For CommitteeCopuitlam

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Strategic Goal:This project is a ‘C’ priority in the 2020 Business Plan under the Strategic Goal of 'Excellence in City Governance’. This work is also being undertaken as part of the City’s Strategic Leadership Program and this initiative supports enhancing staff skills and building organizational capacity.

Report Purpose:To provide background information and receive preliminary Committee feedback to assist staff in finalizing the scope and process of the Cannabis Regulatory Framework.

Recommendation:That the Committee receive the report of the General Manager Planning and Development dated June 12^ 2020 and entitled "Proposed Approach to Cannabis Regulatory Framework’’for information.

Local governments have been delegated the authority to regulate certain aspects of the cannabis industry (i.e., the option to choose to regulate or prohibit these aspects of the cannabis industry). This includes the approval, location, and business licensing procedures for cannabis-related businesses, such as production and processing facilities as well as retail stores.

Background:The federal government’s Cannabis Act came into force on October 17, 2018, , creating a regulatory framework for the production, distribution, sale, and possession of cannabis in Canada. Under the Cannabis Act, the federal government is responsible for regulating cannabis production, advertising, and setting age and possession limits. Each province regulates wholesale and retail distribution. Implements a retail distribution model, and has the option to set more restrictive age and possession limits.

In British Columbia, the Liquor and Cannabis Regulation Branch (LCRB), formerly the Liquor Control and Licensing Branch, is responsible for monitoring the recreational cannabis retail sector and licensing private cannabis retail stores. The Liquor Distribution Branch acts as the provincial wholesale distributor of recreational cannabis and runs B.C. Cannabis Stores.

City ManagerGeneral Manager Planning and Development

Subject: Proposed Approach to Cannabis Regulatory Framework

Strategic Priorities Standing Committee

June 12, 2020Our file: 13-6410-01/000/2020-1 Doc#: 3725878.V2

File #: 13-6410-01/000/2020-1 Doc #: 3725878.V2

Processing Facilities: where raw cannabis material is further processed into other useable forms (e g., through extraction, refinement, and purification of active ingredients). Research and development (R&D) functions, as well as storage, packaging, and wholesale distribution of processed cannabis products (e.g., tinctures, oils, topicals) would be included in this category.

Following federal legalization in 2018, further regulations were finalized on June 14, 2019 to govern the legal production and sale of edible cannabis, cannabis extracts and topicals. These regulations came into effect on October 17, 2019.

On December 16, 2019, Council approved a Temporary Use Permit (TUP) to allow a cannabis processing and research facility at 3-68 Schooner Street for Next Leaf Labs Ltd. Staff have noted an increase in the number of public inquiries after this TUP was approved about the possibility of establishing similar businesses in Coquitlam.

A number of Metro Vancouver municipalities have established policyframeworks to provide guidance for approving and establishing cannabis- related businesses. Attachment 1 provides a brief overview of what other nearby municipalities have developed to date.

Discussion/Analysis:A formal Cannabis Regulatory Framework would include policy guidance and regulations for cannabis-related businesses within Coquitlam, and wouldprovide a greater degree of certainty to the public and the business community on how cannabis-related businesses would be considered, approved, andregulated. This Framework could include the continued prohibition of any or all of the cannabis-related uses outlined below, but should Council choose to consider allowing cannabis-related uses, the following outlines different approaches that could be considered.

Production Facilities: where raw cannabis material is cultivated and harvested for commercial purposes. Related operations such as drying and curing, storage, packaging, and wholesale distribution of raw cannabis material would be included in this category.

Page 2June 12, 2020

Business CategoriesTo encompass the range of cannabis-related establishments that the City may need to consider, staff propose that the framework focus on three main business categories that relate generally to the different stages in the cannabis business sector:

Retail Stores: for retail sales of cannabis products and accessories to the general public for off-site consumption.

In anticipation of the pending legalization that was ultimately adopted on October 17, 2018, the City adopted an amendment to the Zoning Bylaw on April 30, 2018. This amendment continued to allow medical grow operations under certain conditions in the M-2 Industrial Business zone and prohibit all other cannabis-related uses. These regulations remain in place at this time.

File #: 13-6410-01/000/2020-1 Doc #: 3725878.V2

Staff recommend that business types where on-site consumption would be permitted (e.g., cannabis lounges) not be considered at this time, as provincial regulations do not currently accommodate for these types of establishments.

Land Use: All of the regulatory frameworks that staff reviewed included policies to limit the land uses under which cannabis-related businesses would be considered. For example, businesses would only be considered if they were located within certain zones in the Zoning Bylaw.

