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CANNIVERSARY

What retail cannabis in Kamloops looks like one year after legalization

Oct 17, 2019 | 3:51 PM

KAMLOOPS — It’s been one year since cannabis became legalized throughout Canada, and the first legal government store opened in Kamloops.

The last 365 days have brought many changes to the financial expectations of the cannabis industry, and a backlog of approval paperwork to sift through.

Today, the retail side of the industry expanded, as edible cannabis products were legalized. However, the cannabis industry still has some growing pains to sort out in British Columbia.

Since legalization, the fanfare around cannabis retail sales is not quite as exuberant as it was a year ago. For Cannabiz, the first private store Kamloops had, co-owner Chris Lyth says business has been steady.

“It’s definitely exciting. I would say it’s pretty well what we had expected,” he says. “This is a fun business to be in, and it’s enjoyable.”

Lyth notes the private side has its difficulties, particularly when competing with the government stores.

“It’s made it a little challenging. It’s definitely not the golden riches that everybody claims it to be.”

Of the 21 applicants looking to set up shop in Kamloops, City Business License Inspector Dave Jones says five have made it through — three private, two government — with more on the way.

“We have seven applications which have an AIP, Approval in Process by the province, which is pretty well they’re guaranteed a store now,” Jones explains. “So it’s just up to those store owners to do their renovations and get everything set up so the Province can come in and do their final inspection.”

Before last year, Jones says the city had 13 dispensary stores, and since then all of the illegal businesses have closed their doors.

“So in the City of Kamloops at this time, we have no stores that would be considered black market or illegal. Obviously there are some stores that people have spoken to us about over on the First Nations (Tk’emlúps te Secwepemc) land. Of course, that’s up for the Community Safety Unit to work with those,” he says. “I know the province is working hard with the First Nations group to have them comply with the provincial regulations and federal regulations. So at this time, we’re focused on what’s happening within Kamloops.”

Kamloops Mayor Ken Christian says the city has done its due diligence in terms of getting business licenses ready, but there is still provincial work to be done.

“The hold up has been with the province of British Columbia in terms of issuing the provincial licenses, as well as, the revenue sharing has yet to be determined.”

On the revenue sharing front, Christian recently met with Finance Minister Carole James about moving things along on a cannabis taxation revenue sharing agreement. Christian says he hopes cannabis tax revenue sharing will be similar to gaming fund distribution. He says it would keep tax revenue within the communities it was generated in, as opposed to a gas tax-based system — with funds distributed on a per capita basis.

“So that’s what they’re toying with. My suggestion to the Minister was that Kamloops has ‘x’ number of stores and we should be gaining our share of the revenue from those stores. Richmond has decided they don’t want cannabis, so I don’t see why Richmond then, should get a share of our tax revenue.”

With how long it has taken to form an agreement, Christian says he feels the waiting period is not fair to taxpayers.

“The federal government has given 75 per cent of this revenue to the province, and they have yet to determine what share of that will go to local government,” he says. “Realistically, the revenues from cannabis have been vastly overstated in terms of what the tax grab would be for any level of government, but that doesn’t negate the fact that we should get on with distributing it to those people that are actually doing the work.”

As of today, the industry revenue potential has expanded. One year since legalization, new regulations for selling and manufacturing edible cannabis products have come into effect.

Local stores plan to bring in those products once the Health Canada inspections and regulating allows the first batches to be distributed.

“We’re excited for when those products will start to become available,” says Lyth. “We should start to see them popping up on our shelves hopefully by Christmas time.”

With the legal products, Lyth says he hopes to one day be able to advertise like other age-restricted industries.

“I think it’s easier to loosen rules than tighten rules, and they have made it very tight to start with, but as time goes on I’m pretty sure we’ll see it relax and become very similar to what we see with the alcohol industry.”

Since opening up shop, Cannabiz’s owner says they’ve had a variety of clientele coming in to see what legal cannabis retail looks like.

“There are certainly a lot of new curious people coming in to find out what it’s about, and whether it’d be something for them (to try),” Lyth explains, noting potential concerns around a cannabis store being set-up in the neighbourhood seem to have dissolved. “We’re part of the North Shore Business Improvement Association, and we’ve managed to meet most of our neighbouring businesses around the area, and we’ve developed quite a great relationship with them.”

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