Pubdate: Fri, 09 Oct 2015
Source: Vancouver 24hours (CN BC)
Copyright: 2015 Vancouver 24 hrs.
Contact: http://vancouver.24hrs.ca/letters
Website: http://vancouver.24hrs.ca/
Details: http://www.mapinc.org/media/3837
Author: Joshua Hergesheimer
Page: 3

VANCOUVER FIREWORKS BIZ BLAME POT SHOPS FOR RENT SPIKE

October in Vancouver: leaves changing colours, pumpkin displays and 
fireworks outlets setting up shop in vacant storefronts.

But this year, fireworks sellers are facing stiff competition from the
city's burgeoning marijuana dispensaries, which have exploded in
number - from just a dozen in 2013 to more than 100 today.

The rental situation is "absolutely dreadful," according to Raymond
Greenwood, owner of Mr. Fireworks. As a 23-year-veteran of the
industry and the man who helped bring the Symphony of Fire to
Vancouver, Greenwood says he's frustrated by the proliferation of
marijuana dispensaries that have snapped up retail storefronts - and
driven up rents in the process. While unable to provide exact dollar
amounts, Greenwood suggests that rents for shop fronts have nearly
doubled, from around $4,000 per month to nearly $8,000. Greenwood
believes cannabis businesses are operating illegally. "We have to
purchase a business license, apply for a $250 permit, and get
ourselves insured for $5 million because of the fire risk," he said.
"But these places, what's happening?"

Suki Paul, owner of Phat Boy Fireworks, says he faced similar problems
this year finding rental space.

With nearly 20 locations around Metro Vancouver, Paul's business model
relies upon renting vacant storefronts for the pre-Halloween period.
But this year, many normally available locations have already been
rented to medical marijuana dispensaries, "creating more competition
for what's left."

Paul emphasizes Phat Boy's business philosophy puts safety
front-and-centre, following the city's rules and regulations to ensure
fireworks are used responsibly. But Don Briere, owner of Weeds Glass
and Gifts, a franchise chain of marijuana dispensaries throughout
Greater Vancouver, says the idea that cannabis shops have driven up
rents and crowded out fireworks retailers is nonsense.

"There are vacancies everywhere in this city, especially out along
Kingsway," he said.

Briere has been in the marijuana business for decades, and suggests
the reason fireworks retailers may be struggling is because they
aren't savvy business operators.

"If you offer a fair price and good terms, you'll find a
place."

He points to his shop on Victoria Drive, which opened last year, with
a monthly rent of "less than $3,000. He notes there's been no rental
inflation.

According to Briere, fireworks retailers actually have an advantage
that they are recognized as a legitimate business, since some
landlords aren't willing to rent to a business like his "that could be
associated with illegal activity."
- ---
MAP posted-by: Matt