Penticton pot shops set to pay Okanagan’s highest fees
Penticton is on track to have the highest annual business licence fees for retail cannabis stores in the Okanagan.
Staff presented council Tuesday with a snapshot of draft regulations outlining their recommendations for a $2,500 application fee and an annual business licence fee of $5,000.
Among other Okanagan communities that have already set their annual fees, the costs range from $400 in Summerland to $2,000 in Vernon. Kelowna hasn’t yet established an annual business licence fee, but the one-time application cost is in the range of $10,000.
Planning manager Blake Laven told council the city is justifying the hefty fee to cover anticipated work for staff.
“Partly it’s setting up our internal ability to inspect the stores,” said Laven.
The fee would also cover legal costs the city incurred in order to shut down illegal pot shops, both past and future.
“I don’t think there’s anything normal about cannabis retail,” Laven said when asked whether or not business owners are typically responsible to cover the city policing them. Liquor stores and bars in Penticton are only required to pay the typical $175 annual business licence fee.
Laven also proposed to council an outright prohibition on cannabis stores along Main and Front streets, an idea that appeared to split council.
Coun. Judy Sentes said she was discouraged to hear there was concern that pot shops would be an eyesore on both streets, citing comments she’s heard about the store in Kamloops and the professionalism it entails.
On the other hand, “We have some shops that are a little bit suspect on Main Street already,” she said.
She added that the Downtown Penticton Association has yet to offer its thoughts as its membership is currently divided on the issue.
Coun. Katie Robinson admitted she had little knowledge on the topic and would proceed with caution while trusting staff’s recommendations.
Coun. Campbell Watt favoured Sentes’ side, stating the city should allow the market to determine where stores end up.
“I don’t like putting a lot of restrictions on businesses,” stated Coun. Julius Bloomfield. “I believe in the free market.”
He added that allowing for easier access would promote legal sale of the product.
Coun. Jake Kimberley appeared convinced that stores would cause an out-of-control situation in the downtown core.
“You don’t want to encourage that operation downtown because there will be abuse . . . you just can’t avoid that,” he said.
Laven told council the city has already received one letter of interest from the province for a cannabis store in Penticton and seven referrals for privately run stores.
Those will be reviewed after Jan. 1, he added, once the window for applications has closed.
Council appeared to unanimously agree that buffer zones between schools and pot shops should be 300 metres.
The full proposed cannabis regulation framework will go before council for discussion on Dec. 4.