Re: Cannabis Retail Store Application

Re: Cannabis Retail Store Application

Please accept our application to locate a government operated cannabis retail store in View Royal. The Liquor Distribution Branch (LDB) has received support from a property owner to proceed with this rezoning application (Authorization letter attached).

About the LDB

The LDB is one of two branches of government responsible for the beverage alcohol and non-medical cannabis (cannabis) industries in B.C. Through the Liquor Distribution and Cannabis Distribution Acts, the LDB is mandated with the purchase and distribution of beverage alcohol and cannabis for the Province. As well, the LDB operates a number of public liquor stores (197 in total), and as of October 17th, a public cannabis retail store in Kamloops, as well as an e-commerce platform to offer public on-line sales of cannabis. The LDB is self insured as a branch of the BC government.

Revenue generated through the LDB’s wholesale and retail operations is directed to the Provincial Government and contributes to supporting vital public services such as health care and education. For the 2017/2018 fiscal year, the LDB contributed $1.12 billion to fund government services. Revenue generated through LDB’s newly implemented cannabis operations (both wholesale and retail) will also be directed back to the Province to support important public services.

Location of Proposed Cannabis Retail Store

This location was selected by the LDB for a proposed cannabis retail store for a number of reasons, including that the site is:

• Located in a large retail complex and therefore consistent with the nature of the immediate area;
• Easily accessible to customers; and
• Not expected to adversely impact traffic in the surrounding area, given its location in an already established retail complex.

Building and Site

The following considerations were taken into account when evaluating the appropriateness of the site and building for a cannabis retail store:

• The intended use of the site is consistent with the “retail” nature of the immediate area.
• The size of the proposed cannabis retail store is approximately 2,500 sq ft, which is consistent with other retail stores existing on the subject site and in the surrounding area.
• The site provides for ample parking and efficient traffic flow as it is an existing retail development and includes ample access for vehicles, pedestrians and cyclists.
• Access for cars:
• Ample parking
• Access for Pedestrians and cyclists, including proximity to public transit:

Exterior Design Rationale

Storefronts will have frosted windows to align with Health Canada’s requirements that cannabis not be visible to minors and with LCRB’s regulation that “the retail store must be located in a permanent building or structure and be enclosed by floor-to-ceiling walls that are not transparent”. The LDB is willing to work with the City of Port Coquitlam to ensure that the aesthetics of the store exterior is sensitive to the design character of the surrounding land uses.

The store will have one exterior sign, the BC Cannabis Stores signage. An image with design specifications is included in this package.

Odour Mitigation

Product has to be packaged as per Health Canada’s packaging requirements, in a child-proof container with packing that reduces any odor. Since the product is prepackaged and the cardboard it comes in is removed from the store once received, there is little to no noticeable odor emitted in or around the store.

There will be a ventilation/filtration system to reduce and eliminate any odors from within the store. In the event that neighbouring property owners or customers complain about any odour, the LDB will respond to these requests immediately.

Defective product will be transported to an off-premise location to be destroyed. Stores will not incinerate or dispose of cannabis products on premise, reducing the risk that cannabis will come into the hands of minors or the illicit market.

Community Impact and Benefit

The LDB works closely with the Liquor and Cannabis Regulation Branch (LCRB) and the Ministry of Public Safety and Solicitor General to encourage the safe and responsible consumption of alcohol and cannabis in BC. The LDB is committed to working in partnership with local governments to ensure a smooth introduction of the legal cannabis retail market to BC communities. While government-operated cannabis retail stores do not require a licence from the LCRB¹, we are committed to following all municipal zoning processes and meeting all bylaw requirements, as well as working with local law enforcement agencies to maintain public safety and to mitigate, and respond to, any negative impact on the community.

¹ As a branch of the Ministry of Attorney General, the LDB does not require a formal license from the LCRB to operate a retail cannabis store - written confirmation from the LCRB is attached.

