Beaches Compassion
Active Member
The search is on for commercial/industrial zoned suitable property in the GTA! It will be nice to have an address for the LP application
I doubt you would be able to do any better on those fees. Regulatory compliance fees can not be negotiated. Similar to getting a liquor license for a bar. Its the price of doing business...I really want to see how you break down that $300k. Not because I dont believe you, just because I know I can do better on things than what is generally listed. Im a cheapskate. I know cheap.
While I agree you wont get this off the ground on a low budget. I dont think it will take millions of dollars. Maybe just 1/2 to 3/4 million...lol... for an operation big enough to cover those fees and still put bank in your pocket. Getting the most yield from space available will be crucial.There isnt anything listed for fees but i would actually put 300k at the low end. I hope you understand its not just get lights, put plants under and deliver dope. You need to have man(dedicated security 24hr) and monitor security, i believe you need local authorities to sign off (saw this somewere) you need your product tested, you need to have a complete sterile environment(good luck) you need everyone to have criminal background checks, you need to build relations with pharmacies and doctors, your building must meet code with electrical,ventilation and air quality, your grow cant cause any negative environmental effects, your electricity must be properly installed and toronto hydro notified. You need to set up your own business and tax account, you need to set up employees with CCP and EI deductions on there registered pay checks, the owner of the building better be ready to lose the shirt off his back if something goes wrong, the list just goes on endless what you will have to do to get up and going under new regulation. You need to understand, when dealing with marijuana you cant trust anyone, this is proven daily. Health canada wont back you i doubt they will even act on your behalf for any reason, Why would the government change legislation and throw in the towel on a garentee money grab? liability. you thought 300k was alot, put that number above 1mil to have a decent set up, you cant go cheap and grab some magnetic wire it up DIY ballasts and run a grow responsable for supplying a army. High dreams low budget, were all with ya in heart
There is no $300k fee.There isnt anything listed for fees but i would actually put 300k at the low end. I hope you understand its not just get lights, put plants under and deliver dope. You need to have man(dedicated security 24hr) and monitor security, i believe you need local authorities to sign off (saw this somewere) you need your product tested, you need to have a complete sterile environment(good luck) you need everyone to have criminal background checks, you need to build relations with pharmacies and doctors, your building must meet code with electrical,ventilation and air quality, your grow cant cause any negative environmental effects, your electricity must be properly installed and toronto hydro notified. You need to set up your own business and tax account, you need to set up employees with CCP and EI deductions on there registered pay checks, the owner of the building better be ready to lose the shirt off his back if something goes wrong, the list just goes on endless what you will have to do to get up and going under new regulation. You need to understand, when dealing with marijuana you cant trust anyone, this is proven daily. Health canada wont back you i doubt they will even act on your behalf for any reason, Why would the government change legislation and throw in the towel on a garentee money grab? liability. you thought 300k was alot, put that number above 1mil to have a decent set up, you cant go cheap and grab some magnetic wire it up DIY ballasts and run a grow responsable for supplying a army. High dreams low budget, were all with ya in heart
When I first heard of the new regs, I began planning an operation. My plan included buying the location (1500sqft industrial unit). In that unit I wanted to build 2 sealed 30kw flower rooms. One 10kw veg room, a cloning room with flouro lighting and a dedicated drying room. All rooms except the flower rooms would be negative pressure. All lighting would be air cooled except clone room.There is no $300k fee.
And if you say there is $300k in setup fees, please post your math. If we where on a porn site, and you claimed your a super hot chick, I would say, pics or get the fuck out. Here I will say, show us the math dude. Who am I cutting a 300k check to? If you say the cost of compliance is $300k I would disagree strongly. I dont need $300k to be up to code. Im up to code at my current grow. Didnt cost me that much. All those things you listed like security, please put a $ amount on it. Then lets add it up. Lets not lose our heads here. The government wants us to run this like a legit business. They are not asking for anything too unreasonable here.
redi jedi touched on the other points nicely. I agree with him. Not sure I agree with the $ break down since nobody has actually done the math. Just thrown random numbers out there.
How much did you estimate is the real estate price to purchase? Does that include down payment or the price of the unit as a whole? Mortgaged? We have lots of wiggle room with the real estate. Location, mortgage, lease, etc...When I first heard of the new regs, I began planning an operation. My plan included buying the location (1500sqft industrial unit). In that unit I wanted to build 2 sealed 30kw flower rooms. One 10kw veg room, a cloning room with flouro lighting and a dedicated drying room. All rooms except the flower rooms would be negative pressure. All lighting would be air cooled except clone room.
The whole unit would need to be air conditioned and each flower room would need an independent A/C and dehumidifier. Then theres the cost to build four separate RDWC units with 30 sites each. Also two more 30 site RDWC units for the veg room. Also two 1hp and four 2hp water chillers.
All this would cost roughly 250k. And I haven't even addressed the security system yet. After hearing of those compliance fees, I'm now thinking two 50kw flower rooms. Which means a bigger location and more/bigger of everything else.
Your setup is slightly different from mine. Have you ever tried ROPE RATCHET LIGHT HANGERS? I get 2 for $7. They come with the S hook built in. And I agree. The nickle and dime stuff adds up lots. Makes me envy the greenhouse grower when I do the math on our setup dwc and rdwc style.Ya... buying the location outright is a big purchase. Obviously you could rent or lease. Mortgages are still cheap. When I say 250k, I'm figuring 150 to buy and 100k to build. I pay roughly the same as you and I would be doing most the work myself.
There's so many little nickle and dime stuff people forget about when planning a build. Take the lights, about $20k to buy but they still need to be hung. Those yo-yos are $20/pair x 70 = 1400 at retail. Also, 140 eye hooks and 140 S-hooks @.50cents = $140. Things like that. 20k grows to 21.5.
You mentioned the buckets at $13 each, there's also the 3" uni-seal at $9 each. 2 seals/bucket x 180 = 360 = $3240 before shipping. Almost 6k for buckets and seals. I already got the whole saw. Dont forget air pumps. I would be going with 6cfm/300lpm pond pumps. One air pump for every 30 sites for a total of 6 pumps @ $750 = $4500.
I can go on and on here....and remember I haven't even touched the security system. No diy setup is gonna cut it here. Read the directive on building security. Estimate the dollar value of the amount of product you'll have on hand at harvest. From that value you can assign a risk factor rating which dictates minimum security required.
Access control, intrusion detection, cctv every where, tamper proof, independent monitor lines, backup power supply...the whole nine yards bro.
The Application Form to Become a Licensed Producer, Guidance Document for Applications to Become a Licensed Producer, and Security Clearance Application Form for parties interested in applying to become a Licensed Producer of marihuana for medical purposes will be posted to the Health Canada website on June 19, 2013 when the regulations are published in the Canada Gazette, Part II.
There is no fee related to obtaining a producer license.
A licence can only be issued when the proposed facility security measures are in place and after a pre-licensing inspection is conducted, and once all key personnel have been security cleared.
Thanks
Licences and Permits Division
Office of Controlled Substances
Health Canada
Interesting....I see two possible situations. 1, you jump through all the hoops, your given a license and they say "Oh and by the way, the cost to renew that license will be 200k next year" or 2, there really is no fee and the guy that mentioned it here in the thread is full of shit and just trying to scare away the competition.Regarding compliance fee. this is what health canada said to me