The proposed transformation of the former Stewart’s Shop into a cannabis retailer took another step forward last week as the Village of New Paltz Planning Board agreed to compose a resolution for a special-use permit.
The potential cannabis dispensary is on a property located at 98 North Chestnut Street, formerly a Stewart’s Shop on a nearly one acre parcel of land. The existing 2,365 square-foot building was sold for $550,000 in September 2022, down from its initial asking price of $650,000. The application was submitted by New Paltz Bus Depot, LLC, with Radi Serdah its sole member cited in the Planning Board’s files. Unlike other similar applications in the village, this query is coming from a property owner on behalf of a prospective tenant.
At a meeting of the planning board held on Tuesday, October 3, Serdah explained that the lease is held by the New York Social Equity Cannabis Fund’s $150 million Conditional Adult-Use Retail Dispensary (CAURD). The fund, proposed by Governor Kathy Hochul last year and enacted by the legislature is a public-private limited partnership formed to enable social equity entrepreneurs to succeed in the state’s cannabis industry by supporting people disproportionately impacted by Rockefeller Drug Laws enacted in 1973 by then Governor Nelson Rockefeller. Potential dispensary owners must also meet New York State Office of Cannabis Management (OCM) licensing requirements.
“This is a social justice program that’s supposed to benefit the community, and it’s supposed to help individuals who’ve been affected by prior marijuana laws that have now been repealed,” said Serdah. “I deal with the state, (so) I don’t know who’s who they’re going to rent to or how they’ll run it. I just know that the state is my lessee.”
It was also revealed during the meeting that DTS Provident, the village’s traffic consultant, no longer has concerns about the potential for traffic snarls as a result of a cannabis dispensary at 98 North Chestnut, in part due to the ongoing Cannabis Growers Showcase, a months-long three-day series of events designed by High Falls-based organizers HV Ag Corporation and held behind the Village of New Paltz Department of Public Works at 25 Plattekill Avenue. Each three-day market would operate Thursday and Friday from 4-8:00 p.m., and on Saturdays from 1-8 p.m., weather permitting.
“The cannabis market that the village has been having for the last several weeks…has reduced some of that you know initial surge that might otherwise have taken place,” said planning board Chairman Zach Bialecki. “It’s my opinion that the traffic plan now is adequate.”
Planning Board member Terry Dolan wasn’t so sure.
“It just makes sense to me, given the fact that in the purest sense of the word this is a unique retail operation in our village and given the uniqueness of it, I think there will be the potential for traffic,” Dolan said, adding that DTS Provident’s change of opinion hasn’t changed his own.
“Well opinions are just that, ladies and gentlemen, they are opinions,” he said. “They are not facts. We don’t know what’s going to happen. So in my opinion we should plan to mitigate things that could happen given the uniqueness of this situation.”
Martha Jenkins, who lives nearby at 3 Taylor Street, said she and some of her neighbors were concerned about the dispensary’s close proximity to Moriello Park and Pool, particularly relating to access between the two properties.
“Would it be possible at least to maybe remove that little foot bridge behind the old Stewarts that has access to the pool parking lot? Jenkins said. “I think we’re concerned because our kids take that path multiple times especially going to the pool.”
The footbridge is located on village property and Bialecki said he would not favor its removal.
“I think that’s an important pedestrian connection that’s not going to be used mostly by people getting cannabis and then going to Moriello,” he said. “I think that would end up just hurting people that walk in this village.”
Village Mayor Tim Rogers said he was looking forward to a licensee being identified to allow the dispensary to open, in part because of its potential to generate local revenue.
“This is important for the village and town because in Ulster County there are totally different sales tax sharing arrangements for local governments and adult-use cannabis v. ordinary items,” said Rogers.
Rogers noted that there’s a 9 percent excise tax on cannabis retailers collected by New York State, with another 4 percent local tax on top of that. The local tax is then distributed to Ulster County by the State Comptroller, with the county entitled to retain 25 percent, with the remaining 75 percent split evenly between the town and village. For example, a purchase of $66.87 would include $8.67 in sales tax. $6 of the tax would go to the state, 67 cents to Ulster County, and $1 each to the town and village.
Rogers added that sales of other items aren’t as beneficial to New Paltz, even those purchased within the town and village. A $66.67 purchase of non-cannabis items yields $5.34 in sales tax. Of that, $2.67 goes to the state, $2.28 to the county, 31 cents to the City of Kingston, 3/10th of a penny goes to the Town of New Paltz, 2/10th of a penny to the Village of New Paltz, and the remaining 7.5 cents would be shared by 21 other towns and villages in the county.
“There is also a separate THC tax,” Rogers said. “There are different tax rates imposed on distributors based on the weight of THC in the product, as well as the product form (e.g. edibles, concentrates, flowers). The THC tax accrues when cannabis is sold from a distributor to a retailer and is paid to NYS by the distributor.”
State officials have yet to announce a recipient for a license to operate at 98 North Chestnut, but Rogers said he hopes it happens soon.
We are looking forward to OCM and DASNY (Dormitory Authority of the State of New York) identifying a licensee so a dispensary may open ASAP,” Rogers said.
Dispensing feedback
New Paltz town council members have been asked for feedback on some potential cannabis locations in the community. Seeking the opinion of local elected leaders is part of the byzantine process in New York, but it’s possible that town leaders were asked to weigh in on more prospects than were technically necessary.
First up was the Farmer’s Choice dispensary, which has already been given local planning approval to be opened at 1 Old Route 299. This location is far from the walkable center of New Paltz, and that appears to be just what council members want to see. State rules call for dispensaries to be built no closer than 250 feet — along the same road — from any house of worship, and 500 feet from a “community center,” which includes schools, playgrounds, day-care centers and libraries.
Alex Baer also expressed some satisfaction that Farmer’s Choice won’t be anywhere near a recovery or rehabilitation site. Julie Seyfert-Lillis called out how unlikely it would be for this a dispensary at this location to create traffic congestion; while no one at the table mentioned it specifically, it’s also clear that vehicular traffic will be the easiest way for most customers to get there.
The other location discussed is 56 Main Street; the fact that this is within the village is why town council members weren’t entirely sure they didn’t get the request by mistake. While every square inch of New Paltz’s village is part of the town, council members wondered if they had any role when it comes to dispensaries inside the village line. In the end, the totality of their comments was a request to verify that this site is in fact 500 feet or more down the road from Elting Memorial Library, another community facility.
— Terence P Ward
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