This transcript has been auto-generated
1
00:00:09,200 --> 00:00:13,599
welcome I'm your host Hilary Bricken and
2
00:00:11,480 --> 00:00:15,719
this is the Cannabis law Now podcast
3
00:00:13,599 --> 00:00:17,480
where we regularly discuss issues
4
00:00:15,719 --> 00:00:19,520
related to the Cannabis industry
5
00:00:17,480 --> 00:00:22,160
including investment day-to-day
6
00:00:19,520 --> 00:00:24,199
operational issues and potential reform
7
00:00:22,160 --> 00:00:26,080
on the horizon that will impact all
8
00:00:24,199 --> 00:00:29,480
cannabis businesses and investors in the
9
00:00:26,080 --> 00:00:29,480
United States
10
00:00:30,119 --> 00:00:35,000
hey everybody Welcome to today's episode
11
00:00:32,480 --> 00:00:36,960
of the Cannabis law Now podcast and
12
00:00:35,000 --> 00:00:39,239
today I think I may actually have my
13
00:00:36,960 --> 00:00:40,760
first guest at of the great state of New
14
00:00:39,239 --> 00:00:43,079
York here to talk about the New York
15
00:00:40,760 --> 00:00:45,680
cannabis scene how it's been where it's
16
00:00:43,079 --> 00:00:47,520
going is Greg woring who is the vice
17
00:00:45,680 --> 00:00:50,440
president of business development of
18
00:00:47,520 --> 00:00:52,600
Housing Works in Brooklyn New York Greg
19
00:00:50,440 --> 00:00:54,719
how are you welcome to the Pod hello
20
00:00:52,600 --> 00:00:57,359
Hillary I'm doing excellent thanks for
21
00:00:54,719 --> 00:00:59,399
having me here good deal okay so why
22
00:00:57,359 --> 00:01:01,840
don't you tell our listeners a little
23
00:00:59,399 --> 00:01:04,320
bit about myself because I very candidly
24
00:01:01,840 --> 00:01:06,720
like I said I haven't had on a New York
25
00:01:04,320 --> 00:01:08,479
cannabis operator yet let alone one Lake
26
00:01:06,720 --> 00:01:10,600
Housing Works give us a little bit about
27
00:01:08,479 --> 00:01:12,600
your background and what you're doing
28
00:01:10,600 --> 00:01:14,799
right just to make it stranger uh
29
00:01:12,600 --> 00:01:17,200
cannabis is not at all my background but
30
00:01:14,799 --> 00:01:19,200
it has become my background um and I
31
00:01:17,200 --> 00:01:21,000
guess we'll explain that soon enough
32
00:01:19,200 --> 00:01:23,880
I've been with housing works for close
33
00:01:21,000 --> 00:01:26,560
to a decade now I started as a
34
00:01:23,880 --> 00:01:30,520
Consulting grant writer for them uh back
35
00:01:26,560 --> 00:01:32,840
in 2013 and I came on full-time in 2016
36
00:01:30,520 --> 00:01:35,119
working on the health care side of what
37
00:01:32,840 --> 00:01:38,040
they do um house Housing Works is a
38
00:01:35,119 --> 00:01:39,600
large nonprofit organization and well
39
00:01:38,040 --> 00:01:41,720
we'll get into everything that they do
40
00:01:39,600 --> 00:01:44,200
but I have a special projects role and I
41
00:01:41,720 --> 00:01:47,280
have a Communications and project
42
00:01:44,200 --> 00:01:49,479
management background and when New York
43
00:01:47,280 --> 00:01:53,040
State rolled out their recreational
44
00:01:49,479 --> 00:01:55,520
Cannabis program that tapped into uh
45
00:01:53,040 --> 00:01:58,039
what I do best which is organize the
46
00:01:55,520 --> 00:02:00,360
team around brand new initiative try to
47
00:01:58,039 --> 00:02:02,240
give it some shape some structure and
48
00:02:00,360 --> 00:02:05,039
help get things off the ground until
49
00:02:02,240 --> 00:02:06,759
it's running smoothly and uh and i' had
50
00:02:05,039 --> 00:02:09,440
the pleasure of writing the initial
51
00:02:06,759 --> 00:02:11,440
licensing application so in a way it's
52
00:02:09,440 --> 00:02:13,800
sort of like a grant but um a whole lot
53
00:02:11,440 --> 00:02:15,440
more understood understood Okay so we've
54
00:02:13,800 --> 00:02:18,040
got Housing Works and then we have
55
00:02:15,440 --> 00:02:20,200
Housing Works cannabis Co what is
56
00:02:18,040 --> 00:02:22,200
Housing Works can actually let's take a
57
00:02:20,200 --> 00:02:23,720
step back what is housing works great
58
00:02:22,200 --> 00:02:26,480
question uh Housing Works is a
59
00:02:23,720 --> 00:02:28,840
35-year-old nonprofit organization they
60
00:02:26,480 --> 00:02:32,480
were born out of the AIDS crisis in New
61
00:02:28,840 --> 00:02:34,560
York City a breakout of act up it was
62
00:02:32,480 --> 00:02:36,879
the housing Committee of act up which
63
00:02:34,560 --> 00:02:39,959
was the group of activists that were
64
00:02:36,879 --> 00:02:42,280
fighting for their lives in the late 80s
65
00:02:39,959 --> 00:02:44,680
in how the AIDS crisis was being managed
66
00:02:42,280 --> 00:02:46,480
by the government and so many other
67
00:02:44,680 --> 00:02:49,200
folks but it became its own social
68
00:02:46,480 --> 00:02:51,800
service provider it was uh it had the
69
00:02:49,200 --> 00:02:53,400
initial mission of providing housing and
70
00:02:51,800 --> 00:02:55,760
health care to people who were living
71
00:02:53,400 --> 00:02:59,200
with HIV and also experiencing
72
00:02:55,760 --> 00:03:01,319
homelessness fast forward 35 years where
73
00:02:59,200 --> 00:03:04,599
one of New York's City's largest social
74
00:03:01,319 --> 00:03:06,519
service providers we serve about 20,000
75
00:03:04,599 --> 00:03:09,680
individuals per year you know through
76
00:03:06,519 --> 00:03:12,239
our health clinics we have some 600 plus
77
00:03:09,680 --> 00:03:14,200
units of housing we specialize in
78
00:03:12,239 --> 00:03:17,239
working with people who face all sorts
79
00:03:14,200 --> 00:03:19,280
of issues mental health issues substance
80
00:03:17,239 --> 00:03:21,239
use folks who are stigmatized or
81
00:03:19,280 --> 00:03:23,920
marginalized because of their gender
82
00:03:21,239 --> 00:03:25,040
identity or sexual orientation folks who
83
00:03:23,920 --> 00:03:27,120
have come out of
84
00:03:25,040 --> 00:03:29,360
incarceration uh you name it
85
00:03:27,120 --> 00:03:31,319
incidentally Housing Works is also a
86
00:03:29,360 --> 00:03:34,599
pioneer in the concept of social
87
00:03:31,319 --> 00:03:38,040
Enterprise so in the early 90s Housing
88
00:03:34,599 --> 00:03:41,239
Works began a series of thrift shops and
89
00:03:38,040 --> 00:03:43,599
also opens up a bookstore Cafe which are
90
00:03:41,239 --> 00:03:45,439
um probably the most visible piece of
91
00:03:43,599 --> 00:03:46,720
Housing Works um not everybody knows
92
00:03:45,439 --> 00:03:48,920
about the healthcare and the case
93
00:03:46,720 --> 00:03:50,760
management but a lot of New Yorkers have
94
00:03:48,920 --> 00:03:53,120
seen one of the 10 Housing Works thrift
95
00:03:50,760 --> 00:03:54,799
shops around the city and you know they
96
00:03:53,120 --> 00:03:57,239
