HomeMy WebLinkAboutPSD-077-18
Planning Services
Report
If this information is required in an alternate accessible format, please contact the Accessibility
Coordinator at 905-623-3379 ext. 2131.
Report To: Planning and Development Committee
Date of Meeting: September 10, 2018
Report Number: PSD-077-18 Resolution Number:
File Number: PLN 12.12 By-law Number:
Report Subject: Proposed Private Cannabis Retail Stores
Recommendation:
1. That Report PSD-077-18 be received for information.
Municipality of Clarington
Report PSD-077-18 Page 2
Report Overview
This Report provides general information on the provincial government’s proposed
implementation for cannabis retail outlets.
Background
1.1 Federal legislation provided for the legalization of non-medicinal use of cannabis
addressing its regulation, sale and cultivation. It also made amendments to the Criminal
Code, largely to strengthen impaired driving provisions.
1.2 The federal legislation is enabling and provinces have significant jurisdictional authority.
Provinces can pass legislation regulating the retail model (such as private, government
or a mix of both), be more restrictive regarding personal cultivation, possession amounts
or increase the minimum age. Provinces may establish a licensing system or impose
minimum separation distances between cannabis retail stores and/or between cannabis
retail stores and other land uses (such as schools, playgrounds or recreation centres).
Regulation can be done by the province but they may leave some of these issues to
municipalities.
1.3 Report CLD-006-18 “Impacts of Cannabis Legislation” provided a broad overview of the
impacts of the legalization of cannabis and the potential impacts on services in
Clarington. It addressed the issues of enforcement, store locations and business
licensing.
Proposed Ontario Cannabis Retail Model
2.1 On August 13, 2018, the Ontario government announced significant changes to how the
province will manage cannabis retail. At the time of writing this report, no specific
legislation is available, but the following details have been announced.
2.2 The previous plan for the LCBO subsidiary the Ontario Cannabis Store (OCS) has been
cancelled. The provincial government will not be operating any physical cannabis retail
stores. At the time of legalization (October 17, 2018), consumers will be able to purchase
cannabis online through the OCS website. The province will introduce legislation for a
private retail model for physical stores that, if passed, would launch by April 1, 2019. The
province will be the sole wholesaler of cannabis to private stores.
2.3 Consumers will only be allowed to use non-medicinal cannabis in a private residence,
including the outdoor space of a home (subject to a building’s rules or lease), and will not
be permitted in any public spaces, workplaces, or motorized vehicles. As part of the
Municipality of Clarington
Report PSD-077-18 Page 3
Provincial review of the Smoke Free Ontario Legislation, it will determine whether
recreational cannabis may also be consumed in commercial lounges.
2.4 The private retail store model will be developed in consultation with the Association of
Municipalities of Ontario, the City of Toronto, Indigenous communities, police, the
cannabis industry association, and other key stakeholders. Consultations will address
various rules such as store hours, staff training, types of eligible businesses, and other
aspects not already regulated by federal legislation.
2.5 The province will provide a total of $40 million over two years to municipalities to help
cover costs associated with the legalization of cannabis. Funding will be calculated on a
per household basis and no municipality will receive less than $10,000.
2.6 Municipalities will be provided a one-time window under which they can choose to opt-out
of permitting physical cannabis retail stores within their boundaries.
2.7 The province will enact new road safety measures that will increase the consequence
and cost for those who drive under the influence and impose a zero-tolerance approach
for impaired young, novice, or commercial drivers.
Further Details Revealed at AMO Conference
2.8 On August 22, 2018 at a session called “Cannabis and Communities – The Here and
Now” at the AMO conference in Ottawa, David Mitchell, Nicole Stewart, and Renu
Kulendran spoke on behalf of the province.
Municipal Funding
2.9 Further details on funding were announced: If the province’s portion of excise duty
revenue on non-medicinal cannabis exceeds $100 million over the first two years,
municipalities would receive 50% of the surplus.
