WATERTOWN, S.D.(Press Release} Watertown City Council had a well-vetted discussion, which included establishing fees for 2024.

It was said that most of the fee increases were “inflationary hikes.”

However, one fee specifically brought to attention was the Medical Cannabis License renewal fee, which is currently set at $25,000 annually.

Watertown Mayor Ried Holien allowed leniency during the informal work session setting and allowed for public comment.

Attorney Mitchell Koehn is assisting Dakota Dispensaries in Watertown.

As of December 4, 2023, the state of South Dakota Medical Cannabis Program website said 12,907 people had approved patient cards. In 2021, South Dakota’s population was 895,376, meaning that roughly only 1.4% of South Dakota residents own a card in the entire state, let alone the opportunity for commerce within Watertown.

Koehn continues that most communities similar to Watertown are at a $5,000 renewal fee, except for Sioux Falls and Deadwood.

Roger Meyer has previous business ownership experience, including a bar and restaurant.

Meyer talks about how much goes into operation beginnings.

Co-owner of Dispensary of Watertown, Bob West, spoke but also protested the $25,000 application fee is too high.

West says that paying $75,000 annually to operate all three separate businesses would not be viable and also talks about being a Watertown High School graduate who moved back to start the business locally.

Councilman Lynn Jurrens thinks the renewal fee should be $5,000.

Watertown Police Chief Tim Toomey was invited to speak.

Mayor Holien inquired if any of the charged had a medical cannabis card, and Toomey was uncertain. Toomey also said they cannot conduct inspections; the state does them, and both businesses agreed they have had inspections.

Councilman Mike Danforth said he feels the renewal fee is too high and favors lowering it.

Mayor Holien and Councilman Kyle Peters agreed, aligning with the $5,000 amount.

Councilman Dan Schutte agreed with potentially lowering the renewal fee but was unsure that it should be as low as $5,000.

Mayor Holien mentions being open to the discussion of the cultivation and manufacturing opportunities mentioned within the industry as it would open the City up to more tax revenue, but he wants to gather more information.

City Attorney Lisa Carrico confirmed within the discussion that tribal-issued medical cannabis cards would be treated as out-of-state cards by law enforcement and other dispensaries.

A motion was made, voted on, and approved to add lowering the renewal fee to $5,000 for 2024 to Monday’s City Council meeting agenda.