BUFFALO, N.Y. -- Canterra is a prospective Buffalo dispensary that was originally planning to build downtown.
Founder Matt Krupp said there were complications with that location though so his group pivoted and recently received approval from both the state and city to open what would be the first licensed shop in the city's busy Elmwood Village.
"Really this Elmwood Village has a great vibe and a great community sense and those were two very important things that we looked for when selecting a space," Krupp said.
He acknowledged there have been some challenges to get to this point. However, Krupp said he was never really worried when a judge earlier this week issued a decision that originally appeared to void most of the Office of Cannabis Management's administrative regulations.
"I knew that it was only going to pertain to the third-party advertising, you know with those kind of DoorDash models where a company wants to market and sell, quote-unquote sell the cannabis and then kind of farm that order out to a dispensary to actually fulfill it," Krupp said.
Not everybody was so confident. Cannabis regulatory and compliance consultant Kate Hruby said she spent a large part of Thursday fielding calls from clients.
"The questions were what do we do. Do we continue to operate? Do we have to close down? (There were) serious concerns, especially for folks that are competing right now with illicit shops," Hruby said.
Ultimately the judge issued a revised decision clarifying the voided regulations were specific to third-party marketing. The ruling raised First Amendment questions as well as issues with the Office of Cannabis Management's administrative record.
Hodgson Russ LLP Cannabis and Hemp Group Leader PJ Hines said while the state could appeal, or take action to try to address the problems, it could also open the door for more lawsuits.
"Certainly, procedurally and substantively, this could serve as a roadmap for anyone else who wants to challenge regulations," Hines said.
For now, the ruling should allow dispensaries to partner more with third-party platforms like Leafly, who brought the lawsuit, and Weedmaps. Both have a similar model as DoorDash for food, and the decision could potentitally even allow them to offer third-party delivery service if the state licenses them.
"I think this will increase competition and allow our legal licensed operators to compete better in the marketplace," Hruby said.
Krupp, who also runs a licensed delivery business, said rather than worry about new competition, he believes the platforms could actually allow dispensaries like he is launching to reach a broader customer base.
"I think that it's important that they continue to address and revise these regulations. That's kind of what makes the whole political systems great is that as you go you can see what works, what doesn't work and kind of make those adjustments," Krupp said.
He hopes to open the brick and mortar location in roughly six months.