Melfort council lobbied to limit cannabis stores
Too many cannabis stores in a community means some businesses can’t survive. Local Melfort stores want to limit new competition.
An owner of one of two cannabis stores in Melfort asked its city council to limit the number of retail cannabis stores in the community.
Into the Weeds co-owner and vice president Meagan Palidwar-Volaris proposed that the city limit the number of retail cannabis stores in Melfort to two based on the population and statistics from similar communities that are seeing store closures due to oversaturation.
According to her, a third cannabis outlet would result in undue negative pressure on the two existing businesses and could result in one or both existing businesses being forced to close.
The second cannabis store in Melfort is Saskabuds Cannabis.
No official decision has been made, but the city administration recommended that the Melfort council not limit the number of cannabis stores.
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Rob Lok, Director of Community Services, recommended Melfort support all businesses interested in operating in the city provided they comply with zoning bylaws.
“Restricting the number of retail outlets of a specific business to protect existing businesses can be perceived as being anti-competitive and creating a monopolistic situation,” Lok said in his report to city council on Dec. 19.
Lok said that, in comparison, the city does not support restricting the number of restaurants, bakeries, dollar stores, car dealerships, or other commercial enterprises within the City of Melfort.
This story was originally published in the Humboldt Journal. It is republished under a Creative Commons license as part of the Local Journalism Initiative.
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