TOWN OF INNISFIL STAFF REPORT

Transcription

1 TOWN OF INNISFIL STAFF REPORT STAFF REPORT NO: DSR DATE: January 14, 2015 TO: Mayor, Deputy Mayor and Members of Council FROM: Don Eastwood, Acting Manager of Land Use Planning SUBJECT: Medical Marihuana Production Facilities Background Study RECOMMENDATION: That DSR be received by Council for information; and That Staff undertake public consultation, including a Public Open House on January 29, 2015, and report back to Council with proposed draft provisions for medical marihuana production facilities in March of PURPOSE/BACKGROUND On April 1, 2014, new federal regulations took effect to only permit federally licensed commercial production facilities to distribute medical marihuana. In the Spring/Summer of 2014, Staff undertook research and initial consultation regarding provisions to site these facilities within Innisfil. As a result of this process, draft zoning provisions were presented to Council on September 17, This is when Council, under the authority of the Ontario Planning Act, passed an Interim Control By-Law to prohibit medical marihuana production facilities from locating within Innisfil for a maximum period of up to one year (or until provisions for the facilities are adopted into the Town s Zoning By-Law). Upon this passing, Staff was also directed to conduct additional study to inform the further development of appropriate zoning provisions for these federally licensed facilities within the Town. The Interim Control By-Law was adopted in response to comments that were expressed at the Public Meeting held on September 4, Although Town-wide zoning provisions for medical marihuana production facilities were being considered, the majority of comments were expressed regarding an application for a specific facility near Cookstown (along County Road 89) that has been submitted to Health Canada under the federal licensing process. Any sitespecific proposals that the Town receives for these facilities will be subject to future zoning review and a site plan approval process, which will include public notification and consultation. The purpose of this DSR is to provide an overview of the Medical Marihuana Production Facility Background Study (Attachment 1) and the research that Staff has undertaken into the land use planning considerations for these facilities. This DSR and Background Study also include further discussion to address the comments that have been raised by local residents. However, it is not the purpose of the Background Study to assess any particular proposal but to /

2 Staff Report DSR January 14, 2015 Medical Marihuana Production Facilities Background Study Page 2 of 4 summarize research into the consideration and implementation of Town-wide policies for medical marihuana facilities. Over the next couple months, Staff propose to undertake additional public consultation prior to Council s consideration of provisions for medical marihuana facilities. A Public Open House will be held January 29, 2015 and a Public Meeting is scheduled for February 18, 2015 to consider the proposed draft provisions. 2.0 FEDERAL REGULATIONS FOR MEDICAL MARIHUANA FACILITIES Access to marihuana for medical reasons and its production is federally regulated under both the Controlled Drugs and Substances Act and the Food and Drugs Act. Although marihuana remains an illegal substance in Canada, the Marihuana Medical Access Regulations (MMAR) were implemented in This allowed individuals to access marihuana for medical reasons with a prescription from a doctor. In 2001, there were fewer than 100 people able to access marihuana for medical reasons. This number has increased to nearly 40,000 people today and is forecast by Health Canada to increase to 450,000 people over the next 10 years. The federal government is forecasting that the medical marihuana industry will be worth over $1 billion in 10 years. As the number of people accessing and growing medical marihuana under the previous MMAR increased significantly, so to have the public health, safety and security risks of unlicensed facilities. Under the previous regulations (MMAR), police and fire departments were often unaware of where medical marihuana was being produced, and municipalities were limited in their ability to ensure that local by-laws were being complied with. In response to growing concerns, the Federal Government of Canada introduced new legislation (the Marihuana for Medical Purposes Regulations - MMPR) to change the way marihuana for medical purposes is accessed and produced throughout the country. These new regulations have been in effect since April 1, 2014 and only permit federally licensed commercial production facilities to distribute marihuana for medical purposes. This is a shift from away from personaluse production that was permitted under the previous MMAR federal regulations. Although Health Canada indicates that a municipality cannot prohibit the issuance of a license, the Minister of Health has stated that municipal laws and zoning by-laws will need to be respected in the license application process. As such, the requirement for licensed producers to respect all applicable municipal legislation provides local authorities with the opportunity to communicate any concerns directly to the license applicant/health Canada and to ensure that all local by-laws are complied with. Since the Town s existing land use policies and provisions do not specifically address commercial medical marihuana facilities, it is therefore important that zoning provisions be established to appropriately regulate their siting within the Town. The Background Study (Attachment 1) provides further details regarding the previous (MMAR) and the new (MMPR) federal regulations for licensed medical marihuana production facilities. 3.0 LAND USE PLANNING CONSIDERATIONS Under the MMPR, the production of medical marihuana will be required to take place inside of larger-scale commercial manufacturing facilities. These facilities must have a high level of security that meets federal regulations and will require substantial water and electricity

