: council motion – medical marijuana operations – land...

City Council Agenda

April 7, 2014 / File No.: 8680-1

CITY COUNCIL AGENDA REPORT

Subject: COUNCIL MOTION – MEDICAL MARIJUANA OPERATIONS – LAND USE BYLAW

On March 17, 2014, Mayor Crouse provided notice in accordance with Section 23 of Procedure Bylaw 35/2009 that he intended to bring forward the following motion: In order for Council to debate the motion, the motion must be formally moved. (Mayor Crouse) “Administration provide a briefing to Council by August 31, 2014 with respect to the St. Albert Land Use Bylaw (limitations, ambiguity, considerations, provisions or non-provisions etc.) for the medical marijuana operations.” Attachments: 1. Information provided by Mayor Crouse 2. Administrative Backgrounder Originating Department(s): Legislative Services Author(s): Heather Fredeen, Legislative Services City Manager Signature:

Date:

Pitt Meadows moves to ban medical growops - Maple Ridge News Page 1 of 3

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by Monisha Martins - Maple Ridge News postedHar 13, 2014 at7:00 PM

Pitt Meadows is set to ban medical marijuana operations in all zones of the city.

On the recommendation of staff, council voted Tuesday to prohibit commercial medical marijuana facilities in industrial and agricultural areas, joining Abbotsford, White Rock and Langley, which have already moved to stop the enterprises from setting up.

Pitt Meadows banned medical growops from residential areas in 2010.

At a committee meeting, acting chief administrative officer Kim Grout said Pitt Meadows initially supported a plan to restrict the operations to industrial areas, but decided not too after a recent advisory from the B.C. Assessment Authority.

Early indications are that a grow operation in an industrial area may be able to persuade the B.C. Assessment Authority to apply the farm tax rate, rather than the higher industrial tax rate.

That could mean a $l-million parcel of industrial land, generating $110,000 a year in property tax, would instead pay just $25,000 if it hosts a medical marijuana farm. .

Given the potential loss of tax revenue, city staff recommended a complete ban, said Grout.

Council agreed.

"Our industrial lands are crucial to diversifying our tax base," said Mayor Deb Walters, noting that unlike larger municipalities, Pitt Meadows has a volunteer paid-on call fire department and a small police force.

"I don't think we can afford it."

Cities have been busy passing bylaws to control where and how new medical marijuana producers will be allowed to set up.

It's part of the federal government's move to outlaw home growing of medical pot as of April 1 in favour of large scale commercial production, which is to be tightly regulated.

While some cities have sought to ban commercial pot growing entirely, several others, including Coquitlam, Chilliwack and the Township of Langley, are limiting it to industrial land only, so the facilities aren't built on productive farmland.

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http://www.mapleridgenews.com/news/250250591.html 17/03/2014

Pitt Meadows moves to ban medical growops - Maple Ridge News Page 2 of 3

The strategy to steer medical marijuana growers to industrial areas may backfire, Maple Ridge Mayor Ernie Daykin fears, opening a property tax dodge for pot producers to exploit.

"There's potential there for tost revenues," said Oaykin, who raised the issue March 7 at Metro Vancouver's regional planning committee, and asked staff to investigate further.

"The last thing that any of us want is to have millions of dollars of industrial assessment all of a sudden devalued if it becomes assessed at the agricultural rate."

If his hunch is right, Daykin said, municipalities may be better off, at (east financially, if they follow Maple Ridge's path and require new marijuana operations instead go on agricultural land.

- with files from Jeff Nagel

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Marijuana facility bylaw planned for Charlottetown - Prince Edward Island - CBC News Page 1 of 12

Marijuana facility bylaw planned for Charlottetown CBC News Posted: Jan 14, 2014 7:04 AM AT Last Updated: Jan 14, 2014 7:04 AM AT

Related Stories

• Medical marijuana producer could soon be on TSX

The City of Charlottetown is looking to amend its zoning and development bylaw to allow for medical marijuana production facilities.

Medical marijuana production in Charlottetown could be an economic development opportunity, says Coun. Rob Lantz. (CBC)

The federal government will no longer be producing medical marijuana and private companies are taking over production. Charlottetown planning committee chair Coun. Rob Lantz chairs told CBC News Monday the city wants to be ready in case an application comes in from a company to set up in Charlottetown.

