1/ Last June, Gov. Hochul announced a $200 million public-private fund to finance legal dispensaries run by New Yorkers most impacted by drug laws. But @THECITYNY obtained documents that show the state signed off on a lopsided deal benefitting private equity. 🧵
2/ A cache of documents and a near-final draft of the deal revealed the agreement would undermine New York’s social equity goals while guaranteeing that its private equity partner, Chicago Atlantic Group, would receive substantial returns. thecity.nyc/2024/04/24/can…
3/ Chicago Atlantic will loan the fund $50 million at a 15% interest rate, all of it guaranteed by the state should retailers default, the terms reviewed by @THECITYNY reveal.
4/ “It’s a handout to private equity,” said Eli Northrup, a lawyer for the Bronx Defenders and Director of The Bronx Cannabis Hub, which advises people applying for licenses.
5/ In response, Chicago Atlantic and the state’s investment fund said its interest rates “are far below the rates typically available to start-ups, let alone start-ups in the cannabis industry.”
6/ You can read the details of our investigation here: thecity.nyc/2024/04/24/can…
7/ And you can sign up for our weekday newsletter where we share our investigations, including the latest surrounding New York City’s legal weed policy, here: thecity.nyc/the-scoop/