see it they know it's got something to
97
00:03:54,799 --> 00:03:59,079
do with HIV and and other good stuff and
98
00:03:57,239 --> 00:04:01,239
that's usually People's First exposure
99
00:03:59,079 --> 00:04:04,040
to housing works and so to the social
100
00:04:01,239 --> 00:04:05,920
Enterprise roster we now have a cannabis
101
00:04:04,040 --> 00:04:08,480
dispensary well and I guess that's a
102
00:04:05,920 --> 00:04:09,959
nice segue you've got Housing Works kind
103
00:04:08,480 --> 00:04:12,079
of the bigger well-known
104
00:04:09,959 --> 00:04:14,280
institutionalized nonprofit social
105
00:04:12,079 --> 00:04:16,079
service provider got the healthcare
106
00:04:14,280 --> 00:04:19,560
aspect which is super fascinating and
107
00:04:16,079 --> 00:04:22,880
wonderful what is Housing Works cannabis
108
00:04:19,560 --> 00:04:24,840
Co so we are the first licensed
109
00:04:22,880 --> 00:04:27,160
recreational cannabis dispensary in New
110
00:04:24,840 --> 00:04:29,199
York state we got the first license and
111
00:04:27,160 --> 00:04:31,160
we opened the first dispensary and that
112
00:04:29,199 --> 00:04:33,320
was a just about two years ago at the
113
00:04:31,160 --> 00:04:36,000
very end of December
114
00:04:33,320 --> 00:04:38,880
2022 and I mentioned it is a social
115
00:04:36,000 --> 00:04:41,560
Enterprise of Housing Works which means
116
00:04:38,880 --> 00:04:44,160
all the profit all the proceeds go right
117
00:04:41,560 --> 00:04:46,880
back into that core agency and the
118
00:04:44,160 --> 00:04:49,240
mission and the services so it's filling
119
00:04:46,880 --> 00:04:52,199
the gaps in the budget for all these
120
00:04:49,240 --> 00:04:55,400
services that we provide Outreach to
121
00:04:52,199 --> 00:04:57,919
homeless youth case management harm
122
00:04:55,400 --> 00:05:01,600
reduction and syringe exchange you name
123
00:04:57,919 --> 00:05:02,800
it um you know Social Services is
124
00:05:01,600 --> 00:05:05,800
infamously
125
00:05:02,800 --> 00:05:08,960
underfunded and being able to diversify
126
00:05:05,800 --> 00:05:11,039
your sources of funding it is is just so
127
00:05:08,960 --> 00:05:13,160
important in a nonprofit World for for
128
00:05:11,039 --> 00:05:14,960
stability for security and to make sure
129
00:05:13,160 --> 00:05:16,960
you can do everything that you want to
130
00:05:14,960 --> 00:05:19,280
do to help people and it sounds like
131
00:05:16,960 --> 00:05:21,360
Housing Works generally is no stranger
132
00:05:19,280 --> 00:05:24,000
to controversy and maybe getting into
133
00:05:21,360 --> 00:05:26,120
these areas that I think would scare the
134
00:05:24,000 --> 00:05:27,240
average person because they're emergent
135
00:05:26,120 --> 00:05:30,479
they're
136
00:05:27,240 --> 00:05:32,639
volatile was it really hard to become
137
00:05:30,479 --> 00:05:35,120
the first licensed dispensary in New
138
00:05:32,639 --> 00:05:37,039
York under the adult use program yeah we
139
00:05:35,120 --> 00:05:39,600
we do have a reputation for doing things
140
00:05:37,039 --> 00:05:42,360
a little bit uh risky or offbeat or even
141
00:05:39,600 --> 00:05:45,000
crazy sounding and that goes back to the
142
00:05:42,360 --> 00:05:48,080
activist history you know just a quick
143
00:05:45,000 --> 00:05:50,199
aside in the 90s the Julia ma the
144
00:05:48,080 --> 00:05:53,440
Giuliani Administration wanted to shut
145
00:05:50,199 --> 00:05:55,440
down Housing Works because we were um we
146
00:05:53,440 --> 00:05:57,919
were protesting and we did it through
147
00:05:55,440 --> 00:05:59,680
Civil Disobedience and other methods and
148
00:05:57,919 --> 00:06:01,919
and ultimately that ended with a loss
149
00:05:59,680 --> 00:06:03,560
suit that housing works one but that was
150
00:06:01,919 --> 00:06:04,759
around the time of the thrift shops and
151
00:06:03,560 --> 00:06:06,160
the bookstore and it's like all right
152
00:06:04,759 --> 00:06:07,840
we're going to do these things because
153
00:06:06,160 --> 00:06:09,720
we're going to you know speak truth to
154
00:06:07,840 --> 00:06:11,639
power but we're also going to make sure
155
00:06:09,720 --> 00:06:14,639
that we're not so vulnerable right and
156
00:06:11,639 --> 00:06:17,720
our CEO is today is one of the original
157
00:06:14,639 --> 00:06:20,479
four founders of Housing Works and you
158
00:06:17,720 --> 00:06:23,199
know he's Visionary in that way CEOs are
159
00:06:20,479 --> 00:06:26,160
because he saw this coming long before
160
00:06:23,199 --> 00:06:29,000
any of us did um and I think it was in
161
00:06:26,160 --> 00:06:30,639
our 2018 strategic plan he put open a
162
00:06:29,000 --> 00:06:33,560
cannabis to dispensary in there and we
163
00:06:30,639 --> 00:06:35,599
were all like huh what you know but he
164
00:06:33,560 --> 00:06:37,560
knew it was coming um it took a while
165
00:06:35,599 --> 00:06:40,720
there were a few false starts you know
166
00:06:37,560 --> 00:06:42,120
the bill died in 20 uh I forget the
167
00:06:40,720 --> 00:06:43,560
exact year and then they had to bring it
168
00:06:42,120 --> 00:06:47,240
back the next year you know it was
169
00:06:43,560 --> 00:06:49,680
coming and we were able to open because
170
00:06:47,240 --> 00:06:51,919
New York state was very intentional
171
00:06:49,680 --> 00:06:55,120
around its social Equity goals for
172
00:06:51,919 --> 00:06:58,680
cannabis so they reserved a large chunk
173
00:06:55,120 --> 00:07:00,360
of licenses to give to people who had
174
00:06:58,680 --> 00:07:03,319
faced uh
175
00:07:00,360 --> 00:07:05,560
disproportionate harms especially by the
176
00:07:03,319 --> 00:07:07,360
caused by the War on Drugs a lot of
177
00:07:05,560 --> 00:07:09,680
licenses were reserved for people who
178
00:07:07,360 --> 00:07:12,800
had a cannabis conviction on their
179
00:07:09,680 --> 00:07:16,319
record some licenses were also reserved
180
00:07:12,800 --> 00:07:18,160
for veterans um distressed farmers and a
181
00:07:16,319 --> 00:07:20,000
few other groups a small number of
182
00:07:18,160 --> 00:07:22,240
licenses were also reserved for
183
00:07:20,000 --> 00:07:25,199
nonprofits that helped some of the uh
184
00:07:22,240 --> 00:07:26,800
most vulnerable and impacted people
185
00:07:25,199 --> 00:07:29,599
that's who Housing Works has been
186
00:07:26,800 --> 00:07:32,039
serving for 35 years you know people
187
00:07:29,599 --> 00:07:34,240
living in poverty experiencing
188
00:07:32,039 --> 00:07:37,479
marginalization incarceration you name
189
00:07:34,240 --> 00:07:40,440
it so it was this beautiful um
190
00:07:37,479 --> 00:07:41,759
intersection of our mission but also the
191
00:07:40,440 --> 00:07:43,360
fact that we knew how to do New York
192
