Introduction: A Catastrophic Wake-Up Call
In late July 2025, New York’s Office of Cannabis Management revealed it had been measuring the mandatory 500‑foot distance from a school’s door—not the property line.
This miscalculation has put at least 152 cannabis dispensaries—105 licensed (including ~60 operational) and 47 pending applicants—in legal jeopardy.
The Fallout: Owners Shocked, Communities Endangered
Upstate to City, from the Bronx to Brooklyn, shop owners are blindsided. Many invested hundreds of thousands—or even over a million dollars—based on flawed assurances. In Manhattan, heavyweights like Housing Works Cannabis Co., Etain’s Manhattan location, ConBud, and The Cannabis Place are on the brink.
Real Stories of Real Pain
Osbert Orduña of The Cannabis Place warned, “We’d have to shut down and put 30 people out of work.” Coss Marte of ConBud, locked into a $40,000/month lease, fretted, “I was heading toward generational wealth and now I’m heading toward generational debt.”
At Housing Works, the state’s first legal adult‑use dispensary, a mere 32‑foot miscalculation now threatens its existence—and the irony burns harsher given a liquor store sits even closer to the school.
Coss Marte of ConBud, locked into a $40,000/month lease, fretted, “I was heading toward generational wealth and now I’m heading toward generational debt.”
Acting Executive Director Felicia A. B. Reid sent letters on August 6 urging affected licensees to *“not close, move, or alter current operations”— while negotiations for a legislative fix are underway. The state set aside a $15 million Applicant Relief Fund, offering up to $250,000 per applicant—but only applicants qualify; licensed, operational dispensaries are left in limbo.
A legislative fix is promised—but not before January 2026, leaving critical license renewals in jeopardy.
Why This Is a Minimum of Bureaucratic Incompetence…
The original rule was reviewed and approved under Governor Hochul in June 2023, going through public comment and official channels—yet OCM still botched compliance.
As one editorial seethed: “This mess is purely down to official incompetence.”
Broad Scale of Impact
The OCM’s correction affects 105 licensed dispensaries (around 60 operating) and 47 pending applicants, totaling 152 impacted businesses . In New York City alone: 88 licensed stores and 39 pending applicants.
Devastating Aftershock for Entrepreneurs:
Osbert Orduna, owner of The Cannabis Place: “We’d have to shut down and put 30 people out of work.”
Aaron Alexis, a licensee: “I’m right next to alcohol stores… but I’m too close? … It just feels like we’re being attacked from every angle.”
Denis Ozkurt of Hush: “It’s a big hit for us right now… ‘we made a mistake so you’re out of luck!’”
Kaelan Castetter, compliance expert: “They’re being told sorry, here’s a check for $250,000? It’s heartbreaking.”
Industry and Legal Response
Danny Taylor, owner of The People’s Joint: Facing repayment on a $1.5 million loan, yet the state chose and leased the location on his behalf.
Curaleaf CEO Boris Jordan: Accused the OCM of “blatantly and knowingly disregarded the MRTA’s proximity provisions… Dispensaries and their owners should not suffer due to the intentional disregard for the law by the OCM and the administration.”
Editorial Voice (Times Union): Declared the situation “purely down to official incompetence,” demanding urgent legislative action or a special session.
Dispensaries Named as Affected:
The People’s Joint — Schenectady Housing Works Cannabis Dispensary — Manhattan (East Village) ConBud LLC — Manhattan Gotham Buds LLC — Harlem (Bronx/Harlem area) Royal Leaf NY LLC (Statis Cannabis) — Bronx Budega NYC — Brooklyn/Queens region Smokey Jungle LLC — (Rotterdam / NYC area) HF Dispensary LLC — Manhattan (application withdrawn) Cannabis Emporium Corp. (dba Hush) — Bronx
How Dispensaries Can Fight Back Against the OCM’s School-Proximity Correction
The OCM didn’t just change the rules — it flipped the script after businesses had already invested millions. That’s not just bad policy. It’s an open invitation to be sued.
Push for a Legislative Fix — Fast
Grandfather Clause: Demand a bill allowing already-approved dispensaries to stay open.
Special Session Now: Force lawmakers back before January 2026 to prevent license renewals from being derailed.
Strength in Numbers: Organize all 152 impacted businesses, join forces with trade groups and unions, and flood media with the message — this is about small business survival and government accountability.
Legal Action
Article 78 Proceeding: Argue OCM’s abrupt reinterpretation is arbitrary and capricious, contradicts its own guidance, and is retroactive without due process.
Temporary Restraining Order: Stop enforcement while the case moves forward. Estoppel: You relied on OCM’s rules when signing leases and building stores.
Regulatory Taking: If they force closure or relocation, it’s effectively seizing your property without compensation.
Breach of Contract: For state-leased locations like The People’s Joint, this is more than policy failure — it’s a breach.
Public & Media Pressure
Tell the Stories: Put faces to the fight — Coss Marte (ConBud), Osbert Orduña (The Cannabis Place), Danny Taylor (The People’s Joint).
Highlight the Double Standard: Liquor stores stay. Licensed cannabis gets the boot.
Own the Narrative: Push hashtags like #SaveNYDispensaries and #OCMMistake until lawmakers can’t ignore it.
Political Leverage
Hit lawmakers in impacted districts. Target the chairs of the Assembly Economic Development and Senate Cannabis Committees.
Put Governor Hochul on record — she signed off on the original rules.
Warn of tax revenue losses and how this crushes the state’s equity goals.
Federal Pressure
Contact SBA advocates and NY congressional reps. Even with federal prohibition, the economic harm to state-approved small businesses is political dynamite.
Bottom line: The OCM created this mess. Dispensaries don’t just have the right to fight back — they have the ammunition to win.
Breakdown
OCM miscalculated 500-ft school buffer — measured from school entrance, not property line. Correct MeasurementFrom dispensary entrance to nearest school property line.
Total Impacted ~152 dispensaries and applicants. Licensed Stores Affected ~105 (about 60 currently operating).
Pending Applicants ~47.
NYC Concentration ~89 locations in the five boroughs.
Examples of Affected Dispensaries Housing Works Cannabis Co., ConBud, Etain Manhattan, The Cannabis Place.
Relief Offered $15M fund; up to $250K per applicant (licensed operational stores not included).
Legislative Fix Timeline Not expected before Jan 2026.