3 Staff Report DSR January 14, 2015 Medical Marihuana Production Facilities Background Study Page 3 of 4 resources to operate. As such, these facilities have land use planning implications that the Town must consider. The Background Study summarizes key land use considerations and provides preliminary recommendations for provisions based on background research that has been undertaken into the characteristics of medical marihuana production facilities. The Background Study also addresses comments that were received when the Town s draft provisions for medical marihuana facilities were presented at a Public Meeting and considered by Council in September of As discussed in the Background Study, a number of key land use planning considerations for siting medical marihuana production facilities within Innisfil include: Land use compatibility in agricultural and/or industrial areas; Separation distance from community sensitive land uses; Safety and security; Servicing requirements/environmental impacts; and Community consultation. In exploring the land use characteristics of medical marihuana production facilities, the Background Study provides recommendations for zoning provisions to appropriately site these facilities within the Town of Innisfil. These considerations, for which a more detailed rationale in the Study is provided, are summarized as follows: Medical marihuana production facilities only permitted on land zoned Industrial General and Industrial Business Park ; The facility/building must be located at least 70 metres away from residential zones and the property line of other sensitive land uses such as schools, parks, community centres and day nurseries; The facility/building must be at least 100 metres away from residences in agricultural zones; Access to municipal water and sewage servicing is preferred, and mandatory where available; Development on private servicing may only be permitted subject to justification and approvals from the Ministry of Environment that there is sufficient water available for daily usage and that septic discharge from the facility can be safely treated; No outdoor signage or advertising shall be permitted, to ensure that nothing on the outside of the building will distinguish it as a medical marihuana facility; Site Plan approval is required and the Town may require sustainable design features that reduce servicing impacts such as the use of recycled water; and A definition of medical marihuana production facility will be added to the Town s Zoning By-Law and the current definition of agricultural use will be amended to clarify that a medical marihuana facility does not meet the definition of an agricultural use. In the process for amending the Town s Zoning By-Law with provisions for medical marihuana production facilities, public input and comments on these recommendations will be invited as Staff undertakes community consultation in January and February of Notice for the Public Open House and Public Meeting will be posted on the Town s website and in the Innisfil Examiner. Notice has also been sent to those that attended the Public Meeting in September 2014.

4 Staff Report DSR January 14, 2015 Medical Marihuana Production Facilities Background Study Page 4 of OPTIONS/ALTERNATIVES In considering the recommendations of this report, Council can provide initial comments prior to Staff undertaking public consultation and preparing the draft provisions for medical marihuana facilities. Council will also have opportunity to provide input at the Public Open House and Public Meeting. 5.0 FINANCIAL CONSIDERATION There are no direct financial costs associated with approving the recommendations of this report. Costs associated with any future planning applications for medical marihuana production facilities will be billed to the applicant on a cost-recovery basis. 6.0 CONCLUSION Although commercial medical marihuana production facilities are licensed by Health Canada, the federal government has stated that municipal laws and zoning by-laws will be respected in the license application process. Since potential producers remain interested in establishing medical marihuana production facilities within Innisfil, the Town has the opportunity to establish zoning provisions to ensure that the facilities are appropriately located within the community. The Town s Interim Control By-Law will remain in effect to prohibit the location of medical marihuana facilities until provisions for the facilities are adopted into the Town s Zoning By-Law (or until September 17, 2015). Following consultation with residents and stakeholders at a Public Open House on January 29, 2015, draft provisions will be prepared. These draft provisions will be presented at a Public Meeting on February 18, 2015 to ensure that the feedback and input received has been effectively addressed. In March 2015, Council will consider adopting the final provisions. Overall, this process will help ensure that medical marihuana production facilities are appropriately located within Innisfil. PREPARED BY: Paul Pentikainen, M.Pl, MCIP, RPP Policy Planner REVIEWED AND APPROVED FOR SUBMISSION BY: Donald G Eastwood, B.E.S., M.A. Acting Manager of Land Use Planning Attachments 1. Medical Marihuana Production Facilities Background Study

5 2015 Medical Marihuana Production Facilities Background Study Prepared by: Planning Services Department, Town of Innisfil

6 Table of Contents 1.0 Purpose and Background Policy Context Previous Federal Regulations Medical Marihuana Access Regulations, New Federal Regulations Marihuana for Medical Purposes Regulations, Land Use Planning Considerations Land Use Compatibility in Agricultural and/or Industrial Areas Separation Distance from Community Sensitive Land Uses Safety and Security Servicing Requirements/Environmental Impacts Community Consultation Summary of Zoning Considerations for Innisfil Conclusion/Next Steps...16 MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 2

