Albany

Albany County is suddenly set to become an epicenter of New York's budding medical marijuana industry.

On Friday, the state Department of Health granted five licenses to companies that will be allowed to grow and sell medicinal marijuana in New York. Each company is allowed to open four dispensaries — for a total of 20 statewide — and Albany County landed three of them.

Onondaga County also landed three. By contrast, the five boroughs of New York City will get a total of four dispensaries.

The dispensaries are expected to be in Albany's warehouse district, and in the towns of Colonie and Guilderland.

In addition, two manufacturing facilities where the product will be produced will be sited in the greater Capital Region, in Fulton and Warren counties.

"I am pleased that Albany County will have three dispensing sites to serve those who are certified to use medical marijuana," Albany County Executive Dan McCoy said in a statement. "This will also provide an economic boost with jobs created and with a percentage of money from medical marijuana sales coming to Albany County. That money will help us with property taxes and in providing programs and services to seniors, veterans and those who are struggling financially."

A spokesman for the state Department of Health said Albany County's central location, high population density, and the presence of Albany Medical Center — where many patients will be eligible for certification under the program — led many bidders vying for licenses to pitch Capital Region locations.

"We wanted to try to have geographic diversity while also meeting the needs of all patients," the Health Department spokesman said.

The program, based on a 2014 law strictly focused on providing marijuana for medical purposes rather than recreational uses, will make the drug available by January. The law allows those suffering from serious conditions such as AIDS, cancer or epilepsy to access the drug. It bars the smoking of marijuana, but does provide for other uses, such as inhaling it in vaporized form or eating it.

Advocates have been pushing for the program to begin even sooner in order to aid sick patients, which has brought a measure of urgency to the process.

The announcement of the five winners ends a whirlwind process to provide legal medicinal marijuana, which is already legal in about half of the states but remains illegal under federal law.

Of the three bidders that are opening dispensaries in Albany, two are set to also grow their product in the greater Capital Region.

One of them, Empire State Health Solutions, will produce the product at the Tryon Technology Park in Perth, Fulton County, and estimates more than 100 jobs will be created.

The company is planning to open its Albany County dispensary at 110 Wolf Road in Colonie, a company spokesman said.

The company is closely tied with Minnesota Medical Solutions, a leading cannabis-derived medicine producer in that state, which like New York has a program strictly based on medical use of the drug. Dr. Kyle Kingsley, CEO of Empire State Health Solutions, said in a statement that, "With our medical and scientific approach, in addition to our experience with medical cannabis in Minnesota, we have the expertise to produce medicine that doctors and patients can count on."

Besides Albany, Empire State also plans to open dispensaries in Broome, Westchester and Queens counties.

The other manufacturing facility in the greater Capital Region will be Etain, LLC's location in Warren County, which will create an estimated 60 to 85 jobs.

There are also plans to open a dispensary at 402 N. Pearl St. in Albany in the Warehouse District, not far from a strip of bars, restaurants and limited retail that over the past decade have transformed the neighborhood. The Albany Common Council recently passed a unanimous resolution in support of the plan.

Etain stands out in a male-dominated industry: It is led by two women in their mid-20s along with their mother, Amy Peckham, who is married to John Peckham, the CEO of the White Plains-based construction company Peckham Industries.

On Facebook, the company called the development a "huge victory for us, for women-owned and family-owned businesses, and for New York State."

Etain, a subsidiary of Peckham Industries, is also planning on opening dispensaries in Ulster, Westchester and Onondaga counties.

Records show the parent company has been politically active, with the Peckham Industries political action committee giving Gov. Andrew Cuomo $12,000 though six donations since 2010.

The third company opening a dispensary in Albany County is PharmaCann LLC, which has previously operated in Illinois. An employee of the company said Friday that the dispensary would be located at 10 Executive Park Drive in Guilderland, near Stuyvesant Plaza. It also plans to open dispensaries in Erie and Onondaga counties, and in the Bronx.

The other two winning bidders were Bloomfield Industries, which will manufacture in Queens and have dispensaries in Nassau, New York, Onondaga and Erie counties; and Columbia Care NY LLC, which will manufacture in Monroe County, and have dispensaries in New York, Suffolk, Clinton, and Monroe counties.

Applications from 43 bidders running to thousands of pages were received by the state Department of Health in early June.

During the process, questions were raised by the Times Union and other media about the backgrounds of some of the bidders, and about a bidding process that offered little information about the applicants.

The bidders' applications remain hidden from public view.

More Information License winners Here are the five medical marijuana licensees selected by the state Department of Health: Bloomfield Industries Inc. Manufacturing facility: Queens County Dispensing facilities in counties: Nassau, New York, Onondaga, Erie Columbia Care NY LLC: Manufacturing facility: Monroe County Dispensing facilities in counties: New York, Suffolk, Clinton, Monroe Empire State Health Solutions Manufacturing facility: Fulton County Dispensing facilities in counties: Broome, Albany, Westchester, Queens Etain, LLC Manufacturing facility: Warren County Dispensing facilities in counties: Albany, Ulster, Westchester, Onondaga PharmaCann LLC Manufacturing facility: Orange County Dispensing facilities in counties: Erie, Onondaga, Albany, Bronx See More Collapse

While several bidders had close political connections to Cuomo, the winners announced Friday largely escaped press scrutiny, and did not appear to have deep connections to the governor.

In a statement Friday, state Health Commissioner Howard Zucker said the winning bidders had "showed, through a rigorous and comprehensive evaluation process, they are best suited to produce and provide quality medical marijuana to eligible New Yorkers in need, and to comply with New York's strict program requirements."

Not everyone was pleased with all aspects of the outcome. Advocates for medicinal marijuana have long worried that allowing only 20 dispensaries across a state as large as New York would make it difficult for sick, and especially disabled or low-income patients, to receive care.

Evan Nison, director of the NY Cannabis Alliance, said that putting three in Albany County would shortchange other areas in New York.

"It's definitely excessive," Nison said. "If you're only going to have 20, you have to make sure they're accessible to all parts across the state."

cbragg@timesunion.com • 518-454-5303 • @chrisbragg1