Recreational Cannabis Legalization: UPDATED Bylaw Amendments and Stakeholder Engagement

Recreational Cannabis Legalization: UPDATED Bylaw Amendments and Stakeholder Engagement

RECOMMENDATION

THAT the report from the Planner entitled “Recreational Cannabis Legalization: UDPATED Bylaw Amendments and Stakeholder Engagement” dated April 3, 2019 be received for information.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS

I concur with the recommendation.

DIRECTOR OF DEVELOPMENT SERVICES’ COMMENTS

I concur with the recommendation.

PURPOSE OF REPORT

The purpose of this report is to present an update to the process of community engagement, outline the approaches of some other municipalities, and a recommendation to move forward with development of policy and regulation to permit recreational marijuana uses.

BACKGROUND

On January 24th staff held a public open house catering to industry and business community interests, and to community interests.

Attendance at the open house was low for both the industry and the community components. There were approximately 4 interested parties or groups represented at each meeting. Feedback that staff received is as follows:

Industry-Focused:

• Victoria’s geographic separation between licenses is too restrictive; it was suggested that View Royal not do this.
• Small stores are seen as better.
• Provincial and municipal licensing and zoning is very restrictive and difficult for small business owners competing with large business interests.
• The owners of a local licenses retail store were present, indicating they wish to open a retail store adjacent to their liquor store.
• Many individuals not able to attend have expressed their interest in opening retail store locations in the Town.

Community-Focused:

• Odour is a concern in all uses – production, distribution, retail sale, home growing and consumption.
• Two pieces of feedback were in favour of keeping the bylaws as they are currently; prohibition on all uses.
• One respondent questioned View Royal’s authority to prohibit home growing given the federal and provincial legislation permitting it.

After the Open House, on February 26th, staff sent emails to the Shoreline Community Middle School, View Royal Elementary and Eagle View Elementary Parents’ Advisory Committees regarding the potential for staff to attend a PAC meeting in order to address any concerns parents may have regarding potentially permitting cannabis land uses in the Town. Staff has only heard back from the Shoreline PAC, who were not interested in meeting.

The vast majority of staff’s day-to-day inquiry and interest in the matter has been from potential retailers, and analysts from large producers and retailers inquiring on our bylaw processes. There seems to be very little in the way of community concern over this issue, other than what was heard from a handful of people at the open house.

ISSUES AND ANALYSIS

Experiences and efforts over the last year to understand this issue and to reach out with engagement in a meaningful way have led staff to draw the following conclusions:

1. There is significant interest from industry in establishing retail recreational cannabis stores in View Royal.
2. The public does not seem to be generally very concerned about recreational cannabis-related uses in View Royal but may be more interested when a rezoning identifies potential stores in specific locations.
3. Recreational cannabis is being treated by the province in a very similar manner to alcohol. Staff believes that the Town should regulate recreational cannabis as it does licensed retail sales (alcohol sales).

There are various issues to be discussed regarding moving forward, outlined in the following sections:

Public Engagement

Council has two options regarding the public engagement strategy for recreational cannabis uses in View Royal:

1. Continue with the public engagement plan as laid out in earlier reports, including the preparation of an online survey, more direct engagement with public and private agencies, and so forth, to try to fully understand how permitting recreational cannabis in the Town will impact community and commercial interests therein.
2. Conclude the public engagement plan with the acknowledgement that only very limited interest has been generated to date, and that Public Hearings or other more targeted engagement strategies for proposed uses in specific locations are far more likely to provide meaningful input from the community.

Staff recommends option #2.

Zoning Bylaw No. 900, 2014 Amendments

Generally, there are three possibilities for permitting recreational cannabis uses (production, distribution and retail sale) in the Town of View Royal:

1. Continue to prohibit some or all of the uses.
2. Permit some or all of the uses by pre-zoning certain areas of the Town for recreational cannabis uses or considering existing uses to be recreational cannabis uses. For example, considering ‘licensed retail sales’ to also include cannabis sales.
3. Require a site-specific zoning for any application for a cannabis use, whether it be production, distribution, or sale.

Staff recommends option #3, given that it represents the most control and flexibility for Council, and the most opportunity for public engagement. Staff recommends adopting minimum distances from other cannabis land uses and from schools (400m each) to establish clear expectations for applicants and to be fairly consistent with neighbouring municipalities.

For home growing of up to four plants, there are two options: permit it, or continue to prohibit. Staff is of the opinion that prohibiting home growing represents a large and unnecessary risk for the Town, given that illegal growing activity in the black market (more than 4 plants) is a criminal offense and has the potential to be large-scale and criminally-organized. It should be an RCMP enforcement issue rather than a bylaw enforcement issue.

Victoria, Esquimalt and Colwood are taking the approach of requiring site-specific zoning for cannabis retail stores and have established a specific cannabis retail use for retail stores. Victoria requires that stores be separated by at least 400m, and not less than 200m from schools. Esquimalt requires a separation of at least 500m from schools but will consider distances from other stores individually.

