HomeMy WebLinkAboutDSD-19-006 - Retail Cannabis Stores in KitchenerREPORT TO:Special Council
DATE OF MEETING:January 14, 2019
SUBMITTED BY:Justin Readman, General Manager, Development Services, 519-741-
2200ext. 7646
PREPARED BY:Gloria MacNeil, Director of Bylaw Enforcement 519-741-2200 ext. 7952,
Helen Fylactou, Manager of Licensing, 519-741-2200ext. 7854,
Janine Oosterveld,Manager of Site Development and Customer
Service, 519-741-2200 ext. 7076
WARD (S) INVOLVED:ALL
DATEOF REPORT:January 11, 2019
REPORT NO.:DSD-19-006
SUBJECT:Retail Cannabis Storesin Kitchener
___________________________________________________________________________
RECOMMENDATION:
Thatthe City of Kitcheneropt-into allow retail cannabis stores; and,
That the MunicipalRetailCannabis Store Policy Statement as outlined in Appendix
report DSD-19-006be adopted; and further,
That the Manager of Site Development and Customer Service or designatebe
delegated authorityto provide written submissions to the registrar under the
Cannabis Licence Act, 2018, regarding the issuance of proposed retail cannabis
store licences within the City ofKitchener in accordance with the commenting
Municipal Retail Cannabis Store Policy
Statement.
BACKGROUND:
On October17, 2018, recreational cannabis was legalizedacross Canada. Theprovincial
Cannabis Licence Act, 2018creates the framework around the retail and
consumption of cannabis, which includespermittingprivate retail cannabis storesand
gives municipalities until January 22, 2019 to either opt-in (permit) or opt-out (prohibit) of
suchstores.The Actwillpermit private beginningin April
2019 with the Province of Ontario beingresponsible for the licensing and regulatingof
these stores through the Alcohol and Gaming Commission of Ontario (AGCO).
OnDecember 13, 2018, the Province announced a change to the legislationto initially
limit the number of retailstores to twenty-five (25) onlyfor April 2019. Amongst the 25
authorizations, the Province has further restricted the number of stores with allocation
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rules resulting in amaximumof seven(7)retail store authorizations for the,
which includes the following census divisions:Waterloo; Dufferin; Wellington; Hamilton;
Niagara; Haldimand-Norfolk; Brant; Perth; Oxford; Elgin; Chatham-Kent; Essex;
Lambton; Middlesex; Huron; Bruce; Grey; Manitoulin.
REPORT:
The Actrequires Council to decide to opt-in or opt-out of permitting stand-alone, retail
cannabis stores.Based on the recent changes to the legislation, even if a municipality
opts-in, the Province still needs to select the municipality and allocate oneor moreof the
7 retail store authorizations to the municipality. Evenif Council opts-in, there is no
guarantee that Kitchener will be selected as a municipalityfor the first available licenses.
The Province has not confirmed when they will be opening up the next phase of issuing
retail store authorizationsafter April 2019.
Staff recommends Council opt-in as cannabis is now a legal substance, similar to alcohol
and tobacco, and should not be treated differently. Permitting provincially-licensed retail
stores would provide a safer alternative to the illegal market. As well, with retail occurring
online regardless of any municipal decision, staff is of the opinionthat allowing the retail
cannabis stores would help achieve the objectives of protecting youth, protecting health
and safety, and preventing illicit activity. Prohibiting retail cannabis stores would limit
-inspected cannabis. The only legal access would
be through the online store (Ontario Cannabis Store) or by visiting another municipality
that permits retail cannabis stores. Staff are of the opinion that the benefits of allowing
stores would include:
Product Safety: Federally controlled and inspected cannabis;
Economic Development& Job Opportunities:Opportunities through the
establishment and operation of the business;
Harm Reduction:Less opportunity for illegal market;and,
Provincial Funding:Greater financial support for host municipalities.
The AGCOhas implementedstrict controlsdesigned to minimize social harm,prevent
access and sales to minors, address safety issues, and ensure products are only sourced
from licensed producers. The AGCO hasalsoestablishedstandards and requirements
for the store operator, the physical retail store, and the retail store manager. Some of the
regulations include floor plan designs, surveillance systemsand security requirements,
background checks, financial records, bookkeeping, and advertising and promotions
standards.
If retail cannabis stores are prohibitedinKitchener, staff are of the opinion that more
illegal storefronts and black market cannabis are likely toappear whichwould have a
larger impact for police and municipal enforcementresources. As well, opting out would
not support thegovernmental goal toprotect youth, protectpublic health and safety, and
prevent illicit activities.
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Whether or not Council choosesto opt-in or opt-out, recreational cannabis isavailable
online through the Ontario Cannabis Store and therefore consumption of cannabis will be
occurring within Kitchener.
MUNICIPAL RETAIL CANNABIS STORE POLICY STATEMENT:
The new application process through the AGCO, allows municipalities to comment during
a 15-day public notification process with respect to proposed locations.To ensure
consistency for commenting, theAssociation of Municipalities Ontario (AMO) has
recommended that municipalities have councilsRetail Cannabis Store
which includes what the municipality deems as local sensitive uses.
Since providing comment is purely administrative in nature and because of the short turn-
around time for commenting to the AGCO, staff recommendsthat Council delegate its
authority to staff to respond to the AGCO in accordance with the policy statement
.
