Riverhead faces second lawsuit over cannabis zoning setback rule

The Setback Standard at Issue

Riverhead's zoning code requires cannabis dispensaries to maintain 1,000 feet of separation from schools, parks, and religious institutions. The rule, adopted in 2023, mirrors setback policies enacted by dozens of New York municipalities after the state legalized adult-use sales in 2021. Critics say overlapping buffers leave few viable retail parcels in suburban and exurban towns.

The plaintiff—a prospective dispensary operator whose application was denied—claims the ordinance violates New York's Cannabis Law, which grants the state Office of Cannabis Management (OCM) sole authority over retail licensing. Local governments may regulate time, place, and manner. They can't impose restrictions that amount to a de facto ban.

Second Challenge in Eight Months

This is the second active lawsuit against Riverhead's cannabis zoning. A separate complaint filed in December 2025 raised similar preemption arguments and remains in discovery. It involves a different applicant whose proposed site was also rejected under the setback rule.

Riverhead Town Attorney Robert Kozakiewicz declined to comment on pending litigation. The town has previously defended its ordinance as a legitimate exercise of local land-use authority, citing public-safety concerns and community input during the rulemaking process.

What to Watch

Both cases are expected to hinge on whether Riverhead's setback is lawful zoning or an unlawful barrier to market entry. New York courts haven't yet issued definitive guidance on how far municipalities can go in restricting dispensary locations. A ruling against Riverhead could force the town to redraw its zoning map. It might also trigger OCM intervention.

For full background on this story, see the CannIntel topic hub on New York cannabis zoning. Enforcement of local setback rules remains uneven statewide—some towns face legal pushback, others operate unchallenged.