planning, design and development committee item p2 for
TRANSCRIPT
TOWN OF CALEDON
Albion 1840
Alton 1820
Belfountain 1825
Bolton 1823
Caledon East 1821
Caledon Village 1826
Campbells Cross c 1820
Cataract 1858
Cheltenham 1827
Claude c 1832
Inglewood 1883
MayfieldWest 2006
Melville 1831
Mono Road 1871
Mono Mills 1819
Palgrave 1846
Sandhill 1839
Terra Cotta 1855
Tullamore c 1820
Victoria c 1850
Wildfield 1833
Administration
6311 Old Church Road
Caledon ON L7C1J6 wwwcaledonca
T 9055842272
18882253366
F 9055844325
KH RECESYHD CLERKS DEPT
August 152014
AUG 2 0 2014 Health Canada
Address Locator 0900C2 REG NO Ottawa Ontario FILE NO
K1A0K9 PLANNINGJJESIGN ampDEVELOPMENT COMMITTEE
Dear SirMadam date ^^emDPjr^Qjgt^ RE Medical Marihuana Production Facilities Proposed Town-wide
Zoning By-law Amendment All Lands within the Town of Caledon
At the regular meeting of Council held on August 12 2014 Council passed a resolution regarding Medical Marihuana Production Facilities The following resolution was adopted
That Report DP-2014-082 [Follow-up to Report DP-2014-034] regarding a proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon regarding Medical Marihuana Production Facilities be received and
That the previous report DP-2014-034 regarding a proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon regarding Medical Marihuana Production Facilities be received and
That By-laws to amend Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended for all lands within the Town of Caledon be submitted to Council for approval at a later date to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Serviced Industrial (MS) zone categories and
That any medical marihuana production facility proposed in another zone category such as Agricultural (A1) or Rural (A2) zones be considered through a site-specific Zoning By-law Amendment application andor any otherplanning application(s) as necessary and
Thata copyof Report DP-2014-082 be forwarded to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting municipalities for their information and
That any medical marihuana production facility be excluded from the following a) The Palgrave Estate Area b) All villages and hamlets within the Town of Caledon c) All rural estate subdivisions within the Town of Caledon
And that a 150 metre setback be imposed for the above exclusions
Attached please find a copyof Report DP-2014-082 for your information
Thank you
Yours truly
KampC- Carey deGorter Director of AdministrationTown Clerk
e-mail carevdeqortercaledonca
End
cc Brandon Ward Senior Policy Planner The Region of Peel The Region of York Wellington County Dufferin County Simcoe County City of Brampton City of Mississauga Town of Erin CityofVaughan Township of King Township of Adjala-Tosorontio Town of Orangeville Town of New Tecumseth Town of Halton Hills Halton Region
DP-2014-082 P2^3
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-08-12
Subject Medical Marihuana Production Facilities [Follow-Up to Report DP-2014-034] Proposed Town-wide Zoning By-law Amendment All Lands within the Town of Caledon File Number RZ 13-15
RECOMMENDATIONS
That Report DP-2014-082 [Follow-up to Report DP-2014-034] regarding a proposed Town-wide Zoning By-law Amendment for all landswithin the Town ofCaledon regarding Medical Marihuana Production Facilities be received and
That the previous reportDP-2014-034 regarding a proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon regarding Medical Marihuana Production Facilities be received
That By-lawsto amend Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended for all lands within the Town of Caledon be submittedto Council for approval at a later date to permitand regulate medical marihuana production facilities in Prestige Industrial (MP) and Serviced Industrial (MS) zone categories
That any medical marihuana production facility proposed in another zone category such as Agricultural (A1) or Rural (A2) zones be considered through a site-specific Zoning By-law Amendment application andor any other planning application(s) as necessary and
That a copy of Report DP-2014-082 be forwarded to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting municipalities for their information
EXECUTIVE SUMMARY
This report provides additional information to Report DP-2014-034 (attached under Schedule B) with respect to land use allocation options for prospective federally-regulated medical marihuana production facilities within the Town This report responds to the inquiries made at the April 22 2014 Council meeting with respect to a further investigation of allocating prospective facilities in agricultural amprural areas and corresponding regulatory options for the Town notification options and property assessment implications
In reviewing prospective medical marihuana production facilities in conjunction with the Marihuana for Medical Purposes Regulations (MMPR) the collective nature of these operations must be considered as opposed to a reviewbased solely on one specific component of the operation The foundational component of all production facilities is the growing of marihuana plants which in and of itself is considered as an agricultural activity However the collective nature of these operations wherein federal regulation require that the substanceis grown processed tested packaged and distributed within one secure indoor facility is reflective of an industrial land use Based on a review of potential facilities within a rural setting there is a lack of clear consistency with applicable provincial policy and there are issues of concern and uncertainty that preclude as-of-right permissions for these facilities within Agricultural and Rural zones On a Town-wide basis the General Industrial
Page 1 of 12
TOWN OF CALEDON
DP-2014-082 Pltpound-H and Prestige Industrial zone categories remain as the most appropriate zone categories to allocate prospective facilities There may however be certain rural locations in the Town that may be appropriate depending on the specific nature ofthe proposed facility This would be most appropriately determined through a site-specific Zoning By-law amendment application process
DISCUSSION
Purpose (background)
Current Status of Federal Licence Applications
There are currently approximately 37000 authorized medical marihuana users across Canada which isexpected to increase to approximately 435000 users by 2024 As of January 2014 Health Canada has received over 400 licence applications for medical marihuana production facilities with approximately 160 of these applications being for facilities proposed in Ontario To date a total of 13 licences have been issued four of which are forfacilities located in Ontario Clearview Township Markham Smiths Fallsand Toronto Several other licence applications for Ontario-based facilities are in advanced stagesof review including a greenhouse production facility located in Leamington and a 300000 square-footindustrial facility located in Brampton
Municipal Response
Although not specifically stated in the MMPR Health Canada has confirmed that licensed producers must comply with local legislation and by-laws including municipal zoning by laws Since Health Canada can only inspect for compliance with the MMPR and related federal legislation it is the responsibility of the municipality to determine zoning by-law and building code compliance for a proposed facility Municipalities across Canada are evaluating local regulatory options for medical marihuana production facilities and are contemplating how the use is interpreted and what zones are most appropriate The regulatory approaches range from interpretations that the use is permitted as-of-right in industrial or agricultural zones tospecifically defining theuse and specifying the zone permissions Some municipalities have determined that the use fits within existing agricultural or industrial definitions but require a site specific Zoning By-law amendment to provide an opportunity for a detailed municipal review of a specific proposal In some instances a blanket prohibition has been applied either through an interim control by-law ortown-wide amendment to prohibit the use in all zones In other instances municipalities have adopted orare contemplating additional zoning provisions including minimum separation requirements from sensitive uses limitations on floor areas devoted tocertain activities prohibition on outdoor storage parking and loadingdelivery space limitations etc The attached Schedule A outlines examples of regulatory approaches undertaken by other municipalities in Ontario