Council wants to be clear about the requirements, he said.

"My planning staff have done some research on what the requirements around these facilities would be," said Lantz.

http://www.cbc.ca/news/canada/prince-edward-island/marijuana-facility-bylaw-planned-f... 15/01/2014

http://www.cbc.ca/news/canada/prince-edward-island/marijuana-facility-bylaw-planned-f

of 2

Peace Arch nCWS White Rock 'reluctantly' cracks down on medical-marijuana grow-ops

By Peace Arch News Published: March 11, 2014 01:00 PM Updated: March 11, 2014 02:42 PM

White Rock council has finalized amendments that prohibit medical-marijuana operations in the city..

Following a brief discussion Monday night, council unanimously supported (with Coun. Larry Robinson absent) giving third and final readings to changes proposed for omnibus Bylaw 2000.

But the decision appeared to be a reluctant one.

Mayor Wayne Baldwin's call for a motion on the amendments was initially met with silence. Then, the recommendation was quietly moved by Coun. Bill Lawrence.

When there was no response to Baldwin's call for a seconder on the motion, the mayor himself answered that call.

Similar silence - and awkward glances - followed Baldwin's call for shows of support and opposition. With no opposition expressed, the motion was deemed to receive unanimous support.

Tuesday, Coun. Helen Fathers attributed the silence to the controversial nature of the topic and the general lack of understanding around it.

"I don't think we really know too much about it," she said. "We don't know what's going to happen with the federal government.

"I think that's why Coun. (Al) Campbell last time moved to have it deferred (at the Feb. 24 council meeting), to give us some more time to have a look through it."

http://www.peacearchnews.com/news/249591461 .html?print=true 13/03/2014

of 2

The bylaw amendment to prohibit "the commercial cultivation, growth, production, storage or sale (of) medical marijuana... whether or not carried out for medical purposes by a licensed producer" was suggested to prepare the city for new federal regulations that are due tn take effect April 1 ' '

They will shift the medicinal-marijuana program to a system of regulated commercial growers who will supply authorized users; at the same time, all current licences to possess or produce pot will expire.

Prior to the vote, in a presentation on White Rock crime statistics, RCMP Staff Sgt. Lesli Roseberry suggested enforcement efforts would not be concentrated on medical-marijuana patients.

Following the JeacLflLniunicipal police forces such as that in Vancouver and Abbotsford, "(grow-ops) that are - organized-crime related or gang-related are the ones we would investigate," Roseberry said. ~*

According to advocates of a made-in-B.C. progr/a'm for medical cannabis, White Rock has more than 50 registered medical-marijuana patients - and many more unregistered - who will be negatively impacted by the changes.

Fathers said she wants to ensure that those who need the drug for medical reasons will be able to access it under the new rules.

She supported the Bylaw 2000 amendments after receiving assurance from the city's acting director of development services that the changes could again be amended, if necessary, to conform with the federal rules.

"We have to make sure that we have the ability, always, to go back in and allow what is being allowed to be allowed within the city," she told Peace Arch News.

"Why shouldn't it be able to be dispensed in a legal environment?"

In council, Mayor Wayne Baldwin also appeared satisfied with the knowledge the bylaw could be further amended in the future.

"We've got to keep an open mind for the health of our residents," he said.

During question period, when asked about the status of a request for the city to lobby the provincial government for a B.C. program, Baldwin said the city can't act without first knowing what the new federal rules mean. The province is also waiting for that clarity, he added.

White Rock resident Joy Davies, with Canadian Medical Cannabis Partners, appealed to council to follow in the footsteps of their predecessors who, in 2007, led the way regarding regulations around smoking on public patios.

