With no marijuana playbook for lighting up legally, towns like Saugerties, Rhinebeck and others forge their own paths into an unknown, burgeoning industry
When New York State legalized marijuana last spring, discussions kicked into high gear as to which towns, villages and cities would cater to cannabis buyers and businesses. Who’s opting in? Who’s opting out? And what will this massive burgeoning industry look like at a local level?
“New York State made this sweeping change that put it to the local municipalities to decide whether they want to opt in or opt out, and frankly, the mayor and the trustees on the village board were like, ‘We’re not experts in marijuana,’” said Village of Rhinebeck trustee Vanessa Bertozzi.
To opt in or opt out isn’t such a simple question
Opt in: The first approach is passive. If a locality decides not to opt out by the year-end deadline — meaning they are, indeed, open for business on marijuana — they can do nothing now and effectively agree to host cannabis dispensaries and consumption businesses. Currently, these municipalities cannot change their minds and decide to opt out on marijuana at a future date. Once a town opts in, it’s in.
Opt out: The other option is for a locality to actively opt out before Dec. 31. In this case, a town or village must pass a local opt-out resolution by the year-end deadline to prohibit a marijuana dispensary or venue. This decision does not need to be permanent, however, meaning a locality that originally opted out but changes its mind later can repeal its local resolution and opt in on cannabis in the future.
Hybrid: Towns may also split their approach: opting in on, say, dispensaries, but passing a resolution to ban cannabis cafes or smoking lounges.
The villages of Rhinebeck, Cold Spring and Tuxedo all held passive referendums for voters, and all villages proceeded with opting out.
Metzger said she’s been approached for guidance by mayors and town board members throughout the decision-making process, fielding questions regarding potential downsides or penalties to opting out, understanding the legal authority a local government holds with marijuana businesses, how taxes and revenue will work, and how the state revenue will be spent.
With all the possible variables and unknowns, no two municipalities in the region are tackling the decision in the same exact way.
The measured approach: Saugerties introduces zoning for retail sales
In Saugerties, public officials called upon educational guest speakers to help share information and reach its decision. The first public information session, held on Nov. 17, included a panel of cannabis experts including attorney David Holland of the New York City Cannabis Foundation; Saugerties Mayor William Murphy; cannabis educator Martha McDermott, MSW; and Ruben Lindo of Herbn Couture LLC, a luxury lifestyle cannabis brand. Saugerties Police Chief Joseph Sinagra and Town Supervisor Fred Costello were also in attendance.
“It was a very good resource for us as we move forward to plan what it might look like here,” said Costello.
The first informational meeting drew around 50 community members, with interest from both sides of the issue, according to Costello. Some community members also expressed interest in learning about cultivation and the opportunity to grow. A second session is scheduled for this week, on Dec. 13, also with guest speakers.
Instead of putting forth a resolution on whether to opt out on cannabis, Saugerties instead is exploring passively opting in while implementing zoning laws to limit where potential marijuana establishments could operate locally. This would place retail and on-site consumption businesses away from schools, churches and residential areas, for example.
Sinagra, who visited Colorado for work purposes in October to see what their cannabis industry looks like there, said they have a similar set-up.
“It’s away from the residential part of society,” said Sinagra of dispensaries there.
“The other part I liked about it is you knew the location of the retail outlet, but there was no big advertisement that says ‘Hey, this is a retail outlet for purchasing cannabis.’”
However, resident Cipriana Costello, Vice Chair of the Ulster County Libertarian Party who is in favor of the cannabis industry, said she doesn’t think there should be any added restrictions for new establishments at the local level.
Sinagra, who is a member of both the New York City and Hudson Valley Cannabis Industry Association as a liaison with New York State Association of Chiefs of Police, is not opposed to having retail cannabis dispensaries or on-site consumption lounges in Saugerties because if people aren’t doing it there, they could go to another town, he says.
“We have concerns, but it is legalized, and we accept that,” said Sinagra.
“We want to work with the industry in crafting legislation that is going to make our community safe.”
Sinagra said his concern, similar to that of others in law enforcement, is that there is no instrument to measure roadside how much cannabis someone has consumed, and what those safe levels are, the way a Breathalyzer can test drivers on the spot for legally defined alcohol intoxication.
“People use marijuana now, and there are a number of folks who are going to neighboring states to get marijuana supply and bring it back here,” said Costello.
“Many concerns are just as relevant today as they will be Jan. 1 when these things kick off.”
Sinagra agrees and said he doesn’t see the number of people consuming will change that much. He is in favor of taking small steps when approaching the new sector.
Bill Murphy, Mayor of the Village of Saugerties, declined requests for comment.
The wait-and-see approach: Rhinebeck opts out
On the other side of the river in Dutchess County, the Village of Rhinebeck engaged residents in the process via public hearings and a survey, which received 700 responses and 250 comments. Residents voted on Nov. 16 in a passive referendum to opt out of both on-site consumption and marijuana dispensaries. The Town of Rhinebeck had already opted out of both by the time of the vote and held no referendum.
“Our understanding is that there is a great deal of learning to come and there will probably be a pretty significant body of regulations coming down the turnpike,” said Chauncy Walker, town board member.
“We felt it was better to keep our options open and wait until we have a better understanding that anyone can now have.”
By passing a measure to opt out now, Rhinebeck essentially leaves the door open to repealing the local law and opting in on cannabis at a later date if officials and residents decide to do so.
The green light approach: Kingston goes all in
Meanwhile, the City of Kingston hasn’t held any public hearings and at this time is passively opting in by not passing a local measure against marijuana.
Reynolds Scott-Childress, majority leader of the Kingston Common Council, said that from what he’s heard, most residents are excited about another economic opportunity in the city.
“I’d be quite surprised if a majority of people in Kingston were against [cannabis],” he said, adding that instead of holding hearings on marijuana, the council has “been taken up with a lot of other really big issues,” alluding to potential city rezoning, budget season, and good cause eviction discussions.
The county perspective on cannabis
Ulster County has signaled pro-cannabis support with big announcements over the summer, including a proposed major new marijuana facility in Wawarsing at the former Schrade knife factory that shut its doors 17 years ago. Cresco Labs could begin construction on this new cannabis cultivation and distribution center as early as spring 2022.
The county is more focused at the macro level on growing and cultivating marijuana, and using the burgeoning industry as a way to attract more jobs to the area.
“The towns that opt in now are going to be on the leading edge of this and are going to realize that there is a lot of upsides,” said Ryan.
Ryan said the county has been working with town leaders who needed more guidance throughout the process to inform them further about the industry. He said the two main points of discussion were help with interpreting the new law, and the county sheriff’s plans to uphold public safety as the new dawn on cannabis arrives.
In New York, there will be a 13-percent tax on cannabis sales with a 9-percent excise tax that will go to the state. The county and cities, towns and villages will share the remaining 4 percent at 25 and 75 percent, respectively.
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