Ability to Opt-out
2.10 Further details on “opting-out” were announced. Representatives of the province stated it
would be the first order of business for new municipal councils in December to decide if
they wish to opt-out. The province also promised there would be more information
available by that time. Though there are few details, there will be a mechanism for
municipalities to opt back in.
2.11 For context, Mayors of Markham, Oakville, and Richmond Hill have already stated they
want to exercise their right to opt out. On August 13, 2018 St. Catharines passed an
interim control bylaw that defines and temporarily prohibits cannabis retail stores in the
municipality. According to the St. Catharines’ staff report, this approach was taken
because of a lack of time to prepare a set of regulations and a lack of details about the
provincial model. An interim control bylaw is in effect for 1 year, can be renewed for an
additional year, and does not require prior notice or a public hearing. During the first year,
it can only be appealed by the province, but any person or public body may appeal the
renewal.
Municipality of Clarington
Report PSD-077-18 Page 4
Other Details and Advice
2.12 Municipalities are encouraged to look at Alberta, Saskatchewan, and Manitoba as they
have already set in place the roles of municipalities in relation to their respective
provinces. These systems provide a good foundation for how issues will be addressed in
Ontario.
2.13 This is a multi-year project, changes will occur during that process and the province has
indicated it will respond to concerns, particularly regarding bylaw enforcement versus
policing. Consultations will continue, and municipalities are encouraged to engage in
dialogue with the province.
2.14 There will be a provincial program to educate youth on the risks of cannabis to prevent
underage use.
Provincial Consultations with Municipalities
2.15 On August 20, 2018, the office of Lindsey Park (MPP for Durham) sent consultation
questions regarding private cannabis retail stores to the Office of the Regional Chair and
Regional CAO. Park’s office requested that the consultation document also be forwarded
to municipal mayors for their input.
2.16 There are still outstanding issues and unknown details. There are no further details
regarding the following:
the length or degree of consultations;
when legislation will be introduced; or
if and to what degree the province will regulate:
o the location of cannabis retail stores;
o minimum distance separation from competitors; or
o minimum distance separation from schools, playgrounds, or other places
frequented by a minor.
Clarington Context and Issues
Issues to Consider
3.1 During the province’s consultation period and after provincial legislation is available, there
are a number of issues the Municipality may wish to consider. In the existing Zoning By-
laws, the definition of “Retail/commercial Establishment” is broad enough to permit sales
activities of cannabis. The use does not appear to have any unusual characteristics in
terms of deliveries, parking, or other land use impacts. It is somewhat similar to a
pharmacy or a bank as it requires secure storage. It is also somewhat similar to a liquor,
store, beer store or even a convenience store, which sell restricted products like alcoholic
beverages and cigarettes.
Municipality of Clarington
Report PSD-077-18 Page 5
3.2 Nonetheless, depending on what the provincial legislation will require and what options
may remain for municipalities, the following are some of the main issues the Municipality
will consider regarding amendments to existing Zoning Bylaws.
Definitions
3.3 Definitions for cannabis-related uses such as Cannabis Retail Store that are consistent
with provincial and federal definitions could be added to Zoning Bylaws.
Location and Siting
3.4 Cannabis retail stores could be regulated as a permitted use, limited to specific
commercial zones, or they could require zoning for each store to control location, scale of
operation, and perhaps the number of retail operations. Cannabis retail stores could be
excluded from certain areas of the Municipality, such as heritage districts, tourist areas,
or along “Main Streets”.
Buffers
3.5 A buffer, or minimum separation distance, may be established between any cannabis
related facility and a competitor and/or other sensitive land uses (e.g. schools, daycares).
The province may establish minimum buffers that the Municipality may wish to increase.
These type of buffers are not based on land use planning criteria.
Hours of operation
3.6 The Municipality currently does not regulate hours of operation. Currently, the only
legislation governing hours of operation that staff is aware of is the Retail Business
Holidays Act, which regulates days in which retail businesses must be closed.
Access
3.7 Equity of access to cannabis retail stores should be considered. This would involve
ensuring sufficient parking, transit access, distribution of locations, and adhering to
accessibility regulations (e.g. barrier-free access).
