THUNDER BAY – The province began accepting applications for its newest round of cannabis store licenses Monday, and at least two local hopefuls weren’t wasting any time getting started. Kia Ora Kannabis and Rainbow on May both say they’ve already applied. Thunder Bay is still waiting on a cannabis retail store, more than a year after legalization.
The provincial government recently scrapped its lottery system for licenses, which had come under heavy criticism for limiting the number of new stores. Attorney General Doug Downey says the lottery was initially needed due to a supply shortage, but with that issue in check, Ontario is lifting its cap on the total number of stores allowed.
Those successful in obtaining an operator license in this round of applications will still need to secure a store authorization license before opening. Applications for that second license don’t open until March 2, so retailers expect April is the earliest new stores could open. The province says it will approve about 20 new stores per month after that.
It can’t come soon enough, says Matthew Harrison, a General Manager at Kia Ora Kannabis. The company currently operates a storefront on Victoria Avenue East selling accessories and other products. The store failed in its bid for a license under the lottery system over the summer.
“Most people can’t believe it’s taking this long,” he says. “We get a lot of traffic that comes across the country from both directions. [They] don’t have this issue at all, and they come here expecting to find some. They’re very frustrated when they realize Sudbury [or Winnipeg] is the closest place.”
Harrison says the economic impact of opening the market could be big for Thunder Bay. He cites estimates that demand can support about one store per 10,000 residents, meaning the city could eventually have upwards of 10 shops. He says the stores can employ 20 to 30 people each.
Over at Rainbow on May, a shop that sells cannabis accessories, Manager Joshua Zavagnin agrees the market is potentially huge.
“Since legalization, the amount of people that have come out of the closet and are more comfortable smoking it in public is just astonishing, even to me,” he says. “I’ve had people come in with their grandmothers [who have been] smoking for 60 years and not telling anybody.”
Zavagnin says the lottery system was very difficult to enter for stores like his. The process is also expensive – applications for the operator license cost $6,000, and the store authorization license will run several thousand more.
Both Kia Ora and Rainbow on May say they’re essentially ready to open, logistically. Now, it’s just a waiting game for the store’s owners – and interested local consumers – to see if they’ll receive the coveted licenses.
