Schenectady Council Considers 90-Day Pause on New Marijuana Dispensaries

This consideration comes in ‍the wake of the People’s Joint cannabis dispensary’s inauguration in September, located in a prime downtown spot at 501 State St. The council is​ now deliberating on restricting the future locations of‌ cannabis outlets‌ within the city.

As per the state Office of Cannabis ⁤Management‌ (OCM), there are currently eight ‍active cannabis licenses in the ‍city, all at‍ different stages of development. The People’s Joint and the city’s first cannabis dispensary, Upstate Canna​ Co., which opened its doors on upper ⁢Union Street in March 2023, are the first operational ⁣retail sites in Schenectady.

Eight more ‌dispensary licenses are⁣ pending in ⁢the city. If⁢ the council decides⁢ to impose zoning restrictions on future dispensaries, the existing dispensaries‍ and projects with applications would be exempt from these potential changes.

During the council’s Monday night City Development and ⁢Planning Committee meeting,​ Assistant Corporation Counsel Sean O’Brien suggested that, given the number of impending cannabis shops in the city, it might be an opportune time to implement a 90-day moratorium while the council explores potential zoning changes.

“The pace has shifted,” O’Brien commented on the number ‌of applications. “I believe this is an appropriate time to hit ⁤the pause button and consider whether you⁤ want to zone these in the same manner as the⁣ smoke and vape​ shops.”

The council agreed on Monday ⁣to schedule a public hearing during its ‌meeting on Oct. 14, with a potential vote on the ‌moratorium in November.

City Council President Marion Porterfield suggested on Wednesday that the city could look into‌ overlay zoning similar to the restrictions placed on smoke and vape shops. She noted that the council has received feedback from neighborhood groups about the possible proliferation ⁢of dispensaries in the city.

“Residents from various neighborhoods have voiced concerns about these⁤ establishments ⁣being located in their vicinity,” Porterfield said. “So it’s not just about prominent places downtown, which do play a role​ in⁢ this. ‍But ⁤what also matters is ‌the⁤ location and the number of potential shops that could be within neighborhoods.”

In June,‌ the council approved zoning that confines smoke and vape shops ⁣to the C-4 downtown mixed-use district, the C-5 business district, the M-1 light manufacturing and warehousing district, and the M-2 manufacturing ⁣and ​warehousing district.

Smoke ​shops are prohibited in residential areas and cannot be situated within 1,000 feet of another smoke shop.

State regulations forbid cannabis dispensaries from being located within 500 feet of a school or on the same ​street as a school, within 200 feet of a house of worship, or 1,000‍ feet of another dispensary.

Municipalities are allowed to adopt local laws‌ that define ⁤the permissible location for ⁤cannabis dispensaries‍ in a ‍given city, provided ⁢the restrictions do not conflict with ‍state law.

“I want ⁢to‍ ensure that we’re in compliance with the state, but also ⁤managing our ability to locate ⁢these establishments in our‌ code,” O’Brien said on Monday.

Porterfield asked O’Brien during the Monday meeting‌ to further investigate ⁢state law to ensure that any zoning changes adopted by the council ⁤would not violate state regulations.

“That is ‍a priority, because we can’t make decisions that supersede what the ⁢state regulations are,” Porterfield said on Wednesday.

Last month, the city of Amsterdam passed its own 90-day moratorium on new cannabis shops while it works ‍on⁤ its zoning regulations.

Facing a state deadline in December 2021, the Schenectady City Council ⁤decided not to opt out of recreational cannabis sales, with ⁣Porterfield opposing the ⁢decision at the time.

“I wanted to opt out just so we wouldn’t be here,” Porterfield said on Monday. “I ⁢didn’t know ⁤we’d be exactly here, ⁣but we are here now and now we have to try to figure out ‍a remedy.”

Councilwoman Carmel Patrick said during the meeting,​ had the City Council had more information regarding cannabis dispensaries prior to that 2021 vote, a different ⁢outcome ⁤may have ‌transpired.

“It’s been very ​fluid and dynamic‌ and I think some of our decisions might have been different had we had a clearer picture from the start,” Patrick said.

Councilwoman Doreen Ditoro, a consistent supporter ⁣of⁢ the smoke shop zoning restrictions, expressed her support for the 90-day cannabis moratorium but noted that revenue⁢ that Schenectady is collecting from cannabis taxes is substantial.

The city is‌ projected to collect $850,000 in cannabis excise tax revenue in‌ 2025, up from the $300,000 in​ cannabis revenue the city received ‍in 2024.

“I do like the revenue,” Ditoro said during the meeting.

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