Potential cannabis retaillers will have to pay some of the highest fees in the province to set up shop in Kelowna.
City council approved a new series of rezoning and application fees, which will cost prospective business owners more than $10,000. Yearly business license fees will be on top of that.
Planning manager Ryan Smith says anyone interested in opening a retail cannabis store in the city will have to make a rezoning application.
"The initial application review is $1,000, and that fee provides for a staff review to see if that rezoning application is one of the preferred applications that would move forward in the process," said Smith.
"If the application is chosen to move further in to the process, applicants would pay an extra $9,500, approximately."
The initial fee is non-refundable.
Smith says the cost of a rezoning application for something other than a cannabis retailer would range from $2,800 to $5,000, depending on the combination of applications required.
Comparing fees in other jurisdictions, Victoria is charging a $7,500 rezoning fee and Edmonton $5,600 as a development permit fee for existing space.
Regionally, West Kelowna is proposing a $5,000 rezoning fee while Penticton will charge a $2,500 application fee.
Smith says the higher fees are being charged as a way to recoup costs incurred thus far.
He estimates the city's costs to date to create the cannabis regulatory system is about $116,000.
That includes legal fees for shutting down dispensaries operating contrary to city bylaws, planners time, review time and council time.
Based on an estimate of 15 applications, with about 40 hours of processing time and a final evaluation, the overall cost per application is about $10,493.
New city manager Doug Gilchrest added without cost recovery, the taxpayers would have to make up the difference.
Council voted 8-1 in favour of the new fees with Coun. Charlie Hodge the lone dissenting vote.
Hodge believe the new fees were egregious.
Staff will begin accepting applications Oct. 1.