Regarding legal cannabis stores, the City of Hamilton is officially open for business. During a special council meeting Monday night, councillors voted 10-6 in favour of private retail locations. But what does the decision mean? Plenty’s still up in the air, including who will be opening stores, where they’ll be located, and how the move will affect the black market.
Here’s a look at what we know and what we still need to learn about the impact opting in will have on Hamilton.
We said yes. What happens now?
On Tuesday, Jason Thorne, the city’s general planning and economic development manager, said Hamilton submitted a formal written notice to the Alcohol and Gaming Commission of Ontario (AGCO) letting it know the city will permit cannabis retail stores. Staff are now working to develop a protocol to review and provide commentary on individual cannabis store applications.
“We will also be including steps to ensure that the public is aware that there is an application and how they can also provide comments on these applications to the AGCO,” he added.
Does this mean stores will be opening in Hamilton tomorrow?
No. Ontario used a lottery system to hand out 25 licenses for legal pot outlets across the province that will be able to open on April 1. At this point, it’s unclear if that includes local players. Hamilton was part of the sweeping West Region in the AGCO’s license lottery, which consists of 14 cities and municipalities stretching from Brantford and Cambridge to Windsor. Local cannabis consultant Olivia Brown says reliable sources have told her four of the seven winners for the region are from Hamilton. But, during the council meeting, it was pointed out that even if that’s true, there’s no guarantee they’ll decide to open a location in the city because they could set up shop anywhere in the region that has opted in.
Who are those seven winners, and will they be opening stores? It’s too soon to say. Winners have just five business days to hand in their applications to the AGCO, a $6,000 non-refundable fee and a $50,000 letter of credit. One industry expert says that many provincial lottery winners won’t take the next step.
“If they’re on their own, it’s not feasible at all,” said Trina Fraser, a cannabis lawyer in Ottawa. “What I’m hearing is most or all of them are coming into this without any retail experience, cannabis industry experience, and without the significant financial resources that they would need to get the store open.”
Businesses and investors are rushing to partner with winners, but if the winners fail to get their act together in time, they’ll be disqualified, and one of the hundreds who made the waitlist will take their place.
Let’s say someone did open a store in Hamilton. Are there any limits on where it can be? Not really. The provincial government introduced regulations establishing a minimum distance of 150 meters between cannabis stores and schools. But beyond that, Thorne told the council that if a lottery winner decides to open up in Hamilton, they could technically pick any zoned commercial location.
What does this mean for policy?
The short answer is nothing. Hamilton Police Deputy Chief Dan Kinsella said that whether or not the council decided to opt in would not materially impact the police. Mayor Fred Eisenberger pledged “aggressive” enforcement against the remaining illegal dispensaries in Hamilton, something Kinsella says police estimate will cost more than $683,000 this year.
This will end the black market.
Wrong. At least not overnight. Police say there are about 34 illegal dispensaries currently operating in Hamilton, but that number has been as high as 80 in years past. Britney Guerra, a cannabis advocate who opened the first illegal dispensary in the city, said there’s no way a handful of shops will end illicit sales.
“The black market is still going to thrive when we only have seven stores in the west region,” she explained. But a recent change in the way police have been handling the illegal stores could make a difference.
On Jan. 11, police raided HaZe dispensary, barring the doors and installing an alarm at an illegal shop for the first time.
Gerurra said if that continues, the stores will have a hard time operating, and eventually, as the supply for legal stores increases, the black market will diminish.
Exactly how many pot shops could Hamilton’s market handle?
Hamilton has sometimes been referred to as Hamsterdam, thanks to its history of illegal cannabis stores. It’s a moniker some councillors expressed concern about Monday night, but to Guerra, it’s a sign of a healthy market. I think Hamilton could have 100 shops. I think Hamilton could have 150 shops,” she said, adding that when she opened up, another dispensary popped up three doors down, and both stores managed to thrive.
“Look at how many restaurants are in Hamilton. They’re all on the same block and across the street from each other, beside each other, and everybody does well.”
Ok, so what’s in this for Hamilton?
The mayor and councillors who supported opting in provided a range of reasons for their decision. Those included ensuring cannabis consumers are getting a safe product from a legal grower and cutting down on the illegal market. One of the biggest bonuses of signing on will come from economic opportunity. In the first year of legalization, the province committed to giving the city $574,493 whether it hosted legal cannabis shops. However, city staff estimate Hamilton will receive approximately $600,000 the following year if they opt in. The federal government will give provinces half of any federal excise tax collected from the product over $120 million, and Ontario will pass along a portion to host cities. Isenberger said that money would be used to offset costs related to legalizing recreational cannabis.
The move should pay off for workers in the city, too, according to Guerra.
She previously told the council that she paid staff $25 an hour when she opened her illegal shop. That figure included some “danger pay” that won’t be necessary for legal shops, but Guerra said shops would make enough money to pay well above minimum wage. Regarding legal cannabis stores, the City of Hamilton is officially open for business.