"I can go in now because this city took leadership," she said. "We're simply asking the same thing. It's the same thing, just a different product." "

Find this article at; http://www.peacearchnews.com/news/249591461.html

http://www.peacearchnews.com/news/249591461 .html?print=true 13/03/2014

ATTACHMENT 2

Page 1

Administrative Backgrounder Medical Marijuana Operations – Land Use Bylaw

On March 17, 2014, Mayor Crouse provided notice in accordance with Section 23 of Procedure Bylaw 35/2009 that he intended to bring forward the following motion: In order for Council to debate the motion, the motion must be formally moved. (Mayor Crouse) “Administration provide a briefing to Council by August 31, 2014 with respect to the St. Albert Land Use Bylaw (limitations, ambiguity, considerations, provisions or non-provisions etc.) for the medical marijuana operations.” BACKGROUND: In June 2013, the federal government enacted the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act. These regulations change the process for obtaining and producing marihuana for medical purposes. Previously, the production site for Personal Use Production Licenses and Designated Person Production License was often in a residence with no requirement to notify the municipality of the production site. The MMPR now create a process whereby marihuana for medical purposes must be obtained from a Licensed Producer. Licensed Producers must meet all the requirements of the MMPR, including personal security clearances and physical security requirements for cultivation and storage areas, and be approved by Health Canada. These regulations come into effect April, 1, 2014. The MMPR mandates that a Licensed Producer:

• must not operate in a dwelling • must operate at the location approved by Health Canada • must provide written notice, including the address of the proposed

location, to the municipality and police and fire authorities prior to submitting an application to become a Licensed Producer

• must notify the municipality and the police and fire authorities of an approval to become a Licensed Producer and any subsequent status changes of that approval

• must ship medical marijuana directly to the consumer

ATTACHMENT 2

Page 2

Attached is a brief report outlining the implications and considerations for the City of St. Albert of the new regulations. Included in the report are three options for council to consider to regulate medical marihuana facilities in the City. If the motion is to be approved, Council could consider following recommendations to move forward. ATTACHMENTS: Attachment A – Medical Marihuana – Planning and Development Implications for St. Albert. Report Date March 18, 2014 Committee/Department Planning & Development General Manager Review David Hales, GM P&E

Medical Marihuana Planning and Development implications for St. Albert

MARCH 2014

TABLE OF CONTENTS

Health Canada Medical Marijuana Regulations

Health Canada Requirements

Implications for St. Albert

Other Communities

Options

SECTION TITLE:

Health Canada Medical Marihuana Regulations The Federal Government (Health Canada) is bringing in new regulations, Marihuana for Medical Purposes Regulations (MMPR), governing the growing of Marihuana for medical purposes that come into effect March 31, 2014.

The regulations establish a system through which licensed commercial growers provide an accessible and reliable supply of medical marihuana. Health Canada inspects and audits the licensed commercial producers, who are required to meet conditions regarding product quality, personnel, record-keeping, safety and security, disposal and reporting, and labelling and packaging. Currently, medical marijuana users are permitted to grow their own product under a license from Health Canada or buy prescription marihuana from small-scale producers.

Under the new regulations municipalities are permitted to regulate the development standards and locations of medical marihuana production facilities through local zoning bylaws. Licensed producers are required to notify local government, local police and local fire officials of their intention to apply to Health Canada so that the authorities are aware of their proposed location and activities. Licensed producers are also required to communicate with local authorities whenever there is a change in the status of their license. Licensed producers must comply with all federal, provincial/territorial and municipal laws and bylaws including municipal zoning bylaws.

Health Canada favours this regulatory reform because “dried marihuana for medical purposes should be produced and distributed as much as possible in the same manner as a medication” and there is currently a lack of security measures by home producers to limit diversion of marihuana to the illicit market. The risk of violent home invasion by criminals attempting to steal marihuana, fire hazards due to faulty or overloaded electricity installations, and humidity and poor air quality in these situations were also a consideration.

Health Canada anticipates that the number of licensed medical marihuana consumers will increase to approximately 300,000 as more evidence of the drugs efficacy emerges and more doctors become willing to prescribe it to patients. Health Canada indicates that the “legal marijuana supply industry” could have potential annual revenues of $1.3 billion by 2024.

It is necessary to contemplate the impacts from a planning perspective, in addition to all other relevant regulations, to mitigate the potential impact that these facilities could present to public safety and nuisances. There will be fiscal impacts in legitimate marihuana for municipalities; licensed producers authorized under Health Canada’s new regulation Marihuana for Medical Purposes Regulations (MMPR) will grow, process and package dried cannabis from secure facilities. Each operation will purchase local power. They will pay local business taxes and require dozens of employees from the executive level to security staff.

Health Canada Requirements

Licensing Health Canada requires that an applicant for a license to produce marihuana for medical purposes must provide the following information:

• The applicant for a Health Canada license to produce marihuana for medical purposes must submit a copy of the written letter given to the municipality, the fire department and the local police service advising us that they will be applying for a development/building permit and a Health Canada license with their application for Health Canada license approval.

