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Syracuse, N.Y — Five storefront retail shops in Syracuse, including two on Marshall Street near the Syracuse University campus, have been shut down after state agencies accused them of illegally selling or possessing marijuana.
The five shops were charged in the last few weeks by the state Office of Cannabis Management and the state Department of Taxation and Finance with selling marijuana without proper licenses.
Following those charges, the Syracuse Department of Code Enforcement cited each location as being unfit for human occupancy. That means the legal businesses operating there, including three legal smoke shops, a convenience store and a wireless store, are also shut down.
The five locations are:
- NY Exotic, a smoke shop, at 123 Marshall St.
- EXscape Exotic, a smoke shop and vape lounge, at 167 Marshall St.
- North Side Express, a convenience store, at 400 Wolf St.
- Smoke City 420, a smoke shop, at 1105 N. Salina St.
- T’s Wireless, at 401 S. Salina St.
All were inspected by the state agencies on Sept. 12 and found in violation of the law. The city codes office shut down the two Marshall Street locations on Sept. 21, and the other three on Monday.
A sign in the window of the SmokeCity 420 shop at 1105 N. Salina St. in Syracuse shows it has been accused by the state of illegally selling marijuana. (Don Cazentre | dcazentre@syracuse.com)
The crackdown in Syracuse represents a new tactic in the city’s effort to contain the growth of illicit cannabis shops since New York state legalized adult-use cannabis in 2021. The state has been slow to roll out its own legal and licensed shops, called dispensaries, allowing a gray market to thrive.
In Syracuse, the city codes office has attempted to close about a dozen such shops in the past year or so, but often found that they just popped up again.
The state, meanwhile, only began conducting inspections to identify illegal sellers in the past few months. State officials say the goal is to protect the legal market, which they say offers higher quality, lab-tested and safe products. (A recent investigation by NY Cannabis Insider, however, has found concerns about quality and safety in the legal market, including mold contamination).
The state’s action now gives the city the legal authority to declare the locations “unfit for human occupancy,” said Jake Dishaw, the Syracuse director of code enforcement. That means they can’t be used for any purpose until they work out a plan to be in legal compliance. They are also subject to fines.
“The difference now is that we are working together with the state agencies,” Dishaw said. He noted, for example, that his code inspectors do not have the expertise needed to test for illegal weed or the power to enforce state cannabis laws.
“Now the state can come in and find them in violation, and we can come back and since they are operating contrary to law, we can declare them unfit,” Dishaw said.
In the case of the two Marshall Street shops, Dishaw said, they had also drawn large crowds of people to the area in later hours, creating a potential nuisance situation.
A sign posted by the state cannabis office on the exterior of EXscape reads “Illegal cannabis seized” in big, bold letters. Another sign indicates the business, in the upstairs rear section of the building, has been declared “unfit for human occupancy” by the codes office.
No signs were visible at NY Exotic when syracuse.com visited the two locations on Sept. 22. There was evidence that a sign had been torn off of the plywood door that covered the entrance at NY Exotic.
The owners of the two shops could not be reached for comment.
Under New York’s 2021 marijuana legalization law, only licensed dispensaries can sell items containing THC derived from marijuana. CBD and other products derived from hemp cannabis have been legal longer and are covered under separate licenses.
Violation of the illicit marijuana sales law is roughly equivalent to a charge against a store that sells beer, wine or spirits without a state liquor license. The cannabis charge is considered a Class A misdemeanor, and can result in fines.
Business owners accused of violating the provision against illegal marijuana sales are entitled to a hearing with officials from the state cannabis office. The sign at EXscape did not indicate whether a hearing date has been assigned.
This sign on the EXscape smoke and vape shop at 167 Marshall St. indicates that it was declared unfit for occupancy by the Syracuse Department of Codes Enforcement. It was also inspected by the state Office of Cannabis Management on Sept. 12 and found to be illegally selling marijuana. (Don Cazentre | dcazentre@syracuse.com)
Owners of the properties found unfit for occupancy can also contest the findings through a hearing process with the city.
Ultimately, Dishaw said, the city’s goal is to work with property owners to operate businesses within the law.
The state’s roll-out of legal, licensed dispensaries has been beset by delays and disruptions, most recently a lawsuit which prompted a judge to issue an injunction halting most new openings. More than two years after marijuana became legal in New York, there are just 23 licensed dispensaries statewide.
The state Cannabis Control Board this month approved a new set of regulations that is expected to make more licenses available, for cultivation, processing, distribution and sales. Applications are expected to begin Oct. 4.
The inspections in Syracuse come as the state cannabis office has increased its crackdown on illicit marijuana sales in recent months. In May, state lawmakers and Gov. Kathy Hochul approved new legislation tightening enforcement of illicit sales. It allows for inspections, seizures, fines that can reach $20,000 a day plus possible tax penalties.
“The closures of these illicit shops in Syracuse are a testament to what’s possible when local and state law enforcement work together to protect New Yorkers from illicit sales and potentially unsafe cannabis,” Hochul said in a statement to syracuse.com. “The new cannabis enforcement law I signed earlier this year not only gave State agencies more power to go after illicit shops, but also have given more tools to localities to pursue action, and we’ve been urging localities to get in the game. I thank Mayor (Ben) Walsh for joining our effort to stop illicit cannabis sales and ensure that the market is fair and safe for all New Yorkers.”
In Syracuse, the Common Council in December 2022 also approved a new ordinance that gives the city the power to take unlicensed weed sellers to court, and potentially go after the landlords who own the properties.
The city has yet to use that law to shut down a business. But Dishaw said it could be used if the owner of one of the locations shut down attempts to defy the order.
“The No. 1 goal is to bring these properties into compliance,” he said. “But we do have that local law that we can bring into play if we need to.”
Don Cazentre writes for NYup.com, syracuse.com and The Post-Standard. Reach him at dcazentre@nyup.com, or follow him at NYup.com, on Twitter or Facebook.