00:07:41,759 --> 00:07:45,599
City retail because we've been doing it
193
00:07:43,360 --> 00:07:47,639
for three decades in that sense it was
194
00:07:45,599 --> 00:07:50,840
pretty easy to get the license and it
195
00:07:47,639 --> 00:07:53,879
also helped that we pledged to help get
196
00:07:50,840 --> 00:07:56,039
that dispensary open by the end of 2022
197
00:07:53,879 --> 00:07:58,000
which was a thing that the governor
198
00:07:56,039 --> 00:08:00,440
really wanted to see because the roll
199
00:07:58,000 --> 00:08:02,319
out was like two years behind at that
200
00:08:00,440 --> 00:08:04,120
point and so we got that license right
201
00:08:02,319 --> 00:08:06,440
before Thanksgiving and we opened four
202
00:08:04,120 --> 00:08:08,879
weeks later which is also crazy but
203
00:08:06,440 --> 00:08:10,120
that's kind of how we operated Al LS and
204
00:08:08,879 --> 00:08:11,400
I'm kind of going to jump around here
205
00:08:10,120 --> 00:08:13,479
but because you said two things that I
206
00:08:11,400 --> 00:08:16,400
want to nail on that I actually think
207
00:08:13,479 --> 00:08:18,159
are uniquely difficult the first one is
208
00:08:16,400 --> 00:08:21,240
social Equity social Equity is always a
209
00:08:18,159 --> 00:08:23,520
hard conversation especially for
210
00:08:21,240 --> 00:08:26,039
ironically Legacy operators in the
211
00:08:23,520 --> 00:08:28,800
industry because they think the market
212
00:08:26,039 --> 00:08:30,879
should control let it be a free-for-all
213
00:08:28,800 --> 00:08:33,320
Let It Be comp competitive no advantage
214
00:08:30,879 --> 00:08:34,880
to anybody that's one position to take
215
00:08:33,320 --> 00:08:37,479
but I've always thought for social
216
00:08:34,880 --> 00:08:39,279
Equity to work states and cities have to
217
00:08:37,479 --> 00:08:41,000
do more they can't just throw money at
218
00:08:39,279 --> 00:08:43,039
the issue they need to educate people
219
00:08:41,000 --> 00:08:46,680
they need to incubate I love it that New
220
00:08:43,039 --> 00:08:48,200
York set aside licenses for nonprofits
221
00:08:46,680 --> 00:08:50,480
because I think they're the perfect
222
00:08:48,200 --> 00:08:51,760
vehicle to achieve the goals of social
223
00:08:50,480 --> 00:08:53,760
Equity because they're already
224
00:08:51,760 --> 00:08:55,839
structured in such a way to support
225
00:08:53,760 --> 00:08:58,120
those missions they understand those
226
00:08:55,839 --> 00:09:00,560
missions I think you mentioned one of
227
00:08:58,120 --> 00:09:02,839
the housing work goals goals is to help
228
00:09:00,560 --> 00:09:04,680
rehabilitate incarcerated people because
229
00:09:02,839 --> 00:09:06,720
you can't just get out of prison or jail
230
00:09:04,680 --> 00:09:08,920
and know what you're doing in society
231
00:09:06,720 --> 00:09:10,760
what do you think because now you've
232
00:09:08,920 --> 00:09:12,519
been through it and New York is tough
233
00:09:10,760 --> 00:09:15,640
because it's highly regulated what do
234
00:09:12,519 --> 00:09:17,880
you think kind of the magic potion is
235
00:09:15,640 --> 00:09:20,079
for social Equity to work because I'm
236
00:09:17,880 --> 00:09:22,160
out of California it is not working it's
237
00:09:20,079 --> 00:09:23,600
been an abject failure for a multitude
238
00:09:22,160 --> 00:09:25,160
of reasons you know you can't really
239
00:09:23,600 --> 00:09:28,839
point the finger at one thing it's a
240
00:09:25,160 --> 00:09:30,839
very difficult socioeconomic problem you
241
00:09:28,839 --> 00:09:33,240
know industry in America don't just
242
00:09:30,839 --> 00:09:35,200
Bloom overnight it's very rare that you
243
00:09:33,240 --> 00:09:38,279
get the chance to be a ground zero so
244
00:09:35,200 --> 00:09:40,200
what do you think you know as a VP and
245
00:09:38,279 --> 00:09:42,600
employee at Housing Works what do you
246
00:09:40,200 --> 00:09:45,959
think the Special Sauce is for a better
247
00:09:42,600 --> 00:09:48,079
social Equity setting woo big question
248
00:09:45,959 --> 00:09:50,880
big question Hillary I'll be first to
249
00:09:48,079 --> 00:09:53,480
admit that my knowledge is informed
250
00:09:50,880 --> 00:09:55,760
really by the New York experience uh
251
00:09:53,480 --> 00:09:58,680
predominantly and and I think uh there's
252
00:09:55,760 --> 00:10:00,920
a lot of debate whether social Equity
253
00:09:58,680 --> 00:10:03,320
has worked in York or not um and a lot
254
00:10:00,920 --> 00:10:05,920
of a lot of ink has been spilled about
255
00:10:03,320 --> 00:10:07,200
New York's very bumpy roll out I think
256
00:10:05,920 --> 00:10:10,720
they did something and it was
257
00:10:07,200 --> 00:10:13,519
intentional but it was far from perfect
258
00:10:10,720 --> 00:10:15,600
so they reserved these licenses and it
259
00:10:13,519 --> 00:10:19,120
was meant to provide an on-ramp to
260
00:10:15,600 --> 00:10:21,800
people to open up their own dispensaries
261
00:10:19,120 --> 00:10:23,680
and get established before eventually
262
00:10:21,800 --> 00:10:26,839
multi-state operators and others would
263
00:10:23,680 --> 00:10:30,399
come in and you know basically close up
264
00:10:26,839 --> 00:10:33,160
the opportunity that was good I think
265
00:10:30,399 --> 00:10:36,519
some of the criticisms have been that it
266
00:10:33,160 --> 00:10:39,959
was it was a slow process just on kind
267
00:10:36,519 --> 00:10:42,600
of the the bureaucratic slog I I believe
268
00:10:39,959 --> 00:10:44,480
some of the criticism was that the the
269
00:10:42,600 --> 00:10:46,880
office of cannabis management was not
270
00:10:44,480 --> 00:10:48,720
sufficiently staffed up and prepared to
271
00:10:46,880 --> 00:10:51,399
just process and move all this stuff
272
00:10:48,720 --> 00:10:53,880
through a lot of criticism about lack of
273
00:10:51,399 --> 00:10:55,480
transparency people didn't really know
274
00:10:53,880 --> 00:10:57,480
what was happening or when it was going
275
00:10:55,480 --> 00:11:00,440
to happen there were also a lot of
276
00:10:57,480 --> 00:11:03,120
resources that were promised to the uh
277
00:11:00,440 --> 00:11:05,519
social Equity licenses the state said
278
00:11:03,120 --> 00:11:08,519
they were going to lease up properties
279
00:11:05,519 --> 00:11:12,320
all over and help build them out and
280
00:11:08,519 --> 00:11:16,079
hand them over to the the lies for a
281
00:11:12,320 --> 00:11:18,480
sort of like a lowest loan situation and
282
00:11:16,079 --> 00:11:20,200
that never materialized there was a
283
00:11:18,480 --> 00:11:21,839
initially a hedge fund that was tasked
284
00:11:20,200 --> 00:11:24,200
with raising millions and millions of
285
00:11:21,839 --> 00:11:26,480
