10-Jan-20 – Clark Street in Wrigleyville and Andersonville was backed up with traffic like that seen during a Cubs sell-out weekend. The foot traffic on the street reminded some retailers of what is experienced on Michigan Avenue during the holiday sales season. And the long lines of people that ran down the block and wrapped around corners made one think that tickets were on sale for a Beatles reunion concert.

The street scene was a result of the first day of legal sales of recreational marijuana in Illinois that went “extraordinarily well,” according to an industry representative, with total sales on January 1 topping $3.1 million.

“I just cannot express the gratitude from the dispensary operators to our customers about their courtesy and civility and patience. It was really a lovely, very successful rollout, I think, on the first day,” said Pamela Althoff (left), executive director of Cannabis Business Association of Illinois.

On New Year’s Day, Illinois became the 11th state to allow legal sales of recreational marijuana to adults. As the clock ticked down to midnight on New Year’s Eve, many dispensaries were reporting long lines outside their stores, in some cases stretching around the block.

In Wrigleyville, Sunnyside Dispensary at 3812 North Clark Street, formerly MedMar, sold $250 gold tickets, Willie Wonka-style, giving 25 people a chance to be first in line on January 1. Lines there were still wrapped around the corner on Grace Street in the darkness late on January 2.

At Dispensary 33, 5001 North Clark Street, customers stood in a line that led south to St. Boniface Catholic Cemetery.

In Rogers Park, while there is a medical marijuana dispensary, GreenGate at 7305 North Rogers Avenue, the community will not get a legal, over-the-counter retail recreational pot dispensary anytime soon. According to the Illinois Cannabis Regulation and Tax Act, the law legalizing recreational marijuana, parts of the state were designated Disproportionately Impacted Areas (DIA) – communities historically impacted by the criminalization of marijuana. Parts of Rogers Park, between Howard Street and Touhy Avenue and between Pratt Boulevard and Devon Avenue, are designated DIAs.

Dispensaries with owners or employees who live in these areas or have been arrested for cannabis-related crimes are called social equity applicants and qualify for extra benefits, including technical support and reduced fees for licensing. Social equity applicants only pay $2,500 to apply and $30,000 for the license. Despite the incentives, there has been a low turnout of social equity applicants.

While there were a few dispensaries ready and able to sell pot on January 1, other hopeful sellers are now rallying to open additional stores on the North Side. State records show that six companies have already submitted a total of 20 locations for the next 13 dispensaries set to open citywide, although some companies have filed multiple addresses, most likely in case one or more of their proposed locations get rejected. These new shops will be standalone dispensaries where licenses are not contingent on them selling medical marijuana.

Long lines but few snags on first day

The Illinois Cannabis Regulation and Tax Act, passed during the 2019 Illinois legislative session, legalized the sale, possession, and use of marijuana for people 21 and older. Former State Senator Toi Hutchinson, an architect of the law who now serves as Governor J.B. Pritzker’s senior advisor for cannabis control, said dispensaries across the state conducted 77,128 transactions on January 1, with sales totaling more than $3.1 million.

That happened despite a few snags on opening day, according to Althoff. Issues with computer software that dispensaries use at the point of sale, she said, related to how medical sales and recreational sales are taxed differently, contributed to long wait times.

“There were a few glitches, not everywhere, but in a few of the dispensaries,” said Althoff. “My understanding is that they were rapidly corrected, but it did add to some of the wait times that people experienced.”

In addition, she said, many dispensary operators had made design changes to their stores to accommodate a larger retail clientele, but state officials had not yet inspected all those changes and some dispensaries were unable to open for recreational sales on January 1.

And then there were issues of supply. Under the new law, Althoff said, medical dispensaries, which were the first to receive licenses for recreational sales, are required to keep a 30-day supply of marijuana products for their medical customers, leaving only a limited inventory available for recreational customers. She said supply shortages are expected to continue until April or May, when cultivation centers that have been licensed to grow recreational marijuana reap their first crop.

January 2 was the deadline to submit applications for the next wave of dispensary licenses. As many as 75 new licenses will be issued on May 1, with priority given to social equity applicants.