Albert Gris thought he did everything right.

Recently retired after 30 years from the federal government, Mr. Gris decided in 2000 to operate a make your own wine business.

He purchased Hamilton's oldest wine making establishment The Wine and Hop Shop at 263 Queenston Road. It has been successfully operating since 1959 and has had three owners, including him, so far.

Mr. Gris, 68, wanted to follow the rules, and make sure he met every government regulations.

"I wanted to do it the right way," said Mr. Gris.

So he hired a lawyer and went about applying for the various licenses and permits that he might need to operate his business.

It was a beer and wine making business, including selling beer and wine kits and there was no food sold nor served on the premises, he said.

Still, Mr. Gris applied for a food license, after Hamilton city officials, he said, told him he needed one to make wine on the premises.

He paid the $135 cost for the permit.

For the first seven years he dutifully filled out his application for the food permit application that was sent to his home. Then he sent the application, and his cheque to the city, "no questions asked." The city then sent his license to him.

Mr. Gris estimates he paid between $700 to $800 in license fees over the seven years.

"It was a very fulfilling job," he said. "I did very well."

He won a few awards for his wines, chatted with people as they made their own wine, and was enjoying his retirement.

"I had some good times there," he said.

For the first three years he had no problem with city officials. But in the fourth year in operation, a city inspector ordered Mr. Gris to fix his freezer.

He complied, and spent $2,500 to replace the tiles, remove the water spots in the freezer and cover up the insulation.

But after being diagnosed with prostate cancer, Mr. Gris decided in 2007 to sell his business. The new owner, said Mr. Gris, followed his previous policy and applied for a food permit. But he was then told, said Mr. Gris, he didn't need one because the business doesn't sell food.

To say Mr. Gris was surprised was an understatement.

He contacted his councillor, Dave Mitchell, to see if he could recoup the money that was paid to the city.

Mr. Mitchell was equally shocked at Mr. Gris's situation.

At the time, Mr. Mitchell was defending residents from city staff seeking back taxes from people who had been using city water and sewers. Due to a city error, about 400 residents across Hamilton had been using sewers without being billed. Now the city was going back two years to recoup its costs.

Mr. Mitchell pointed out here was a resident who had been told to pay for a permit, which he didn't need, and he paid it without question.

"What's going on here?" said Mr. Mitchell. "I see some similarities here."

Mr. Mitchell, who has met with some city staff, said he would like to see Mr. Gris get back his money.

City officials have contacted Mr. Gris about his issue, but have not promised him anything.

"I would like to see some compensation," said Mr. Gris. "We were not a million dollar business. Five hundred dollars is a lot of money to us."

Marty Hazell, director of building and licensing, said he was aware of the issue, and the city was attempting to resolve it.

Mr. Hazell did say that at some point in the business operation there was "a change" and that the owner needed the permit.

"It's not clear," he said. "But we are working on a compromise."

Mr. Gris operated the business for fun and to keep active. He says he never took a salary from the business, but it was profitable. Even now he goes into the store once a week.

"It's very rewarding," he said.

A grandfather of six children, and father of three, he now makes wine at his home for his own personal use.

"I've gone back to the traditional way of wine making," he said.

And what if the city doesn't give back at least some of his money?

"I will be disappointed," said Mr. Gris. "I will feel like we were cheated."