The Yukon Liquor Corp. (YLC) is exploring options for a government-run cannabis retail store after a tender for a retail and warehousing space failed to bring in a feasible bid and was cancelled last week.

Wade Istchenko, the YLC critic for the Yukon Party, pressed the government in question period last Thursday about how it plans to follow through on its commitment to establish government-operated cannabis storage and sales.

“We issued an RFP in 2018, seeking a lease or purchase option for approximately 4,500 square feet for cannabis retail and storage in the Marwell area, as per the zoning requirements of the City of Whitehorse, and we only got one bid,” John Streicker, the minister responsible for the YLC, told the house.

“It was, unfortunately, for about three times the square footage and about twice the price that we were budgeting.”

That bid was submitted by Waterstone Products, with a nearly $3.5-million price tag.

“We didn’t get any bids submitted for a lease option, so we have made the decision to cancel that tender, as it is over-budget, and we are working on other options to continue to ensure that a retail location is up and running by the time non-medical cannabis is legal in Canada,” Streicker said.

The YLC is planning to use its liquor distribution centre and warehouse for cannabis storage, wholesale and e-commerce distribution, according to the minister.

The Star could not connect with a YLC spokesperson this morning to discuss how cannabis will be housed in the distribution centre and warehouse.

Speaking to reporters after question period, Streicker said the YLC is “exploring options” for a retail space, “and I hope to have an announcement soon.”

He could not provide a specific budget for the space, nor whether a new tender would be public or sole-sourced.

“The options are still under consideration.”

Asked whether he regrets the Marwell zoning bylaw passed by the city that restricts cannabis retail, for the present, to the largely industrial neighbourhood, Streicker said he’s always expressed the desire to work with municipal partners.

“They were clear in where they want to go, and I just respect that’s their jurisdiction.”

Any Yukon government cannabis retail space is planned to be an “interim measure” until government can introduce the regulations that would enable private sector retail, according to the minister.

Pressed by Istchenko on “this government’s plan to grow government,” Streicker reiterated in the legislature Thursday that a government cannabis store will be staffed by employees on temporary contracts.

“We are fully anticipating getting out of the business of doing business and giving it over to the private sector, and we look forward to working with them.”