City council chooses $20K pot business licensing fee, narrowly defeats motion to slash to $500

Saskatoon city council has voted six-five in favour of a $20,000 business licensing fee for seven new pot shops coming to Saskatoon, narrowly defeating a motion to slash the fee to $500. 

The fee was the recommendation of an administrative report which said the higher amount was needed recover the cost of licensing a new industry.

Supporters of higher fee say taxpayers shouldn't wear cost

Hill closed the debate by saying taxpayers should not have to wear the cost, echoing the concerns of other councillors who opposed the lower fee.

"It's our responsibility as members around this council to recover those costs from those businesses, not from somebody else," said Hill.

"I still think $20,000 for only one type of business is a huge amount for a business licence," said Iwanchuk.

"It's so far out of the realm of what the other licences are, that I just can't support that, this does not make us a business friendly community."

Other bylaw regulations for pot shops

Clark said he had been in discussions with the provincial government and did not feel "optimistic" about any commitment to revenue-sharing until at least after marijuana is legalized in October.

The councillors also voted in favour of a motion presented by Loewen to review that fee at the point of renewal, and a motion tabled by Gough to review the cost of other business licences.

A lawyer will now begin drafting a bylaw based on the recommendations in the report, which also recommends regulations related to signage as a way to reduce visual impact and youth appeal, and air filtration systems to minimize odour impacts on neighbouring properties.

According to the city administration, fees in other parts of Canada and the U.S. range from $191 to $97,000.

The City of Regina will not be charging any business licensing fee for cannabis retailers in that city because it does not require commercial licences for any business.