Kelowna city council has approved an annual business licence fee of $9,465 for new cannabis retail stores. —Image: Capital News file

Price of selling pot in Kelowna won’t be cheap

City sets annual business licence fee for cannabis retail stores at $9,465

The price of selling pot in Kelowna will be steep.

After setting the fee to have property rezoned to allow a retail cannabis store to operate in the city at $10,450 —$1,000 of that just to have the application considered for the rezoning—city council has set the annual business licence fee for pot shops at $9,465.

City licensing manager Greg Wise told council Monday the fees are aimed at cost recovery for the city.

He said given the cost to the city so far to deal with the issue of retail sale of cannabis now that it is legal in Canada, at least 12 stores will have to be approved for the city to recoup its costs.

RELATED: Opening a pot shop in Kelowna will be costly

So far, the city has has received 41 applications for rezonings. They will be sent to a committee set up to vet them and the ones deemed viable will then go through the rezoning process.

Questioned by Coun. Charlie Hodge about the annual licence fee, Wise said while some other cities, like Vernon, Penticton and Kamloops will charge $5,000 a year for a business licence, others like Vancouver will charge much more. Vancouver’s licence fee is $30,000 per year.

But Hodge was not convinced.

Calling Kelowna’s fee “outrageous” and a “cash cow” for the city, he was the only member of council to vote against the regulations governing cannabis stores presented to council by Wise. The regulations include the licence fee.

Under the new city regulations, four types of cannabis-related licence fees will be applied, including ones for:

• Retail stores selling cannabis

• Retail accessory stores selling cannabis-related products but not cannabis itself

• Cannabis-related businesses providing services related to the promotion of the sale of cannabis, but not the product itself

• Cannabis counselling services

Wise said under provincial rules accessories, counselling and business advice cannot be offered in the same store as cannabis itself.

The city plans to review the fees approved Monday in two years.

Meanwhile, the city says its unlikely Kelowna will see its first legal cannabis retail store open before the end of April.

2019.

To report a typo, email:
newstips@kelownacapnews.com
.


@KelownaCapNews
newstips@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Morning Start: The Exorcist film set was haunted

Your morning start for Tuesday, Aug. 11, 2020

No new COVID-19 cases in Kelowna over the weekend

Kelowna has nine of the Interior Health region’s 13 active cases

West Kelowna woman upset with RCMP response to street brawl

A physical altercation between a group of teens and a group of adults erupted on a West Kelowna street Sunday evening

UPDATE: Missing Kelowna teen located

Police are still looking to speak with the unidentified man she was spotted with

B.C. records 30-50 new COVID-19 cases a day over weekend, no new deaths

Many of those testing positive were identified by contact tracing for being linked to other confirmed infections

Sky’s no limit for 15-year-old Okanagan pilot

Young Kensington Hewson gets pilots licence before she can drive

Over half of Americans oppose Trump tariff on Canadian aluminum: survey

The survey was conducted Aug. 7 to 9 among 1,513 Canadians and 1,003 Americans

Oh baby, what a birthday gift: $2.8M raised to help B.C. boy with rare disease

‘We are very thankful to everybody,’ Aryan Deol’s father says

‘Huckleberry’ the bear killed after B.C. residents admit to leaving garbage out for videos

North Shore Black Bear Society said it was local residents who created a ‘death sentence’ for bear

Police investigating after insults, expletives yelled at federal minister’s staff

A 90-second video circulating on social media appears to have been shot by the person who was yelling

Lost dog reunited with family 3 months after going missing on remote B.C. trail

‘The poor thing was skin and bones,’ says one of its Vancouver Island rescuers

5 B.C. First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

B.C. marine ecologist wants Canada to sink its teeth into shark protection

Gulf Islands scientist says top predator under shocking threat from human behaviour

Most Read