7 1.0 Purpose and Background On September 17, 2014, Council passed an Interim Control By-Law to prohibit the location of medical marihuana production facilities within the Town of Innisfil for a period of up to one year. Upon this passing, Council also directed Staff to undertake additional study to inform the further development of appropriate Town-wide zoning provisions for medical marihuana facilities within Innisfil. As such, the purpose for this report is to summarize the background research into land use planning considerations that has been undertaken by Staff. Access to marihuana for medical reasons and its production is federally regulated under both the Controlled Drugs and Substances Act and the Food and Drugs Act. Although marihuana remains an illegal substance in Canada, the Marihuana Medical Access Regulations (MMAR) were implemented in This allowed individuals to access marihuana for medical reasons with a prescription from a doctor. In 2001, there were fewer than 100 people able to access marihuana for medical reasons. This number has increased to nearly 40,000 people today and is forecast by Health Canada to increase to 450,000 people over the next 10 years. The federal government is forecasting that the medical marihuana industry will be worth over $1 billion in 10 years. As the number of people accessing and growing medical marihuana under the previous MMAR increased significantly, so to have the public health, safety and security risks of unlicensed facilities. Under the previous regulations (MMAR), police and fire departments were often unaware of where medical marihuana was being produced, and municipalities were limited in their ability to ensure that local by-laws were being complied with. In response to growing concerns, the Federal Government of Canada introduced new legislation (the Marihuana for Medical Purposes Regulations - MMPR) to change the way marihuana for medical purposes is accessed and produced throughout the country. These new regulations have been in effect since April 1, 2014 and only permit federally licensed commercial production facilities to distribute marihuana for medical purposes. This is a shift from away from personaluse production that was permitted under the previous MMAR federal regulations. The MMPR will be administered entirely by the Federal Government and will be enforced by Health Canada inspectors. Thus far, 13 production licenses have been issued by Health Canada, while over 1,000 other applications are currently being assessed. In addition to compliance with the MMPR, licensed producers must also follow all other applicable federal, provincial and local regulations including municipal by-laws such as Zoning, Building Code and Fire Code requirements. There is also a requirement for applicants to notify local authorities of their application to Health Canada for a production license. Although Health Canada indicates that a municipality cannot prohibit the issuance of a license, the Minister of Health has stated that municipal laws and zoning by-laws will need to be respected in the license application process. As such, the requirement for licensed producers to respect all applicable municipal legislation provides local authorities with the opportunity to communicate any concerns directly to the license applicant/health Canada and to ensure that all local by-laws are complied with. Since the Town s existing land use policies and provisions do not specifically address commercial medical marihuana facilities, it is therefore important that zoning provisions be established to appropriately regulate their siting within the Town. This study will provide an overview of the characteristics and land use planning considerations of medical marihuana production facilities. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 3

8 2.0 Policy Context 2.1 Previous Federal Regulations Medical Marihuana Access Regulations, 2001 The production and use of medical marihuana is federally regulated under both the Controlled Drugs and Substances Act (CDSA) and the Food and Drugs Act (FDA). Although marihuana remains an illegal substance in Canada, the Marihuana Medical Access Regulations were implemented in This set out a framework to enable any seriously ill Canadian who had an appropriate prescription from a physician, to obtain dried marihuana for their own personal medical use in the following manner: Producing their own supply under a Personal Use Production License; Designating an individual to produce it on their behalf under a Designated Person Production License; or Purchasing dried marihuana from Health Canada, which contracts a private company to produce and distribute marihuana for the program. However, in response to growing concerns and criticisms of the program, in 2011, Health Canada undertook consultation with various stakeholders including municipalities, fire and police services and the medical community regarding possible changes to the MMAR. General areas of concern expressed through this consultation included: The potential for diversion of medical marihuana to illegal uses; The risk of home invasion due to the presence of marihuana; Public safety risks, including electrical and fire hazards resulting from the cultivation of marihuana in residential dwellings unequipped to support such activities; and Public health risks due to the presence of excess mould and poor air quality associated with the indoor cultivation of marihuana. Furthermore, under this previous program, applicants were not required to disclose their intent to produce marihuana to local authorities. This resulted in the production of medical marihuana within private residential dwellings that were often ill-equipped for such activities, and in locations unknown to local authorities. Local authorities therefore lacked the ability to ensure that local laws and requirements were being complied with. 2.2 New Federal Regulations Marihuana for Medical Purposes Regulations, 2013 To address the various health, safety and security concerns of the previous medical marihuana regulations, Health Canada introduced the new Marihuana for Medical Purposes Regulations (MMPR) on June 19, A transition period occurred prior to the new regulations taking full effect on April 1, The production of marihuana for medical purposes in homes is now prohibited and individuals must now access marihuana for medical purposes from licensed commercial producers. The new MMPR also require producers to comply with specific provisions regarding a high level of personnel security clearances, site surveillance and security measures, incident reporting and record-keeping procedures. However, while the MMPR requires that all medical marihuana must be purchased from commercially licensed facilities, a decision from a Federal Court judge has allowed those who currently have a personal marihuana production license, to temporarily continue with their own production. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 4

