In May, Gossips published a post that asked the question "How Much Weed Do We Need?" The post reported that the Cannabis Control Board had awarded an adult-use retail dispensary license to Blaze NY LLC against the recommendation of the NYS Office of Cannabis Management. Blaze NY LLC, whose cannabis dispensary will be located at 519 Columbia Street, is a partnership of Bill Hughes, a former Fourth Ward supervisor and before that a Fourth Ward alderman, and Remigio Arteaga. The question was relevant because Hudson already had two cannabis dispensaries, both situated not far from the location of Blaze NY: Riverbend at 531 Warren Street, just a block away, and Gotham at 260 Warren Street, the corner of Warren and Third.
They serve a very different group than what we're looking to try to hire (from) and serve. Obviously, whatever customer comes in the door, we will welcome them, but we're committed to hiring from areas that were really harmed by the war on drugs. I grew up in Hudson, so I don't need anyone to tell me where those areas are. . . . I know what families were affected. I know what doors were kicked in.
According to the article, a member of the Cannabis Control Board asserts that Mayor Kamal Johnson sent a letter in support of the waiver, in which he stated, "This is the type of licensee and business that corresponds to what [state legalization] purports to support, that the [state legalization] has defined that we wanted inclusivity, we wanted opportunity, we want access, and that's exactly what the letter of support means in for, and that resonated with me in this moment." According to the lawsuit, there is no evidence of Johnson's letter on the record.
On a different topic but still related to weed, the City's revenue from the tax on adult-use cannabis in 2025 is less than what was anticipated. For 2025, the Board of Estimate and Apportionment projected the revenue from cannabis tax would be $235,000. At the Common Council's informal meeting on Tuesday, city treasurer Heather Campbell reported that, with only two months left in 2025, the City's revenue from cannabis tax, year to date, is only $90,953--significantly less than half of what was anticipated.
At the Housing Trust Fund Board meeting on Wednesday, Council president Tom DePietro lamented that the 4 percent cannabis tax was originally meant to go entirely to the municipality in which dispensaries are located, but that has been changed. Now 1 percent goes to the county, and just 3 percent goes to the municipality.
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This whole saga is a neat little case study in how not to run a city.
ReplyDeleteFirst, how many businesses in Hudson have ever enjoyed the privilege of a personal push from Mayor Kamal to state authorities.
The list is unlikely to be long.
Every other shopkeeper is entitled to wonder who needs to be in the inner circle to get that kind of help.
Second, how many people watching this will quietly absorb the real lesson:
When government agencies start deciding who wins and who loses, everyone ends up poorer.
The City of Hudson now gets less revenue than it expected, and all three businesses involved are worse off.
A law sold as helping group A has, in practice, rewarded group B.
This is why government should be smaller, simpler, and further out of the way. Set clear rules, apply them to everyone, then let people compete.
Mayors are supposed to serve all residents equally, not behave like a bought mayor doing favours for friends.
Imagine if every coffee shop needed state permission to open. Give it a few years and Hudson would have the full Soviet experience: long lines, bad coffee, and one sad, government approved latte for for all the progressives in our City.
Good luck finding almond, oat, or soy milk when Big Dairy captures the regulations...
this is nothing compared to the Berkshires area, they are everywhere.
ReplyDeleteDidn’t Hughes go before the Council a few years ago, before any of the other dispensaries opened, to ask for the city’s endorsement for their licence? Even promising to give even more share of the profits, above taxes? I recall the Council being confused since licensing is a state matter.
ReplyDeleteAlso, under state law, a municipally that chose not to opt-out all together cannot cap the number of dispensaries, but can still regulate through zoning, time of business, planning board type restrictions.
Nevertheless, as I predicted during the budget discussions last year, they were overly optimistic about the tax potential. It’s a low margin commodity that will eventually race to the bottom, like every other state that has legalized.
You are right, Union Jack. That was two years ago: https://gossipsofrivertown.blogspot.com/2023/11/cannabis-on-hudson.html
DeleteThe resolution the Council passed, which mentions "reinvesting financially in the community," can be found here: https://cms3.revize.com/revize/hudsonnynew/Common%20Council/Agendas%20Meeting%20Documents/2023/October/Resolution%20in%20Support%20of%20Blaze%20NY%20LLC%20dispensary%20license%2010-17-23.pdf?t=202310161558410&t=202310161558410
Government planning often epitomizes the generation of negative externalities. But making up numbers from whole cloth is another thing entirely. Let’s hope new administration of both the executive and legislative branches yields an adult form of government.
ReplyDeleteAs for the pot fight — it’s ridiculous to think this small city needs a third dope shop. One of them will likely lose.