New York State-licensed recreational cannabis dispensaries belatedly began bubbling up on the East End in recent months, but some proprietors report difficulty clearing bureaucratic hurdles during the local government permitting approval process.

Three state-licensed dispensaries opened last fall — Brown Budda in Hampton Bays, Strain Stars in Riverhead and Beleaf in Calverton. Their debut came more than a year after the Shinnecock Nation launched Little Beach Harvest dispensary on tribal territory in Southampton that set up shop more quickly because it is exempt from local zoning ordinances. At least nine more entities are applying to open cannabis dispensaries in the region, according to records obtained by Dan’s Papers under the Freedom of Information Law.

“I have reached out in several attempts get some assistance from (the state Office of Cannabis Management) on my red tape municipality issue in the Town of Southampton,” Brown Budda CEO Marquis Hayes wrote of his Tuckahoe establishment that is only open for curbside pickup and delivery, but not in-store sales. “I haven’t received a response yet that allows me to better my retail licensed spaced poised for delivery only while we await on the response of our special use permit application which we’ve submitted to the Town of Southampton back in June of 2024. We have been paying rent on a location that was inspected and approved by OCM since October of 2023. There is no instruction in the regulation or compliance regs that assist me in progressing from this long and economically cumbersome situation.”

The towns of Southampton, Riverhead, Brookhaven and Babylon are the only four LI municipalities to allow pot retailers in their jurisdiction, and the Town of Islip may vote to become the fifth in July. Since the state legalized recreational marijuana four years ago, the Cannabis Control Board (CCB) has awarded licenses to 36 entities to operate cannabis retailers in those Long Island jurisdictions, but only seven pot shops have opened as of this story.

Despite the difficulties some dispensaries say they have encountered, the state has been putting on a happy face.

“The ongoing approvals highlight our commitment to fostering a well-regulated and equitable cannabis industry,” said Tremaine Wright, who chairs the CCB. “We remain focused on ensuring a robust market that benefits entrepreneurs, consumers, and communities that have been disproportionately impacted by past cannabis prohibition.”

The agency did did not respond to a request for comment on the situation regarding Brown Budda, which was the first state-licensed dispensary to open on the East End.

Not all future pot shopkeepers appear as frustrated as Brown Budda. Brothers Sean and Joseph Lustberg, the Long Island-born entrepreneurs behind Mottz Green Grocer, are optimistic as they aim to transform an abandoned bank building at 93 E Montauk Highway in Hampton Bays into a proposed dispensary. That is despite facing what they say are significant upfront costs, including application fees, legal and compliance expenses, and maintaining rent on their Hampton Bays location for over a year while awaiting state approval — a hefty tab even for a duo that previously co-founded Upwise Capital, a nationally recognized small business lending firm.

“The vision for Mottz goes beyond just opening a dispensary,” said Sean Lustberg, co-founder of Mottz. “We want to revitalize a long-vacant building and turn it into a safe, professional, and welcoming space for the community. We believe in responsible cannabis access, and we’re committed to Hampton Bays’ long-term success.”

His business partner agreed.

“We’re not just bringing a business to Hampton Bays — we’re bringing an opportunity to revitalize the area, create jobs, and boost local commerce,” said Sean Lustberg, co-founder of Mottz. “We are proud to be part of the Hampton Bays community and are committed to ensuring that this dispensary is a positive addition to the town.”

OCM granted preliminary approval after confirming that the site complies with all distance requirements from schools and houses of worship, will operate under the state’s strict guidelines such as verifying customers are older than 21, 24/7 security, inventory tracking, and state-mandated community reinvestment fees, the company stated.

“Our dispensary will provide a safe, legal alternative to the unregulated cannabis market that currently exists in Hampton Bays,” said Joe Lustberg. “Cannabis dispensaries are tightly regulated spaces that prioritize public health, safety, and compliance with local laws. This is about providing a regulated option where the community can feel secure in knowing that every product is tested, safe, and professionally sold.”

The new dispensary will also support local economic growth by hiring local employees and sourcing products from nearby vendors whenever possible. That’s because in addition to the dispensaries, the state has also awarded licenses to about a dozen farmers who grow marijuana on the East End and cannabis manufacturing facilities, including Green Theory Labs, which was approved last month in Southampton. But regulations for New Yorkers growing recreational marijuana at their homes have yet to be codified.

Mottz’s application is currently under review by the Town Planning Board, and if approved, the dispensary aims to begin renovations immediately and hopes to open by the end of the year, the owners say.

“We are looking forward to collaborating with the town, community, and local neighboring businesses,” added Joseph Lustberg.

The Hamptons Collective has signaled progress on its journey to opening up shop as well.

“We’ve officially taken possession of our new space in Southampton,” the company posted recently on Instagram. “The journey has begun, build-out starts soon and we can’t wait to bring The Hamptons Collective to life.”

Brown Budda, Mottz, and The Hamptons Collective are not alone is navigating Southampton’s regulatory red tape. Proposed dispensaries that have also submitted applications pending before the town include Ashley Capraro in Water Mill, Southampton Deep Blue Sea in Tuckahoe, and Budhampton in Bridgehampton, which was the next furthest along, providing the town with answers to questions regarding missing portions of its application and site plan, according to town officials.

In the Town of Riverhead, two dispensaries opened within days of one another last fall: Beleaf in Calverton and Strain Stars in Riverhead, which is billed as the largest dispensary in the state by square footage and is the eastern satellite of LI’s first dispensary to open. The original Strain Stars is in Farmingdale.

“This isn’t just about selling cannabis, it’s about building community, giving back to our community,” Strain Stars CFO Jasmin Kaur said.

The company behind Planet Nugg, another Farmingdale dispensary, also have their sites set on the East End. Planet Nugg is preparing to launch The North Fork Cannabis Company in Aquebogue, which is proposed to be vineyard-style and expected to open by summer 2025.

“Our facility and property is so beautiful — you’d almost mistake us for a vineyard,” Planet Nugg owner Dave Tubens told the Long Island Press.

The proprietors of Beleaf similarly opened their first location in Brooklyn and have another planned for Medford.

Also winding their way through Riverhead’s application process are Coastal Green on Main Road Jamesport, GreenCulture in Aquebogue, Northern Light Dispensary in Aquebogue, and Zooties.

“It’s not a matter of if anymore, but when,” David Falkowski, owner of Open Minded Organics in Bridgehampton, previously told Dan’s Papers. “There’s no going back now.”