Attachment 1. Report and Zoning Bylaw Amendment from City of Pitt Meadows

City of Pitt Meadows Zoning Amendment Bylaw No. 2626, 2013

A Bylaw to amend applicable sections of Zoning Bylaw No. 2505, 2011

WHEREAS, it is deemed expedient to amend The City of Pitt Meadows Zoning Bylaw No. 2505, 2011 as amended;

NOW THEREFORE, the Council of The Corporation of the City of Pitt Meadows in open meeting assembled, ENACTS AS FOLLOWS:

1. This Bylaw may be cited as the "City of Pitt Meadows Zoning Amendment Bylaw No. 2626, 2013".
2. Part 2 Interpretation, 2.3 General Definitions is amended by adding the following definitions: MARIHUANA means all parts of the genus cannabis whether growing or not and the seed or clone of such plants. MEDICAL MARIHUANA means marihuana that may be administered to treat or alleviate a qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition under the Marijuana Medical Access Regulations SOR/2001-227, as amended.
3. Part 3 Enforcement, 3.4 Specific Prohibitions is amended by adding the following section: h) The cultivation, processing, drying, storing, packaging, distribution or testing of marihuana or medical marihuana is prohibited in all zones.
4. Pitt Meadows Zoning Bylaw No. 2505, 2011 and amendments thereto, is hereby amended accordingly.

READ a FIRST and SECOND time the 18th day of March, 2014. PUBLIC HEARING waived the 18th day of March, 2014. READ a THIRD time the 1st day of April, 2014. ADOPTED the 1st day of April, 2014.

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Council in Committee Report

To: Chief Administrative Officer From: Acting Director of Operations and Development Services File No: Bylaw/Policy No: 2626, 2013 Date: March 5, 2014 Subject: Medicinal Marihuana Zoning Text Amendment

RECOMMENDATIONS:

THAT Council:

A. Grant First and Second Reading to Bylaw No. 2626, 2013; AND B. Waive the requirement for a public hearing for Bylaw No. 2626, 2013 as per Section 890(4) of the Local Government Act and Section 15.a. of the City of Pitt Meadows Development Application Procedures Bylaw No. 2444, 2009, OR C. Direct staff to prepare a bylaw for Council's consideration that would accommodate the production of medical marihuana within an industrial zoning designation; OR D. Other.

PURPOSE:

To request that Council consider the following two options with regard to the production of medical marijuana within the City of Pitt Meadows:

Option 1: Grant First and Second Reading to Bylaw No. 2626, 2013 explicitly prohibiting the growing, storing, processing, testing, or distribution of cannabis from all zones and waive the requirements for public hearing pursuant to Section 890(4) of the Local Government Act and Section 15 a. of the City of Pitt Meadows Development Procedures Bylaw; OR

Option 2: Direct staff to prepare a bylaw for Council's consideration that would accommodate the production of medical marihuana within an industrial zoning designation, as proposed in the September 13th Report to Council. The proposed amendment would provide a mechanism to proponents seeking to locate a medical marihuana facility within Pitt Meadows, but would still require a rezoning application (and public hearing) for a particular location / parcel.

BACKGROUND:

At the October 1st, 2013 Regular Council meeting, Council considered a staff report that provided an update to the new federal legislation that would legalize the commercial production of marihuana for medical purposes. The new regulations will replace the Marihuana Medical Access Regulations (MMAR), which authorizes people to grow marihuana for themselves, or to allow a designated person to grow the marihuana for them. These new regulations go into effect on March 31st, 2014.

In June 2013, the Agricultural Land Commission had issued an information bulletin stating their position on the production of medical marihuana as a farm use consistent with the Farm Practices Protection Act. Generally, a municipality cannot prohibit those farm uses that are permitted by the province. Not all uses associated with the production of medical marihuana, for example, research and development, would be considered an agricultural use. In these cases, it may be necessary for the proponent to apply for a non-farm use in the Agricultural Land Reserve.

