As the calendar turns to January, it’s a natural time to share reflections and set intentions for the year ahead. After six months of running the first legal cannabis dispensary in northern Westchester, we’ve gathered some valuable insights.
Our mission has always been to provide high-quality cannabis products in a safe, welcoming environment. Since opening, we’ve seen overwhelming support from the residents of Corlandt Manor, Peekskill and surrounding communities. We’ve hired local employees. We also have numerous customer testimonials about how our store has positively impacted their lives, from offering safe access to cannabis to creating a trusted community space. We are committed to contributing positively to our community.
We have recognized that the emerging cannabis retail industry is often viewed as the “Wild, Wild West.” Situated near the border of Peekskill, we’ve kept a close eye on developments within that community.
We do have concerns about the potential for more dispensaries opening nearby, which could create an oversaturated market and diminish the level of service that we currently provide. What we didn’t anticipate was the number of dispensaries permitted to open in Peekskill. Unlike Cortlandt, where zoning regulations require dispensaries to be at least 1,500 feet away from parks, places of worship, and other dispensaries, Peekskill has more relaxed rules, with a distance restriction of only 500 feet.
Editor’s note: Peekskill enforces a 1,000 foot distance between adult-use cannabis retail dispensaries and a 500 foot distance from parks or youth facilities, schools and places of worship.
We appreciate that Cortlandt’s supervisor, Dr. Richard Becker, and his team recognize the economic realities of the emerging retail cannabis industry and took a pragmatic approach to ensuring sustainability. Understanding that Cortlandt’s zoning regulations at this time would make us the only legal cannabis dispensary permitted in town gave us the confidence to envision a sustainable future for our business.
When we opened in July, we were the only dispensary serving both Peekskill and Cortlandt, with 77% of our customers coming from those areas. However, six weeks later, when Valley Greens, Peekskill’s first legal cannabis dispensary, opened, we observed a decline, with only 40% of our customers coming from Peekskill and Cortlandt. This shift highlighted that customers tend to shop at the dispensary closest to them. This trend raised concerns, underscoring the impact of market oversaturation.
Currently, Peekskill has two operating dispensaries, with licenses approved for two more in the pipeline. In a city of 26,000 people, it’s difficult to see how all of them can remain sustainable. By comparison, White Plains, with a population of 61,000, has only recently approved its fourth dispensary.
Starting a business in an emerging market comes with its challenges, and we were fully aware of this when we applied for a license in Cortlandt. Without federal regulation of cannabis sales, businesses face higher costs for supplies and elevated taxes – 4% on sales mandated by the state and 5% in Peekskill. These hurdles are part of the landscape of being pioneers in a nascent industry.
We recognize Peekskill’s ambition to be a trailblazer in legal cannabis dispensaries, but being a pioneer requires careful foresight and diligence to anticipate potential challenges. Unfortunately, in a “Wild, Wild West” scenario, unchecked unpredictability can lead to outcomes where everyone loses.
With the success we’ve built, we believe that maintaining the current number of dispensaries within Cortlandt/Peekskill would allow us to continue offering high-quality service, while also protecting the local economy. We work closely with the town of Cortlandt to ensure that we can grow responsibly, support our local community, and provide the best possible service to our guests. We look forward to any opportunities for collaboration with the Peekskill community and other local businesses.