• The applicant must meet all municipal (LUB) requirements for the proposed use in the district. To date and based on our current Land Use Bylaw the use would be considered a Light Industrial Use. In accordance with Section 9.17(3)(n) a light industrial use is a permitted use in CIS, BPT and BP2 districts. The applicant does not have to show Health Canada that they have received a development/building permit in order to make their application to Health Canada.

• Health Canada states that the applicant must meet all Alberta Building Code requirements associated with the use.

• The applicant must meet all Health Canada regulations for the grow facility. • The applicant, upon issuance and inspection of the municipal permits, and Health Canada

license, may start production. The change over from personal growing to commercial facilities does not come into effect until April 01, 2014.

Inspections Health Canada has indicated:

• Their own inspectors will do random surprise inspections of these facilities to determine if the license holder is operating within the conditions of their license. Perhaps our permit should address this by way of a condition that states that the permit will be revoked/cancelled if the City becomes aware of infractions exposed by Health Canada? The license is issued for so many plants with so much storage on site and with strict security requirements and record keeping.

• There will be no regulations regarding the existence of a facility in a building with other tenants, except that the building code requirements for the approved use must be met. i.e. ventilation, control of odor,

• When the facility does a harvest it must send a sample of the harvest to Health Canada to do testing for quality and contamination.

Process

In the Letter of Intent to the municipality, Health Canada requires that the applicant identify the name, title and address of the senior official for each of the following local authorities, as well as the date when the notification was provided:

• the local police force or Royal Canadian Mounted Police detachment responsible for providing policing services to the area in which the proposed site is located;

Letter of intent to Muncipality

Health Canada license

application Health Canada license issued

Municipal Development and

Building permit application

Development Permit

Decision/Building Permit issued

• the local fire authority of that area; and

• the local government (e.g., municipality) of that area.

The Senior Person in Charge must sign the declaration in this section confirming that they have provided the required notice to local authorities. A copy of each notice must be provided with the application.

Once a license is issued the holder must notify the municipality 30 days prior to opening the facility, of the start-up date.

Health Canada does not require an approved Development or Building Permit as part of their application process.

Implications for St. Albert

Land Use Bylaw The City of St. Albert Land Use Bylaw does not currently address Medical Marihuana facilities as a specific use. However, this type of use meets the criteria of the Light Industrial use definition.

A light industrial use is defined as “a development used for manufacturing and warehousing where any actual or potential nuisance factor generated by the development is contained within an enclosed building but excludes bulk oil and chemical storage and chemical processing”.

Light industrial uses are permitted uses in CIS (Commercial and Industrial Service), BP (Business Park), BPT (Business Park Transition), BP2 (Business Park Direct Control) land use districts with the potential for an applicant to apply for a facility in the DC (Direct Control) district.

A Light Industrial use would be a permitted use and we could issue the permit without notification to adjacent property owners and with no requirement from the applicant to do a consultation with adjacent properties.

Should an application be made, the Development Officer would process such an application as a permitted Light Industrial use.

Development Fees The fee for a Development Permit for a change of use in an existing building that is currently not operating as a Light Industrial Use is $396.25 with additional Building Permit fees based on construction value.

The Building Permit will address interior alterations and the specific requirements of the use in the space. Fees are based on construction value/

If the space being applied for is currently approved as a Light Industrial Use and that use has not ceased for a period of six (6) months or more, there is no requirement for a new development permit. There may be a requirement for a Building Permit (only) if the applicant is doing interior alterations to the space with additional Building Permit fees based on construction value.

If the applicant is intending to construct an entire new building on a site the Development Permit fee would be $500.50 with additional Building Permit fees based on construction value.

Other Implications Consideration must also be made to ensuring industrial land/facilities are suitable for growth and re-use. Development regulations help to do this by directing land uses and the capital investments in structures into appropriate areas. By their nature, structures developed or retrofitted for the commercial production of medical marihuana must meet the needs of plant cultivation. The lifecycle of a structure and its potential conversion to other uses should be considered in deciding where in the City it should go, in case a license gets cancelled and a new use could potentially take over such a building.

