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Market saturation

New rules for future cannabis stores

Oct 27, 2020 | 2:38 PM

Any future retail cannabis stores in Vernon will have to be at least 500 metres away from any other marijuana retailer.

Vernon council waded into a motion made by Coun. Kari Gares to implement the distancing measures, which is similar to liquor stores, which must be 1,000 metres apart. There are additional distance restrictions from schools, park and playgrounds.

“I know there are certain stores having difficulty. There is over saturation in the market,” Coun. Dalvir Nahal said. “I don’t want downtown to be just pawn shops and pot shops. That’s not a good representation.”

“I’ve heard that Vernon and area has the highest concentration of cannabis stores in the province. That’s not something I would like Vernon to be known for,” Coun. Scott Anderson said.

The motion would not impact eight applications that are currently in the system and waiting for a moratorium on pot shops to be lifted, or existing stores, including the six already in downtown Vernon.

“If we have some shops close in the downtown, this could result in only 1 or 2 depending on their location being allowed,” Coun. Akbal Mund said.

The so called “Green Mile,” a string of cannabis shops on First Nations land along Westside Road, was also referenced in the council discussion.

“The logic for me doesn’t follow. We are playing havoc with a basic economic principal the conglomeration effect, (when there is a group of similar businesses in one area, it’s better for all i.e.: mall food courts). That’s why we have the green mile,” Mayor Victor Cumming said.

“The green mile has no regulations; they can do whatever and sell whatever,” Coun. Kari Gares said. “Our retailers are selling all the same products in the same packaging.”

“Gold rushes don’t really follow standard economic rules,” Coun. Scott Anderson noted. “There is illegal pot being sold that is better quality with higher THC than the government regulated stuff.”

“The government regulated stores are having trouble because of what’s happening on First Nations land,” Coun. Akbal Mund said. “Prices are so different. It’s like gas prices: people don’t have any loyalty, they will go where they can get the best price.”

“I think this change to the bylaw will allow the market to sort itself out,” Gares said.

The motion passed 6-1 with Mayor Cumming opposed.

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