Social Responsibility is part of the LDB’s Mission Statement and one of the four pillars we have identified that supports our success. Our efforts are focused on three themes: encouraging and promoting responsible use of alcohol and cannabis, reducing the impact our business has on the environment, and giving back to the communities we serve. We meet these objectives by:

• Delivering products that meet strict product safety and quality requirements - all cannabis products will be purchased through the LDB wholesale channel; product will be lab tested and will only be purchased from producers that have been licensed by Health Canada.
• Ensuring accountability of our key business partners (e.g. Licensed Cannabis Producers).
• Promoting the safe and responsible use of beverage alcohol and cannabis through social responsibility campaigns aimed at keeping alcohol and cannabis out of the hands of youth*, preventing driving under the influence, and informing the public about associated health risks.
• Actively discouraging customers from engaging in high-risk behaviour like drinking or consuming cannabis and driving, consuming alcohol or cannabis during pregnancy and participating in sporting activities while under the influence of alcohol or cannabis;
• Increasing awareness of the dangers associated with over-consumption or risky behaviour through various in-store campaigns with strategically placed messaging;
• Raising money through in-store fundraising campaigns for dry grad celebrations, Red Cross disaster relief, kids in need, and local community charities (through the Provincial Government’s Employee Workplace charitable giving campaign); and
• Incorporating environmental sustainability into all facets of our business with a goal of reducing our environmental footprint and being a leader in sustainable retailing.

All stores will employee unionized staff and results in job creation within the City of Port Coquitlam. Specifically to this site, the store would have one Store Manager, two Assistant Managers, 6 full-time Cannabis Consultants, 2-4 part-time Cannabis Consultants, and approximately 4-6 auxiliary staff. The starting wages for these positions is $20/hour. All employees go through criminal background checks.

*Keeping cannabis out of the hands of minors will be a top priority for the LDB. Unlike liquor stores, minors will not be permitted to enter cannabis retail stores, even if they are accompanied by a parent or guardian. When entering the store, there will be an ID check at the entrance. Individuals without ID or minors (even those accompanying someone of legal age) will not be permitted in the store. As well, all staff will be required to complete a provincial training program.

Store Operations

BC Cannabis Stores will be bright, clean, welcoming and professional, with the intent of creating a safe and favourable alternative to purchasing cannabis from the illicit market. The store interior and exterior design will be modeled off of the Kamloops BC Cannabis Store, as shown in the BC Cannabis Stores presentation attached with this package. Store hours may vary by each store location, but most stores will be open from Monday to Sunday 10 am to 10 pm.

All cannabis products carried by BC Cannabis Stores are sourced from federally licensed cannabis producers that are required to meet Health Canada’s guidelines for quality control, Good Production Practices, and inventory management. BC Cannabis Stores will sell cannabis flower, pre-rolls, oils, cannabis accessories and once legalized, edibles and concentrates.

The LDB’s neighbourhood strategy includes:

• Mandatory full day training program, Keep It Safe, required for all staff. This program covers best practices for dealing with intoxicated customers, suspicious activities, and instances of violence, theft or nuisance. Additional topics covered include understanding cannabis related laws and strategies for maintaining a safe environment for employees and customers.
• Implementation of procedures on how to deal with unruly customers, store safety, loitering, and consumption outside the premises. For example, procedures are in place to ensure there are at least 2 employees in the store at all times and that stores are armed and locked outside business hours. For events that occur outside of the store, staff are trained to contact mall security, if applicable, or to call 911.
• BC Cannabis Stores have a two ID policy. Customers must show two pieces of ID, one of which must be issued by a government agency and includes their name, birth date, and picture. The second must include an imprint of their name, signature and/or picture. Staff receive training on conducting ID checks and identifying signs of altered ID documents.

Security

Customer, employee, and community safety is paramount. The LDB brings over 40 years of experience in working with local government, enforcement agencies, and security experts in establishing and operating secure retail stores in BC. The LDB utilizes Crime Prevention Through Environmental Design (CPTED) principles in all of our retail store layouts.

BC Cannabis Stores are supported by the LDB’s Corporate Loss Prevention department and privately contracted security personnel are available to work in conjunction with store staff to ensure security practices and protocols are followed.

All BC Cannabis Stores will have:

• Centrally maintained province-wide intruder and fire monitoring systems;
• Interior and exterior camera surveillance;
• Locked and tempered glass display cases for cannabis accessories;
• A secure storage room where product will be kept that will require access cards to enter;
• Durable and reliable commercial-grade doors and locks;
• Security shutters; and
• Smash-resistant windows.

Further details regarding BC Cannabis Stores and the LDB’s social responsibility efforts are included in the attached presentation. If you require additional materials or have any questions we would be very happy to provide it. We thank you in advance for your consideration of our application.

Sincerely,

Michael Tan Executive Director – Cannabis Operations BC Liquor Distribution Branch

Attachments:

1. BC Cannabis Stores presentation
2. Application Package