dollars to fund that and it just didn't
286
00:11:24,200 --> 00:11:29,440
happen and it was assigned to sort a
287
00:11:26,480 --> 00:11:30,959
sort of obscure New York agency that was
288
00:11:29,440 --> 00:11:33,360
meant to oversee it and they didn't
289
00:11:30,959 --> 00:11:35,760
oversee it well and and and the the
290
00:11:33,360 --> 00:11:37,440
details are like super boring unless
291
00:11:35,760 --> 00:11:39,200
you're into that stuff but but that's
292
00:11:37,440 --> 00:11:40,959
kind of the problem right it gets lost
293
00:11:39,200 --> 00:11:43,600
it sounds great on paper but it gets
294
00:11:40,959 --> 00:11:45,839
lost in the bureaucracy and all of that
295
00:11:43,600 --> 00:11:49,160
stuff and I will say that's kind of how
296
00:11:45,839 --> 00:11:50,800
Housing Works stepped into this even
297
00:11:49,160 --> 00:11:52,600
more deeply I mean we're getting like
298
00:11:50,800 --> 00:11:54,839
really ahead of ourselves now but you
299
00:11:52,600 --> 00:11:57,160
know you have all these folks with
300
00:11:54,839 --> 00:11:58,440
licenses and and they and now they don't
301
00:11:57,160 --> 00:12:00,279
know what to do because they were
302
00:11:58,440 --> 00:12:01,399
promised uh they were promised these low
303
00:12:00,279 --> 00:12:04,360
interest interest loans and they were
304
00:12:01,399 --> 00:12:06,760
promised access to retail properties and
305
00:12:04,360 --> 00:12:09,440
none of that was materializing and now
306
00:12:06,760 --> 00:12:10,880
everybody's looking for help and and
307
00:12:09,440 --> 00:12:13,360
people are getting all sorts of deals
308
00:12:10,880 --> 00:12:16,079
thrown at them um anecdotally we heard
309
00:12:13,360 --> 00:12:17,440
of all sorts of deals uh some which
310
00:12:16,079 --> 00:12:20,600
sounded very
311
00:12:17,440 --> 00:12:22,680
predatory one guy described it like this
312
00:12:20,600 --> 00:12:25,279
he said it's like I got a ticket to go
313
00:12:22,680 --> 00:12:26,800
on a cruise in the Caribbean except I
314
00:12:25,279 --> 00:12:28,440
live in New York and all I've got is a
315
00:12:26,800 --> 00:12:29,680
bicycle now I need to figure out how to
316
00:12:28,440 --> 00:12:31,560
get to Florida
317
00:12:29,680 --> 00:12:34,320
which was a shame though that everybody
318
00:12:31,560 --> 00:12:37,440
found themselves in this situation the
319
00:12:34,320 --> 00:12:40,680
other issue was that the office of
320
00:12:37,440 --> 00:12:44,519
cannabis management wasn't disciplined
321
00:12:40,680 --> 00:12:46,639
and airtight in how they um proceeded
322
00:12:44,519 --> 00:12:48,600
and they they they did they left
323
00:12:46,639 --> 00:12:51,120
themselves open to vulnerabilities and
324
00:12:48,600 --> 00:12:54,079
they got sued left and right very early
325
00:12:51,120 --> 00:12:57,120
on one of the outcomes was a femon
326
00:12:54,079 --> 00:12:59,360
injunction that paused all progress on
327
00:12:57,120 --> 00:13:02,079
everybody and that effectively killed
328
00:12:59,360 --> 00:13:03,920
the on-ramp that was um you know that
329
00:13:02,079 --> 00:13:04,920
was that was the end of everybody's head
330
00:13:03,920 --> 00:13:07,160
start that
331
00:13:04,920 --> 00:13:09,600
injunction and some of it was that they
332
00:13:07,160 --> 00:13:11,079
weren't following their own regulations
333
00:13:09,600 --> 00:13:14,000
or they weren't following the letter of
334
00:13:11,079 --> 00:13:15,760
the law so you know I'm not the one to
335
00:13:14,000 --> 00:13:17,959
make the final decisions there about who
336
00:13:15,760 --> 00:13:19,440
was right and who was wrong but um there
337
00:13:17,959 --> 00:13:22,160
was a lot there have been a lot of
338
00:13:19,440 --> 00:13:24,760
interesting analyses a and you know
339
00:13:22,160 --> 00:13:26,959
journalists have been following it so to
340
00:13:24,760 --> 00:13:28,639
kind of get myself back on track here we
341
00:13:26,959 --> 00:13:33,160
started meeting these people at
342
00:13:28,639 --> 00:13:35,680
conference MJ Biz benzinga whatever and
343
00:13:33,160 --> 00:13:37,440
and they were looking for help and uh
344
00:13:35,680 --> 00:13:39,680
you know our dispensary has been open
345
00:13:37,440 --> 00:13:40,880
you know six months at this point we're
346
00:13:39,680 --> 00:13:43,519
in
347
00:13:40,880 --> 00:13:45,199
2023 and we started conceiving
348
00:13:43,519 --> 00:13:47,839
Partnerships where may maybe we could
349
00:13:45,199 --> 00:13:50,120
help some of these folks get open and we
350
00:13:47,839 --> 00:13:52,600
created what what's called uh the
351
00:13:50,120 --> 00:13:55,000
Housing Works card Community initiative
352
00:13:52,600 --> 00:13:56,720
card is the acronym for the social
353
00:13:55,000 --> 00:14:00,160
Equity license in New
354
00:13:56,720 --> 00:14:03,440
York and what we did was create some
355
00:14:00,160 --> 00:14:05,800
partnership deals where we helped the
356
00:14:03,440 --> 00:14:07,880
social Equity licenses open and operate
357
00:14:05,800 --> 00:14:10,600
their own dispensaries while allowing
358
00:14:07,880 --> 00:14:13,040
them to maintain majority control and
359
00:14:10,600 --> 00:14:15,839
ownership um and I mean majority like
360
00:14:13,040 --> 00:14:18,800
not just 51% but you know Lions share
361
00:14:15,839 --> 00:14:22,240
majority of their business we introduce
362
00:14:18,800 --> 00:14:25,839
them to some investors we knew we help
363
00:14:22,240 --> 00:14:27,600
them find real estate and significantly
364
00:14:25,839 --> 00:14:31,079
we we served as the guarantor of that
365
00:14:27,600 --> 00:14:33,600
real estate because um you know uh John
366
00:14:31,079 --> 00:14:35,680
Doe Jane Doe is not going to get a
367
00:14:33,600 --> 00:14:39,160
commercial real estate property in
368
00:14:35,680 --> 00:14:41,240
Manhattan without some kind of backer we
369
00:14:39,160 --> 00:14:43,600
helped provide the overall project
370
00:14:41,240 --> 00:14:46,040
management around the buildout and the
371
00:14:43,600 --> 00:14:48,240
design of the space we brought in you
372
00:14:46,040 --> 00:14:49,800
know contractors and designers and other
373
00:14:48,240 --> 00:14:52,920
partners we worked with over the years
374
00:14:49,800 --> 00:14:54,440
on different things and then we have uh
375
00:14:52,920 --> 00:14:55,959
since some of these have opened we've
376
00:14:54,440 --> 00:14:58,560
been supporting them with the actual
377
00:14:55,959 --> 00:15:00,000
operations it's mostly back off of stuff
378
00:14:58,560 --> 00:15:01,600
right we don't we don't run the
379
00:15:00,000 --> 00:15:04,399
dispensary for them it's their business
380
00:15:01,600 --> 00:15:07,000
to own and run but we serve as their
381
00:15:04,399 --> 00:15:09,199