Despite the ALC's position last year, several municipalities were choosing to amend their zoning regulations to restrict medical marihuana facilities to industrial areas, even if there was land within the Agricultural Land Reserve within their boundaries. These municipalities included the Township of Langley, Chilliwack, and Burnaby. A few municipalities chose to permit these facilities within agricultural areas, including Maple Ridge. Pitt Meadows staff supported the possible location of medical marihuana production facilities in industrial areas as explained in the previous report to Council.

Two key developments have occurred regarding the new medical legislation. Firstly, the BC Assessment Authority has confirmed that commercial medical marihuana operations, or portions of operations established to produce medical marihuana might qualify to be assessed at farm rates whether or not they are located in agricultural areas.

Secondly, the Agricultural Land Commission updated their original bulletin (see Attachment A). The bulletin states that the regulation of land use is within a municipality's jurisdiction and that restrictions may be applied to the production of medical marihuana.

Since the fall, many municipalities in the Lower Mainland have considered and / or taken action to regulate medical marihuana production facilities. The following is a summary of the municipal land use approaches used in relation to medical marihuana facilities:

*Richmond City Council is currently considering a site specific rezoning application to permit a medical marihuana production facility.

FINANCIAL IMPLICATIONS:

BC Assessment Authority's position on commercial marihuana operations could negatively impact the tax revenue generated by such a use on an industrial property.

DISCUSSION:

Since the first report to Council in October, two primary developments have occurred that may shift the municipal perspective on medical marihuana production facilities:

1. The BC Assessment Authority confirmed that commercial medical marihuana operations, or portions of operations established to produce medical marihuana might qualify to be assessed at farm rates whether or not they are located in agricultural areas.

The continued development of industrial and business park areas for commercial uses is a key factor in Pitt Meadows future financial sustainability. The study of property tax revenue distribution by G.P. Rollo and Associates, Land Economists, concluded that with the development of industrial / business park lands (including the North Lougheed Area and Cardiff Farm lands) the revenue from non-residential sources of property taxes would exceed residential property taxes by 2022 and account for 53% of the property tax revenue. Locating medical marihuana production facilities within areas designated for industrial uses would compromise that balance.

2. ALC's updated information bulletin regarding medical marihuana production in the ALR and the municipal role in its regulation and restriction.

In the September 13th report, staff recommended that medical marihuana production facilities be located in industrial areas with a rezoning application rather than in agricultural areas, despite the ALC's position that the cultivation of marijuana would be considered a farm use. The ALC's updated bulletin appears to confirm the City's original position that the municipality should be able to determine the location of these facilities within their own boundaries based on factors such as servicing capabilities, emergency access, and impact on neighbouring properties. However, the bulletin is not a legal document, and it remains possible that the municipality may be legally challenged on not permitting the use in the ALR. Given that many municipalities with land in the ALR are prohibiting medical marihuana operations there, this is a challenge that many local governments may be facing.

SUMMARY/CONCLUSION:

Given the potential loss of commercial tax revenue that could result from permitting medical marihuana production facilities in business parks / industrial areas and the lack of services, emergency access and impact on neighbouring properties in agricultural areas, staff is recommending that the use be prohibited in Pitt Meadows.

Respectfully submitted,

Dana K. Parr Planner

Reviewed by: Anne Berry Manager of Development Services

Approved by: Terry Fryer Acting Director of Operations and Development Services

ATTACHMENTS: A. Zoning Amendment Bylaw 2626, 2013 B. ALC Information Bulletin, updated January 2014.

