Opting out of cannabis stores a bad move

Illegal sales will rise as investment goes elsewhere, Jon Liedtke writes.

Dear Mayor Dilkens,

I’m not surprised you suggested opting out of private cannabis retail sales. Voting to opt out, however, won’t stop illegal sales. Instead, it will provide those who sell illegally with foundational support — primarily less competition — and more business.

Opting out also means illegal cannabis sold will not be sourced from federally licensed producers. Instead, those who sell cannabis illegally will source their product from illegal sources. Legal cannabis is licensed and regulated by Health Canada and is of course subject to inspections and recalls. If council votes to opt out, it could result in a loss of 400 direct jobs, plus spinoff jobs, based on industry averages for LCBO and Beer Stores (assuming Windsor would attract about 20 cannabis shops). Opting out will not force Premier Doug Ford to change legislation. Legislation was just implemented and enacted; there will be no changes to legislation any time soon. This is a fruitless battle. I’ve operated a cannabis business downtown for three years and can attest there are immense opportunities for cross-border tourism. There are 7.5 million American cannabis consumers who live within three hours of Windsor. Many have visited seeking to purchase legal cannabis, only to be disappointed, and many more contact my business on a daily basis inquiring. But you want to close the door to them. It’s really strange.

Look at Leamington, widely regarded across Canada as a top cannabis-producing region. Where do you think federally licensed cannabis producers want to locate? In a friendly jurisdiction, or one whose mayor speaks negatively about the industry, from its customers to producers? Where would cannabis workers and buyers want to live? Probably somewhere they’re wanted and valued. Canadians voted a prime minister into office with a mandate to legalize cannabis on a federal level, setting a global race to emulate his actions.

You should be rolling out a literal green carpet in an attempt to lure new investment and jobs. Numerous national chains are reportedly already looking at local real estate, but you don’t want their investment. There’s also your flip-flop: You were against cannabis stores, until you were for them ( just before the election), until you were against them. It’s hard to keep your head straight as a resident, let alone be an investor. There have been, and will be more, illicit cannabis stores locally. Currently people sell CBD illegally, some as a primary business function. Websites deliver illegal cannabis via Canada Post. Uber-type delivery services will likely soon exist. Voting to prohibit cannabis stores won’t stop illegal cannabis sales, it will only prohibit jobs and investment. On council inauguration night you said there was a need for economic diversification. So don’t close the door to economic diversification by prohibiting retail cannabis sales. According to Statistics Canada, the number of people employed in cannabis-related jobs in November increased 266 per cent from 12 months earlier. Why prohibit those jobs locally? Surrounding jurisdictions will vote to opt in. Even if only 20 per cent of Essex County decides to, they will derive 100 per cent of local legal cannabis sales.

Our local economy would see an immense benefit from opting in. Hotels would see increased occupancy, restaurants would be filled and tourism operators would seize on this opportunity. But local entrepreneurs will relocate to surrounding supportive jurisdictions if not supported. It’s absurd to ignore the numerous local ancillary businesses which would benefit: accountants, marketers, advertisers, banks, security companies, merchant service providers and more. Next time anyone hears you harp about economic diversification, I hope they know it’s a talking point.

I recently travelled to Winnipeg and visited a licensed cannabis retail store, replete with three BMWs, a Mercedes and a fresh-pressed juicing business in the parking lot. I was ID’d before entering the store, which looked like an Apple Store. Windsor would be lucky to have these businesses.

But you Mr. Mayor don’t want it. It’s strange.