During a special council meeting Monday night, councillors voted 10-6 in favour of private retail locations. But what does the decision mean? Plenty is still up in the air, including who will open stores, where they’ll be located, and how the move will affect the black market.
Here’s a look at what we know and what we still need to learn about the impact opting in will have on Hamilton.
We said yes. What happens now?
On Tuesday, Jason Thorne, the city’s general planning and economic development manager, said Hamilton submitted a formal written notice to the Alcohol and Gaming Commission of Ontario (AGCO) letting it know the city will permit cannabis retail stores. Staff are now working to develop a protocol to review and provide commentary on individual cannabis store applications.
“We will also be including steps to ensure that the public is aware that there is an application and how they can also provide comments on these applications to the AGCO,” he added.
Does this mean stores will be opening in Hamilton tomorrow?
No. Ontario used a lottery system to hand out 25 licenses for legal pot outlets across the province that will be able to open on April 1. At this point, it’s unclear if that includes local players. Hamilton was part of the sweeping West Region in the AGCO’s license lottery, which consists of 14 cities and municipalities stretching from Brantford and Cambridge to Windsor. Local cannabis consultant Olivia Brown says reliable sources have told her four of the seven winners for the region are from Hamilton. But, during the council meeting, it was pointed out that even if that’s true, there’s no guarantee they’ll decide to open a location in the city because they could set up shop anywhere in the region that has opted in.
Who are those seven winners, and will they be opening stores?
It’s too soon to say. Winners have just five business days to hand in their applications to the AGCO, a $6,000 non-refundable fee and a $50,000 letter of credit. One industry expert says many provincial lottery winners will miss the next step. If they’re on their own, it’s not feasible at all,” said Trina Fraser, a cannabis lawyer in Ottawa. “What I’m hearing is most or all of them are coming into this without any retail experience or cannabis industry experience and without the significant financial resources that they would need to get the store open.”
Businesses and investors are rushing to partner with winners, but if the winners fail to get their act together in time, they’ll be disqualified, and one of the hundreds who made the waitlist will take their place.
Let’s say someone did open a store in Hamilton. Are there any limits on where it can be?
Not really. The provincial government introduced regulations establishing a minimum distance of 150 metres between cannabis stores and schools. But beyond that, Thorne told the council that if a lottery winner decides to open up in Hamilton, they could technically pick any zoned commercial location.
What does this mean for the police?
The short answer is nothing. Hamilton Police Deputy Chief Dan Kinsella said that whether or not the council decided to opt in would not materially impact the police. Mayor Fred Eisenberger pledged “aggressive” enforcement against the remaining illegal dispensaries in Hamilton, something Kinsella says police estimate will cost more than $683,000 this year.
This will end the black market.
Wrong. At least not overnight. Police say there are about 34 illegal dispensaries currently operating in Hamilton, but that number has been as high as 80 in years past. Britney Guerra, a cannabis advocate who opened the first illegal dispensary in the city, said there’s no way a handful of shops will end illicit sales.
“Obviously, the black market is still going to thrive when we only have seven stores in the west region,” she explained. But a recent change in the way police have been handling the illegal stores could make a difference.
On Jan. 11, police raided HaZe dispensary, barring the doors and installing an alarm at an illegal shop for the first time.
Gerurra said if that continues, the stores will have a hard time operating, and eventually, as supply for legal stores increases, the black market will diminish. Exactly how many pot shops could Hamilton’s market handle?
Hamilton has sometimes been referred to as Hamsterdam, thanks to its history of illegal cannabis stores. It’s a moniker some councillors expressed concern about Monday night, but to Guerra, it’s a sign of a healthy market.
“I think Hamilton could have 100 shops. I think Hamilton could have 150 shops,” she said, adding that when she opened one, another dispensary popped up three doors down, and both stores thrived.
“Look at how many restaurants are in Hamilton. They’re all on the same block and across the street from each other, beside each other, and everybody does well.”
Ok, so what’s in this for Hamilton?
The mayor and councillors who supported opting in provided a range of reasons for their decision. Those included ensuring cannabis consumers are getting a safe product from a legal grower and cutting down on the illegal market. One of the biggest bonuses of signing on will come from economic opportunity.
In the first year of legalization, the province committed to giving the city $574,493 whether it hosted legal cannabis shops. However, city staff estimate Hamilton will receive approximately $600,000 the following year if they opt in. The federal government will give provinces half of any federal excise tax collected from the product over $120 million, and Ontario will pass along a portion to host cities.
Eisenberger said the money will offset costs related to legalizing recreational cannabis. According to Guerra, the move should also benefit city workers.
She previously told the council that she paid staff $25 an hour when she opened her illegal shop when she opened her illicit shop. That figure included some “danger pay” that won’t be necessary for legal shops, but Guerra said shops will make enough money to pay well above minimum wage.
Disclaimer: This article is originally published on https://www.cbc.ca/
