Pot store licences: How much?
While the city expects to charge on the higher end of local norms, officials agree pricing too high doesn’t make much sense
The question of where retail cannabis shops could operate in Medicine Hat could be finalized next month.
How much it will cost them however, won’t be answered until after labour day.
But city officials say their recommendation for a business licence fee won’t be near the $20,000 per store the City of Saskatoon council approved this week.
“It will be on the higher side of the fees we charge, and that’s based on the high cost of implementing this program,” said Kent Snyder, the city’s manager of planning and business services, on Wednesday.
His office is scheduling an amendment to the licensing bylaw to be before council in early September.
The highest-priced licence currently in the city is for escort agencies, and range from $2,653 to $5,147 based on several factors.
A general business licence, like those for many retailers, will cost $89.95 on Jan. 1, 2019, or $720.55 for non residents.
A proposed map of where stores offering the soon-to-belegalized substance will be debated at city council’s July 16 meeting. If approved that day, it would give applicants for provincial licensing about 90 days to finalize that process, and have local business inspections done before a Oct. 17 legalization day.
It all comes after an indepth process at city hall to engage the community, industry and other levels of government about rules developed over the past year, or in some cases still being decided.
Saskatoon city councillors approved their $20,000 fee this week with an 8-2 majority, arguing $150,000 was spent to develop and draft bylaws and, in general, policing costs could rise by $500,000. That council will debate a lower renewal fee in the future.
Two local city councillors said a $20,000 licensing fee — about four times the next highest business licence cost in Medicine Hat — seemed inordinate.
“The bottom line is that it’s a legal product,” said Coun. Darren Hirsch. “It’s probably not the wisest move (to have a similar fee in Medicine Hat).”
“That would block a lot of people from getting into the business,” Coun. Brian Varga remarked after Wednesday’s planning commission meeting.
Just how many local licences will be issued is also a question.
Saskatchewan’s liquor and gaming authority approved 51 retail permits on June for the entire province, including only seven in Saskatoon, a city of 257,000 citizens.
There’s no indication from Alberta officials about how many licences might be approved, and according to a local zoning approval, planners aren’t suggesting a limit, though it notes council may consider one.
About a dozen applications that list a Medicine Hat address have been filed with the AGLC and added to a list subject to a 21-day period to gather public objections.
Snyder expects business licensing bylaws to be updated in early September, about six weeks before federal legislation takes effect Oct. 17.
The proposed retail zoning map in Medicine Hat would restricts the shops to mostly major commercial corridors, light industrial areas and the downtown.
Officials with the city building inspection office told the News that the office would only inspect to approve construction work and occupancy permits. Any provincial standards for security or other measures would be certified by Alberta Gaming and Liqour inspectors.