In anticipation of a high volume of initial applications, some municipalities also developed specific procedures for application intake. For example, some municipalities have opted to accept applications within a specified intake period and assess them on a first-come, first-served basis and/or based on certain evaluation criteria.

Permitting uses as-of-right allows for simplification in the approval process and would involve reduced processing times. Conversely, approval through a case-by-case approach allows for greater control over the location, number, and distribution of businesses, but will entail a more lengthy, detailed process for each application.

Framework ScopeDrawing from research on similar regulatory frameworks that have been established in other municipalities (Attachment 1), three main themes as described below are commonly included as part of the scope for considering the approval of cannabis-related businesses. These themes may be applied uniquely to each business category to form an approach to how different types of businesses may be considered and approved.

Approval Procedure: Procedures for approving cannabis-related businesses fall into two general categories:• Permitting uses as-of-right (e.g., use permitted in certain zones within the

Zoning Bylaw); or• Permitting uses through site-specific, case-by-case approval by Council or a

delegated authority (e g., through a zoning text or map amendment, or a TUP).

Other Considerations: Other factors in considering the approval of cannabis- related businesses include the following:• Limiting the total number of establishments permitted City-wide and/or

within individual neighbourhoods or areas;• Controlling or encouraging a certain distribution of public vs. private retail

stores;• Establishing buffer distances from sensitive uses such as schools, community

centres, youth centres, and playgrounds, and/or minimum required distances from similar businesses (i.e., similarto Coquitlam’s and other municipalities’ approach to location separation criteria for liquor stores);

• Establishing criteria for site access, building size and design, exterior aesthetics, signage and window displays, and hours of operation; and

• Public consultation procedures.

Page 3June 12, 2020

other factors that may need to be considered include noise and odour control, separation requirements from sensitive uses, and signage restrictions.

• Processing Facilities: While processing facilities could also be considered industrial uses, they may involve other operations such as research and development and associated laboratory and office functions that are more commercial-related. Similar to production facilities, it may be appropriate to permit them as-of-right within industrial zones (M-i, M-2 zones) as well as the B-1 Business Enterprise zone, which provides for a mix of industrial and commercial uses. Similar factors to those described above for production facilities may also need to be considered for processing facilities:

• Production Facilities: Recognizing that these businesses would be more industrial-based and have relatively limited daily interaction with the general public, it may be appropriate to permit them as-of-right where industrial uses are already permitted (e.g., M-1 General Industrial and M-2 Industrial Business zones). The Zoning Bylaw currently permits medical cannabis grow operations in the M-2 zone under certain conditions.

• Retail Stores: The sale of cannabis products and accessories to the general public will likely have a larger impact on Coquitlam’s residents than production and processing facilities. For this reason, more restrictive regulations on retail stores may be appropriate. If desired, retail stores could be prohibited entirely.

Proposed ApproachThe scope of the City’s Cannabis Regulatory Framework process is proposed to draw from what surrounding municipalities have established, but will also consider, at Council’s direction, the City’s particular goals in developing a framework to regulate cannabis-related land uses.

On February 22, 2019, the Agricultural Land Commission (ALC) established the Agricultural Land Reserve (ALR) Use Regulation to replace former regulations. Under the new ALR Use Regulation, all forms of cannabis production are considered farm use. Local governments may establish further regulations around cannabis production and processing on ALR lands, but in some cases may not prohibit these uses. The Cannabis Regulatory Framework process may include considerations for further regulating cannabis production and processing uses on the City’s ALR lands.

Should Council support exploring and developing a Cannabis RegulatoryFramework and as a starting point for further discussion, staff recommend the following approach be considered for each of the three main business categories:

Page 4June 12, 2020

Staff recommend limiting the consideration of retail stores to locations zoned and designated in the Citywide Official Community Plan (CWOCP) for commercial uses, and to consider stores on a case-by-case basis, requiring a rezoning for each retail store application. This would give Council control over the location, distribution and number of stores throughout the City. This approach could be achieved through a zoning text amendment process, similar to what the District of North Vancouver has established.

File #: 13-6410-01/000/2020-1 Doc #: 3725878.V2

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File #; 13-6410-01/000/2020-1 Doc#: 3725^1^,m2

Staff recommend that regulations on the public consumption of cannabis be excluded from the scope of this project Public consumption regulations are included in the provincial Cannabis Control and Licensing Act (CGLA), and the City’s Smoking Control Bylaw No. 3037,1996 already covers smoking of all substances including tobacco, cannabis, and e-cigarettes.

