Current cannabis retailers are speaking out against the addition of two new downtown Kelowna stores

Photo: Wayne Moore

Kairo is one of three cannabis stores ready to open in the downtown area in the next few months.

Current cannabis retailers in Kelowna are speaking out against the prospect of two new stores being granted permission to operate on Bernard Avenue.

They hope city council will deny the rezoning applications being put forth by Hemp City and Green Pineapple when they come up for further discussion at a public hearing Tuesday evening.

City council gave unanimous consideration to both applications last month despite recommendations by planning staff that both be rejected.

The applications skirted two council policies pertaining to cannabis retail stores, proximity to other operations (500 metres), and city parks (100 metres).

Kayleigh Donahue, vice-president of business development and licensing for Kiaro on Pandosy in downtown Kelowna, says three licenses have already been approved for the downtown area, and believes council was given inaccurate information as to the status of those stores.

"The major point of discussion during the first reading was about a lack of access in downtown Kelowna," Donahue told Castanet News.

While none are currently open, Donahue says that's about to change.

She says Kiaro (Pandosy St) and Kelo (Clement Avenue) should be open by the end of August, while Fire and Flower (Bernard Avenue) should open in the fall.

"There is definitely sufficient access in downtown Kelowna.

"By rezoning these two additional properties, that will create a permanent cluster of five stores in the downtown core which is really unsustainable for the cannabis industry in Kelowna."

She says five cannabis stores within the downtown area is simply not sustainable, stating a "cannabis cluster" will lead to "empty store fronts, counter to the objectives of a revitalized downtown."

Kairo purchased the existing Pandosy Street license a year ago, and Donahue says the company selected Kelowna because it was right at the cusp of having a sustainable ratio of cannabis stores to population.

At the present time, there are 11 stores operating in the city, with 10 others licensed by the city and awaiting final provincial licensing or approval.

"We feel the level in Kelowna works, as long as council continues to follow their zoning bylaw," Donahue says.

"But, if this sets a precedent of voting against the bylaw, it puts Kelowna in a position where more stores become unsustainable to operate."

She says numerous stores in Alberta and Ontario, where there are no zoning or distancing requirements, are being forced to close because of over saturation of the market.

"They are forced to close because of the competitive nature, all selling the same product, all purchased through the government.'

The city has received three letters of opposition for both applications, while the Hemp City application has received 33 letters of support along with a 1,342 name petition.