Prospects for Potential Production Facilities in the Town
Town staff have received a number ofinquiries regarding local procedures for establishing a licensed medical marihuana production facility in theTown The majority ofinquiries have been preliminary in nature wherein the individual or organization is looking to determine appropriate locations where a production facility may be permitted by applicable zoning standards Others have inquired about the land use permissions and required approvals with respect to one or more candidate sites that have been selected by the prospective producer
Page 2 of 12
TOWN OF CALEDON
o
DP-2014-082 PQ-S in accordance with their operational criteria Of these preliminary inquiries there has been a consistentbalance between agriculturalrural sites and industrial sites underconsideration Town staff has also received a limited number offormal notifications of pending licence application submissions by individuals or groups who are proceeding with their particular site of interest These prospective producers have a particular site have initiated the federal licence application process and have subsequently consulted the Town through the notification requirements of this process In response staff have advised of the current Town-wide zoning by-law amendment exercise which is based onthe premises that a medical marihuana production facility is currently not permitted in any zone category as it is not a specifically defined use nordoes it fit within any otherexisting use definition Of the formal licence application notifications received the majority have been for sites proposed within rural areas of the Town
Town of Caledon Review
Since the enactment of the MMPR in June 2013 the Town has undertaken an extensive review of this new commercial medical marihuana production regime facilitated by these new regulations In September 2013 staff presented a background report to Council (DP-2013shy110) which recommended that staff review regulatory tools and options for the Town to appropriately allocate prospectivemedical marihuana production facilities The product of this review was the presentation of Report DP-2014-034 to Council on April 22 2014 (see Schedule B attached to this report)which provided recommendations summarized as follows
bull The MMPR govern facility operations and provide stringent security and production requirements The regulations also provide greater local awareness of proposed facility locations However little direction is provided in these regulations for facility locations bevond the exclusive prohibition of facilities locating within a dwelling and
a reouirement for all production activities to occur indoors
bull Based on the nature of medical marihuana production facilities and the
corresponding MMPR reguirements these facilities are consistent with the Industrial
policies of the Town Official Plan The activities taking place within these facilities will include the growth production (ie plant harvesting drying breakdown etc) storage testing packaging distribution and waste product destruction All of these facility activities must occur indoors subject to stringent security and air filtrationventilation requirements prescribed by the MMPR
copy Cannabis (marihuana) is listed as a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend to
facilitate a production environment for medical marihuana that is similar to other
controlled pharmaceutical production facilities which are industrial uses
o Because the MMPR require extensive production testing packaging arid distribution activities to occur within an indoor facility subject to stringent security and production requirements licensed medical marihuana production facilities do not fit within the realm of normal farming practices as envisioned by the agricultural
and rural policies of the Official Plan
Page 3 of 12 TOWN OF CALEDON
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
Thank you
Yours truly
KampC- Carey deGorter Director of AdministrationTown Clerk
e-mail carevdeqortercaledonca
End
cc Brandon Ward Senior Policy Planner The Region of Peel The Region of York Wellington County Dufferin County Simcoe County City of Brampton City of Mississauga Town of Erin CityofVaughan Township of King Township of Adjala-Tosorontio Town of Orangeville Town of New Tecumseth Town of Halton Hills Halton Region
DP-2014-082 P2^3
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-08-12
Subject Medical Marihuana Production Facilities [Follow-Up to Report DP-2014-034] Proposed Town-wide Zoning By-law Amendment All Lands within the Town of Caledon File Number RZ 13-15
RECOMMENDATIONS
That Report DP-2014-082 [Follow-up to Report DP-2014-034] regarding a proposed Town-wide Zoning By-law Amendment for all landswithin the Town ofCaledon regarding Medical Marihuana Production Facilities be received and
That the previous reportDP-2014-034 regarding a proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon regarding Medical Marihuana Production Facilities be received
That By-lawsto amend Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended for all lands within the Town of Caledon be submittedto Council for approval at a later date to permitand regulate medical marihuana production facilities in Prestige Industrial (MP) and Serviced Industrial (MS) zone categories
That any medical marihuana production facility proposed in another zone category such as Agricultural (A1) or Rural (A2) zones be considered through a site-specific Zoning By-law Amendment application andor any other planning application(s) as necessary and
That a copy of Report DP-2014-082 be forwarded to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting municipalities for their information
EXECUTIVE SUMMARY
This report provides additional information to Report DP-2014-034 (attached under Schedule B) with respect to land use allocation options for prospective federally-regulated medical marihuana production facilities within the Town This report responds to the inquiries made at the April 22 2014 Council meeting with respect to a further investigation of allocating prospective facilities in agricultural amprural areas and corresponding regulatory options for the Town notification options and property assessment implications
In reviewing prospective medical marihuana production facilities in conjunction with the Marihuana for Medical Purposes Regulations (MMPR) the collective nature of these operations must be considered as opposed to a reviewbased solely on one specific component of the operation The foundational component of all production facilities is the growing of marihuana plants which in and of itself is considered as an agricultural activity However the collective nature of these operations wherein federal regulation require that the substanceis grown processed tested packaged and distributed within one secure indoor facility is reflective of an industrial land use Based on a review of potential facilities within a rural setting there is a lack of clear consistency with applicable provincial policy and there are issues of concern and uncertainty that preclude as-of-right permissions for these facilities within Agricultural and Rural zones On a Town-wide basis the General Industrial
Page 1 of 12
TOWN OF CALEDON
DP-2014-082 Pltpound-H and Prestige Industrial zone categories remain as the most appropriate zone categories to allocate prospective facilities There may however be certain rural locations in the Town that may be appropriate depending on the specific nature ofthe proposed facility This would be most appropriately determined through a site-specific Zoning By-law amendment application process
DISCUSSION
Purpose (background)
Current Status of Federal Licence Applications
There are currently approximately 37000 authorized medical marihuana users across Canada which isexpected to increase to approximately 435000 users by 2024 As of January 2014 Health Canada has received over 400 licence applications for medical marihuana production facilities with approximately 160 of these applications being for facilities proposed in Ontario To date a total of 13 licences have been issued four of which are forfacilities located in Ontario Clearview Township Markham Smiths Fallsand Toronto Several other licence applications for Ontario-based facilities are in advanced stagesof review including a greenhouse production facility located in Leamington and a 300000 square-footindustrial facility located in Brampton
Municipal Response
