Southampton pot shop Charlie Fox defies cease-and-desist, continues operating as regulatory fight escalates

A Southampton cannabis dispensary known as Charlie Fox defied a town cease-and-desist order by continuing to operate over the weekend, as officials prepared to pursue a court injunction to shutter the store. The shop opened Tuesday in Tuckahoe, a hamlet of Southampton, and was immediately cited by local code-enforcement officers for allegedly lacking zoning and renovation approvals required to operate. The town says the building remains unsafe and out of compliance with local rules, and officials have signaled that a court injunction could be sought to close it down permanently.

Town officials argued that the storefront should not be open while enforcement actions continue. Town Attorney James Burke said, "We don’t want people in an unsafe building," and asserted that the shop is "not permitted to operate" under existing local codes. He said the town has issued multiple warnings over the alleged violations and that a court injunction is being pursued to force a permanent shutdown. The legal standoff highlights friction between local zoning authorities and a state-licensed retailer seeking to operate under state cannabis rules.

Charlie Fox co-founder James Mallios told Newsday that the state’s licensing regime suffices and that no Southampton approvals are needed for the store to operate. "We’re fully licensed by New York state and need no permission from Southampton to open," Mallios said. He added that the business has submitted plans and traffic studies as part of a good-faith effort with the town but has been "slow-rolled" by officials. Mallios also asserted that the shop has a certificate of occupancy, though town officials contend the document Mallios presented dates to 1984 and is not valid for a cannabis operation, given renovations and a change-of-use in a regulated sector.

The state’s Office of Cannabis Management confirmed that Charlie Fox holds a valid state license and has met all state requirements, but stressed that dispensaries must also comply with local rules to operate and stay in compliance. Officials noted that if owners believe municipal regulations are overly burdensome, they can seek a ruling from the state Cannabis Control Board.

The dispute has also drawn in Brown Budda, another Southampton dispensary that has challenged the town’s regulatory posture as it seeks to open. The presence of multiple disputes underscores a broader tension in affluent Southampton between state-licensed cannabis retailers and local zoning and permitting processes that govern land use and building safety.

Opened Tuesday in a town that has long welcomed cannabis operators in theory, Charlie Fox has pressed ahead despite the enforcement actions and the looming possibility of a court-ordered shutdown. The timeline now hinges on whether the town can win a restraining order or whether the state—which regulates licensing—will provide a ruling that aligns local and state requirements. In the meantime, Charlie Fox remains an active storefront as the legal process unfolds, illustrating the evolving balance between state cannabis policy and municipal governance.

If the owners believe that local regulations are unduly burdensome, the Cannabis Control Board provides a mechanism to seek clarity or override, potentially shaping how similar cases are resolved in the future. The outcome of the Southampton dispute could influence the pace at which other state-licensed retailers navigate local zoning and occupancy requirements as they attempt to establish operations in high-end markets.