Marihuana Production Facilities and Development Permit Area Designation for Form and Character (Areas D and E)

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1 SCRD STAFF REPORT DATE: September 24, 2014 TO: Planning and Development Committee- October 16, 2014 FROM: RE: David Rafael, Senior Planner Marihuana Production Facilities and Development Permit Area Designation for Form and Character (Areas D and E) RECOMMENDATIONS THAT the report dated September 24, 2014 and titled Marihuana Production Facilities and Development Permit Area Designation for Form and Character (Areas D and E) be received; AND THAT the proposed Development Permit Area designation and SCRD Zoning Amendment Bylaw No , 2014 and SCRD Zoning Amendment Bylaw No , 2014 be referred to: (a) Area D and E Advisory Planning Commissions; (b) Roberts Creek Official Community Plan Committee; (c) Agricultural Advisory Committee; (d) shíshálh Nation; (e) Squamish Nation; (f) Health Canada; (g) Agricultural Land Commission; BACKGROUND At the July 24 meeting, the SCRD Board adopted the following resolution: 424/14 Recommendation No. 22 SCRD Zoning Amendment Bylaw No , 2014 and SCRD Zoning Amendment Bylaw No , 2014 THAT the staff report dated July 2, 2014, titled Electoral Areas B, D, and E proposed amendments to Bylaw 310 to allow marihuana production facility as a permitted use in smaller parcels be received; AND THAT Electoral Area B (Halfmoon Bay) not be included in the proposals to permit marihuana production facilities; AND THAT Sunshine Coast Regional District Zoning Amendment Bylaw No , 2014 (Electoral Area D) and Sunshine Coast Regional District Zoning Amendment Bylaw No , 2014 (Electoral Area E) be forwarded to the Board for first reading as amended as follows: a) 1 hectare minimum lot size b) Add the provision of retail sales not permitted on site

2 Regarding Bylaws and (Marihuana Areas D and E) Page 2 of 7 AND FURTHER THAT staff report to the September 18, 2014, Planning and Development Committee meeting with provisions on how form and character can be included in Sunshine Coast Regional District Zoning Amendment Bylaw No , 2014 and Sunshine Coast Regional District Zoning Amendment Bylaw No , 2014 before second reading. With regard to the emerging approach to marihuana production facilities for Roberts Creek (Bylaw ) and Elphinstone (Bylaw ) there is a desire to allow for smaller scale facilities throughout each area on parcels greater than 1 hectare, where agriculture is a permitted use and with floor area limitations that reflect parcel size. The current proposed floor area limits, based on parcel area are set out in Attachment A: However there are aspects that are similar to industrial activity such as the need for an office, packing area, significant site security, internal climate control (requiring air quality equipment) and for an enclosed building (could include a glass enclosed greenhouse) that can have an industrial appearance. The Local Government Act allows the establishment of objectives for the form and character of commercial, industrial or multi-family residential development that are implemented via development permits. A development permit area needs to be designated in the Official Community Plan; however the guidelines may be set out in the OCP or zoning bylaw. Status of Health Canada Licensing Regulations Health Canada has issued 13 licenses to date for facilities under the Marihuana for Medical Purposes Regulations (MMPR) which were in effect from March 21, 2014 and were to replace previous regulations on April 1, Five of the licences were issued for facilities in BC, none on the Sunshine Coast. There may be up to 400 license applications that await decisions, it is not clear how many are based on the Sunshine Coast. It is also not clear if any of the applications are close to being issued. The Court case, a constitutional challenge to the new regulations, on behalf of holders of licences under the former regulatory system, scheduled to be heard in February/March The result of this case will have a significant impact on the future development of this industry/activity. DISCUSSION Retail Sales The current Health Canada regulations for medical marihuana, do not permit retail sales. Under the new regulations the product is to be sold by mail/courier and under the old regulation it is for specific users such as those who grow for themselves or are named clients of a limited customer facility (2 per grower and a max of two growers per site). However, as regulations can change over time, it is sensible to clarify that retails sales are not part of the permitted use. Parcel Size As noted above, the minimum lot area is proposed to be 1 hectare before marihuana production facility is a permitted use. Maps to show where the lots are and the number of lots that would be opened to the use can be provided to support any referrals.. Security The Health Canada regulations set out security requirements; this includes a 14 page guide on building and production security and a 52 page directive on physical security requirements for controlled substances. The key points set out on Health Canada s website are:

