Since Launching in May 2024, “Operation Padlock to Protect” Has Sealed Nearly 1,400 Illegal Cannabis Businesses, Seized Over $95 Million in Illegal Products
Adams Administration Unveils Next Steps for Re-Opening Previously Padlocked Businesses as Legal Stores
Effort Builds on Record Number of Jobs and Small Businesses Achieved Under Adams Administration
“This time last year, there were thousands of illegal smoke shops plaguing our city with unlicensed cannabis endangering our children. One year later, we are proud to announce that we have turned the tide. Thanks to the tireless efforts by our city’s law enforcement officers, we’ve padlocked thousands of illegal shops and created safer streets for children and families,” said Mayor Adams. “But we’re not stopping there. The next step of our plan is to work with property owners to safely and legally re-open their vacant storefronts, replacing illegal smoke shops with pizzerias, bakeries, barber shops, retail stores, and other legal establishments. These businesses will help revitalize neighborhoods and help grow our record number of small businesses even higher. This is what it looks like when government comes together to solve real problems and create a safer, more affordable city for all New Yorkers.”
Since launching in May 2024, Operation Padlock to Protect has systematically conducted joint operations — which include inspections and follow-up inspections — in neighborhoods across the five boroughs. When illegal stores are ordered to be sealed, officers from local New York City Police Department precincts monitor those locations to ensure compliance and alert the Sheriff’s Office when violations of the seal order occur.
Record-high closures of illegal smoke shops have won widespread praise by New Yorkers who have applauded the Adams administration for taking decisive action on this public-safety and quality-of-life nuisance. Operation Padlock to Protect is another example of the Adams administration's efforts to double down on its commitment to swiftly shut down illegal operators, protect the city’s children, improve quality of life, and facilitate a safe and thriving legal cannabis market.
The Adams administration is also working to re-open shuttered storefronts as legal businesses. New York City is legally allowed to padlock storefronts for up to one year following a closure due to the sale of illegal product; as the city reaches the one-year mark of Operation Padlock to Protect, the New York City Sheriff’s Office will be working with landlords to unseal their properties and allow them to re-open with a new, legal business in their place. The city is notifying property owners of their next steps and urging them to contact the New York City Sheriff’s Office at (718) 707-2100 or email SmokeShopRelease@nyc.gov to schedule an appointment. The New York City Department of Finance will be mailing letters to the building owners and businesses with a secure code to present to the New York City Sheriff’s Office with detailed instructions.
In addition to closing illegal smoke shops to keep New Yorkers safe, the Adams administration has helped create a thriving legal cannabis industry as well through the launch of Cannabis NYC. Cannabis NYC has already engaged over 6,000 New Yorkers interested in the cannabis industry on its five-borough “Lift Off! Cannabis NYC” public education, listening, and outreach tour and over 200 New Yorkers have participated in the FastTrac for Cannabis Entrepreneurs sessions, which connect legal cannabis business owners and entrepreneurs with free, high-quality training and advice delivered by leading voices in the legal cannabis industry. Additionally, SBS’ NYC Business Solutions Centers offers free business courses, consultations, hiring assistance, and more through their cannabis account managers. SBS has provided over 1,400 cannabis consultations through the Business Solutions Centers network.
Legal cannabis sales in New York City topped $350 million last year alone and 160 legal, adult-use cannabis dispensaries have now opened across the five boroughs as of April 2025. These milestones come as the city’s landmark Cannabis NYC Loan Fund — which was launched in October 2024 in partnership with the New York City Economic Development Corporation — has disbursed $500,000 of its initial $2 million tranche to support early-stage cannabis businesses.
To bolster legal cannabis businesses even further and ensure equitable access to capital, the Cannabis NYC Loan Fund provides Conditional Adult-Use Retail Dispensary (CAURD) licensees with flexible loans of up to $100,000. There is no application fee, no minimum credit score, and a 36-month repayment period. The fund — administered by the cannabis-focused private equity firm Tuatara Capital — is once again open to applications from CAURD licensees to help cover the costs of start-up and ongoing operating expenses. Additionally, SBS provides support with commercial lease negotiations, permitting, and licensing through the NYC Business Express Service Team, and the NYC LEASE initiative helps to connect dispensary licensees with viable storefronts and education about state regulations.
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