Although not specifically stated in the MMPR Health Canada has confirmed that licensed producers must comply with local legislation and by-laws including municipal zoning by laws Since Health Canada can only inspect for compliance with the MMPR and related federal legislation it is the responsibility of the municipality to determine zoning by-law and building code compliance for a proposed facility Municipalities across Canada are evaluating local regulatory options for medical marihuana production facilities and are contemplating how the use is interpreted and what zones are most appropriate The regulatory approaches range from interpretations that the use is permitted as-of-right in industrial or agricultural zones tospecifically defining theuse and specifying the zone permissions Some municipalities have determined that the use fits within existing agricultural or industrial definitions but require a site specific Zoning By-law amendment to provide an opportunity for a detailed municipal review of a specific proposal In some instances a blanket prohibition has been applied either through an interim control by-law ortown-wide amendment to prohibit the use in all zones In other instances municipalities have adopted orare contemplating additional zoning provisions including minimum separation requirements from sensitive uses limitations on floor areas devoted tocertain activities prohibition on outdoor storage parking and loadingdelivery space limitations etc The attached Schedule A outlines examples of regulatory approaches undertaken by other municipalities in Ontario
Prospects for Potential Production Facilities in the Town
Town staff have received a number ofinquiries regarding local procedures for establishing a licensed medical marihuana production facility in theTown The majority ofinquiries have been preliminary in nature wherein the individual or organization is looking to determine appropriate locations where a production facility may be permitted by applicable zoning standards Others have inquired about the land use permissions and required approvals with respect to one or more candidate sites that have been selected by the prospective producer
Page 2 of 12
TOWN OF CALEDON
o
DP-2014-082 PQ-S in accordance with their operational criteria Of these preliminary inquiries there has been a consistentbalance between agriculturalrural sites and industrial sites underconsideration Town staff has also received a limited number offormal notifications of pending licence application submissions by individuals or groups who are proceeding with their particular site of interest These prospective producers have a particular site have initiated the federal licence application process and have subsequently consulted the Town through the notification requirements of this process In response staff have advised of the current Town-wide zoning by-law amendment exercise which is based onthe premises that a medical marihuana production facility is currently not permitted in any zone category as it is not a specifically defined use nordoes it fit within any otherexisting use definition Of the formal licence application notifications received the majority have been for sites proposed within rural areas of the Town
Town of Caledon Review
Since the enactment of the MMPR in June 2013 the Town has undertaken an extensive review of this new commercial medical marihuana production regime facilitated by these new regulations In September 2013 staff presented a background report to Council (DP-2013shy110) which recommended that staff review regulatory tools and options for the Town to appropriately allocate prospectivemedical marihuana production facilities The product of this review was the presentation of Report DP-2014-034 to Council on April 22 2014 (see Schedule B attached to this report)which provided recommendations summarized as follows
bull The MMPR govern facility operations and provide stringent security and production requirements The regulations also provide greater local awareness of proposed facility locations However little direction is provided in these regulations for facility locations bevond the exclusive prohibition of facilities locating within a dwelling and
a reouirement for all production activities to occur indoors
bull Based on the nature of medical marihuana production facilities and the
corresponding MMPR reguirements these facilities are consistent with the Industrial
policies of the Town Official Plan The activities taking place within these facilities will include the growth production (ie plant harvesting drying breakdown etc) storage testing packaging distribution and waste product destruction All of these facility activities must occur indoors subject to stringent security and air filtrationventilation requirements prescribed by the MMPR
copy Cannabis (marihuana) is listed as a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend to
facilitate a production environment for medical marihuana that is similar to other
controlled pharmaceutical production facilities which are industrial uses
o Because the MMPR require extensive production testing packaging arid distribution activities to occur within an indoor facility subject to stringent security and production requirements licensed medical marihuana production facilities do not fit within the realm of normal farming practices as envisioned by the agricultural
and rural policies of the Official Plan
Page 3 of 12 TOWN OF CALEDON
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
TOWN OF CALEDON
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
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Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
TOWN OF CALEDON
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law
CD
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bulllt
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en
dm
en
t
Po
rt C
olb
orn
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July
22
2
op
tio
ns
pre
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ted
a)
do
S
taff
opi
nion
th
at M
arih
uan
a is
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y-l
aw
YE
S
YE
S
NO
N
O
D
20
13
no
thin
g -
exis
ting
zo
nin
g
an a
gric
ultu
ral
prod
uct
and
will
6
05
92
51
4
i
m
req
uir
emen
ts w
ill e
nsu
re
meet
the
per
mit
ted
use
s in
an
P
ass
ed
Ap
ril
Tl
z
11
pro
per
sep
arat
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fro
m
Agr
icul
tura
l Z
one
A b
uild
ing
14
2
01
4
m
neig
hbou
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pro
per
ties
an
d
perm
it o
r a
chan
ge
of u
se
D
c O
BC
will
en
sure
pub
lic s
afet
y
perm
it w
ould
no
t be
requ
ired
if
C
O
or
b) c
han
ge
the
Zon
ing
to
an e
xist
ing
agri
cult
ural
bui
ldin
g
m
incl
ude
a de
fini
tion
of L
egal
w
as to
be
use
d f
or t
his
type
of
mdash
i M
arih
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a G
row
Op
erat
ion
s o
per
atio
n
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with
spe
cifi
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cati
ons
z o
To
ro
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tem
ber
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om
men
d Z
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g B
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A
NA
Y
es
No
bulllt
2
42
01
3
am
en
dm
en
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d i
nit
iate
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co
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nclu
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0m
ad
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ted
pound
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Dra
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m s
en
siti
ve z
on
es
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mm
en
d
D
pro
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ses
a n
ew d
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and
lan
d u
ses
acco
rdin
g to
ati
on
s f
or
1
11
m
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erm
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use
in
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uide
line
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mp
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Em
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m
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pac
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ust
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who
lly e
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ding
Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
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y A
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s Fo
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ary
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R
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db
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13
20
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inclu
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ew
def
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ustr
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es
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City
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re
view
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z
i ga
in b
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ders
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HE
DU
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A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
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er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
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du
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if
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idri
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Sta
tus
Cit
y o
f Ju
ne 1
7
Inte
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ted
as
an a
gric
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OP
A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
iou
s C
ity B
y-la
ws
an
d B
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m
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d d
ete
rmin
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at
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se i
s 1
4-1
62
z ap
pro
pri
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he
urb
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in
Em
plo
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ent
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5
D
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he
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lan
2
01
4
CO
A
men
dm
ent
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vid
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jn
defi
niti
ons
and
per
mit
s th
e u
se
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rk a
nd
ind
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tego
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T
he
City
Z
on
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-law
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to p
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it t
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use
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hin
H
-lt
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ones
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An
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er B
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are
m
gt
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ded
to
incl
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faci
lity
in
Agr
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on
es
sub
ject
to
m
siz
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imit
ati
on
s an
d s
etb
ack
z a _D
req
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emen
ts
To
wn
of
Du
nd
as
sect m
proh
ibit
s u
se -
no a
men
dm
ent
z H
pro
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sed
Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
na
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26
B
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01
4-
No
N
o
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20
14
co
njun
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n w
ith t
he
74
Ad
op
ted
D
m
re
gula
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s s
taff
det
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26
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th
at th
is f
acili
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s m
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01
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to
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tica
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o
m
anuf
actu
ring
pla
nt
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c CO
in
dust
rial
use
for
zon
ing
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purp
oses
Fa
cilit
y w
ould
be
co
nsi
dere
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ith
in t
he
o A
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ultu
ral u
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efin
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as
itg Z
in
volv
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he
grow
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cro
p
o
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s a
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ased
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hat
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be
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ount
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as
do
not
co
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late
in
dust
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typ
e fa
cilit
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as a
3
0 m
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nera
lly
perm
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d us
e m
ayz D
b
e pe
rmit
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sub
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to s
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sp
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men
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ent
m
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H
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
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ana
Pro
du
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on
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itie
s
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NA
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sts
of
and
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ses
perm
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m
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as
of r
ight
in
in B
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d d
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mpl
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and
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or
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gro
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m
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o
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only
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effe
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or 5
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2
01
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Rec
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men
din
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-law
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new
als
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mm
en
ded
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ad
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ss
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defi
nit
ion
fo
r a
m
ed
icin
al
mat
ters
not
cap
ture
d i
n Z
onin
g
i sect pr
oduc
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fac
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an
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med
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a a
nd
m
gt
to p
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it t
hese
fac
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as
a 3
man
ufac
turi
ng u
se in
m
z
emp
loy
men
t zo
nes
D
zm
To
wn
of
New
P
ropo
sed
Zon
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By-
law
P
ub
lic
No
N
o
Yes
No
H
T
ecu
mseh
am
en
dm
en
t to
ad
d a
d
efin
itio
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Mee
tin
g h
eld
fo
r M
ed
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Mari
hu
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on
Ju
ly 9
P
