Hamilton

Hamilton will look at the benefits - not just the drawbacks - of allowing cannabis stores

The report that will help Hamilton city councillors decide whether to allow legal cannabis stores here just got a little more marijuana friendly.

City council also voted on menstrual products for the homeless, condos and helping tenants with rent hikes

Jean Marc checks out a sample at a cannabis store in Winnipeg on Oct. 17. Hamilton city council will decide in January whether to allow legal cannabis stores. (John Woods/Canadian Press)

The report that will help Hamilton city councillors decide whether to allow legal cannabis stores here just got a little more marijuana friendly.

City staffers are putting together a report for a Jan. 14 meeting. That's when council will cast its ultimate vote on whether to allow cannabis retail.

Now, that report will include how much money cannabis could bring in for the city if it decides to opt in.

Brad Clark, Ward 9 councillor who supports being a host city, pushed for that Wednesday. Cannabis might create enough jobs and tax revenue, he said, to make this all worthwhile.

"If we really want to compare apples to apples, we need to understand what the true costs (of legalization) are, and what the total revenue will be," he said. 

Money generated from cannabis stores, he said, is "revenue we could use to enforce the laws."

Coun. Brad Clark says Hamilton will miss out on future money that will flow from the province and Ottawa.

Whether to allow cannabis retail is the first big question council has faced since the October election. So far, councillors are almost evenly split on the subject.

Marijuana became legal this year. Municipalities can opt in or out of allowing retail stores. In January, the province will grant 25 licences to start.

Hamilton has until Jan. 22 to tell the province if it's opting out. If it opts in, the province will grant the licences, and Hamilton will only be able to comment on them.

If the city opts out, it can opt in later. If the city opts in, it can't opt out later.

Money is a big issue. Cannabis legalization comes with costs, including health promotion and bylaw enforcement. Hamilton will get $574,493 this year whether it hosts legal cannabis shops or not. If Hamilton is a host city, it will also be in line for $574,493 the following year, as well as a portion of the federal excise tax on the product.

Water rates are increasing

Hamilton has grappled with illegal cannabis dispensaries, with about 85 operating earlier this year. Now, it's down to 30.

Hamilton Police Service will also bring a report for Jan. 14 on policing costs around cannabis stores.

Councillors opposed to the stores say the city should opt out until it gets more provincial money to cover legalization costs. Others want more control over where the stores are located.

Those in favour say opting in puts the city in line for future money. Others say it's important for Hamiltonians to have legal access to cannabis, rather than being forced to use the black market.

Here's what else city council approved Wednesday:

  • Looking into providing menstrual products to people who are homeless.
  • 252 condo conversions, lamenting again that the city needs tighter regulations around when apartments can be converted to condos.
  • An increase in water rates, which amounts to 4.66 per cent on the average home, or $32.20.
  • A new program to move families out of hotels and into housing. The city puts families in hotels when there's no room in shelters, and the cost of that is rising every year. Council also approved looking into a $50,000 fund tenants can use to get legal help when landlords raise the rent above the provincial guideline (currently 1.8 per cent).

ABOUT THE AUTHOR

Samantha Craggs is journalist based in Windsor, Ont. She is executive producer of CBC Windsor and previously worked as a reporter and producer in Hamilton, specializing in politics and city hall. Follow her on Twitter at @SamCraggsCBC, or email her at samantha.craggs@cbc.ca