SUBJECT: Zoning Regulations review for Commercial Production Facilities for Medical Marihuana

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Allan Shaw
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1 Page 1 of Report PB TO: FROM: Development and Infrastructure Committee Planning and Building SUBJECT: Zoning Regulations review for Commercial Production Facilities for Medical Marihuana Report Number: PB Wards Affected: All File Numbers: Date to Committee: May 26, 2014 Date to Council: June 9, 2014 Recommendation: Approve the amendment to Zoning By-law 2020 to permit medical marihuana facilities in industrial zones subject to specific regulations; and Enact By-law attached as Appendix A to report PB Purpose: The proposed zoning by-law amendment is staff s response to the changes in federal legislation dealing with the production and distribution of medical marihuana. Background: The Government of Canada has introduced new legislation that will change the way medical marihuana is accessed and produced. The new regulatory regime will permit commercial production facilities as the sole distributors of medical marihuana in Canada. The potential establishment of these facilities within the City of Burlington regulatory framework presents some challenges from a Zoning By-law perspective. On January 13, 2014, Council directed staff to review regulatory tools and options available to the city for the potential establishment of commercial production facilities for medical marihuana and to prepare a draft zoning by-law amendment to address these new federal regulations.

2 Page 2 of Report PB Discussion: Upon review of the City of Burlington s Zoning By-law 2020 it was determined that a Medical Marihuana Production Facility (MMPF) does not fit within any existing permitted land use and therefore there are no development standards or regulations that would currently apply to this use. First, to remain consistent with the new Controlled Drugs and Substances Act, Marihuana for Medical Purposes Regulations (MMPR), the use should be defined and a set of development regulations specific to the use should be established. The following definition of medical marihuana production facility is proposed to be inserted into the definitions section of Zoning By-law 2020: Medical Marihuana Production Facility means premises used for cultivating, processing, testing, destroying, storing, or distribution of medical marihuana or cannabis authorized by a license issued by the federal Minister of Health, pursuant to section 25 of the Marihuana for Medical Purposes Regulations, SOR/2013/119, under the Controlled Drugs and Substances Act, SC 1996, c.19, as amended. A few areas of concern related to land use planning need to be addressed through the City s zoning by-law regulations. In determining land use compatibility for such a use, some discussion should take place around the types of activity associated with these facilities as well as the proximity of these facilities to sensitive land uses. The production, storage and shipping of medical marihuana in a commercial facility are considered industrial in nature. The processing of the medical marihuana, which would include growing and drying the plants, packaging, storage and the shipping component of the operation, are all activities that are typical of an industrial operation. The two activities where it would differ from other types of industrial uses which are currently permitted in the zoning by-law would be with respect to outside activities such as storage and loading. Part 1, Sections 14 and 15 of the MMPR states that all activities involved in a MMPF, including storage and loading, must be conducted indoors and must adhere to the security directives in the regulations. Similar regulations outlining this activity should be included in the amended regulations for the use. After a review of the existing industrial zones, the zones in Zoning By-law 2020 that are suitable to accommodate MMPF s are GE1 and GE2 (General Employment) zones. These zones can best accommodate the requirements and regulations within the MMPR. Additional regulations to be included in the zoning by-law that would be consistent with the MMPR should be:

3 Page 3 of Report PB i) A medical marihuana production facility must be in a wholly enclosed building. ii) Outdoor storage is not permitted with a medical marihuana production facility; and iii) Loading spaces for a medical marihuana production facility must be in a wholly enclosed building. The Medical Marihuana Purposes Regulations specifically addresses site security. In the event that any existing building criteria cannot meet the site security criteria, additional security measures may need to be implemented on site. Currently, there may be conflicts with the existing zoning by-law that would limit the implementation of these security measures. In order to address any conflicts the following regulations are proposed: i) A building or structure used for security purposes for a medical marihuana production facility does not have to comply with the required front, side, street side and rear yards, ii) Fencing for security purposes does not have to comply with Section 2.4.1(a). Due to the type of use and activities that are industrial in nature, it is recommended that they be separated from sensitive land uses. A 70 metre separation distance from lots with residential uses and other sensitive land uses would be appropriate. The separation distance requirement is based on the Provincial D-6 Guidelines for Class II Industrial use. There was no city-wide study to review all lands zoned GE1 and GE2 zones therefore, from a land use compatibility perspective, there is value in adding a regulation for distance separation for sensitive land uses such as schools, place of worships and day nurseries. The following regulations should be added: A lot that has a medical marihuana production facility must be 70 metres from: i) A residential use or any zone category that includes a residential use, ii) A public or private school or a zone that permits a public or private school, iii) Place of worship or a zone that permits a place of worship, iv) Day nursery or a zone that permits day nursery The above noted proposed zoning amendments will allow medical marihuana production facilities within the City of Burlington while placing some restrictions which are consistent with the federal regulations for these facilities.

4 Page 4 of Report PB Financial Matters: Not applicable Public Engagement Matters: In accordance with the policies of the City s Official Plan for city initiated zoning by-law amendments, notice of the public meeting was provided by way of a newspaper notice in the Burlington Post on April 24, 2014, thirty days prior to the public meeting. A letter about the proposed amendment was also send to all external public agencies and interested parties thirty days in advance of the public meeting. Conclusion: Staff reviewed all regulatory tools and options available to the city for the potential establishment of commercial production facilities for medical marihuana and prepared a draft zoning by-law amendment to address these new regulations. The recommended amendments are attached as Appendix A to this staff report in Zoning By-law Respectfully submitted, Nicole Pettenuzzo, Coordinator of Zoning ext Appendix A: Zoning By-law Notifications: (after Council decision) Name: Mailing or Address: Approved by: Reviewed by:

5 Page 5 of Report PB Jason Schmidt-Shoukri, Manager of Bldg Permit Services & Chief Bldg Offic

DATE: December 8, 2014 REPORT NO. CD TYPE OF REPORT CONSENT ITEM [ X ] ITEM FOR COUNCIL CONSIDERATION [ ]

DATE: December 8, 2014 REPORT NO. CD2014-176 TO: FROM: Chair and Members Committee of the Whole Community Services Gregory Dworak, General Manager Community Services 1.0 TYPE OF REPORT CONSENT ITEM [ X