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nd
per
mit
2
01
4
this
use i
n U
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ex
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uch
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s
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HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
8 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
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du
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on
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To
wn
of F
ort
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nu
ary
20
U
se h
as b
een
in
terp
rete
d b
y R
eco
gn
izes
fac
ilit
ies
may
O
PA
18
a
nd
Y
es
Yes
Yes
Yes
m
Eri
e
20
14
st
aff
as
agri
cult
ural
an
d
empl
oy a
sig
nifi
cant
nu
mb
er o
f B
y-la
w 0
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Tl
perm
itte
d w
ithin
Agr
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l em
plo
yee
s r
equi
re s
igni
fica
nt
20
14
z m
R
ural
an
d O
pen
Sp
ace
wate
r an
d e
lectr
ical
reso
urc
es
Ad
op
ted
D
d
esig
nat
ion
s of
th
e O
P
OP
A
Giv
en
th
eir
in
du
stri
al
natu
re o
f Ja
nu
ary
20
gt
c in
tend
s to
per
mit
fac
ilitie
s th
e fa
cilit
y t
hey
shou
ld b
e 2
01
4
bull
m
jn
wit
hin
In
du
stri
al
Bu
sin
ess P
ark
ta
xed
indu
stri
ally
-no
dif
fere
nt
Is
and
Op
en S
pace (
perm
its
than
an
y o
ther
ind
ustr
ial
typ
e of
gr
owin
g pl
ants
) d
esig
nat
ion
s
deve
lopm
ent
Per
mit
ted
with
in
ml
zz
Ind
ust
rial
Bu
sin
ess P
ark
an
d
HO
_
j
Op
en S
pac
e de
sign
atio
ns
lt
su
bje
ct to
sit
e pl
an c
ontr
ol a
nd
-t
)
pound se
par
ated
70
m (
as p
er Z
BL
)
D
fro
m s
en
siti
ve l
an
d u
ses
m
I
Cit
y o
f Ja
nu
ary
28
P
rod
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on
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 P2^3
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-08-12
Subject Medical Marihuana Production Facilities [Follow-Up to Report DP-2014-034] Proposed Town-wide Zoning By-law Amendment All Lands within the Town of Caledon File Number RZ 13-15
RECOMMENDATIONS
That Report DP-2014-082 [Follow-up to Report DP-2014-034] regarding a proposed Town-wide Zoning By-law Amendment for all landswithin the Town ofCaledon regarding Medical Marihuana Production Facilities be received and
That the previous reportDP-2014-034 regarding a proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon regarding Medical Marihuana Production Facilities be received
That By-lawsto amend Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended for all lands within the Town of Caledon be submittedto Council for approval at a later date to permitand regulate medical marihuana production facilities in Prestige Industrial (MP) and Serviced Industrial (MS) zone categories
That any medical marihuana production facility proposed in another zone category such as Agricultural (A1) or Rural (A2) zones be considered through a site-specific Zoning By-law Amendment application andor any other planning application(s) as necessary and
That a copy of Report DP-2014-082 be forwarded to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting municipalities for their information
EXECUTIVE SUMMARY
This report provides additional information to Report DP-2014-034 (attached under Schedule B) with respect to land use allocation options for prospective federally-regulated medical marihuana production facilities within the Town This report responds to the inquiries made at the April 22 2014 Council meeting with respect to a further investigation of allocating prospective facilities in agricultural amprural areas and corresponding regulatory options for the Town notification options and property assessment implications
In reviewing prospective medical marihuana production facilities in conjunction with the Marihuana for Medical Purposes Regulations (MMPR) the collective nature of these operations must be considered as opposed to a reviewbased solely on one specific component of the operation The foundational component of all production facilities is the growing of marihuana plants which in and of itself is considered as an agricultural activity However the collective nature of these operations wherein federal regulation require that the substanceis grown processed tested packaged and distributed within one secure indoor facility is reflective of an industrial land use Based on a review of potential facilities within a rural setting there is a lack of clear consistency with applicable provincial policy and there are issues of concern and uncertainty that preclude as-of-right permissions for these facilities within Agricultural and Rural zones On a Town-wide basis the General Industrial
Page 1 of 12
TOWN OF CALEDON
DP-2014-082 Pltpound-H and Prestige Industrial zone categories remain as the most appropriate zone categories to allocate prospective facilities There may however be certain rural locations in the Town that may be appropriate depending on the specific nature ofthe proposed facility This would be most appropriately determined through a site-specific Zoning By-law amendment application process
DISCUSSION
Purpose (background)
Current Status of Federal Licence Applications
There are currently approximately 37000 authorized medical marihuana users across Canada which isexpected to increase to approximately 435000 users by 2024 As of January 2014 Health Canada has received over 400 licence applications for medical marihuana production facilities with approximately 160 of these applications being for facilities proposed in Ontario To date a total of 13 licences have been issued four of which are forfacilities located in Ontario Clearview Township Markham Smiths Fallsand Toronto Several other licence applications for Ontario-based facilities are in advanced stagesof review including a greenhouse production facility located in Leamington and a 300000 square-footindustrial facility located in Brampton
Municipal Response
Although not specifically stated in the MMPR Health Canada has confirmed that licensed producers must comply with local legislation and by-laws including municipal zoning by laws Since Health Canada can only inspect for compliance with the MMPR and related federal legislation it is the responsibility of the municipality to determine zoning by-law and building code compliance for a proposed facility Municipalities across Canada are evaluating local regulatory options for medical marihuana production facilities and are contemplating how the use is interpreted and what zones are most appropriate The regulatory approaches range from interpretations that the use is permitted as-of-right in industrial or agricultural zones tospecifically defining theuse and specifying the zone permissions Some municipalities have determined that the use fits within existing agricultural or industrial definitions but require a site specific Zoning By-law amendment to provide an opportunity for a detailed municipal review of a specific proposal In some instances a blanket prohibition has been applied either through an interim control by-law ortown-wide amendment to prohibit the use in all zones In other instances municipalities have adopted orare contemplating additional zoning provisions including minimum separation requirements from sensitive uses limitations on floor areas devoted tocertain activities prohibition on outdoor storage parking and loadingdelivery space limitations etc The attached Schedule A outlines examples of regulatory approaches undertaken by other municipalities in Ontario
Prospects for Potential Production Facilities in the Town
Town staff have received a number ofinquiries regarding local procedures for establishing a licensed medical marihuana production facility in theTown The majority ofinquiries have been preliminary in nature wherein the individual or organization is looking to determine appropriate locations where a production facility may be permitted by applicable zoning standards Others have inquired about the land use permissions and required approvals with respect to one or more candidate sites that have been selected by the prospective producer
Page 2 of 12
TOWN OF CALEDON
o