outsourced finance department for them
382
00:15:07,000 --> 00:15:11,959
doing doing the books and doing accounts
383
00:15:09,199 --> 00:15:14,279
payable we serve as their outsourced HR
384
00:15:11,959 --> 00:15:16,800
department doing the Recruitment and
385
00:15:14,279 --> 00:15:19,279
employee hiring and firing and life
386
00:15:16,800 --> 00:15:22,079
cycle type you know Services there and
387
00:15:19,279 --> 00:15:25,120
running the payroll and and maybe most
388
00:15:22,079 --> 00:15:27,440
importantly we we train them meaning the
389
00:15:25,120 --> 00:15:30,639
owners and and the managers they hire
390
00:15:27,440 --> 00:15:33,399
and the and the assistant MERS our staff
391
00:15:30,639 --> 00:15:35,759
train them on this is how you do
392
00:15:33,399 --> 00:15:37,360
successful New York City retail this is
393
00:15:35,759 --> 00:15:39,519
how you deal with scheduling this is how
394
00:15:37,360 --> 00:15:42,800
you deal with customer service this is
395
00:15:39,519 --> 00:15:44,720
how you deal with um what happens when
396
00:15:42,800 --> 00:15:47,199
all your staff Call out on a beautiful
397
00:15:44,720 --> 00:15:48,720
Friday afternoon in the summertime you
398
00:15:47,199 --> 00:15:50,480
know all all the this is how you get
399
00:15:48,720 --> 00:15:52,240
delivery up and running and off the
400
00:15:50,480 --> 00:15:55,480
ground you know so our head of
401
00:15:52,240 --> 00:15:57,880
purchasing our general manager of of our
402
00:15:55,480 --> 00:16:00,079
dispensary our head of customer service
403
00:15:57,880 --> 00:16:03,000
all these people are you know in in
404
00:16:00,079 --> 00:16:04,480
constant touch with them and and help
405
00:16:03,000 --> 00:16:07,560
them work through these issues and kind
406
00:16:04,480 --> 00:16:09,959
of grow into the business that they have
407
00:16:07,560 --> 00:16:12,319
and that's been this sort of unexpected
408
00:16:09,959 --> 00:16:15,000
second social Enterprise that grew out
409
00:16:12,319 --> 00:16:17,959
of Housing Works cannabis Co we've
410
00:16:15,000 --> 00:16:21,279
launched four Partners in this way since
411
00:16:17,959 --> 00:16:23,399
2023 we've got two more on Deck um one
412
00:16:21,279 --> 00:16:25,480
will hopefully open as soon as this
413
00:16:23,399 --> 00:16:28,000
month and the other as soon as next
414
00:16:25,480 --> 00:16:31,120
month January and we've got another
415
00:16:28,000 --> 00:16:33,000
three in the pipeline and it's a nice
416
00:16:31,120 --> 00:16:36,040
another nice way of helping us meet our
417
00:16:33,000 --> 00:16:38,399
mission and kind of you know bring the
418
00:16:36,040 --> 00:16:41,040
unique the unique kind of infrastructure
419
00:16:38,399 --> 00:16:42,440
that Housing Works has to help others I
420
00:16:41,040 --> 00:16:44,600
I should probably turn it back to you at
421
00:16:42,440 --> 00:16:46,759
this point well it's fascinating to me
422
00:16:44,600 --> 00:16:49,399
because you know I don't get out much
423
00:16:46,759 --> 00:16:51,399
but you are honestly one of the first
424
00:16:49,399 --> 00:16:53,880
individuals I've spoken to where it
425
00:16:51,399 --> 00:16:56,720
sounds like you manufactured a social
426
00:16:53,880 --> 00:16:58,920
Equity success story multiple success
427
00:16:56,720 --> 00:17:00,720
stories and it also sounds like and
428
00:16:58,920 --> 00:17:03,279
these are my words not yours for anybody
429
00:17:00,720 --> 00:17:05,600
listening that Housing Works cannabis Co
430
00:17:03,279 --> 00:17:08,400
picked up the mantle for the state to
431
00:17:05,600 --> 00:17:11,199
provide resources training location
432
00:17:08,400 --> 00:17:12,520
services outsourced financing to people
433
00:17:11,199 --> 00:17:13,799
that were disproportionately impacted by
434
00:17:12,520 --> 00:17:15,439
the War on Drugs whether they're a
435
00:17:13,799 --> 00:17:17,079
convicted felon they live in a certain
436
00:17:15,439 --> 00:17:19,160
zip code they make a certain amount of
437
00:17:17,079 --> 00:17:21,120
money into the poverty line I mean this
438
00:17:19,160 --> 00:17:24,439
is what this social experiment of social
439
00:17:21,120 --> 00:17:26,600
Equity was supposed to breed and I just
440
00:17:24,439 --> 00:17:29,120
my take away from this is sophisticated
441
00:17:26,600 --> 00:17:30,760
nonprofits like a Housing Works or a
442
00:17:29,120 --> 00:17:32,640
Goodwill and there are so many in the
443
00:17:30,760 --> 00:17:34,520
United States would be perfectly
444
00:17:32,640 --> 00:17:36,919
positioned to take on this kind of
445
00:17:34,520 --> 00:17:39,360
incubation over maybe an industry
446
00:17:36,919 --> 00:17:41,039
competitor or even government right and
447
00:17:39,360 --> 00:17:42,200
I that to me is a very positive thing
448
00:17:41,039 --> 00:17:45,120
and you're one of the first people I've
449
00:17:42,200 --> 00:17:47,880
spoken to where it hasn't been an AB
450
00:17:45,120 --> 00:17:49,919
disaster and it's teaching these social
451
00:17:47,880 --> 00:17:52,039
Equity applicants not only to do
452
00:17:49,919 --> 00:17:54,039
business but be successful in business
453
00:17:52,039 --> 00:17:56,320
which is a lifelong education you know
454
00:17:54,039 --> 00:17:58,520
if I'm a convicted felon for a low-level
455
00:17:56,320 --> 00:18:00,080
drug crime non-violent offense I
456
00:17:58,520 --> 00:18:01,520
probably don't have too much experience
457
00:18:00,080 --> 00:18:03,400
right with institutional investors and
458
00:18:01,520 --> 00:18:05,440
running businesses so to me you know the
459
00:18:03,400 --> 00:18:07,360
on-ramp that was killed it sounds like
460
00:18:05,440 --> 00:18:10,280
you guys kind of revitalized it now my
461
00:18:07,360 --> 00:18:12,080
second question is and I'm sure many
462
00:18:10,280 --> 00:18:14,320
people are dying to know I would also
463
00:18:12,080 --> 00:18:17,799
like to know the secret how do you do
464
00:18:14,320 --> 00:18:20,080
New York retail I gotta know ah how do
465
00:18:17,799 --> 00:18:22,960
you do New York retail well that's a
466
00:18:20,080 --> 00:18:24,840
good question as well and I would say
467
00:18:22,960 --> 00:18:26,559
this comes up sometimes in our
468
00:18:24,840 --> 00:18:29,520
conversations with our
469
00:18:26,559 --> 00:18:32,520
partners it it's not necessarily about
470
00:18:29,520 --> 00:18:34,400
cannabis it's you know when people are
471
00:18:32,520 --> 00:18:37,080
like how do you do this you could be
472
00:18:34,400 --> 00:18:39,200
selling any old widget you know it could
473
00:18:37,080 --> 00:18:42,320
be cannabis it could be clothing it
474
00:18:39,200 --> 00:18:44,320
could be Furniture it could be handbags
475
