Corporate Report Report from Planning and Building Services, Planning Services Date of Report: August 7, 2018 Date of Meeting: August 13, 2018 Report Number: PBS-198-2018 File: 60.30.341 Subject: Cannabis Legislation Interim Control By-law Recommendation That Council direct staff to undertake a study of the City s Official Plan policy, Zoning By-law standards and regulations and implementation procedures pertaining to retail recreational cannabis stores and cannabis consumption lounges and venues and report back to Council with recommendations; and That Council pass an Interim Control By-law, pursuant to Section 38 of the Planning Act, for a period of up to one year, prohibiting retail recreational cannabis stores and cannabis consumption lounges and venues on all properties zoned as follows: Local Convenience Commercial (C1) Community Commercial (C2) Arterial Commercial (C3) Major Commercial (C4) Downtown Commercial Core (C5) Downtown Traditional Main Street (C6) Business Commercial Employment (E1) General employment (E2) Medium Density Mixed Use (M1) Medium/High Density Mixed Use (M2) High Density Mixed Use (M3) Community Institutional (I2) Medium density Residential (R3) High density Residential (R4); and That the City Solicitor be directed to prepare the necessary by-law; and That the Mayor and City Clerk be authorized to execute the necessary By-law to give effect to Council s decision; and That the Notice of Decision required by the Planning Act, R.S.O. 1990, as amended, be processed by staff; and Report Page 1 of 6
Further, that the Clerk be directed to make all necessary notifications. FORTHWITH Background On June 20, 2018, the federal government passed the Cannabis Act which addresses the production, distribution, sales, cultivation, consumption and possession of recreational cannabis. This Act seeks to achieve the following objectives: restrict youth access to cannabis; regulate promotion or enticements to use cannabis; enhance public awareness of the health risks associated with cannabis; impose serious criminal penalties for those breaking the law, especially those who provide cannabis to young people; establish strict product safety and quality requirements; provide for the legal production of cannabis; allow adults to possess and access regulated, quality-controlled, legal cannabis; reduce the burden on the criminal justice system. According to the Federation of Canadian Municipalities, for local governments the Cannabis Act has significant implications for local land use regulation, business regulation and licensing and the regulation of public consumption and personal cultivation of cannabis. Formerly, Council has passed motions directing staff to prepare reports and bring forth appropriate regulations and by-laws that, if necessary, would regulate the use of medicinal and recreational cannabis and associated uses through the use of zoning by-laws and / or business licensing by-laws. Matters to be addressed in the requested reports include the regulation of vapour lounges, controlling the consumption of edibles and regulating retail sales. Direction had been given to consider regulating the location and land use issues related to use as well as related signage, fees, distance separations from competitors and from public facilities (i.e. schools, community centres, recreational centres), number of outlets with the same ownership, video monitoring, smoking, availability of medical consultations from the outlet, labeling and testing products, production impacts, and the sale of cannabis and edibles and oils. Up until the last couple of weeks, the City had a good understanding of how retail stores for the sale of recreational cannabis were to be regulated in Ontario: staff were confident that any land use and / or societal concerns would be addressed through provincial control and implementation procedures. However, a shift in Provincial outlook now contemplates permission for private recreational cannabis retail sales without any known implementation details at this time. The lack of detail has caused confusion and loss of confidence on how these uses are to be regulated. Hence, it is now prudent to allow sufficient time to undertake a municipal study to examine these issues and, in the interim, preclude any development that may otherwise not be permitted as a result of study findings and recommendations. Therefore, staff recommend that Council first authorize a study of these issues and enact an Interim Control By-law for all properties in the municipality that are zoned to allow retail sales and assembly uses. This Interim Report Page 2 of 6
Control By-law would prohibit retail recreational cannabis stores and cannabis consumption lounges and venues as defined in this report and in the draft Interim Control By-law. Passage of this by-law provides advance notice to residents, corporations, tenants, property owners and landlords of the city s intention to study issues associated with these uses with the aim of potentially providing municipal regulations in the very near future. Report While municipalities have no formal role within the federal government s cannabis framework, they do have authority over land use regulation and have the power to prohibit and regulate certain land uses through zoning by-laws. A zoning by-law can control the use of land and sets out how land may be used, where buildings and other structures can be located, the types of buildings permitted and the uses permitted within those buildings as well prescribe permitted lot sizes and dimensions, parking requirements, building heights and setbacks from streets. Up until the last couple of weeks, in Ontario, cannabis retailing was to be accomplished by a provincial cannabis retailer, as required by Ontario s Cannabis Act, 2017. To implement this initiative Ontario created an organization called the Ontario Cannabis Retail Corporation (OCRC) through legislation known as the Ontario Cannabis Retail