DP-2014-082 PQ-S in accordance with their operational criteria Of these preliminary inquiries there has been a consistentbalance between agriculturalrural sites and industrial sites underconsideration Town staff has also received a limited number offormal notifications of pending licence application submissions by individuals or groups who are proceeding with their particular site of interest These prospective producers have a particular site have initiated the federal licence application process and have subsequently consulted the Town through the notification requirements of this process In response staff have advised of the current Town-wide zoning by-law amendment exercise which is based onthe premises that a medical marihuana production facility is currently not permitted in any zone category as it is not a specifically defined use nordoes it fit within any otherexisting use definition Of the formal licence application notifications received the majority have been for sites proposed within rural areas of the Town
Town of Caledon Review
Since the enactment of the MMPR in June 2013 the Town has undertaken an extensive review of this new commercial medical marihuana production regime facilitated by these new regulations In September 2013 staff presented a background report to Council (DP-2013shy110) which recommended that staff review regulatory tools and options for the Town to appropriately allocate prospectivemedical marihuana production facilities The product of this review was the presentation of Report DP-2014-034 to Council on April 22 2014 (see Schedule B attached to this report)which provided recommendations summarized as follows
bull The MMPR govern facility operations and provide stringent security and production requirements The regulations also provide greater local awareness of proposed facility locations However little direction is provided in these regulations for facility locations bevond the exclusive prohibition of facilities locating within a dwelling and
a reouirement for all production activities to occur indoors
bull Based on the nature of medical marihuana production facilities and the
corresponding MMPR reguirements these facilities are consistent with the Industrial
policies of the Town Official Plan The activities taking place within these facilities will include the growth production (ie plant harvesting drying breakdown etc) storage testing packaging distribution and waste product destruction All of these facility activities must occur indoors subject to stringent security and air filtrationventilation requirements prescribed by the MMPR
copy Cannabis (marihuana) is listed as a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend to
facilitate a production environment for medical marihuana that is similar to other
controlled pharmaceutical production facilities which are industrial uses
o Because the MMPR require extensive production testing packaging arid distribution activities to occur within an indoor facility subject to stringent security and production requirements licensed medical marihuana production facilities do not fit within the realm of normal farming practices as envisioned by the agricultural
and rural policies of the Official Plan
Page 3 of 12 TOWN OF CALEDON
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 Pltpound-H and Prestige Industrial zone categories remain as the most appropriate zone categories to allocate prospective facilities There may however be certain rural locations in the Town that may be appropriate depending on the specific nature ofthe proposed facility This would be most appropriately determined through a site-specific Zoning By-law amendment application process
DISCUSSION
Purpose (background)
Current Status of Federal Licence Applications
There are currently approximately 37000 authorized medical marihuana users across Canada which isexpected to increase to approximately 435000 users by 2024 As of January 2014 Health Canada has received over 400 licence applications for medical marihuana production facilities with approximately 160 of these applications being for facilities proposed in Ontario To date a total of 13 licences have been issued four of which are forfacilities located in Ontario Clearview Township Markham Smiths Fallsand Toronto Several other licence applications for Ontario-based facilities are in advanced stagesof review including a greenhouse production facility located in Leamington and a 300000 square-footindustrial facility located in Brampton
Municipal Response
Although not specifically stated in the MMPR Health Canada has confirmed that licensed producers must comply with local legislation and by-laws including municipal zoning by laws Since Health Canada can only inspect for compliance with the MMPR and related federal legislation it is the responsibility of the municipality to determine zoning by-law and building code compliance for a proposed facility Municipalities across Canada are evaluating local regulatory options for medical marihuana production facilities and are contemplating how the use is interpreted and what zones are most appropriate The regulatory approaches range from interpretations that the use is permitted as-of-right in industrial or agricultural zones tospecifically defining theuse and specifying the zone permissions Some municipalities have determined that the use fits within existing agricultural or industrial definitions but require a site specific Zoning By-law amendment to provide an opportunity for a detailed municipal review of a specific proposal In some instances a blanket prohibition has been applied either through an interim control by-law ortown-wide amendment to prohibit the use in all zones In other instances municipalities have adopted orare contemplating additional zoning provisions including minimum separation requirements from sensitive uses limitations on floor areas devoted tocertain activities prohibition on outdoor storage parking and loadingdelivery space limitations etc The attached Schedule A outlines examples of regulatory approaches undertaken by other municipalities in Ontario
Prospects for Potential Production Facilities in the Town
Town staff have received a number ofinquiries regarding local procedures for establishing a licensed medical marihuana production facility in theTown The majority ofinquiries have been preliminary in nature wherein the individual or organization is looking to determine appropriate locations where a production facility may be permitted by applicable zoning standards Others have inquired about the land use permissions and required approvals with respect to one or more candidate sites that have been selected by the prospective producer
Page 2 of 12
TOWN OF CALEDON
o
DP-2014-082 PQ-S in accordance with their operational criteria Of these preliminary inquiries there has been a consistentbalance between agriculturalrural sites and industrial sites underconsideration Town staff has also received a limited number offormal notifications of pending licence application submissions by individuals or groups who are proceeding with their particular site of interest These prospective producers have a particular site have initiated the federal licence application process and have subsequently consulted the Town through the notification requirements of this process In response staff have advised of the current Town-wide zoning by-law amendment exercise which is based onthe premises that a medical marihuana production facility is currently not permitted in any zone category as it is not a specifically defined use nordoes it fit within any otherexisting use definition Of the formal licence application notifications received the majority have been for sites proposed within rural areas of the Town
Town of Caledon Review
Since the enactment of the MMPR in June 2013 the Town has undertaken an extensive review of this new commercial medical marihuana production regime facilitated by these new regulations In September 2013 staff presented a background report to Council (DP-2013shy110) which recommended that staff review regulatory tools and options for the Town to appropriately allocate prospectivemedical marihuana production facilities The product of this review was the presentation of Report DP-2014-034 to Council on April 22 2014 (see Schedule B attached to this report)which provided recommendations summarized as follows
bull The MMPR govern facility operations and provide stringent security and production requirements The regulations also provide greater local awareness of proposed facility locations However little direction is provided in these regulations for facility locations bevond the exclusive prohibition of facilities locating within a dwelling and
a reouirement for all production activities to occur indoors
bull Based on the nature of medical marihuana production facilities and the