00:18:42,320 --> 00:18:48,080
on Canal Street you know it's just how
476
00:18:44,320 --> 00:18:51,240
are you dealing with retail operations
477
00:18:48,080 --> 00:18:54,840
and it and the details are so incredibly
478
00:18:51,240 --> 00:18:56,720
uh unsexy but important we we've met a
479
00:18:54,840 --> 00:18:58,799
lot of people who kind of had stars in
480
00:18:56,720 --> 00:19:01,440
their eyes and they had big plans for
481
00:18:58,799 --> 00:19:03,400
for marketing and they everybody wants
482
00:19:01,440 --> 00:19:06,559
to do events they want to do big events
483
00:19:03,400 --> 00:19:08,919
at their store and you know we're like
484
00:19:06,559 --> 00:19:11,159
events don't make you money maybe they
485
00:19:08,919 --> 00:19:14,080
get you a little bit of exposure but
486
00:19:11,159 --> 00:19:17,360
like it is the unsexy work of
487
00:19:14,080 --> 00:19:20,640
disciplined operations coaching your
488
00:19:17,360 --> 00:19:23,080
staff on how to upsell at the register
489
00:19:20,640 --> 00:19:26,880
you know add add a gummy you know do
490
00:19:23,080 --> 00:19:28,720
some do how to you know use software uh
491
00:19:26,880 --> 00:19:30,400
we use headset for some of our anal
492
00:19:28,720 --> 00:19:32,400
itics how do you look at that and figure
493
00:19:30,400 --> 00:19:34,400
out you know what's the best upsell item
494
00:19:32,400 --> 00:19:36,320
and then tell all your butt tenders you
495
00:19:34,400 --> 00:19:37,880
know try to upsell on this there's a
496
00:19:36,320 --> 00:19:40,240
million little things like that it's
497
00:19:37,880 --> 00:19:42,840
just tweaking and fine-tuning and
498
00:19:40,240 --> 00:19:44,960
optimizing you know your your back of
499
00:19:42,840 --> 00:19:47,200
house inventory making shirt it's kind
500
00:19:44,960 --> 00:19:49,120
of airtight and how you're tracking
501
00:19:47,200 --> 00:19:50,480
everything all of that stuff and then
502
00:19:49,120 --> 00:19:52,280
there's kind of the part where you just
503
00:19:50,480 --> 00:19:54,000
have to know how to deal with you know
504
00:19:52,280 --> 00:19:55,840
what when when somebody crazy comes
505
00:19:54,000 --> 00:19:58,520
through your doors and we're New Yorkers
506
00:19:55,840 --> 00:19:59,400
so we're all crazy is that so I don't
507
00:19:58,520 --> 00:20:02,080
know
508
00:19:59,400 --> 00:20:05,480
say that probably never happens no never
509
00:20:02,080 --> 00:20:08,280
never we out a lot of our folks that we
510
00:20:05,480 --> 00:20:10,200
partner with that their general manager
511
00:20:08,280 --> 00:20:12,280
is what's going to make or break their
512
00:20:10,200 --> 00:20:13,880
dispensery and we know that's true
513
00:20:12,280 --> 00:20:15,840
because the general manager is what
514
00:20:13,880 --> 00:20:18,000
makes or breaks every one of the Housing
515
00:20:15,840 --> 00:20:20,480
Works thrift shops you know it's really
516
00:20:18,000 --> 00:20:23,799
their thing it it's it's their thing to
517
00:20:20,480 --> 00:20:26,280
be in charge of they're the ones who are
518
00:20:23,799 --> 00:20:28,840
interacting with employees daily who
519
00:20:26,280 --> 00:20:30,880
have to Garner their respect and just
520
00:20:28,840 --> 00:20:33,919
you know keep a tight liit on the
521
00:20:30,880 --> 00:20:36,360
operations that to to me recruiting the
522
00:20:33,919 --> 00:20:38,320
best manager you can is the is the
523
00:20:36,360 --> 00:20:40,960
number one most important thing you can
524
00:20:38,320 --> 00:20:43,760
do and you know some owners are more
525
00:20:40,960 --> 00:20:46,919
Hands-On than others and I think the
526
00:20:43,760 --> 00:20:49,480
owners who uh are more Hands-On with the
527
00:20:46,919 --> 00:20:52,400
daily operations face a steep learning
528
00:20:49,480 --> 00:20:55,240
curve because nobody's necessarily done
529
00:20:52,400 --> 00:20:57,640
anything like this before and it's not
530
00:20:55,240 --> 00:21:00,240
it's not a family business kind of thing
531
00:20:57,640 --> 00:21:03,240
in the sense that that you can't just do
532
00:21:00,240 --> 00:21:06,480
or not do whatever you want we've had to
533
00:21:03,240 --> 00:21:09,120
educate for example that okay you have
534
00:21:06,480 --> 00:21:11,279
an atwi employee you can terminate them
535
00:21:09,120 --> 00:21:13,440
within the first 90 days as is written
536
00:21:11,279 --> 00:21:15,240
in your employee manual but you need to
537
00:21:13,440 --> 00:21:17,200
document this stuff because people are
538
00:21:15,240 --> 00:21:19,840
going to sue you for
539
00:21:17,200 --> 00:21:22,799
anything and they have grounds to sue
540
00:21:19,840 --> 00:21:25,159
you sometimes if you're not keeping
541
00:21:22,799 --> 00:21:28,760
careful documentation but documentation
542
00:21:25,159 --> 00:21:30,960
so unsexy keeping a paper trail of your
543
00:21:28,760 --> 00:21:33,600
corrective actions and this and that is
544
00:21:30,960 --> 00:21:36,640
so clerical I thought we were selling
545
00:21:33,600 --> 00:21:39,520
weed are we just selling weed no you're
546
00:21:36,640 --> 00:21:42,840
running you're running a complex retail
547
00:21:39,520 --> 00:21:45,320
operation and um in in one of the most
548
00:21:42,840 --> 00:21:47,520
lawsuit happy cities in states in the
549
00:21:45,320 --> 00:21:49,360
country and that's the stuff you should
550
00:21:47,520 --> 00:21:50,799
actually be worrying about but you know
551
00:21:49,360 --> 00:21:52,600
people are kind of surprised when they
552
00:21:50,799 --> 00:21:54,159
hear that and that's just how works is
553
00:21:52,600 --> 00:21:56,080
take you know others might have
554
00:21:54,159 --> 00:21:57,679
different takes but well you know what
555
00:21:56,080 --> 00:21:59,640
we can bring is our experience to the
556
00:21:57,679 --> 00:22:01,000
table fair enough and you know you
557
00:21:59,640 --> 00:22:03,840
mentioned that attitude why aren't we
558
00:22:01,000 --> 00:22:06,760
just selling weed tell me how hard or
559
00:22:03,840 --> 00:22:08,760
easy has it been to comply with New York
560
00:22:06,760 --> 00:22:10,279
State cannabis regulations because most
561
00:22:08,760 --> 00:22:11,799
of these companies big or small they
562
00:22:10,279 --> 00:22:13,520
typically have a compliance person
563
00:22:11,799 --> 00:22:15,080
whether it's in-house or outsourced how
564
00:22:13,520 --> 00:22:17,760
hard is it then I will say that the
565
00:22:15,080 --> 00:22:20,320
Office of cabis Management has been very
566
00:22:17,760 --> 00:22:21,840
very supportive you know in
567
00:22:20,320 --> 00:22:25,360
understanding that everybody's kind of
568
00:22:21,840 --> 00:22:27,559
learning growing into it you know we're
569
00:22:25,360 --> 00:22:29,919
