate our lease. As mentioned to you, I tried up until the end of December to plead with Philips International to reverse course and negotiate to extend our lease, but to no avail. All we got from them was, 'We stand by our decision.''" 

Bhasin added, "Whether we are able to reverse our landlord's decision to force us out or not, we, as residents of this community, do not want a cannabis megastore in our midst where there are multiple schools and churches, along with so many international missions and consulates." 

He said supporters should contact Philips International managing partner Sheila Chess at schess@pihc.com and/or Philips in-house broker Michael Robbins at mrobbins@pihc.com. 

BUILD-OUT STARTS IN TURTLE BAY HALLMARK SPACE FOR POT MEGASTORE; $4 MILLION DEFAMATION SUIT IN MIX

April 16, 2025 — Signs were clear yesterday (above and below) that the location of the last Hallmark store in New York City may be be replaced by a cannabis megastore at a two-level storefront at 820 Second Avenue in Turtle Bay. 

Build-out of a cannabis store with FlynnStoned Cannabis Company branding was visible following a work permit issued on March 7 by the city's Department of Buildings for store wiring that includes the addition of exterior cameras.

In January, after 22 years in business without any known issues, Ameen's Hallmark card and gift store was forced out of the space so that landlord Philips International could land a cannabis operation at the address.

As noted in issue 85 of this newsletter, the Hallmark store, co-owned by its president Kuljot Bhasin and his wife Amrita, stands within 500 feet of two kindergarten-to-12th-grade schools. The location is "unsuitable for a cannabis dispensary," according to a resolution passed by the community board whose district includes the address.

Bhasin, a Sikh American immigrant— above left on January 12 with MECA president Kevin O'Keefe on the second floor of the now-gone Hallmark store — told MECA in January, "Whether we are able to reverse our landlord's decision to force us out or not, we, as residents of this community, do not want a cannabis megastore in our midst where there are multiple schools and churches, along with so many international missions and consulates." 

Bhasin added that that supporters of the Hallmark store voice their concerns to Philips International managing partner Sheila Chess at schess@pihc.com and/or Philips in-house broker Michael Robbins at mrobbins@pihc.com. 

 
Yesterday, Bhasin emailed MECA, "We are feverishly looking for a new home in the neighborhood, but as of right now, we have not signed a new lease. Lots of vacant spaces in the neighborhood, but the ask by the landlords is so prohibitive that we have not been able to strike a deal."

Meanwhile, FlynnStoned has not been granted a cannabis license by the state for the space. A defamation lawsuit filed by Bhasin against FlynnStoned chief Mike Flynn seeks a minimum of $4 million in damages.

The suit was filed after Flynn stated at a public Manhattan Community Board 6 meeting last year that he had a signed lease for the space, that Bhasin had not paid rent for months and that Flynn was the only owner of the pot operation. Each of Flynn's claims is false.

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