9 Under the new MMPR, an application must be submitted to Health Canada to become a licensed producer. Thus far, 13 production licenses have been issued in locations throughout Canada; 5 are for companies in Ontario; 5 are in British Columbia; while 1 license has been issued in Saskatchewan, Manitoba and New Brunswick. The application process consists of providing detailed information demonstrating that the proposed facility complies with all applicable regulations, including obtaining enhanced security clearances for all individuals who will be involved with managing the operation. In order for Health Canada to determine whether certain key measures are in place, the applicant must provide the following general information in their submission: A detailed description of the physical security measures that will be implemented at the site; A detailed description of how the licensed producer will keep records of their activities associated with handling medical marihuana; A quality assurance report that shows that the buildings, equipment and proposed sanitation program to be used will meet the good production practices requirements; A copy of the notices that have been provided to local authorities; The maximum quantity of dried marihuana to be produced and distributed; and Floor plans of the site. Some of the additional and more detailed requirements of the MMPR of particular relevance to the Town are outlined as follows: The applicant must provide written notification of their application submission to local authorities, including the local government, local fire authority and police force and that local by-laws have been respected. The contents of the notice are specified in the regulations and must include details regarding the location of the production site. Licensed producers are also required to advise local authorities whenever there is a change in the status of their license (i.e. renewal, amendment, suspension, reinstatement); The license application to Health Canada must include a signed declaration from the applicant verifying that the local authorities have been notified in accordance with the regulations; All individuals responsible for the management of the facility must obtain enhanced security clearances. This process requires an application to Health Canada providing personal information and documentation so that checks and verifications of relevant files of law enforcement can be conducted. The assessment also includes an evaluation of the applicant s potential association with criminal organizations and/or associations with individuals linked to such organizations as well as an assessment of the risk of whether or not the person may be induced to participate in, or assist these criminal organizations; The maximum term for a license has been revised to 1 year (from initially 3 years). An application may be submitted to renew and/or amend the license which also requires that local authorities be notified; Production sites must be located indoors and NOT in a private dwelling; Licensed producers may not operate store-front or retail distribution centres. The primary means of distribution will be directly from the licensed producer to the registered client using secure shipping methods (e.g. mail delivery vans); MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 5

10 Record-keeping requirements for all activities associated with marihuana, including documentation of all transactions, inventory, etc. All records must be kept for a period of at least two years in a format that is easily auditable; Requirements for licensed producers to provide information to appropriate law enforcement authorities; A requirement to implement a sanitation program which outlines procedures for substance handling, equipment and premises cleaning; Stringent security requirements are provided for the entire site, as well as for those specific areas within the site where the substance is present (e.g. a lab, the production area, packaging and labeling area, etc.) and includes the following: o The site and its restricted areas must contain physical security barriers/fencing designed to prevent unauthorized entry; o o o o o o An air filtration system that prevents the escape of odours; Systems must be implemented to ensure that access is controlled at all times and is restricted to permit only those individuals whose presence is required due to their work responsibilities; A 24/7 visual monitoring and recording system for the perimeter of the site as well as areas of the site where the substance is present must be provided; An intrusion detection system must be provided which will detect attempted or actual unauthorized access to the area; The site must be monitored by private security and action must be taken (e.g. local authorities notified) in response to a detected incident and the details of the occurrence and responding actions taken must be recorded; and The identity of every person entering or exiting the facility must be documented. The MMPR will be administered entirely by the Federal Government and will be enforced by Health Canada inspectors. However, licensed producers must also follow all other applicable federal, provincial and local regulations including municipal by-laws such as Zoning, Building Code and Fire Code requirements. This provides the Town with the opportunity to establish provisions to appropriately locate medical marihuana facilities within Innisfil. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 6