3 Regarding Bylaws and (Marihuana Areas D and E) Page 3 of 7 The perimeter of the licensed producer's site must be visually monitored at all times by visual recording devices to detect attempted or actual unauthorized access. The areas within a site where cannabis is present must be visually monitored at all times by visual recording devices to detect illicit conduct. The visual recording devices must be capable of recording attempted or actual unauthorized access in a visible manner. The perimeter of the site and areas within a site where cannabis is present must be secured at all times by an intrusion detection system capable of detecting attempted and actual unauthorized access to or movement in the site, or tampering with the system. The intrusion detection system must be monitored at all times by personnel who can determine the appropriate steps to take in response to any detected activity that is unauthorized. In the case of any detected activity, the personnel must record the date and time of the detected matter and the measures taken in response to it. Personnel must also record the date and time when measures were taken. Access to areas within a site where cannabis is present must include physical barriers that prevent unauthorized access and must be limited to personnel who require access to the areas to perform their work responsibilities. Records must be kept of each person entering or exiting these areas. The Health Canada website goes on to note that: Before a licence can be issued, your compliance with the site and physical security requirements under the MMPR and Health Canada Directive on Physical Security Requirements for Controlled Substances will be verified through a pre-licence inspection conducted by Health Canada. Staff do not consider there is any need for Bylaw or to incorporate site security aspects. Odours The application guidance document states that all areas within a site must be equipped with a system that filters air to prevent the escape of odours and, if present, pollen. This too must be verified by inspection before a licence can be issued. The SCRD does not have a nuisance bylaw that addresses odour. Staff do not propose introducing such a requirement into Bylaws / or as a new bylaw. Visual Impacts and Design Requirements The Health Canada regulations do not consider aesthetic or visual impact to neighboring properties. The security requirements point towards a need for a solid building (although there can be significant amount of glass if appropriate security design features are incorporated), and site layout that enhance security. The need for a growing area that allows for controlled humidity, light and air filtration also establishes that the building will likely have limited openings. It is likely that an industrial rather than a traditional greenhouse appearance will be the result. However this does not mean that a creative design could not result in a building that fits within a rural-residential or residential area. For example the building could be clad in natural material such as wood or material that mimics wood. Fences and the building could be screened by planting so that they are not visible from the road or neighbouring properties. This should not compromise site security if the landscaping design provides adequate spacing to prevent

4 Regarding Bylaws and (Marihuana Areas D and E) Page 4 of 7 mature vegetation being an aid in climbing the fence. There is no need to be able to view the facility from outside of the property. On-site security (such as cameras) should be able detect any attempts to climb or get through a fence even if there is a vegetation buffer on the outside of the fenced area. The requirement for site security is likely to lead to lighting being introduced as a security feature. This could also have an impact on neighouring properties. The DP guidelines can address this. Possible Development Permit Area Designation Concerns about placing industrial style buildings in or adjacent to residential areas could be addressed establishing a new development permit area for those parcels that would allow marihuana production facility as a permitted use. This could be achieved in two ways. The first is to establish the DPA in the relevant Official Community Plan along with a description of when a DP is required, the guidelines and any exceptions. Another is to set out the general DPA designation in the OCP and the detailed guidelines in the zoning bylaw. One aspect that needs careful consideration is how the geographic area that the DPA will cover is to be expressed and this shown on a map schedule of each OCP. Currently the DPA designations for form and character of industrial/commercial or multi-family developments are either site specific (such as for the Roberts Creek Co-Housing development) or cover an area with existing commercial/industrial development and potential development (such as Commercial/Industrial area along Hwy 101 that was in Elphinstone). With the potential locations for marihuana production facilities being wide ranging, parcel size linked and with no known focal point a more general approach is needed. The entire OCP area could be designated as a DPA for this type of development and a development permit would be required: prior to commencement of construction of or addition to a marihuana production facility in DPA No. X The justification for the DPA would be: to ensure that an industrial/commercial marihuana production facility is designed to fit into the neghbourhood with minimal visual impact. The definition of marihuana production facility set out in Bylaw 310 should also be added to the OCPs as follows: marihuana production facility means a facility used for the cultivation, processing, testing, destruction, packaging and shipping of marihuana as permitted under federal legislation. Exemptions could be established such as: (a) (b) (c) If the development is adjacent to an industrial zoned property/industrial land use designation on all lot lines If the development is adjacent to a Rural One zoned/resource land use designation (in Roberts Creek) on all lot lines If the development is adjacent to a Rural One zoned/rural Residential land use designation (in Elphinstone) on all lot lines Other exemptions could be considered.

