Kitimat council has voted against a business application for a new cannabis store, a rare move that went against staff recommendations. The decision was driven by concerns that the town already has enough cannabis retailers and the plea of a local business owner warning of market oversaturation.
Speaking to the matter, Councillor Mario Feldhoff said council has the authority to deny cannabis applications and noted community concerns over previous proposals. “Normally, I am not one to restrict businesses, but we’ve had in the past some strong community feedback on proposed liquor licences, and here we have two cannabis retailers in town already, and I think that’s adequate,” he said.
Acting Mayor Terry Marleau and Councillors Michelle Martins and Gerry Leibel agreed, voicing concerns about the town’s limited retail space and the impact of outside businesses on local owners. “I do feel a need to be protective of local small business,” said Martins. “They are the backbone of our local economies and certainly play a role contributing to the vibrancy of the community.”
The application, submitted by High Point Cannabis Ltd., sought approval to operate at 528 Mountainview Square, Suite 1, a location zoned for cannabis retail. Under provincial policy, municipalities can reject cannabis retail applications, which means the proposal will not advance further with the province.
During the discussion, Councillor Graham Pitzel was the only vocal opponent of the motion, arguing that restricting business applications on such subjective terms was unfair. “Competition is not always necessarily bad for business,” he said. “I appreciate Mr. Tome’s position, [but] business needs to be left to itself to control itself.”
The vote followed a presentation by Sean Tome, co-owner of JV Cannabis, a locally owned dispensary, who urged council to reject the proposal. “We are a town of 8,500 people and we already have two dispensaries,” he told council. “It’s easy to understand why, as a small business, you’re already struggling to compete, never mind adding a third player into that mix.”
Tome stressed the economic pressures on small retailers, highlighting that his business provides wages well above minimum wage and supports local sponsorships. “Our concern is that if the proposal for a third dispensary in Kitimat is approved, it will saturate the market to a point that one of these businesses will have to close,” he said. “It’s my sincere hope that mayor and council take all this into consideration and vote against this proposal.”