11 3.0 Land Use Planning Considerations Under the MMPR, the production of medical marihuana will be occurring inside larger-scale commercial manufacturing facilities. These facilities must have a high level of security that meets federal regulations and will require substantial water and electricity resources to operate. As such, these facilities have land use planning implications that the Town must consider. This section will summarize background research that Staff has undertaken into the key land use considerations. It will also address comments that were received when the Town s draft provisions for medical marihuana facilities were presented at a Public Meeting and considered by Council in September of The Town s existing land use policies within its Official Plan and Zoning By-Law do not specifically address medical marihuana production facilities since they would have previously been an illegal operation under federal law. The MMPR provide strict and detailed requirements for the operations of medical marihuana production facilities (e.g. enhanced site security, substance handling, sanitation, etc.) and for the personnel that will be responsible for managing the site. However, except for the prohibition of medical marihuana production in a residential dwelling, the land use impacts and compatibility issues associated with these facilities are not more specifically addressed in the MMPR. Therefore, since the Minister has stated that municipal laws and zoning by-laws will need to be respected in the issuance of production licenses, the Town has the opportunity to establish local policies and provisions to regulate the development of medical marihuana production facilities within the Town. While still ensuring compliance with the federal regulations, the overall goal of this process should be to sensitively locate these facilities within appropriate land use zones in order to mitigate their potential land use impact within the community. Municipalities throughout Canada have been undertaking similar processes to develop locallyspecific siting requirements for medical marihuana production facilities. If Health Canada issues a license for a facility that is located in a permitted zone in the Town s Zoning By-Law, the applicant must still obtain a building permit and site plan approval. If the Town s Zoning By-Law does not permit the facility or site plan approval is not granted, a building permit cannot be issued and the facility will be unable to proceed. While Health Canada has federal authority to issue licenses for medical marihuana facilities, licensed producers must comply with all federal, provincial and municipal laws and by-laws, including zoning by-laws. 3.1 Land Use Compatibility in Agricultural and/or Industrial Areas Under the MMPR, all components of the growing, production, and storing of medical marihuana must take place entirely indoors through a pharmaceutical manufacturing process. Since Health Canada forecasts substantial growth in the new industry, there is the potential for medical marihuana production to occur within very large buildings that occupy large amounts of land (e.g. the largest licensed medical marihuana facility is approximately 350,000 square feet in Niagara-on-the-Lake, Ontario, while several other facilities such as the former Hershey chocolate factory in Smith s Falls, Ontario are over 150,000 square feet). This has therefore led municipalities to consider the characteristics of these facilities and whether they should be allowed in agricultural and/or industrial areas. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 7

12 Figure 1: Tweed Marijuana Inc. is a licensed producer and is currently using 150,000 square feet of the former Hershey chocolate factory in Smith s Falls, Ontario for medical marihuana production (Source: The Town s Official Plan aims to protect and preserve agricultural land to help maintain the farming industry for future generations and this reflects the land use planning direction of Ontario s new 2014 Provincial Policy Statement. Since medical marihuana will be produced entirely indoors and does not require the use of high quality agricultural land, the loss of farmland for medical marihuana production facilities can therefore be considered inconsistent with these local and provincial policy objectives that recognize farmland as a scarce resource. In proposing draft provisions for medical marihuana production facilities in Innisfil, Staff was of the view that they should not be permitted in agricultural areas and would be most appropriately sited within the Industrial General and Industrial Business Park zones in the Town. This would have generally directed these facilities to the Innisfil Heights business park and to a small number of industrially zoned parcels along major roads such as County Road 89. Overall, research undertaken by Staff indicates that medical marihuana production facilities should be considered as an industrial use. This is the approach that the majority of municipalities have taken (e.g. Town of Caledon, Town of New Tecumseth and City of Ottawa). While some municipalities (e.g. Township of Clearview, Town of Niagara-on-the-Lake, and Municipality of Chatham-Kent) have also permitted these facilities within agricultural areas, Staff is of the view that medical marihuana facilities are not an appropriate use within agricultural areas. This rationale is summarized as follows: The production of medical marihuana must take place entirely indoors in a controlled commercial laboratory environment and does not require or benefit from any association with the use of high quality agricultural land; Since Health Canada is only granting 1-year licenses for these facilities, if a facility is constructed in an agricultural area and the license is not issued or renewed, this will have the further effect of degrading and needlessly sterilizing prime agricultural land; Medical marihuana is produced through a pharmaceutical manufacturing process and has similarities to other uses already permitted (e.g. agricultural processing establishments and produce warehouses, bulk storage yards, truck terminals, and motor vehicle service garages) in the Town s industrial zones; The facilities should not be considered an agricultural operation since all of components involved with medical marihuana production (e.g. process, test, package, destroy, test, store, etc.) are not fully captured under the current definition of an agricultural use specified in the Town s Zoning By-Law; MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 8