we're we're sort of building the ship as
570
00:22:27,559 --> 00:22:32,520
we're flying it to some extent and and
571
00:22:29,919 --> 00:22:35,400
so they you know they have their
572
00:22:32,520 --> 00:22:37,159
regulations and and so forth but they've
573
00:22:35,400 --> 00:22:38,880
been they've been very good at you know
574
00:22:37,159 --> 00:22:41,360
they they do their site inspections
575
00:22:38,880 --> 00:22:43,919
they'll give you detailed feedback on
576
00:22:41,360 --> 00:22:46,480
what might be out of compliance and um
577
00:22:43,919 --> 00:22:48,480
you know do X Y and Z and get back into
578
00:22:46,480 --> 00:22:49,640
compliance they've been very
579
00:22:48,480 --> 00:22:52,120
understanding which has been good for
580
00:22:49,640 --> 00:22:54,039
our partners another unique Advantage
581
00:22:52,120 --> 00:22:57,640
for Housing Works was that we've been
582
00:22:54,039 --> 00:22:59,200
doing you know uh health care and in
583
00:22:57,640 --> 00:23:03,520
particular medic
584
00:22:59,200 --> 00:23:06,799
health care for decades so which is
585
00:23:03,520 --> 00:23:09,000
probably more complex when it comes to
586
00:23:06,799 --> 00:23:11,520
the compliance requirements than even
587
00:23:09,000 --> 00:23:14,240
cannabis so we we were we were prepared
588
00:23:11,520 --> 00:23:17,720
for it that has actually not been a
589
00:23:14,240 --> 00:23:19,360
particularly heavy lift for us I'll say
590
00:23:17,720 --> 00:23:21,679
for anybody who's getting into this
591
00:23:19,360 --> 00:23:23,919
without a lot of external support I
592
00:23:21,679 --> 00:23:26,240
don't know where where folks are picking
593
00:23:23,919 --> 00:23:27,960
this up from or who's helping them you
594
00:23:26,240 --> 00:23:29,919
know I mean it it was it was a team
595
00:23:27,960 --> 00:23:32,840
effort for us at Housing Works and we
596
00:23:29,919 --> 00:23:34,559
had a whole team so you know going back
597
00:23:32,840 --> 00:23:37,279
to your question about the social Equity
598
00:23:34,559 --> 00:23:40,120
roll out I I don't think nearly enough
599
00:23:37,279 --> 00:23:42,720
resources were allocated to prepare
600
00:23:40,120 --> 00:23:45,720
people for running these uh running
601
00:23:42,720 --> 00:23:47,080
these businesses yeah I concur um and
602
00:23:45,720 --> 00:23:49,559
you know news flash for those in the
603
00:23:47,080 --> 00:23:51,559
Cannabis industry if you haven't been in
604
00:23:49,559 --> 00:23:53,799
healthcare you don't really know what
605
00:23:51,559 --> 00:23:55,000
highly regulated is uh because every
606
00:23:53,799 --> 00:23:56,559
time you turn around in healthcare
607
00:23:55,000 --> 00:23:59,440
you're probably on the cusp of violating
608
00:23:56,559 --> 00:24:01,799
a major federal or state law campus is
609
00:23:59,440 --> 00:24:03,720
regulated it's not that regulated but if
610
00:24:01,799 --> 00:24:06,240
legalization were to happen or
611
00:24:03,720 --> 00:24:08,600
rescheduling I don't know it could occur
612
00:24:06,240 --> 00:24:11,440
but until then we make a with the state
613
00:24:08,600 --> 00:24:13,039
byst state license for shames okay so
614
00:24:11,440 --> 00:24:16,240
just a couple more questions while I
615
00:24:13,039 --> 00:24:18,200
have you as far as the state of the
616
00:24:16,240 --> 00:24:19,320
Cannabis industry in New York right
617
00:24:18,200 --> 00:24:21,720
because now you've been in it for a
618
00:24:19,320 --> 00:24:24,600
little bit is it bustling is it slow is
619
00:24:21,720 --> 00:24:26,440
it still emerging what do you think so
620
00:24:24,600 --> 00:24:29,000
glad you asked that question Hillary
621
00:24:26,440 --> 00:24:30,399
because I'm not an economist
622
00:24:29,000 --> 00:24:33,000
but the uh the folks at Whitney
623
00:24:30,399 --> 00:24:34,880
economics are and they released a report
624
00:24:33,000 --> 00:24:37,159
earlier this year on the state of New
625
00:24:34,880 --> 00:24:39,799
York cannabis that that has been very
626
00:24:37,159 --> 00:24:42,279
eye openening um and I ju I just happen
627
00:24:39,799 --> 00:24:44,760
to have a few of my favorite bullets on
628
00:24:42,279 --> 00:24:47,039
that one is that it's roughly a 1
629
00:24:44,760 --> 00:24:48,919
billion dollar industry right now and
630
00:24:47,039 --> 00:24:52,480
they think it could grow up to about six
631
00:24:48,919 --> 00:24:54,799
billion so only 15% of the way there a
632
00:24:52,480 --> 00:24:56,799
lot of room for growth similarly New
633
00:24:54,799 --> 00:25:00,320
York is the fourth largest market in the
634
00:24:56,799 --> 00:25:03,000
US but we're fth in sales a lot of room
635
00:25:00,320 --> 00:25:06,000
for growth here's a good one going back
636
00:25:03,000 --> 00:25:08,640
to licenses in October there have been
637
00:25:06,000 --> 00:25:11,720
about 800 licenses issued and that's
638
00:25:08,640 --> 00:25:14,080
social equity and now also the beginning
639
00:25:11,720 --> 00:25:16,520
trickle of kind of mainstream
640
00:25:14,080 --> 00:25:19,399
licenses um but there's only about 200
641
00:25:16,520 --> 00:25:21,679
dispensaries open and the assumption is
642
00:25:19,399 --> 00:25:24,799
that New York can handle about 1,300
643
00:25:21,679 --> 00:25:26,960
legal dispensaries as much as600 if
644
00:25:24,799 --> 00:25:30,799
there were no illegal sales whatsoever
645
00:25:26,960 --> 00:25:34,159
and that probably won't happen so again
646
00:25:30,799 --> 00:25:36,559
lots of room for growth in 2023 just a
647
00:25:34,159 --> 00:25:39,919
little under 5% of all cannabis sales
648
00:25:36,559 --> 00:25:42,480
were legal this year we're at about 15%
649
00:25:39,919 --> 00:25:44,840
of all cannabis sales are legal all
650
00:25:42,480 --> 00:25:47,799
right well we still have 85% of illegal
651
00:25:44,840 --> 00:25:50,520
sales a lot of room for growth so yeah
652
00:25:47,799 --> 00:25:52,720
room for growth is by far the the big
653
00:25:50,520 --> 00:25:55,919
theme here it's it's already getting
654
00:25:52,720 --> 00:25:57,960
kind of competitive in New York City um
655
00:25:55,919 --> 00:26:00,240
some of that has to do with things like
656
00:25:57,960 --> 00:26:02,840
the one th000 foot rule dispensaries
657
00:26:00,240 --> 00:26:05,559
cannot be less than 1,000 fet of each
658
00:26:02,840 --> 00:26:07,919
other which is a good thing to be clear
659
00:26:05,559 --> 00:26:09,960
a very good thing but it does make it
660
00:26:07,919 --> 00:26:13,200
hard to find real estate that is going
661
00:26:09,960 --> 00:26:15,399
to be you know in those Pockets because
662
00:26:13,200 --> 00:26:17,799
Real Estate in Manhattan and Brooklyn is
663
00:26:15,399 --> 00:26:20,679
just Bonkers but in other parts of the
