City cannabis industry could soon employ 2,000, be worth $100 million

Edmonton could become the hub of a cannabis industry worth up to $100 million annually and employing 2,000 people in a couple of years, a city business official says.

“I do think the industry and its sectors will gravitate here because of the (provincial) privatization model and because the city is welcoming to all legal sectors,” senior business specialist Brad White said Friday.

“Industry is in our blood and agriculture is in our blood. I think we will be in a really good spot.”

White thinks transportation links, sunshine, plentiful water and good regulation mean Edmonton could become Canada’s main centre for the marijuana business.

This would help diversify the economy, with many local jobs expected in retail stores and creating products such as pot chocolates after Canada allows edibles next year, he said.

“The window of opportunity is only so big, and we want to get ahead of this,” said White, who has been working to develop an Edmonton medical and recreational cannabis industry since the federal Liberals were elected in 2015.

City council will hold public hearings next month to discuss proposed zoning changes to accommodate cannabis stores, which will be owned by private companies in Alberta, unlike some other provinces.

White, who spoke to the Edmonton chapter of NAIOP, the commercial real estate development association, said Canadian medical pot being exported to Europe is highly regarded and attracts premium prices.

Although the field has grown massively in Colorado since recreational weed was legalized in 2014 and now accounts for 18,000 jobs in Denver alone, banking restrictions are so onerous many companies must deal strictly in cash, he said.

He advised people setting up grow facilities in Edmonton to have $2 million available to cover delays in getting federal licences and high operating costs, such as upgraded ventilation systems and power consumption 10 times higher than other industrial buildings.

At the same time, more competition might lead to lower wholesale prices — a pound of pot has dropped to around $400 from about $1,200 since California allowed recreational consumption this year, he said.

Numerous niche businesses will develop in Edmonton once nonmedical cannabis is legalized in Canada this summer, providing work for lawyers, engineers, real estate agents, distributors and quality testers, he said.

Pot tourism hasn’t grown as expected in Colorado, but many firms encourage visitors as part of the branding crucial to developing a loyal customer base, he said.

White, who sits on civic and provincial committees looking at cannabis issues, said many people are waiting to see how the industry shakes out.

“One thing I learned from Denver, they said the first year will just be chaos, but a lot of places in the States and in Canada said we’re light years ahead in Edmonton.”