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ATTACHMENT A - CITY OF PITT MEADOWS ZONING AMENDMENT BYLAW NO. 2626, 2013

A Bylaw to amend applicable sections of Zoning Bylaw No. 2505, 2011

WHEREAS, it is deemed expedient to amend The City of Pitt Meadows Zoning Bylaw No. 2505, 2011 as amended;

NOW THEREFORE, the Council of The Corporation of the City of Pitt Meadows in open meeting assembled, ENACTS AS FOLLOWS:

1. This Bylaw may be cited as the "City of Pitt Meadows Zoning Amendment Bylaw No. 2626, 2013".
2. Part 2 Interpretation, 2.3 General Definitions is amended by adding the following definitions: MARIHUANA means all parts of the genus cannabis whether growing or not and the seed or clone of such plants. MEDICAL MARIHUANA means marihuana that may be administered to treat or alleviate a qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition under the Marijuana Medical Access Regulations SOR/2001-227, as amended.
3. Part 3 Enforcement, 3.4 Specific Prohibitions is amended by adding the following section: h) The cultivation, processing, drying, storing, packaging, distribution or testing of marihuana or medical marihuana is prohibited in all zones.
4. Pitt Meadows Zoning Bylaw No. 2505, 2011 and amendments thereto, is hereby amended accordingly.

READ a FIRST and SECOND time the ____ day of ____, 2014. PUBLIC HEARING held the ____ day of ____, 2014. READ a THIRD time the ____ day of ____, 2014. ADOPTED the ____ day of ____, 2014.

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ATTACHMENT B - ALC INFORMATION BULLETIN

MEDICAL MARIHUANA PRODUCTION IN THE AGRICULTURAL LAND RESERVE

Updated January 2014

Health Canada's Marihuana for Medical Purposes Regulation (MMPR) http://www.laws-lois.justice.gc.ca/eng/regulations/SOR-2013-119/ has changed the parameters for the production of medical marihuana in Canada. The current system of personal use licenses and designated person licenses will be phased out by April 1, 2014. In its place, new Federal licenses are geared to larger scale production/distribution facilities. For further information about the changes see the following website http://www.hc-sc.gc.ca/dhp-mps/marihuana/index-eng.php.

Various local governments in British Columbia are looking at their zoning bylaws to determine where these larger scale commercial production facilities should be directed. A number of local governments are considering industrial, commercial and agricultural zones, within purpose built structures and with siting regulations from property lines and residential uses. Others are looking to restrict this land use or direct to particular areas of their community.

The Agricultural Land Commission Act and regulations determine land use in the Agricultural Land Reserve (ALR). Due to the number of inquiries from local governments and Medical Marihuana production proponents, the ALC provides the following for clarification purposes with regard to Medical Marihuana production in the ALR.

Section 1 of the Agricultural Land Commission Act defines "farm use" as:

An occupation or use of land for farm purposes, including farming of land, plants and animals and any other similar activity designated as farm use by regulation, and includes a farm operation as defined in the Farm Practices Protection (Right to Farm) Act.

Based on the above definition, if a land owner is lawfully sanctioned to produce marihuana for medical purposes, the farming of said plant in the Agricultural Land Reserve (ALR) is allowed and would be interpreted by the Agricultural Land Commission as being consistent with the definition of "farm use" under the ALC Act.

Notwithstanding the farming of land for the production of medical marihuana, not all activities associated with its production would necessarily be given the same "farm use" consideration. Accessory uses associated with the farm use include a small business office, testing lab, processing and drying, packaging shipping areas, cloning room and anything else directly related to the growing and processing of the plant. Determining an accessory use is contingent on the use being necessary and commensurate with the primary function of the property/building to produce an agricultural product. If a land use activity is proposed that is not specifically related to the growing of an agricultural product including a stand-alone research and development facility, an application to the ALC for non-farm use would be required.

Municipalities are responsible for governing the use of land within the respective municipality's jurisdiction. Zoning bylaws enacted by municipalities may set out restrictions on land use, including but not limited to the use of land for medical marihuana production. Where such restrictions may apply to land within the ALR, such restrictions with respect to the particular land use of lawfully sanctioned medical marihuana production would not in and of themselves be considered as inconsistent with the ALC Act.

Proponents of medical marihuana production facilities should contact their local government to determine the applicability of zoning bylaws, approval processes and to determine building permit requirements that may apply.