corresponding MMPR reguirements these facilities are consistent with the Industrial
policies of the Town Official Plan The activities taking place within these facilities will include the growth production (ie plant harvesting drying breakdown etc) storage testing packaging distribution and waste product destruction All of these facility activities must occur indoors subject to stringent security and air filtrationventilation requirements prescribed by the MMPR
copy Cannabis (marihuana) is listed as a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend to
facilitate a production environment for medical marihuana that is similar to other
controlled pharmaceutical production facilities which are industrial uses
o Because the MMPR require extensive production testing packaging arid distribution activities to occur within an indoor facility subject to stringent security and production requirements licensed medical marihuana production facilities do not fit within the realm of normal farming practices as envisioned by the agricultural
and rural policies of the Official Plan
Page 3 of 12 TOWN OF CALEDON
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
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Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
TOWN OF CALEDON
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ding
Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
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ihua
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ht in
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rial
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ders
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T
O R
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P-2
01
4-0
82
P
age
5 o
f8
Co
mp
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of
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er
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nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
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o
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14
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d B
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s 1
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he
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nd
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se -
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Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
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y w
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P-2
01
4-0
82
P
age
7 o
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Co
mp
aris
on
of
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er M
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lato
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mp
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als
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mm
en
ded
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r a
m
ed
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al
mat
ters
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d i
n Z
onin
g
i sect pr
oduc
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an
d
med
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mari
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an
a a
nd
m
gt
to p
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it t
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as
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man
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se in
m
z
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men
t zo
nes
D
zm
To
wn
of
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law
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T
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mseh
am
en
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en
t to
ad
d a
d
efin
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Mee
tin
g h
eld
fo
r M
ed
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a
on
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ly 9
P
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nd
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2
01
4
this
use i
n U
rban
In
du
stri
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nd
ex
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uch
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an
d h
obby
fa
rm d
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s
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HE
DU
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A
T
O R
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OR
T D
P-2
01
4-0
82
P
age
8 o
f 8
Co
mp
aris
on
of
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er M
un
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al R
egu
lato
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To
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nu
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20
U
se h
as b
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in
terp
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d b
y R
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izes
fac
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may
O
PA
18
a
nd
Y
es
Yes
Yes
Yes
m
Eri
e
20
14
st
aff
as
agri
cult
ural
an
d
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sig
nifi
cant
nu
mb
er o
f B
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Tl
perm
itte
d w
ithin
Agr
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tura
l em
plo
yee
s r
equi
re s
igni
fica
nt
20
14
z m
R
ural
an
d O
pen
Sp
ace
wate
r an
d e
lectr
ical
reso
urc
es
Ad
op
ted
D
d
esig
nat
ion
s of
th
e O
P
OP
A
Giv
en
th
eir
in
du
stri
al
natu
re o
f Ja
nu
ary
20
gt
c in
tend
s to
per
mit
fac
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s th
e fa
cilit
y t
hey
shou
ld b
e 2
01
4
bull
m
jn
wit
hin
In
du
stri
al
Bu
sin
ess P
ark
ta
xed
indu
stri
ally
-no
dif
fere
nt
Is
and
Op
en S
pace (
perm
its
than
an
y o
ther
ind
ustr
ial
typ
e of
gr
owin
g pl
ants
) d
esig
nat
ion
s
deve
lopm
ent
Per
mit
ted
with
in
ml
zz
Ind
ust
rial
Bu
sin
ess P
ark
an
d
HO
_
j
Op
en S
pac
e de
sign
atio
ns
lt
su
bje
ct to
sit
e pl
an c
ontr
ol a
nd
-t
)
pound se
par
ated
70
m (
as p
er Z
BL
)
D
fro
m s
en
siti
ve l
an
d u
ses
m
I
Cit
y o
f Ja
nu
ary
28
P
rod
ucti
on
facil
itie
s are
G
iven
th
at
Healt
h C
an
ad
a i
s th
e
NA
N
o
No
Y
es
No
Win
dso
r
20
14
pe
rmit
ted
in m
anuf
actu
ring
le
ad a
gen
cy o
n th
is m
atte
r t
hat
P
zo
ne
dist
rict
s N
ot p
erm
itte
d in
th
e p
urp
ose
of
pro
du
cin
g
any
oth
er z
on
e di
stri
ct
Sit
e m
ari
hu
an
a i
s fo
r m
ed
ical
pound P
lan
con
trol
is
requ
ired
for
p
urp
ose
s an
d t
he
faci
liti
es a
re
new
bui
ldin
g co
nstr
ucti
on a
nd
si
mil
ar to
oth
er p
harm
aceu
tica
l1
3
exp
ansi
on
s of
exi
stin
g pr
oduc
ers
in te
rms
of s
ecur
ity
z m
in
dust
rial
bui
ldin
gs
and
pro
duct
ion
Pla
nnin
g st
aff
mS
co
nsi
der
this
as a
n I
nd
ust
rial
w
m
U
se a
s sp
ecif
ical
ly a
s 2
m
Ph
arm
aceu
tical
Pro
du
cts
So
z
2 C
ity
of
Co
nsid
ere
d a
s a
C
urre
ntly
per
mit
ted
in a
ll 4
NA
N
o
No
Y
es
No
z-i
Bra
mp
ton
m
anuf
actu
ring
an
d p
roce
ssin
g In
du
stri
al
Zo
nes
O
use
an
d i
s pe
rmit
ted
in a
ll fo
ur
ind
ust
rial
zo
nes
No
am
en
dm
en
ts a
re
cont
empl
ated
to
the
Zon
ing
By-
law
pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
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Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
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whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
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controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
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In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
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concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
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PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
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Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
o