664
00:26:17,799 --> 00:26:22,720
state um Upstate the Southern Tier
665
00:26:20,679 --> 00:26:25,080
Western New York it they seem to be
666
00:26:22,720 --> 00:26:27,320
opening up pretty well and you know kind
667
00:26:25,080 --> 00:26:30,080
of getting some good Geographic spread
668
00:26:27,320 --> 00:26:33,000
so a lot of room for growth the one
669
00:26:30,080 --> 00:26:35,480
thing that was alarming in this report
670
00:26:33,000 --> 00:26:37,679
maybe it's not a big shocker but they
671
00:26:35,480 --> 00:26:41,440
estimated how much money how much
672
00:26:37,679 --> 00:26:44,520
revenue a business needs to do to be
673
00:26:41,440 --> 00:26:47,279
viable and it's you know in rural areas
674
00:26:44,520 --> 00:26:49,919
it's the equivalent of about 215 Grand a
675
00:26:47,279 --> 00:26:53,840
month in a high density urban area
676
00:26:49,919 --> 00:26:56,399
$633,000 a month in Revenue which that's
677
00:26:53,840 --> 00:26:58,279
a steep hill to climb you know Housing
678
00:26:56,399 --> 00:27:01,799
Works was fortunate that we had both
679
00:26:58,279 --> 00:27:04,360
both first mover advantage and you know
680
00:27:01,799 --> 00:27:07,200
the the brand recognition of 35y old
681
00:27:04,360 --> 00:27:09,320
Brands but um that's you know I guess
682
00:27:07,200 --> 00:27:11,480
you could call us New York famous if not
683
00:27:09,320 --> 00:27:14,000
National famous but folks who are
684
00:27:11,480 --> 00:27:15,919
building their brands from scratch they
685
00:27:14,000 --> 00:27:17,919
they've got a steep hill to climb and I
686
00:27:15,919 --> 00:27:20,200
I'll say that our partners um the good
687
00:27:17,919 --> 00:27:21,640
news for them is that they are every
688
00:27:20,200 --> 00:27:24,600
month they're doing better than the
689
00:27:21,640 --> 00:27:26,840
month before so I think the starting
690
00:27:24,600 --> 00:27:29,520
point was lower than we hoped for for
691
00:27:26,840 --> 00:27:32,039
all those delays and and failures of the
692
00:27:29,520 --> 00:27:34,320
social Equity program that I mentioned
693
00:27:32,039 --> 00:27:36,559
but once they got there you know they
694
00:27:34,320 --> 00:27:38,679
they are improving month over month so
695
00:27:36,559 --> 00:27:41,240
they're getting there but New York's
696
00:27:38,679 --> 00:27:43,000
tough yeah New York's hard these densely
697
00:27:41,240 --> 00:27:44,200
populated urban areas are quite
698
00:27:43,000 --> 00:27:46,039
difficult especially with the illegal
699
00:27:44,200 --> 00:27:48,600
Market it's a very tough competitor that
700
00:27:46,039 --> 00:27:50,600
doesn't pay taxes that isn't accountable
701
00:27:48,600 --> 00:27:53,159
regulatory violations just going to take
702
00:27:50,600 --> 00:27:54,279
time is my opinion okay last question
703
00:27:53,159 --> 00:27:55,880
and you don't have to reveal it you
704
00:27:54,279 --> 00:27:58,640
could just say yes or no expound if you
705
00:27:55,880 --> 00:28:01,679
want any plans for Housing Works to take
706
00:27:58,640 --> 00:28:04,240
its show on the road nationally
707
00:28:01,679 --> 00:28:06,720
regarding the Cannabis side of the house
708
00:28:04,240 --> 00:28:08,640
oh man I think we'd like to you know
709
00:28:06,720 --> 00:28:10,279
like I just said we're New York famous
710
00:28:08,640 --> 00:28:12,919
that doesn't mean we have to stick to
711
00:28:10,279 --> 00:28:16,519
New York only but I think the next plan
712
00:28:12,919 --> 00:28:18,480
in our Partnerships is BR licensing
713
00:28:16,519 --> 00:28:20,240
because of that experience that I just
714
00:28:18,480 --> 00:28:21,840
mentioned where our partners who are
715
00:28:20,240 --> 00:28:24,960
building a brand from scratch have
716
00:28:21,840 --> 00:28:27,399
really had to bite tooth and Claw just
717
00:28:24,960 --> 00:28:29,760
to hit viability that got us thinking
718
00:28:27,399 --> 00:28:32,679
about the idea a of Licensing the
719
00:28:29,760 --> 00:28:35,440
Housing Works cannabis C- brand so that
720
00:28:32,679 --> 00:28:39,120
Partners right out the gate on day one
721
00:28:35,440 --> 00:28:41,440
could look and feel at just like Housing
722
00:28:39,120 --> 00:28:44,480
Works cannabis Co e called Housing Works
723
00:28:41,440 --> 00:28:46,600
cannabis Co so on and so forth and so we
724
00:28:44,480 --> 00:28:48,640
started exploring that possibility we
725
00:28:46,600 --> 00:28:50,960
have a brand licensing agreement that's
726
00:28:48,640 --> 00:28:52,320
compliant with the New York regulations
727
00:28:50,960 --> 00:28:55,080
and we've been exploring those
728
00:28:52,320 --> 00:28:57,440
Partnerships because that to us is a
729
00:28:55,080 --> 00:28:59,600
strategy for success and the brand is
730
00:28:57,440 --> 00:29:02,279
strong you know you've had the Good
731
00:28:59,600 --> 00:29:04,760
Fortune of becoming one of the city and
732
00:29:02,279 --> 00:29:06,600
the state's most recognizable
733
00:29:04,760 --> 00:29:08,600
dispensaries I think people like that
734
00:29:06,600 --> 00:29:10,960
there's a charitable Mission behind it
735
00:29:08,600 --> 00:29:13,799
could we go to Illinois could we go to
736
00:29:10,960 --> 00:29:15,120
another state in the Northeast maybe but
737
00:29:13,799 --> 00:29:17,159
I think we have to see what's going to
738
00:29:15,120 --> 00:29:19,640
happen with this New York Market first
739
00:29:17,159 --> 00:29:22,360
price compression is real we we saw that
740
00:29:19,640 --> 00:29:23,600
happen you know in the first year I
741
00:29:22,360 --> 00:29:27,039
think we have to see how this all
742
00:29:23,600 --> 00:29:29,360
stabilizes before we are ready to go
743
00:29:27,039 --> 00:29:31,200
learn a whole other State set of rules
744
00:29:29,360 --> 00:29:33,600
and regulations that look nothing like
745
00:29:31,200 --> 00:29:35,480
New York's but nothing's off the table
746
00:29:33,600 --> 00:29:37,440
because Housing Works is a little
747
00:29:35,480 --> 00:29:39,919
offbeat like that we'll we'll consider
748
00:29:37,440 --> 00:29:41,559
anything very good all right Greg thank
749
00:29:39,919 --> 00:29:43,200
you very much for your time we really
750
00:29:41,559 --> 00:29:45,559
appreciate it ladies and gentlemen Greg
751
00:29:43,200 --> 00:29:47,559
woring BP of bis Dev at Housing Works in
752
00:29:45,559 --> 00:29:49,840
broko New York we're so fortunate to
753
00:29:47,559 --> 00:29:52,519
have you on the podcast thank you thanks
754
00:29:49,840 --> 00:29:52,519
Hillary it was
755
00:29:53,000 --> 00:29:58,039
fun and that concludes today's episode
756
00:29:55,480 --> 00:30:02,960
of the Cannabis law Now podcast until
757
00:29:58,039 --> 00:30:02,960
until next time stay alert stay alive