THE CORPORATION OF THE CITY OF NELSON REQUEST FOR DECISION
DATE:
May 1, 2017 Regular
TOPIC: Medical Cannabis Business Licence Applications PROPOSAL:
Review of Applicants for Medical Cannabis Business Licence
PROPOSED BY: Staff
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ANALYSIS SUMMARY:
Since approving the Medical Cannabis Business Licence Bylaw, the City has received seven business licence applications for medical cannabis dispensaries. Staff has undertaken a review of these applications based on the requirements of the business licence bylaw. Council is requested to provide a decision on business licence approval for each applicant. The number of applications meets the criteria for the zoning bylaw, however applicants may be required to apply for a temporary use permit if their business licence application is approved and they do not meet the distance requirements of the Zoning Bylaw.
BACKGROUND:
At the February 6
th
Regular Council meeting, Council passed three readings of the new Medical Cannabis Business Licence Bylaw No. 3363, 2017, and first two readings of the Zoning Amendment (Cannabis-related Business) Bylaw No. 3368, 2017. At the March 6, 2017 Regular Council meeting, Council adopted the Medical Cannabis Business Licence Bylaw and passed third reading and final adoption of the related Zoning Amendment Bylaw (see attachments
Medical Cannabis Business Licence Bylaw No. 3363, 2017 and Zoning Amendment (Cannabis-related Business) Bylaw 3368, 2017). As identified in the March 6, 2017 report to Council, those who wish to operate a licensed medical cannabis dispensary in the city will be required to apply for a business licence, and the applications will be brought forward to Council for approval. If a variance is required to the Zoning Bylaw, the dispensary will need to apply for a temporary use permit after they are an approved applicant. Pending new federal and provincial regulations, the City of Nelson developed a business licence bylaw for medical cannabis in which applicants are required to meet a number of requirements. The requirements are intended to minimize any adverse effects that the operation of such businesses may have on the safety, health and well-being of the community. The requirements were developed taking into consideration the local context, public feedback and best practices of other communities that are currently regulating medical cannabis dispensaries. Business licence bylaw requirements that must be met by each applicant include:
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business operations must meet the definition of a cannabis-related business including operations with the primary purpose of advocating or promoting the use of cannabis for medical purposes; the selling or otherwise providing cannabis to persons for medical purpose; and the storage of medical cannabis for the purpose of sale.
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a valid business licence
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a security plan for the premises that, in the opinion of the Licence Inspector, describes adequate security measures to mitigate risk of theft or robbery at the premises. Security plan to include:
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installation of video surveillance cameras that monitor all entrances and exits and the interior of the business premises at all times
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retention of video camera data for at least 21 days
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installation of a security and fire alarm system that is monitored at all times by a licenced third party
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proof of a security alarm contract that includes monitoring at all times during the licence period
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removal of all cannabis products from the premises when the business is not open to the public unless they are securely locked in a safe
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two employees on the premises at all times when the business is open to the public, including one manager
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installation and maintenance of an air filtration system that effectively minimizes odour impacts on neighbouring properties
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contact information for a responsible person available to be contacted at any time
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proof of ownership or legal possession of the premises
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a current police information check for the applicant, and if applicable, shareholders, officers and directors and the on-site manager(s)
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any signage must be in compliance with the Sign Regulation Bylaw No. 2027
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signage to include a prominently displayed sign indicating that no persons under 19 years of age are permitted on the premises, unless accompanied by a parent or a legal guardian
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the premise is not used to carry on business other than the cannabis-related business;
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the windows on street frontage of the premises are not blocked by translucent or opaque material, artwork, posters, shelving, display cases or similar elements;
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the business is not open between the hours of 8 pm and 8 am the next day
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no advertisement or promotion of the use of medical cannabis to a person under the age of 19
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smoking, vaping, consuming or otherwise ingesting cannabis or products containing Cannabis on the premises is not allowed
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no sandwich board outside the premises Following approval of the Medical Cannabis Business Licence Bylaw and Zoning Amendment Bylaw on March 6, 2017, Bylaw Enforcement hand delivered a letter on March 7, 2017 to each of the existing six medical cannabis dispensaries (see attachment - Letter to existing medical cannabis dispensaries). The letter identified the approval of the two bylaws and informed owners of the requirement to submit an application for a business licence no later than March 31, 2017 in order for it to be reviewed and presented to Council at the May 1, 2017 Council meeting. It also identified that enforcement will begin on May 2, 2017 for all businesses that have not applied for a licence. The City also posted information related to the medical cannabis business licence on the City’s website under ‘business licences’, as well as preparing an information brochure (see attachments - City of Nelson website information regarding zoning, temporary use permits and business licences for medical cannabis dispensaries; and City of Nelson information brochure regarding zoning, temporary use permits and business licences for medical cannabis dispensaries).
The City received seven applications for medical cannabis business licence: one application for a new medical cannabis dispensary in one of the commercial units in Nelson Commons (see attachment - Letter for Council Medicinal Mary Jane) and applications from all six existing businesses (see Summary of Applications below, as well as attachments: Summary analysis of business licence applications, and Letter for Council Leaf Cross Health Society). Three of the seven applications met all of the bylaw requirements. All applications were submitted prior to the March deadline, except for the Cana Clinic (submitted on April 19, 2017 – late Thursday afternoon, April 27, 2017
the security alarm contract and the police checks were submitted, however they have not submitted a security plan, they do not meet the signage/transparency requirements, nor do they appear to have a proper filtration system). The Kootenay’s Medicine Tree requires removal of some of the signage on their front window/door. Leaf Cross Health Society also requires removal of the opaque film on their windows and doors. The Nelson Cannabis Compassion Club has only one person working at a time (the bylaw requires two people), and they do not meet the signage requirements for window transparency. As well, the Compassion Club would like an exemption from the $5,000 application fee.
Summary of Applications
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