Reviews of best practices conducted by other municipalities have found that while a merit/criteria-based approach to accepting applications may allow for more efficient screening, it may present challenges in ensuring a fair, objective and transparent intake process. A first-come, first-serve basis for accepting applications may be more appropriate.

Conclusion:The Cannabis Regulatory Framework is a ‘C’ priority on the City’s 2020 Business Plan. Unless otherwise directed, staff will take the Committee’s feedback and proceed with developing a Scope and Process report to be considered at a future Council-in-Committee meeting.

Attachments:1. Municipal Scan Summary (Doc# 3725889)2. Presentation - Proposed Approach to the Cannabis Regulatory Framework

(Doc# 3727880)

Financial Implications:This work is being undertaken within the existing Planning and Development Department Budget.

Next Steps:Staff will incorporate feedback received from the Committee into a formal Scope and Process Report to be presented at a future Council meeting. Proposedconsultation outlined in this report would include opportunities for public input and a Council workshop with specific questions to gather feedback that would guide the development of future regulations.

Alternatively, staff could explore allowing cannabis retail stores as-of-right in certain commercial zones. While location separation requirements similar to those currently in place for liquor stores could prevent a cluster of retail stores and limit the overall number of stores. Council approval would not be required for each application. Note that none of the municipalities in Metro Vancouver that staff researched allow cannabis retail stores as-of-right.

In terms of other factors, consideration of minimum buffer distances from other stores and sensitive uses could be explored. Regulations for store signage, appearance and the distribution of private vs. public stores could also be explored.

Page 5June 12,2020

I

File #: 13-6410-01/000/2020-1 Doc #: 3725878.V2

This report was prepared by Andrew Yu, Planner land reviewed by Chris McBeath, Planner 3, Andrew Merrill, Director Development Services and Graham Stuart, Manager Corporate Planning.

Page 6June 12, 2020

Cannabis Regulatory Framework - Municipal Scan Summary

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Cannabis Production and Processing Facilities Cannabis Retail Stores

City of Port Coquitlam

City of New Westminster

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City of Burnaby

Commercial growing and harvesting not permitted.

Page 2File#:09/1 Doc#: 3725889.V1

Cannabis Production and Processing Facilities Cannabis Retail Stores

Cannabis production permitted in M-2 Industrial zone. Must provide plans for discharges into air, groundwater or services, solid waste management plan, ventilation plan. Must be in a stand-alone building with no other uses.

Must be located at least 200 metres from schools. Only one store permitted in each of the four Key Growth Centres as identified in the OCP (Maplewood, Lions Gate, Lynn Valley, Lynn Creek). Applications processed on a first-come first-served basis. Stores outside these areas may be also be considered.

Must be at least 75 metres from schools, playgrounds, community centres.

"Cannabis Production” as defined in the Zoning Bylaw includes production, processing, destruction, storage or distribution.

City of North Vancouver

Cannabis warehousing permitted in zones which permit warehousing.

Must be at least 100 metres from community/rec centres, neighbourhood houses, shelters. School District office, schools.Maximum 6 stores (2 each in Lower and Central Lonsdale, 1 each in eastern and western areas).

Zoning Bylaw defines "Medical Cannabis Production and Testing” (prohibited in all zones).

Approved locations to be added as permitted location under General Regulations section in Zoning Bylaw.

Permitted in Commercial and Mixed-Use designations In OCP. Case-by-case rezoning required.

Permitted on properties zoned for commercial retail use. Case- by-case rezoning required.

City of Port Moody

District of North Vancouver

Applicants selected on first-come first-serve basis. Application must include community impact statement and security plan (In compliance with or exceeding provincial requirements).

Permitted on sites currently zoned to permit liquor store use. Case-by-case approval (zoning text amendment) required.

and OCP amendment).

Page 3File#:09/1 Doc#: 3725889.V1

Cannabis Retail StoresCannabis Production and Processing Facilities

it 300 metres (measured from property imunity centres, neighbourhood houses, vulnerable youth, other cannabis ific geographical restrictions apply.

CityofVancouver

zones. Case-by-case approval through squired.

