October 7th, 2024

More pot stores ready but unable to open

By Collin Gallant on January 5, 2019.

A former stereo store, a car lot, even a one-time Arby's in Medicine Hat sit renovated for use as cannabis retail stores, but are still vacant as provincial regulators have suspended approving new sales licences until supply issues are resolved.--NEWS PHOTO COLLIN GALLANT


cgallant@medicinehatnews.com
@CollinGallant

At least half a dozen storefronts in Medicine Hat are renovated and ready, all they need is permission to sell reefer.

However, there’s no timeline on when provincial cannabis licensing system will be restarted after supply concerns closed down the processes in late November.

That means that some applicants are entering their third month of leasing space without the ability to earn revenue in the fast developing retail sector.

The locations, including a former car dealership, a one-time stereo shop and even a former Arby’s, appear to be fully renovated and are among 15 pending applications with Medicine Hat addresses on file with the Alberta Gaming, Liquor, and Cannabis Commission.

That body stopped issuing new licences on Nov. 21 stating that it had only received about 20 per cent of its initial order from marijuana producers, which they say would have supplied 250 stores for six months.

It also suspend a first-come-first-served ordering system, instead apportioning orders to existing retailers, who complained about short stock.

Officials with the regulator told the News these week that there is no timeline for granting new licences, but the situation is being monitored closely.

“We continue to have close discussions with the licensed producers on what stock is available and have been actively trying to bring on additional suppliers as Health Canada licenses them,” a statement reads. “While we continue to receive stock on a fairly regular basis in order to supply the current 65 retailers, we are not getting enough stock to bring on additional licensees at this time.”

The AGLC states there are currently 15 applications in the queue for Medicine Hat and three in Redcliff. It’s not known if any have been added or deleted since the November halt to licensing.

The numbers do speak to the potential size of the retail sector in Medicine Hat however. The City of Medicine Hat’s planning department recently stated the number of liquor stores in the city was 27.

Pot sales opened with a flurry of activity on Oct. 17, including at three locations in Medicine Hat that were among 17 across the province granted interim licences. That allowed them to order supply and be operating when the federal prohibition on cannabis sales was lifted that month.

Eventually, a total of 65 licences across Alberta were granted, including half a dozen in Lethbridge and one in Brooks, but no more in Medicine Hat.

The News attempted to contact a number of potential shop operators who still had pending licences, but received no responses.

Addresses that have gone through a municipal licensing process show addresses in 3000 block of Dunmore Road, the Northlands Pointe shopping plaza, Trans-Canada Way, Strachan Road, Kingsway Avenue and a third for S. Railway Street.

The provincial licensing process is apart from city licensing and development permit process, which was finalized and went into operation in September.

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