VIDEO: Cannabis retailers say city sky-high licensing fees are unfair

Now that the smoke has cleared on the opening of legal cannabis shops in Kelowna, retailers say it's time for the city to take another look at their astonishingly high licensing fees.

For example. Chris Gayford owns Mary Janes Headquarters on Rutland Road which doesn't sell cannabis.

Two doors down he has a smaller business, Cheeba Cheebas which sells Cannabis. He pays $150 a year for his Mary Janes business license and just under $10,000 for Cheeba Cheebas.

The city has justified the higher fees because of the costs of developing policies, managing this emerging business sector, sorting through applicants and administering it all. But Gayford said that explanation is wearing thin.

"They can't use that excuse forever," he said.

He believes its retailers are paying because of the stigma associated with marijuana that lingers despite legalization.

"In my opinion, there aren't ongoing costs to the city with my business being here," said Gayford who believes the application fees for new businesses should cover any extra costs.

"The policies are in place. I don't believe there are any further expenses to the city other than new applicants applying, but they're paying that $10,000 application fee still to this day."

Luckily for Gayford, the city indicates the high may not last forever.

"It is getting reviewed," said the city's real estate manager, Ryan Smith, "and will likely come down."

But Smith indicated that may not happen until 2023.

Still, Smith said the provincial government has promised to reimburse municipalities for costs associated with establishing the cannabis sector, which never came through. And the costs are higher than you might guess.

Gayford said the city isn't the only entity that is unfairly dipping into his revenue.

"I've been feeling that way since I've gotten into this industry. It's always been challenging dealing with banks, insurance companies," he said.

"They see cannabis and they see the big dollar signs and they think they can go after it, but we're a business like any other."

He's still wondering what happened when he set up his company bank account. "When I went, my bank charged me a one-time $7,000 due diligence fee."

But Gayford is optimistic that along with the other signs of stigma associated with cannabis, it will resolve itself over time.