A Burlington cannabis dispensary is preparing to close its doors, saying the costs are too high to run a successful business in such a saturated market. Grass Queen, a small shop on South Union Street, will close on October 28, according to owner Jahala Dudley. It's one of 13 licensed weed stores in Burlington; two more have submitted applications. That competition and other costs, including for licensing, make it impossible to stay afloat in what Dudley called the state's "pay-to-play system." "Vermont’s legal industry is new and continues to evolve," she wrote in a statement announcing the closure. "But a prohibitive $10,000 annual renewal fee ensures that Grass Queen cannot be financially viable. Grass Queen is not in a position to sell products at a loss in order to 'out-compete' the other license holders in this city." In an interview, Dudley said she'd set out to create a place where women and members of the LGBTQ community felt comfortable buying cannabis. Pulling the plug was a difficult decision, she said, "especially thinking about all of the customers." "I am pretty devastated for them, but I simply can't afford to keep losing money to wait until the competitors spin out," Dudley said. Grass Queen opened in February 2023 and once employed as many as 10 people. But Dudley said she had to reduce the number of staffers as the business suffered. Her remaining workers have found new jobs, she said. Dudley has a grow operation in Plainfield that she plans to keep running, she said. "Everything's more expensive when you're operating a cannabis business; you know that going in," Dudley said. But, she added, "living paycheck to paycheck in a new, exciting cannabis industry as a sixth-generation Vermonter — [It] just doesn't feel like this market's working for me right now." Her announcement comes two years to the day after Vermont's first legal cannabis shops opened. Today 89 licensed retailers are operating, and several more have applied for licenses. Grass Queen would be only the third to close, according to data from the Vermont Cannabis Control Board, which regulates the industry. The rapid proliferation of stores, and where they are located, prompted the board to vote last week to stop accepting new license applications for cannabis stores. James Pepper, chair of the control board, noted that some municipalities haven't "opted-in" to the market, meaning stores can't open there. That, and…