Southampton moves to shut down upscale cannabis shop Charlie Fox with injunction

Southampton's town board unanimously voted Tuesday to file an injunction in New York state court to shut down Charlie Fox, a high-end cannabis retailer that opened last week in the Southampton area. Officials said the operation requires a local special-use permit even though the store holds a state cannabis license.

Co-founders James Mallios and Julia Levi said they would challenge the move, arguing that their state license should allow operation. "The town of Southampton isn't a country club or a co-op board. They can't keep us out. Their actions are harming a small business," Mallios told Side Dish. The town had issued a cease-and-desist order days earlier.

Town Attorney James Burke said that while the town did not opt out of the state's cannabis program by a 2021 deadline, local governments still require a special-use permit and a valid occupancy certificate. "The state's license doesn't supersede the town's approval. Every state approval is subject to local approval," Burke said. He added that if the court grants the injunction, the town hopes Charlie Fox will comply and the matter could then move on to a legal resolution. "If they would voluntarily shut down, we would work with them to help them open legally," Burke said.

Mallios contended that Southampton's leadership has shifted to officials who are intent on keeping pot shops out. He said the town's move reflects a broader effort to keep the product out of the area. He added that the business holds a license and would litigate to defend it. "We have a license; we will fight them in court," Mallios said.

Burke acknowledged the opt-out issue but emphasized that special-use permits are still required. "There are growing pains for everyone, including the state. The town can't be more strict, but we can mirror the state's regulations, which is what we will try to do," he said. He also noted the town contends Charlie Fox's certificate of occupancy is for a different use and may need refiling, with the planning board needing to issue a special permit.

Currently, the nearest legal cannabis option is on Shinnecock Indian Nation territory along Montauk Highway in Southampton, Burke said.

Two other operators — Brown Budda and Mottz Green Grocer — have filed lawsuits against Southampton alleging arbitrary barriers that prevent them from opening in violation of state cannabis laws. Charlie Fox has not filed suit.

State and local officials say there are growing pains as the town aligns local permitting with state cannabis regulations. Officials say the goal is to mirror state standards while maintaining local zoning controls.