There are also economic benefits to be gained by permitting medical marihuana facilities. As mention earlier, this is expected to become a $1.3 billion industry by 2024, which could add to a city’s economic diversity and viability.

Other Communities Many Canadian Cities are currently exploring how they intend to regulate and address medical marihuana facilities in their jurisdiction. There are a variety of approaches being explored summarized in Table 1.

Table 1 – Approaches to regulate medical marihuana

Municipality Action

Abbottsford, BC Proposing bylaw amendments to ban the use defined as Medical Marihuana Grow Operation in all zones

Calgary, AB Proposing bylaw amendments to permit facilities in the General Industrial Group (I-G Land Use District)

Charlottetown, NB Proposing amendments to add the definition and limit the location to heavy industrial zones or business park industrial zones

Chilliwack, BC

Industrial sites must be rezoned to M6 (Special Industrial Zone) which allows for public input and council final approval. (similar to Direct Control)

Cowichan Valley Regional District (CVRD), BC

Limited to Agricultural Districts of a certain size and two industrial zones with specific setback to uses and in enclosed non-transparent buildings with loading and processing areas located entirely within the building

Edmonton, AB Allows applications classed as General Industrial Use in all industrial zones that support that use

Maple Ridge, BC Agricultural land

Richmond, BC Not permitted – appeals possible

Rocky View County, AB

Proposing bylaw amendments to permit facilities in the General Business (B2) and Industrial – Industrial Activity (I-IA) districts with separation distances from other uses and a three year approval period. Other amendments to definitions of Greenhouse, Home Based Business, Horticultural Development and

Market Garden to prevent overlap

Toronto

Proposing bylaw amendments to permit facilities in two industrial zones with specific setbacks to multiple zones and uses and in enclosed buildings only

Options for St. Albert There are a number of options that the City of St. Albert could consider in order to regulate Medical Marihuana Production Facilities.

1. PERMIT MMPF - Leave the Land Use Bylaw as is and treat a Medical Marihuana Production Facility as a Light Industrial use. They would be permitted uses in CIS, BP, BPT, and BP2. Conditions of the development Permit would reference the need to comply with Health Canada regulations.

Advantages:

1. No changes required to the Land Use Bylaw and potential applications could be dealt with right away, as federal regulations come in effect April 01, 2014.

2. City could benefit from new businesses.

3. Use is not “labelled” or signed to indicate the nature of the operation, therefore unnecessary attention to the operation is diverted and reduces the possibilities of opportunistic crime.

Disadvantages:

1. May affect future applications for uses in these districts due to stigma of the of the operation.

2. As a permitted use the applicant is entitled as a right to the permit provided owner’s authorization is provided.

3. As a permitted use there would be no notification to adjacent properties and no opportunity for appeal.

2. DO NOT PERMIT MMPF - Add the definition to the Land Use Bylaw but do not include MMPF as permitted or discretionary use in any district. This could deter any

applications as the applicant would need to do a text amendment to the Land Use Bylaw to add the use to a district and obtain a permit.

Advantages:

1. No application is permitted.

Disadvantage:

1. May open the City to a legal challenge.

2. This is projected to be a significant economic industry the City would not be able to benefit from.

3. Undue attention would be brought to this use if required to amend the Land Use Bylaw to allow it which could result in opportunistic crime.

3. PERMIT MMPF WITH ADDITIONAL REGULATIONS - Add the definition to the Land Use Bylaw and make it permitted or discretionary in appropriate districts with or without regulations in regard to setbacks, size, and other applicable conditions.

Advantages:

1. Could allow the facilities in St. Albert in regulated land use districts but limit them in number or ensure geographic separation.

2. City could benefit from new businesses.

Disadvantages:

1. Unnecessary repetition in the Land Use Bylaw of regulations already set out by Health Canada.

Administration recommends Option 1. The Health Canada requirements are significant and have incorporated strong regulations to mitigate any issues such as noise, odor or security. The current districts permitting light industrial would be appropriate for this type of use. While a number of inquiries have been received to date, the costs required to set up an operation that meets all the Health Canada regulations would be of a magnitude that the actual applications are anticipated to be limited.

Should direction be given for Land Use Bylaw amendments, it may be advantageous to require any Development Permit application for medical marihuana facilities not be received until such amendments are finalized.

: council motion – medical marijuana operations – land...

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