Council supports $20,000 licence fee
Seven cannabis shops set to open in Saskatoon this fall will be required to cough up a $20,000 initial business licence fee — 160 times more than the $125 most businesses in the city are asked to pay.
City council approved the fees — outlined in a new Cannabis Licence Bylaw — by a 6-5 vote on Monday afternoon.
Councillors then voted 8-2 in favour of the bylaw on Monday evening with Coun. Darren Hill absent.
Coun. Ann Iwanchuk described the $20,000 fee as “exorbitant” and proposed the initial business licence fee for cannabis shops be $500, which is the fee charged for new pawn shops.
“This does not make us a business-friendly community,” she said of the proposed $20,000 fee.
Hill said he has spoken with vendors who are preparing to open cannabis shops in the city and they told him they had anticipated paying business licence fees as high as $30,000 and expected to still bring in significant profits.
“The sector is fine with this,” Hill told the afternoon meeting.
Only Iwanchuk and Coun. Randy Donauer voted against the bylaw.
City administrators say the high fee is necessary because significant staff resources will be needed to regulate cannabis retail stores.
A report from the administration shared with city council Monday estimated the city has spent about $132,000 preparing for marijuana legalization since June 2017.
“It is anticipated that once legalization occurs, the use of staff resources will increase due to the additional services that will be provided to the business community and general public. This includes working with applicants to find an appropriate location that meets the City’s regulations, inspecting businesses to ensure regulations are being followed, and fielding questions from both business licence applicants and the public,” the report said.
Marijuana is scheduled to become legal in Canada on Oct. 17. The Saskatchewan government has issued 51 cannabis retail licences to individuals and businesses to operate cannabis stores in 32 locations in the province, including seven in Saskatoon and six in Regina.