3.8 There are also a number of possible issues the province may or may not regulate and the
Municipality may want or need to address, but are beyond land use, such as:
if complaints about personal cultivation are to be dealt with by bylaw enforcement or
policing;
costs of policing and bylaw enforcement;
if co-operative personal cultivation (a “co-op grow-op”) is permissible;
illegal storefront “dispensaries”;
fire and building inspections;
consumption of medical cannabis (existing rules not in force as Smoke Free Ontario
Act, 2017 has been “paused” by current government);
public intoxication;
Municipality of Clarington
Report PSD-077-18 Page 6
if consumption is permitted in “temporary residences” such as houseboats,
campers, or tents, or in long-term care homes or social housing.
Cannabis Industry in Clarington
3.9 Currently there are approximately 130 skilled jobs in the cannabis industry represented
by three licensed producers with 9160m2 (98,600 sq ft) of production facilities space in
Clarington:
Canopy Growth with 6370 m2;
MediWanna with 930m2;
Starseed Medicinal with 1860 m2.
3.10 Canopy Growth (an Ontario-based global producer and one of the largest in Canada) and
MediWanna are both planning significant expansions in Clarington. 3D CANA is currently
constructing a 2137 m2 facility in Clarington. And there are potentially another three
companies in various stages of developing licensed production facilities in the
Municipality. MediWanna has applied to the Federal Government to upgrade its license to
permit sales activities.
Retail Landscape
3.11 Currently in Canada, many corporate retailers are entering the cannabis industry.
Drugstore retailers including Shoppers Drug Mart (owned by Loblaw Cos.) and Walmart
are hoping to dispense medicinal cannabis through their pharmacies, but are unlikely to
sell non-medicinal cannabis. However, under its grocery store brands, Loblaw has
licenses to sell non-medicinal cannabis in 10 of its Dominion stores in Newfoundland.
Loblaw has been granted approval to develop cannabis stores in New Brunswick and is
considering selling non-medicinal cannabis in Ontario.
3.12 Second Cup, the Canadian coffee chain, has partnered with National Access Cannabis to
convert some of their coffee shops into cannabis retail stores under the brand Meta
Cannabis Supply Co. These conversions have so far focused on western Canada where
private cannabis retail models were already legislated, with a target of 50-70 cannabis
retail stores across western Canada and recruiting up to 700 employees. They are now
looking at converting roughly 130 locations in Ontario to cannabis retail stores,
conditional on securing a retail license from provincial regulators.
Public Engagement
3.13 In preparation for the new Council’s decision on the question of “opting-out”, the Engage
Clarington tools could be utilized to get a feeling of the community’s position on this
matter.
Municipality of Clarington
Report PSD-077-18 Page 7
Concurrence
This report has been reviewed by the Clerk and the Municipal Solicitor who concur with
the recommendation.
Conclusion
The purpose of this report is to provide background information on the newly proposed
private cannabis retail model. Although a rough frame work has been proposed as to
how cannabis will be sold, few details are available at this time. Unlike the previous
government store model, where Clarington may have had one or two stores, the private
cannabis retail model can be anticipated to broadly disperse stores across the
community. Staff will continue to monitor and provide further information as it becomes
available. Direction from the new Council will be sought with regard opting-out and land
use regulation.
Strategic Plan
Not applicable.
Submitted by: Reviewed by:
David J. Crome, MCIP, RPP Andrew C. Allison, B.Comm, LL.B
Director of Planning Services Chief Administrative Officer
Staff Contact: Mark Jull, Planner, 905-623-3379 ext. 2426 or mjull@clarington.net
There are no interested parties to be notified of this report.
MJ/FL/jp/av
I:\^Department\LDO NEW FILING SYSTEM\PLN Files\PLN 12 Commercial\PLN 12.12 Cannabis Retail Stores\PSD-077-18.docxI:\^Department\LDO NEW FILING SYSTEM\PLN Files\PLN
12 Commercial\PLN 12.12 Cannabis Retail Stores\PSD-079-18.docx