13 The traffic generated by medical marihuana facilities can be better accommodated by locations in industrial areas that are closer to major road and highway networks; Industrial areas can provide a greater level of safety and passive security for medical marihuana facilities than a location in a more remote agricultural area; and Medical marihuana facilities require substantial water and electricity resources to operate and should be located in areas where full or partial municipal servicing is available. While it may be argued that there are examples of other large indoor production facilities (e.g. poultry farms) in the Town s agricultural areas that are similar in function and appearance to medical marihuana facilities, these other indoor production facilities closely comply with the definition an agricultural use in the Town s Zoning By-Law as follows: Agricultural Use means the growing of crops, including nursery and horticultural crops; raising of livestock; raising of other animals for food, fur or fibre, including poultry and fish; aquaculture; apiaries; agro-forestry; maple syrup production; and associated onfarm buildings and structures, including accommodation for farm labour when the size and nature of the operation requires additional employment. Therefore, since poultry production facilities are involved with the raising of animals for food, they clearly comply with this definition of an agricultural use. The same argument cannot be made for medical marihuana facilities that are involved in the production process of a pharmaceutical drug. Furthermore, medical marihuana production facilities cannot be considered as a secondary agricultural use, since they are clearly not secondary to a principal agricultural use on the property in accordance with the following definition: Agricultural Use, Secondary means uses that produce value-added agricultural products from the farm operation on the property and are clearly secondary to the principal agricultural use of the property, and may include: the cleaning, storage and processing of crops and produce, including fruits, vegetables, nuts, seeds, corn, wheat, flowers and plants, which are produced on the farm, for the purposes of retail sale or for further processing. Nevertheless, it has also been argued that the production of medical marihuana is the same as growing any other agricultural crop and should be permitted in agricultural areas in accordance with these definitions. However, the federally regulated production process involves much more than just growing a crop. These facilities process, test, package, destroy and store medical marihuana indoors in a controlled commercial laboratory environment. This is essentially an industrial pharmaceutical manufacturing process where medical marihuana is produced and distributed to registered clients throughout not just Canada, but potentially to countries across the world. As such, when the current definitions of an agricultural use and a manufacturing use in the Town s Zoning By-Law are assessed, the entire medical marihuana production process closely aligns with how a Manufacturing use is defined, which is only permitted in industrial zones. Manufacturing is defined in the Town s Zoning By-Law as follows: Manufacturing means the use of land, buildings and structures for the purpose of manufacturing, assembly, making, preparing, inspecting, finishing, treating, altering, repairing, warehousing or storing or adapting for sale of any goods, substance, article, thing or service. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 9

14 Therefore, since medical marihuana is produced through a pharmaceutical manufacturing process, permitting the facilities in agricultural areas would be inconsistent with local and provincial policies that aim to protect farmland. Therefore, the Town s draft provisions were recommending that medical marihuana production facilities be identified as a separately defined use in the Town s Zoning By-Law and should be permitted in Industrial General and Industrial Business Park zones. Staff was also recommending that the current definition of an agricultural use be amended to clarify that it does not include a medical marihuana production facility. Figure 2: Testing of medical marihuana plants inside a production facility (Source: Separation Distance from Community Sensitive Land Uses In addition to determining whether medical marihuana facilities would be most appropriate in agricultural and/or industrial areas, municipalities have also considered establishing a minimum separation distance that the facilities must be away from community sensitive land uses such as schools, residences and community centres. To assist with this, medical marihuana production facilities were specifically assessed in the context of the Ministry of Environment s (D-6) Guidelines for Compatibility between Industrial Facilities and Sensitive Land Uses. These Guidelines define a sensitive land use as: Sensitive Land Use: Any building or associated amenity area (i.e. may be indoor or outdoor space) which is not directly associated with the industrial use, where humans or the natural environment may be adversely affected by emissions generated by the operation of a nearby industrial facility. For example, the building or amenity area may be associated with residences, senior citizen homes, schools, day care facilities, hospitals, churches and other similar institutional uses, or campgrounds. Furthermore, the MOE Guidelines categorize industrial facilities as a Class I, Class II or Class III use based on their potential for noise, dust and odour emissions and other criteria such as the general level of traffic and activity at the site. To assist in determining the compatibility of these industrial uses with surrounding sensitive land uses, the Guidelines provide a recommended separation distance away from the potential influence area of a Class I, II or III facility as follows: MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 10

