New York Adult-Use Retail Dispensary License Fortune Telling: Insights from DASNY RFP | Vicente Sederberg LLP
The Dormitory Authority State of New York’s (DASNY) $200 million Social Equity Program hopes to develop Cannabis Conditional Adult Use (CAURD) retail dispensaries for Social Equity licensees. As part of this goal, DASNY has issued two Requests for Proposals (RFPs). The $50 million is expected to be recovered in license fees and revenue from the adult use industry and up to $150 million from the private sector. These funds will be used to:
-
Identify suitable locations for dispensaries
-
Acquire or lease space for dispensaries
-
Design and build the space based on business needs
-
Arrange the premises with furniture and other equipment
The RFP for “Design-Build Services for Retail Cannabis Dispensaries” released on May 13, 2022 paints a picture of what’s to come in New York.
To quickly recap, the Office of Cannabis Management (OCM) has the authority to create and regulate a social equity program (social equity fund program)”provide those harmed by the disproportionate application of cannabis laws with licenses to legally sell cannabis through conditional adult-use cannabis retail dispensaries in New York State.“DASNY is seeking proposals from qualified design-build teams to provide the design, construction and other services required to renovate existing spaces for CAURD facilities to be operated by Social Equity Licensees.
With that context out of the way, let’s take a look at the highlights of the DP.
What does New York expect?
Requirements for the number and size of dispensaries, timing
-
Build approximately 150 retail spaces
-
150 dispensaries will be built across the state
-
85 in the New York metropolitan area, including Long Island and Westchester
-
20-25 in Western New York
-
15-20 in the Hudson Valley/Capital District region
-
5 -10 in the North Country
-
5-10 in the southern part area
-
-
Dispensaries will be 3,000 to 5,000 square feet in size
-
All dispensaries will be completed within two years of contract execution
-
Layout and design features specific to each facility Won’t do involve feedback from CAURD licensees
Facility design
- Each facility and location will be designed specifically for its use, needs and site specific requirements. In general, the facilities will have spaces for:
-
Sales areas
-
Behind the house
-
Product receivables area
-
Cannabis processing workshop
-
Vault and/or secure reserve
-
Secure quarantine/waste room
-
Office space and general storage
-
Toilets and caretaker’s closet
-
Electrical/data/safety closet
-
Mechanical room
-
Break room
-
Safety master plan
- Facilities must have a security master plan, which includes:
-
Alarms (and backup alarm)
-
Motion detectors
-
Video cameras with 24 hour recording
-
Duress/panic/hold-up alarm at sales counter and glass break detectors
-
Automatic voice dialer or digital dialer
-
Failure notification system
-
Ability to remain operational during a power outage and maintain all safety equipment
-
Lighting the perimeter around the installation
-
Doors with pinless hinges
-
Secure network access
-
Additional expectations for facilities
-
A cannabis storage safe
-
Windows with exterior glazing systems that comply with NYS/NYC energy conservation building codes, privacy screens, roll-down security gates, and the use of ballistic glass may be required
-
Odor mitigation methods
-
Back-up system to provide continuous power
-
Car park
-
Exterior lighting
-
Building signage
-
Fire protection systems
-
HVAC
-
Network infrastructure
-
POS system/equipment
brand wall
- The facility will have a “brand wall”, which is a dedicated wall space in a prominent interior location to incorporate tenant branding
Although we do not yet have a final rulebook for CAURD licensing, the state plans to publish the Notice of RFP on July 11, 2022.
[View source.]