The Manager of SiteDevelopment and Customer Serviceor designate will be tasked with
reviewing notifications posted on the AGCO website and distributing the application for
comment to appropriatedivisions,as well as apoint person at the Region of Waterloo.
Once completed, written comment,as it pertains to public interest and using the criteria
within the policy statementwill be submitted to the AGCOforitsconsideration.
All retail cannabis stores are subject to the requirements of the Zoning bylaw as a retail
use. A zoning (occupancy) certificate will be required to confirm the use meets the Zoning
bylaw requirements. The sign bylaw, building and fire codes also apply toproposed
stores.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The Province has allocated a minimum of $40 million to be distributed to municipalities
over the next two years to support the transition topermittingretail cannabis stores. In
early January, the Ministry of Finance will disbursethe first payment of $15 million to
support municipalities through retail cannabis implementation. Regardless of the decision
to opt-in or opt-out, all municipalities will receive the first payment which willbe dispersed
based on a per household basis, and adjusted so that at least $5,000 is provided to each
municipality. After the 50/50 split with the upper tier, City of Kitchener is slated to receive
a total of $122,743in the first installment.
Staff understand that asecond payment of $15 million will then be distributed following
the deadline for municipalities to opt-out. Municipalities that opt-in will again receive
funding on a per household basis,similar to first payment installment, andadjusted so at
least $5,000 is provided to each municipality. Municipalities that opt-out, will not be
eligible for a payment based on a per household basis model and will only receive
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$5,000.The Province is setting aside $10 million of the municipal funding for any
unforeseen circumstances.
years of legalization exceeds $100 million, the Province will provide 50% of the surplus
to municipalities that have opted in prior to the January 22 deadline.
COMMUNITY ENGAGEMENT:
Staff have been engaging with variousstakeholders, including Conestoga College,
Belmont Village BIA, DowntownKitchenerBIA, Fire Prevention, Region of Waterloo,
Waterloo Catholic District School Board, Waterloo Region District School Board, Waterloo
Regional Police Services, Wilfrid Laurier University, and University of Waterloo.Overall,
the stakeholdersdo not have any ircomments
are summarized asfollows:
Conestoga College, Belmont Village BIA, DowntownKitchenerBIA, Wilfrid Laurier
University,and University of Waterloo have responded and haveno opinion on this
matter.
Waterloo Catholic District School Board and Waterloo Region District School
Boardhave commentedon wanting a larger distance from schools, but arein
support of allowing retail cannabis stores.
Fire Prevention, Region of Waterloo, and Waterloo Regional Police Services are
in
INFORM
of the council / committee meeting.
ACKNOWLEDGED BY: Justin Readman, General Manager of Development Services
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Policy No: ADM-AUT-2013
POLICY
Approval Date: (to be added based on
Policy Title: MUNICIPAL RETAIL
CANNABIS STORE POLICY
Next Review Date: January, 2022
Policy Type: COUNCIL
Category: Administration
Last Amended:
Sub-Category: Authority & Delegations of Staff
Author: Manager, Site Development &
Replaces:
Customer Service
Repealed:
Dept/Div: Development Services
Replaced by:
Related Policies, Procedures and/or Guidelines:
Cannabis Licence Act, 2018
Ontario Regulation 468/18 made under the Cannabis Licence Act
1.POLICY PURPOSE:
This policy confirms delegated authority and criteria for staff to provide comment to the
Alcohol and Gaming Commission of Ontario (AGCO) with regard to the location of
recreational cannabis retail store locations.
The City of Kitchener is committed to providing comment on proposed retail cannabis
store locations based on the safety and security of our residents including protecting of
our most
interest as defined as:
Protecting public health and safety
Protecting youth and restricting access to cannabis
Preventing illicit activities in relation to cannabis
The intent of establishing this policy statement is to provide consistent and fair comment
among all interested retail store operators, and to provide clear direction to potential retail
store operators in their site selection.
2.DEFINITIONS:
Recreational facilities are defined as municipally owned or operated buildings that are
used for recreational purposes including but not limited toswimming poolsandarenas.
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3.SCOPE:
Delegated Authority:
The Manager of Site Development and Customer Service,or designate, shall provide
comment on behalf of the City of Kitchener to the AGCO in regard to the proposed location
of retail cannabis stores.
4.POLICY CONTENT:
Municipal Commenting Criteria:
Staff shall provide City comment to the AGCO in accordance with the timeframes
prescribed by the Province on proposed cannabis store locations based on the following.
In addition to the criteria established by the province (i.e. minimum distance to schools),
retail cannabis stores are recommended to be a minimum of 150 m from the following:
a.Addiction service providers
b.Residential shelters andsupportive housing for youth or other vulnerable
populations
c.Social service providers that support youth or other vulnerable populations
d.Community centresand recreational facilities
e.Libraries
f.Other retail cannabis stores
Note that if the Province increases the minimum distance criteria for schools, the City
shall use the same distance criteria for commenting above.
Note that consistent with other uses under the zoning bylaw, a zoning (occupancy)
certificate will be required to confirm zoning compliance as a retail use along with all
and Ontario Fire Code also apply.
5.HISTORY OF POLICY CHANGES
Administrative Updates
Noadministrative history to date.
Formal Amendments
taff report DSD-19-
006.
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