15 Industrial Use Class Class I Class II Class III Recommended Separation Distance Away from Sensitive Land Uses 70 metres 300 metres 1000 metres Research undertaken by Staff indicates that medical marihuana production facilities should be considered a Class I industrial land use (examples of other Class I uses in the MOE Guidelines include distribution of dairy products and packaging and crafting services ). This is primarily for the following reasons and characteristics that will help minimize the land use impact and potential influence area of these facilities: Medical marihuana will be produced entirely indoors in a commercial laboratory (no outside storage is permitted) and the facilities will emit low levels of noise; Health Canada requires that the facilities be equipped with an air filtration system that prevents the escape of odours and any noxious emissions; and Since medical marihuana must be shipped off-site using secure courier mail service (e.g. delivery vans), the facilities will have infrequent heavy truck traffic. (It is more likely that employee vehicles will generate most of the traffic at these facilities). Therefore, these characteristics allow medical marihuana production facilities to closely align with how a Class I Industrial Facility is described in the MOE Guidelines as follows: Class I Industrial Facility: A place of business for a small scale, self-contained plant or building which produces/stores a product which is contained in a package and has low probability of fugitive emissions. Outputs are infrequent, and could be point source or fugitive emissions for any of the following: noise, odour, dust and/or vibration. There are daytime operations only, with infrequent movement of products and/or heavy trucks and no outside storage. As such, interpreting medical marihuana facilities as a Class I industrial use in accordance with the MOE Guidelines, indicates that they should be sited a minimum separation distance of 70m away from community sensitive land uses. The MOE Guidelines recommend that this separation distance be measured from the property line of the proposed industrial use to the property line of the nearest community sensitive land use. However, it should be emphasized that the MOE only provides recommendations, as the Guidelines also state that the actual influence area for a particular facility will be site-specific and can be reduced through industrial controls. Therefore, because medical marihuana facilities must adhere to strict federal licensing requirements, which prevent the escape of odours and noxious emissions, this can be interpreted as an industrial control that would allow for flexibility in how the MOE s recommended separation distance of 70 metres can be applied to these facilities in Innisfil. In addition, the Town s site plan control process can ensure that particular parts of the operation maintain a minimum separation distance. Largely based on this rationale, Staff was proposing that medical marihuana facilities be sited a minimum separation distance of 70 metres away from community sensitive land uses, with the provision describing how this distance would be measured as follows: MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 11

16 A medical marihuana production facility shall be located at least 70 metres away from a community sensitive land use, which shall be defined as: a lot in a Residential Zone; a dwelling in an Agricultural Zone (as measured from an additional associated amenity space buffer area of 30 metres surrounding the dwelling); and any lot containing a school, park, campground, community centre, hospital, indoor recreational centre, library, long term care home, nursing home, place of worship, retirement home or day nursery. This provision would ensure consistency with the Ministry of Environment s Guidelines (70 metres) and would also be consistent with the separation distance of 60 metres that is specified in the Town s Official Plan for all industrial uses (as measured from the industrial facility/building to the residential dwelling). In applying the proposed separation distance provision to residential zones, the 70 metre separation distance would be measured from the medical marihuana facility to the property boundary of the sensitive land use. The separation distance would be measured from the activities on the property that may create a land use impact, and would not be measured from the property line of the medical marihuana facility. The Simcoe County District School Board was one of the agencies that reviewed the draft provisions and had no objections to this proposed separation distance. For residences in agricultural zones, the 70 metre separation distance would be measured from the facility to a 30 metre amenity space buffer surrounding the residential dwelling (meaning that a medical marihuana facility must be sited 100 metres away from dwellings in agricultural zones). Since properties in agricultural zones are typically considerably larger than properties in residential zones, measuring the separation distance from the property boundary of residences in agricultural zones would restrict medical marihuana facilities from being established on most industrially zoned properties in the Town. While Staff had initially considered applying the separation distance of 70 metres to all Community Service (CS) Zones, further assessment indicated that the Town s Zoning By-Law permits a very broad range of uses in these zones and furthermore, that many of these permitted uses in CS zones are not considered to be a sensitive land use in accordance with the MOE Guidelines. Therefore, the provision regarding the minimum separation distance away from medical marihuana facilities was revised to specifically list the uses in the Town s CS zones that the MOE identifies as a sensitive land use. In determining an appropriate separation distance from medical marihuana facilities within Innisfil, the approaches of other municipalities were also assessed. Because Health Canada s licensing requirements already help minimize the land use impacts of the facilities (e.g. by controlling odour), some municipalities such as the Town of New Tecumseth do not establish any separation distance at all. Furthermore, while some municipalities (e.g. City of Ottawa, Town of Caledon) have established a separation distance greater than 70 metres (e.g. 150 or 300 metres); this has resulted in challenges to the Ontario Municipal Board (OMB). (The OMB appeal regarding the City of Ottawa s provisions was withdrawn; however an OMB decision regarding the Town of Caledon s zoning provisions has not yet been made). Furthermore, while concerns have been expressed regarding the impact of medical marihuana facilities on surrounding property values, the facilities are similar or less impacting than uses that are already permitted in the Town s industrial zones. Properly sited facilities in accordance with the separation distance criteria will minimize any potential impacts on property values. Health Canada does not permit any signage on the outside of the building that would distinguish MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 12