5 Regarding Bylaws and (Marihuana Areas D and E) Page 5 of 7 Development Permit Area Guidelines Staff reviewed the form and character provisions currently set out in the Roberts Creek and Elphinstone Official Community Plans for commercial, industrial, or multi family residential development. The following proposed development permit area guidelines are: General Form and Character of Development Preservation of the established rural character will be achieved through: Design (i) commercial buildings should be sited to afford maximum privacy to adjacent residential properties and minimize the impacts of noise, glare and shadows (ii) creative building design that emphasizes the use of natural or natural-like materials, and which is compatible with the scale and character of its surroundings; (iii) In general, a variety of cladding and trim materials is permitted, provided that the materials have a natural or traditional appearance and are complementary to existing development; (iv) Pre-fabricated industrial metal siding (such as R-panels ) is not permitted; (v) Large, blank walls in excess of 6.0 metres (20.0 ft.) are not permitted unless design elements such as faux windows are placed on the façade; Landscaping and Fencing (vi) preservation of existing mature coniferous trees; (vii) landscaping with a minimum width of one metre to create an effective buffer around the development; (viii) landscaping should include a mixture of deciduous and evergreen plants and/or trees which are suitable for the local climate (such as from the BC Naturescape plant list); (ix) Provision should be made to conserve and supply adequate water to all planted areas, such as use of drip irrigation and/or rainwater barrels, and to maintain landscaping as approved ; (x) Fencing adjacent to residential zoned parcels should be solid, unless combined with landscaping, and clad in wood, wjile also meeting Health Canada Security requirements; Lighting (xi) Site lighting shall be directed downward to avoid light spill on adjacent residential areas and designed following the Regional District s Outdoor Lighting Standard; (xii) Site lighting should be neutral in colour. High-pressure sodium (orange) lights are not permitted. IMPLEMENTATION: Regional District issuance of development permits by Board resolution prior to issuance of a building permit; Review of development permit applications by local residents; and Liaison with the Province and other relevant authorities.

6 Regarding Bylaws and (Marihuana Areas D and E) Page 6 of 7 SUMMARY The concept of a development permit area for marihuana production facilities has not been the subject of consultation with the community. If the Board supports this approach then referrals should be sent to the Area D and E APCs, Roberts Creek OCPC, Agricultural Advisory Committee and other agencies (such as Health Canada, the Agricultural Land Commission), shíshálh and Squamish Nations. If the DPA concept moves forward then this will require an amendment to the Roberts Creek and Elphinstone OCPs.

7 Regarding Bylaws and (Marihuana Areas D and E) Page 7 of 7 Electoral Area D (Roberts Creek) COLUMN I Where Parcel Area Is: COLUMN II ATTACHMENT A The Maximum Permitted Combined Gross Floor Area of all Marihuana Production Facility buildings is: For CR1, CR2, RU1, RU1A, RU1B, RU1C, RU1D, (i) 1 hectare up to 2 hectares 200 m 2 (ii) 2 hectares or greater 300 m 2 For RU2, RU2A, RU3, RU3A, RU3B (i) 1 hectare up to 2 hectares 200 m 2 (ii) 2 hectares up to m 2 hectares (iii) 8 hectares or greater As per the maximum parcel coverage in the particular zone Electoral Area E (Elphinstone) COLUMN I Where Parcel Area Is: COLUMN II The Maximum Permitted Combined Gross Floor Area of all Marihuana Production Facility buildings is For CR1, CR2, RU1, RU1A, RU1B, RU1C, RU1D, (i) 1 ha. up to 1.75 ha. 200 m 2 (ii) 1.75 ha. or greater 250 m 2 For RU2, RU2A, RU3, RU3A, RU3B (i) to (ii) as above (i) to (v) as above (iii) 1.75 hectares up to 8 hectares 250 m 2 (iv) 8 hectares or greater As per the maximum parcel coverage in the particular zone