Cannabis, gasoline sales transforming Shinnecock, Unkechaug tribal economies

Cannabis and gasoline sales are transforming Long Island’s two major Indian territories, increasing investment and employment in areas long beset by the lack of both, though some say prosperity from the business has been slow in coming.

A year after the Shinnecock Nation began a full-scale licensing operation and opened one of the region’s largest cannabis dispensaries, called Little Beach Harvest, most of the dozen cannabis shops on tribal territory on Montauk Highway in Southampton have seen major upgrades or new buildings. Dozens of tribe members have been put to work in shops, tribal officials said. And sales have seen a steady but slow upward trajectory, shop owners, vendors and tribal leaders say. 

The transformation has been more apparent at the 55-acre Poospatuck territory in Mastic, where the state-recognized Unkechaug Indian Nation has been operating tax-reduced gasoline stations for years, and where cannabis sales have transformed the territory in just over a year. There are new brands and new shops, and older shops have been updated.

Tribal leaders say that while the businesses are growing, more needs to be done to coordinate tribal business with state-licensed facilities, and some worry that intertribal sales and commerce could be subject to enforcement crackdowns. The Shinnecock Nation, which earlier this year broke ground on its first gas station, has faced some resistance from residents in clearing a large parcel of tribal land along Sunrise Highway.

"It’s all a work in progress," said Lance Gumbs, vice chairman of the Shinnecock council of trustees, who also owns the Shinnecock Smoke Shop, which sells cannabis. "It’s all so new. It’s not like the cigarette market where you had your basic brands. This [cannabis industry] is an ever-changing market, you can have a whole new set of brands ... You have to try to figure out what people want."

Shinnecock shops also have been challenged by the seasonal nature of business in general in Southampton, where more than half the population departs at the end of summer. "Some of the shops didn’t recognize the fact that we don’t have the summer crowd year-round," Gumbs said.

Shinnecock member Chuck Randall, who one year ago launched a cannabis edibles business called Eastern Botanicals, said that in addition to the local challenges, New York State has limited tribal business by limiting tribal access to state-licensed cannabis businesses. That’s kept his business primarily local.

"I have a niche market for quality tested products, but I can’t get to the 17 million people in New York State," Randall said. "So I’m selling exclusively at Little Beach, because my [tribal] license doesn’t permit me to sell otherwise."

Despite crackdowns across the state on shops that don't have state cannabis licenses, New York has not directly impeded tribal sales on reservations across the state. The state's Office of Cannabis Management, in a previous statement to Newsday, said: "Native Americans living on federally recognized, sovereign tribal land can choose to operate dispensaries that are not regulated under the New York State cannabis law, which has been done in other states that have legalized cannabis." 

The cannabis management office also noted it has "the ability to enter into agreements with tribes through tribal compacts to integrate them into the state program if all parties can agree to terms," though such an agreement has yet to be reached with the Shinnecock Nation. 

The gasoline- and cannabis-industry transformation has been more dramatic at the Poospatuck Indian territory in Mastic, which now has four multi-bay gas stations and well over a dozen cannabis shops, including two-story dispensaries, and even an eatery for cannabis-infused food.

New shops have sprung up on the main road, Poospatuck Lane, where street hawkers entice visitors into shops. Tents offering samples are on the roadside, and slick new brands with names such as Rez Life, Green Magic and Green House dot the landscape.

Some shops offer delivery, such as EZbud.com, which has a website that takes orders 24/7.

Native Land Dispensary is one of the larger new shops, with a tall orange edifice in the center of town. The Tipi Café offers "innovative cuisine, and a welcoming environment" dedicated to "quality, safety, and taste, continuously pushing boundaries to inspire and delight our patrons," who are urged to "relax, connect, and enjoy, fostering a sense of belonging and discovery."

Most shopkeepers declined to comment or didn’t return calls seeking comment.

Unkechaug Chief Harry Wallace acknowledged the smoke-shop business in general has transformed the tribe and the Poospatuck territory, but declined to speak to the cannabis business specifically.

"Physically, we used to be a trailer park," he said. "That no longer exists because of revenue generated by the business. It started with tobacco and it has improved from there."

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.