Langford is entering into partnerships with retailers by issuing requests for proposals to open cannabis retail locations. The Request for Proposals issued by Langford outlining their proposed programme is attached for information (see Attachment 6).

Form and Character Amendments (Either Official Community Plan Bylaw No. 811, 2011 or Zoning Bylaw No. 900, 2014 Amendments)

In staff’s opinion, Form and Character considerations are best left under the existing commercial form and character guidelines. The provincial licensing requirements are clear and detailed regarding the screening of uses from outside the store, signage, branding, etc. and any additional requirements of the Town are likely to be ineffective in further screening the use from the exterior of the building, or otherwise indicating the nature of the business.

Excerpts from the Provincial Cannabis Store Terms and Conditions guidebook:

Store Layout

A cannabis retail store must be located in a permanent building or structure and be enclosed by floor-to-ceiling walls that are not transparent. Non-medical cannabis, cannabis accessories and transactions involving those products must not be visible from outside the store. Displays must not permit self service by patrons (including dispensing devices). All patrons must be assisted by a store employee, as all cannabis and cannabis accessories must be displayed in a way that products are not accessible to patrons.

If the general manager has approved a shared common area (e.g. vestibule) licensees are not permitted to advertise or erect displays within the shared common area. There must be floor to ceiling walls that are not transparent separating the store from the shared common area and non-medical cannabis, cannabis accessories and transactions involving cannabis and cannabis accessories must not be visible from the shared common area. If a shared common area is approved by the general manager, a licensee must notify the Branch if the adjoining business changes during the term of their licence.

Branding

The name of the business and exterior signage must comply with provincial requirements and be approved by the Branch. All business names and signage must comply with the advertising terms and conditions and cannot mislead the public as to what type of business the licensee operates. As a retailer of non-medical cannabis, a licensee cannot choose a name that would lead people to believe that they are associated with another business (other than another non-medical cannabis retail store in B.C. or a cannabis store located anywhere outside of B.C.) or are a provider of medical cannabis. For example, the business name must not include the name of another business, or the words, in traditional or non-traditional spelling, “pharmacy,” “apothecary,” or “dispensary.” Graphics associated with a pharmacy, including for example, a green cross, are prohibited. Store names cannot also use language that encourages intoxication.

Victoria, Esquimalt and Colwood (the municipalities which were consulted as part of this process) are all relying on their existing commercial Form and Character guidelines for cannabis retail stores, and the provincial licensing requirements.

Esquimalt is requiring that all glass on storefronts remain clear, despite the provincial licensing requiring the opposite. It remains to be seen whether the province will take issue with this approach.

Other Bylaw Amendments

As part of this, amendments to various interconnected bylaws may be made:

• Municipal Ticketing Information Bylaw will be updated with fines for non-compliance.
• Safe Premises Bylaw may need to be updated for home-growing related uses.
• Business License Regulation Bylaw will need to be updated for these proposed uses.
• Fees and Charges Bylaw will need to be updated for business license fees for proposed uses.

SUMMARY OF STAFF RECOMMENDATIONS

1. Conclude the public engagement plan with the acknowledgement that only very limited interest has been generated to date, and that Public Hearings or other more targeted engagement strategies for proposed uses in specific locations are far more likely to provide meaningful input from the community.
2. Require a site-specific zoning for any application for a cannabis use, whether it be production, distribution, or sale. Currently, the primary focus and industry interest is around cannabis retail stores.
3. Establish a “licensed cannabis retail store” definition within the Zoning Bylaw and require rezoning to the use of ‘licensed cannabis retail store’.
4. Require a separation from schools and from other cannabis land uses of 400m to be fairly consistent with other municipalities, and to establish clear expectations for applicants.
5. Permit home growing.
6. Rely on existing form and character guidelines for commercial land use designations, and rely on the provincial licensing requirements to regulate screening, branding, etc.

RECOMMENDATION

THAT the report from the Planner entitled “Recreational Cannabis Legalization: UDPATED Bylaw Amendments and Stakeholder Engagement” dated April 3, 2019 be received for information.

ATTACHMENTS

1. Town of View Royal Recreational Cannabis Open House Boards – January 26, 2019
2. Cannabis Retail Store – Terms and Conditions – Province of British Columbia – February 2019
3. Letter – Re: Cannabis Retail Store Application – Provincial Liquor Distribution Branch – March 1, 2019
4. BC Cannabis Stores Presentation – Provincial Liquor Distribution Branch
5. Township of Esquimalt – Starting a Cannabis Retail Store in the Township of Esquimalt – FAQ
6. City of Langford – Request for Proposal – Retail Sales of Cannabis and Cannabis-Related Products
7. Map illustrating 400 metre distance from schools