Corporation Act, 2017 (OCRCA). This entity was to open and operate 40 stores called the Ontario Cannabis Store by July 2018, with further stores to open through 2019. On line retailing was to take effect by July 2018. The purpose of Ontario s Cannabis Act (Act) included establishing prohibitions relating to the sale, distribution, purchase, possession, cultivation, propagation and harvesting cannabis in order to: protect public health and safety protect youth and restrict their access to cannabis; and ensure the sale of cannabis in accordance with the OCRCA. The Act also aimed to deter illicit activities in relation to cannabis through appropriate enforcement and sanctions. It was to provide for approved youth education or prevention programs, including culturally appropriate programs for indigenous youth, as an alternative to enforcement and sanctions. Location of Cannabis Retail Stores In relation to sales, a central issue is the actual location of the stores. According to the Ontario Bar Association, the OCRCA establishes the organization s mandate and set out its goals. Among OCRC s legislated objectives stated in section 4 of the OCRCA is promoting social responsibility in connection with cannabis, a goal seemingly in harmony with municipal powers to pass by-laws in respect of social well-being of the municipality and the health, safety and well-being of persons. The OCRC worked closely with the City of St. Catharines in determining suitable locations for a proposed store and considered location in terms of other sensitive land uses in the area. Since the operation was also provincially regulated it did not appear to be necessary to offer Report Page 3 of 6
additional restrictions in the City s zoning by-law. However, with the apparent shift of Provincial outlook that the retail sales of recreational cannabis will now to be privatized, municipal zoning and business licensing will be important in regulating the future locations of these stores. Zoning By-laws have the potential to reduce friction between cannabis retail uses and partly mitigate any community backlash against the perceived impact of these private retail store locations. Specific land use requirements may require minimum distances of cannabis retail locations from schools, playgrounds, places of worship, and community centres. According to the Ontario Bar Association, other actions could be to introduce new zoning classifications to distinguish cannabis retail from other types of retail, limit the amount of cannabis retail locations in a given area and set certain retail mixes apart from one another. Another tack that could be taken is to simply prohibit retail cannabis sales entirely, an approach that is evident in the City of Brantford s zoning by-law. Zoning for Cannabis Consumption Although not currently permitted by Federal legislation, according to the Ontario Bar Association, municipalities in Ontario have begun considering options for permitting consumption of cannabis in lounges and cafes. At the moment section 11 of the Act restricts the consumption of cannabis in public places, workplaces, vehicles, or a place prescribed by regulations. The remaining locations available to consume cannabis are private such as a person s residence. In the future, exemptions will need to be prescribed or the Act will need to be modified to permit cannabis lounges or other communal consumption areas. The Bar Association has stated that if public cannabis consumption becomes permissible in the future, approaches to cannabis culture could vary. Hookah lounges bans have been enacted on this basis, such as the City of Toronto s ban. According to the Association, apparently Niagara Falls is canvassing the possibility of cannabis lounges as a tourist draw. Land use implications for retail and consumption of recreational cannabis requires St. Catharines to study the need to possibly fine-tune its Zoning By-law to achieve proper integration of cannabis retail and consumption with the community. For example, placement of private retail stores should take into account sensitive uses while also realizing that complete separation may not be attainable in a completely urban environment. In the future, if legally permitted, sensitivity to community desires will be particularly needed when considering whether zones should permit cannabis lounges and where they can be located. Apart from the recent Provincial shift in favour of the privatization of retail sales, municipalities know little about when or how this is to be implemented. It would appear that time is running out for municipalities to enact properly researched by-laws before the Province makes its final decision on sales implementation. Delays in amending zoning by-laws may see municipalities risk having these types of establishments arguing that they are legal non-conforming uses when recreational cannabis becomes legal in October of this year. As such, it is prudent to study the situation and determine Report Page 4 of 6
the best approach for St. Catharines. City Council has already directed that zoning possibly regulate this use. However, in light of the changing legal environment within the Province concerning recreational cannabis sales and consumption, Council should authorize a study and, in the meantime, also pass an Interim Control By-law to prohibit such uses from establishing until proper regulations are formulated. The Planning Act and Bill 139 (Building Better Communities and Conserving Watersheds Act, 2017) Section 38 of the Planning Act permits a municipality to pass an interim control by-law prohibiting the use of lands, buildings, or structures for such purposes as set out in the by-law for a period of one year, with the right to extend the by-law for a further year. Council also should be aware that the passage of recent legislation has changed the terms of the passage of an Interim Control By-law in that the ability of appealing the initial passage of