City of Richmond

ATTACHMENT 2

ATTACHMENT 2

Purpose

1

BWB

CoQuitlam

Coouitiam

• Provide background information and receive Committee feedback on the development of the Cannabis Regulatory Framework

Proposed Approach to theCannabis Regulatory Framework

Presentation to Strategic Priorities Standing Committee

Planning & Development Department

6/16/2020

Background

Regulatory Responsibilities

...i

2

CoQuitlam

Federal

Provincial

Municipal

CoQuitlam—4

• production, advertising, setting age and possession limits

• wholesale and retail distribution, retail distribution model, more restrictive age and possession limits (if desired)

• land use / zoning regulations and approval processes for production facilities, processing facilities and retail stores

• business licensing and Bylaw enforcement

• April 30, 2018: Amendments to the City of Coquitlam Zoning Bylaw

• October 17, 2018: Federal legalization and adoption of the Cannabis Act

• December 16, 2019: Temporary Use Permit at 3-68 Schooner Street for processing facility

A FRAMEWORK FOR THE LEGAUZATUNANOREeiUTION OF CANNABIS M CANADATHE FMM. ROW 8F IK nSK FMX N

6/16/2020

Business Categories

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Framework Scope

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Medical CannabisCrow-op

LiquorStores

• Production Facilities• Processing Facilities• Retail Stores

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Coquitlam

Min.Distance

6/16/2020

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Production: Municipal ScanIndustrial zones

Prohibited

Burnaby Industrial zones

New Westminster

Industrial areas

Richmond

Proposed Approach: Production

4

Land Use

Coquitlam

Coquitlam8

Industrial areas

Prohibited

Industrial and Mixed- Employment areas

Port Moody

Port Coquitlam

• Land Use/Zoning:- M-l General Industrial and M-2 Business Industrial zones

• Approval Process:- As-of-right

• Other Factors:- Noise and odour mitigation- Separation from sensitive uses- Signage and visibility

Case-by-case (rezoning)Case-by-case (rezoning)

North Vancouver (City)

North Vancouver (District)t.:

Vi

Case-by-case(Council approval required)

As-of-right

N/A

Legend■B M 2 Zoned Parcels

M-l Zoned Parcete

Approval Process

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6/16/2020

Processing: Municipal ScanNorth Vancouver (City) Industrial zones

Burnaby

New Westminster

Port Moody

Port Coquitlam Industrial areas

Richmond

Proposed Approach: Processing

5

Land Use

CoQuitlam

Coquitlam10

Industrial areas

Prohibited

Industrial and Mixed Employment areas

Case-by-case(rezoning)

Case-by-case (rezoning)

*City of Vancouver does not define Cannabis production or processing under the Zoning Bylaw

mil B-1 Zoned PvcA

M-2 Zoned

M l Zoned Pwccts

Bmmwm EntavM&e

North Vancouver (District) Warehouse zones (forwarehousing only)

Industrial zones

• Land Use/Zoning:- M-l General Industrial, M-2 Business Industrial zones- B-1 Business Enterprise zone

• Approval Process:- As-of-right

• Other Factors:- Noise and odour mitigation- Separation from sensitive uses- Signage and visibility

J

Approval Process

i

Case-by-case(Council approval required) 1

As-of-right

N/A "MHH

&I1&I2020

Roundtable Discussion:Production and Processing

Key topics for discussion include:

Retail: Municipal ScanNorth Vancouver (City)

North Vancouver (District)

Burnaby

New Westminster Commercial areas

Commercial retail zones

Commercial areas

1Vancouver Commercial areasI

6

Land Use

"W-

1. Appropriate locations (industrial areas?)2. Approval process (as-of-right?)3. Use of separation requirements4. Other considerations..?

a

Commercial and mixed- use areas

Zones where liquor store use is permittedCommercial areas

9

Coquitlam—11

Coquitlam12

?

Port Moody

sPort Coquitlam

Approval Process

6/16/2020

Proposed Approach: Retail

■■fl

Roundtable Discussion: RetailKey topics for discussion include:

7

Coquitlam—— 13

2^-

Coquitlam

1. Appropriate locations (commercial areas?)2. Approval process (case-by-case rezonIng?)3. Use of separation requirements4. Public vs. private stores5. Other considerations..?

• Land Use/Zoning:- Limit to locations zoned and designated for Commercial Use

• Approval Process:- Case-by-case through zoning text amendment

• Other Factors:- Separation from sensitive uses and other businesses- Number, distribution, public vs. private stores- Signage, access, and visibility

6/16/2020

Next Steps4 P T12O21 14 I T2 2021 ~|T3 2020 T2 2021

8

PublicConsultation

ConsultationSummary Report to Council

Scope andProcess Report

toCIC

BylawAmendment

Report to Council

Coouitlam-------- 15