17 its use as a medical marihuana production facility. This will also help ensure that the facilities have a minimal visual impact and effect on property values. Overall, in addition to Health Canada s licensing requirements that help minimize the land use impacts of medical marihuana facilities, the proposed minimum separation distance of 70 metres away from community sensitive land uses will help ensure that they are appropriately located within Innisfil. 3.3 Safety and Security There were concerns expressed at the Public Meeting regarding the safety and security of medical marihuana facilities. However, as already described, a key purpose of the new MMPR is to enhance the safety and security of medical marihuana production. By prohibiting the personal production of medical marihuana, individuals are now required to purchase the drug directly from federally licensed commercial distribution facilities. Customers however will not be able to access the facility as medical marihuana must be shipped off-site directly to the individual. Under the new MMPR, municipalities and local authorities will also be aware of where medical marihuana is being produced and can regulate and enforce local by-laws. This will help ensure that the production of medical marihuana is safer and more secure then under the previous federal regulations. There are also other Health Canada security and licensing requirements that will substantially help in preventing crime from occurring in association with these facilities. Particularly, Health Canada requires that the facilities have security features such as surveillance cameras, intrusion detection systems and fencing to prevent unauthorized access to the site. Furthermore, although a high level of security is required for the facility itself, a medical marihuana production facility in a more remote location may become a target for thieves and provide greater opportunity for illegal activity to occur. In more remote areas, the facilities may also not be adequately accessed and protected by fire and police emergency services. As such, this is an additional reason for why medical marihuana facilities are more appropriate in industrial areas, where an additional level of passive security and greater accessibility for fire and police services can be provided. Figure 3: A secure vault that will be used as a final holding area for medical marihuana being distributed from a licensed facility in Richmond, B.C. (Source: Darryl Dyck/Canadian Press) MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 13

18 3.4 Servicing Requirements/Environmental Impacts The servicing requirements of medical marihuana production facilities also led to concerns at the Public Meeting regarding the potential environmental impact of these facilities, particularly on the quality and quantity of water in surrounding private wells. In helping address this concern, the draft provisions were recommending that the facilities be sited in industrial areas where full or partial municipal servicing is available. The provisions also stated that it would be mandatory for the facilities to access any available municipal water or wastewater servicing. The Nottawasaga Valley Conservation Authority (NVCA) was one of the agencies that provided comments on the draft provisions and had no objections. Several other municipalities have also stated this preference for full or partial municipal services and will only allow medical marihuana facilities on private servicing upon proof that adequate alternative servicing can be provided. Development on private servicing will only be permitted subject to justification in accordance with Ministry of Environment standards that surrounding properties and the natural environment will not be negatively impacted. Furthermore, if the facility is on private servicing and uses more than 50,000 litres per day, in accordance with Ministry of Environment guidelines, then they will also require a Permit to Take Water, and this will also help ensure that the use of water for medical marihuana production will not negatively impact nearby wells. Furthermore, while there were concerns expressed regarding run-off from medical marihuana facilities negatively impacting surrounding properties, the facilities must comply with Health Canada s requirements that require all medical marihuana to be produced, packaged, labelled and stored in accordance with an approved sanitation program. The facilities also re-circulate the water that is used in the production process and this is a further measure ensuring that any run-off from medical marihuana facilities will not negatively impact surrounding properties. Any discharge from the facilities will require an Environmental Compliance Approval (ECA) from the MOE. Figure 4: An employee waters marihuana plants at a licensed facility in Richmond, B.C. (Source: Darryl Dyck/Canadian Press) 3.5 Community Consultation Applications for medical marihuana production facilities are issued by Health Canada through a process that does not require public consultation. However, the applicant must provide notice to local authorities and the Town when they have submitted their application to Health Canada. When the Town receives any Notices such as this in the future, similar to an application and circulations under the Planning Act, the Town will provide notice of the application to property owners within 120 metres of the proposed facility. Public notice and the opportunity for residents to provide comments will also occur as part of the Town s site plan application process. This will ensure that residents are adequately informed and will allow for the opportunity for any concerns to be addressed. MEDICAL MARIHUANA PRODUCTION FACILITIES BACKGROUND STUDY Page 14