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Manhattan Cannabis Consumption Lounge and Dispensary Halted Over 1,000-Foot Rule

The famed Nat Sherman Townhouse is due for a revival.  For those unaware of its history, Nat Sherman was a line of cigars that were sold out of the Nat Sherman Townhouse on 42nd Street in Manhattan for almost 90 years. The storefront permanently closed in the midst of the pandemic in September 2020.

Recent conditional adult use retail dispensary (“CAURD”) licensees the Polanco Brothers, have sought to open a dispensary and consumption lounge in the Nat Sherman Townhouse – a prime location for any store, let alone a licensed dispensary and lounge.

However, the brothers have been denied their application by the Office of Cannabis Management (the “OCM”) because of the 1,000-foot rule.  A quick refresher, the 1,000-foot rule was part of the OCM’s guidance for adult-use retail dispensaries and states in part:

Unless explicitly approved otherwise by the Office, a dispensary cannot be located anywhere within a certain radius of another premises that is already licensed as an adult-use retail dispensary or is a medical cannabis dispensing facility operated by a registered organization (RO). The size of that radius depends on the population of the city, town, or village that the new dispensary will be located in and

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