such a by-law has been removed for everyone except the Province of Ontario: this applies to decisions made after April 3, 2018. Part F, section 16.5 of the Official Plan enables the City to enact an interim control bylaw pursuant to the Planning Act to limit the use of certain lands until such time as a review or study of the subject lands, as directed by Council has been undertaken. In respect of the situation as set out above, staff are recommending that an interim control by-law be passed. Staff recognize that the introduction of these uses may generate significant public concern thereby warranting a review of existing Official Plan policies and zoning regulations to ensure that compatibility is achieved and implementation measures are effective. Until such time as the review is complete, the purpose of the interim control by-law is to prohibit retail recreational cannabis stores and cannabis consumption lounges and venues as defined in the interim control by-law as follows: Retail Recreational Cannabis Stores: means a retail store for the sale or dispensing of cannabis, cannabis concentrate or cannabis-infused products for recreational use. Cannabis Consumption Lounges and Venues: means a venue for the consumption of cannabis, cannabis concentrate or cannabis infused products, including the smoking and vapourization of the substance for recreational or medicinal use. The interim control by-law will affect a large number of properties currently zoned to permit some form of these uses. No notice or hearing is required prior to the passage of such a by-law, but the clerk of the municipality shall give notice of its passage afterwards as prescribed by the Planning Act. Where an interim control by-law ceases to be in effect, the Council of the municipality may not for a period of three years pass a further interim control by-law that applies to any lands to which the original interim control by-law applied. A copy of the draft by-law is attached as Appendix 1 to this report. Report Page 5 of 6
Staff anticipate that the review will take a relatively short period of time and will present a staff report on review findings and recommendations by November 2018. The timing of the report and its recommendations will, of course depend, to a great degree, on what the Province announces in the next while. Financial Implications Not applicable. Relationship to the Strategic Plan The interim control by-law is a mechanism to support the review of recreational cannabis retail sales and consumption venues with the goal to ensure compatible development. In this respect, this initiative supports Strategic Plan Goal 4 to strive for the highest quality of life for all citizens. Notification Notification of the passing of the interim control by-law will be provided in the local newspaper as required pursuant to the Planning Act, and will also be placed on the City s website. Prepared and Approved by: James N. Riddell, M.PL., MCIP, RPP Director of Planning and Building Services Report Page 6 of 6
CITY OF ST.CATHARINES 1 BY-LAW NO. A By-law to adopt an Interim Control By-law for certain lands within the City of St. Catharines. WHEREAS Section 38 of the Planning Act, R.S.O. 1990, c. P.13, as amended, authorizes Council to adopt an Interim Control By-law, provided Council has by resolution directed that a review or study be undertaken of land use planning policies; AND WHEREAS the Council of The Corporation of the City of St. Catharines passed a resolution on August 13, 2018 directing that a review be undertaken in respect of Official Plan policy, Zoning By-law standards, and implementation procedures as they relate to Retail Cannabis Stores and Cannabis Consumption Lounges and Venues within the City of St. Catharines. AND WHEREAS the Council of The Corporation of the City of St. Catharines considers it necessary to enact an Interim Control By-law with respect to the lands described in Section 1 of this By-law, and only as it applies to the use of premises, or partial use of premises, for either of the uses described in Section 2 a) and b) of this By-law, to allow it time to consider its land use planning policies as directed;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF ST. CATHARINES enacts as follows: 1. This Interim Control By-law applies to all lands zoned in the Comprehensive Zoning By-law 2013-283 of The Corporation of the City of St.Catharines under the following categories, and only applies to prohibit the use of premises, or partial use of premises within such lands, for either of the uses described in Section 2 a) and b) of this By-law: - Local Convenience Commercial (C1) - Community Commercial (C2) - Arterial Commercial (C3) - Major Commercial (C4) - Downtown Commercial Core (C5) - Downtown Traditional Main Street (C6) - Business Commercial Employment (E1) - General Employment (E2) - Medium Density Mixed Use (M1) - Medium/High Density Mixed Use (M2) - High Density Mixed Use (M3) - Community Institutional (I2) - Medium Density Residential (R3) - High Density Residential (R4)
2. The following uses are prohibited under this By-law: a) a retail store for the sale or dispensing of cannabis, cannabis concentrate or cannabis infused product for recreational use. b) a venue for the consumption of cannabis, cannabis concentrate or cannabis infused products, including the smoking and vapourization of the substance. 3. In this By-law, the following definitions apply: a) cannabis : means cannabis as defined in the Cannabis Act. b) cannabis concentrate : means hashish, cannabinoids, or any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, of cannabinoids. c) cannabis infused product : means a product infused with cannabis that is intended for use or consumption other than by smoking, including but not limited to, edible product, ointments and tinctures. 4. This By-law shall be in effect for a period of one year from the date of passage hereof. Read and passed this day of, 2018 CLERK MAYOR