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Saskatoon’s legal cannabis stores could be getting a break on their business licencing renewal fees.
City council’s planning, development and community services committee voted Monday to reduce the fee from $10,000 to $500, following an administrative recommendation.
The move comes after a review that was promised a year ago when council endorsed the $10,000 renewal fee, along with a $20,000 initial licencing fee.
City staff noted in a report that staffing requirements related to licencing the now-legal cannabis industry have not been as extensive as they first anticipated, though enforcement on unlicenced pot shops continues to be a challenge.
They recommended the $500 price tag as a way to offset some of those enforcement costs.
Before the $500 fee was approved, Coun. Ann Iwanchuk put forward a motion to bring the fee in line with other businesses across Saskatoon with a fee of $85.
She noted there was “no compelling reason” why the fees needed to be any higher than they are for alcohol outlets, which also require extensive enforcement.
The vote failed 2-3, with Mayor Charlie Clark supporting the equal fees. Councillors Hill, Davies and Gough voted against dropping the fee by such a large amount, citing concerns over how the legalization of cannabis edibles would impact enforcement costs.
Living Skies Cannabis owner Cierra Sieben-Chuback told 650 CKOM on Friday she would’ve preferred an $85 charge, but she’ll take what she can get.
“If it was supposed to be $10,000 and was dropped to $500, I have to be happy with that,” she said.
“It would be really nice to see us be treated fairly.”
She said the high fees of start-up and to continuing business are far more of a detriment to local businesses like hers, as opposed to chain retail operations that entered Saskatoon when cannabis was legalized.
“I’m in a space competing with these big corporations, and $20,000 to them is not nearly as much of a burden to them,” she said.
Coun. Iwanchuk did say in Monday’s meeting that she intended to bring back the $85 licence renewal fee option for a vote at city council’s Aug. 26 meeting.