DP-2014-082 PQ-S in accordance with their operational criteria Of these preliminary inquiries there has been a consistentbalance between agriculturalrural sites and industrial sites underconsideration Town staff has also received a limited number offormal notifications of pending licence application submissions by individuals or groups who are proceeding with their particular site of interest These prospective producers have a particular site have initiated the federal licence application process and have subsequently consulted the Town through the notification requirements of this process In response staff have advised of the current Town-wide zoning by-law amendment exercise which is based onthe premises that a medical marihuana production facility is currently not permitted in any zone category as it is not a specifically defined use nordoes it fit within any otherexisting use definition Of the formal licence application notifications received the majority have been for sites proposed within rural areas of the Town
Town of Caledon Review
Since the enactment of the MMPR in June 2013 the Town has undertaken an extensive review of this new commercial medical marihuana production regime facilitated by these new regulations In September 2013 staff presented a background report to Council (DP-2013shy110) which recommended that staff review regulatory tools and options for the Town to appropriately allocate prospectivemedical marihuana production facilities The product of this review was the presentation of Report DP-2014-034 to Council on April 22 2014 (see Schedule B attached to this report)which provided recommendations summarized as follows
bull The MMPR govern facility operations and provide stringent security and production requirements The regulations also provide greater local awareness of proposed facility locations However little direction is provided in these regulations for facility locations bevond the exclusive prohibition of facilities locating within a dwelling and
a reouirement for all production activities to occur indoors
bull Based on the nature of medical marihuana production facilities and the
corresponding MMPR reguirements these facilities are consistent with the Industrial
policies of the Town Official Plan The activities taking place within these facilities will include the growth production (ie plant harvesting drying breakdown etc) storage testing packaging distribution and waste product destruction All of these facility activities must occur indoors subject to stringent security and air filtrationventilation requirements prescribed by the MMPR
copy Cannabis (marihuana) is listed as a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend to
facilitate a production environment for medical marihuana that is similar to other
controlled pharmaceutical production facilities which are industrial uses
o Because the MMPR require extensive production testing packaging arid distribution activities to occur within an indoor facility subject to stringent security and production requirements licensed medical marihuana production facilities do not fit within the realm of normal farming practices as envisioned by the agricultural
and rural policies of the Official Plan
Page 3 of 12 TOWN OF CALEDON
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
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Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
TOWN OF CALEDON
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
3 o
f 8
Co
mp
aris
on
of
Oth
er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
Med
ical
Mar
ihu
ana
P
rod
ucti
on
Facil
itie
s
pound
rY
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ing
v
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eti
r-
to -
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te
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iis v
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ts
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nes
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h
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ow
nsh
ip o
f M
arch
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Zo
nin
g B
y-la
w a
men
dm
en
t to
A
ddit
iona
l pr
ovis
ions
in
the
By
-law
20
14
-
Yes
Y
es
NA
N
o
m
West
Lin
co
ln
20
14
m
odif
y de
fini
tion
for
am
end
ing
By-
law
inc
lude
1
7 A
do
pte
d
D
Agr
icul
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l U
se t
o in
clu
de
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ack
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uir
emen
t of
45
m
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h 3
r-
c m
edic
al m
arih
uan
a gr
owth
an
d
fro
m a
re
sid
en
tial
use o
n a
n
20
14
pound
m
prod
ucti
on
Add
itio
nal
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cen
t lo
t no
ass
oci
ated
gt
to
d
efi
nit
ion
ad
ded
fo
r m
ari
hu
an
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ou
tdo
or
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e pe
rmit
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th
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nd
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ose
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ence
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uire
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her
e z
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proc
essi
ng f
acili
ty
By-
law
ar
tific
ial
light
ing
is r
equi
red
and
S
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amen
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ent
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its
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use
in
buil
ding
co
nsi
sts
of m
ore
th
an
mo
Z^
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gric
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ral
and
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ustr
ial
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lass
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ugh
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ecif
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en
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rt C
olb
orn
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22
2
op
tio
ns
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ted
a)
do
S
taff
opi
nion
th
at M
arih
uan
a is
B
y-l
aw
YE
S
YE
S
NO
N
O
D
20
13
no
thin
g -
exis
ting
zo
nin
g
an a
gric
ultu
ral
prod
uct
and
will
6
05
92
51
4
i
m
req
uir
emen
ts w
ill e
nsu
re
meet
the
per
mit
ted
use
s in
an
P
ass
ed
Ap
ril
Tl
z
11
pro
per
sep
arat
ion
fro
m
Agr
icul
tura
l Z
one
A b
uild
ing
14
2
01
4
m
neig
hbou
ring
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per
ties
an
d
perm
it o
r a
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ge
of u
se
D
c O
BC
will
en
sure
pub
lic s
afet
y
perm
it w
ould
no
t be
requ
ired
if
C
O
or
b) c
han
ge
the
Zon
ing
to
an e
xist
ing
agri
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ural
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ldin
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incl
ude
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tion
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as to
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or t
his
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of
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i M
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atio
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cifi
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ons
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ro
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tem
ber
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om
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onin
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nal
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uir
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er
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un
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NA
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es
No
bulllt
2
42
01
3
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en
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en
t an
d i
nit
iate
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nclu
de a
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ic M
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ft B
y-la
w
setb
ack
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m s
en
siti
ve z
on
es
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d
D
pro
po
ses
a n
ew d
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n an
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and
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d u
ses
acco
rdin
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ati
on
s f
or
1
11
m
to p
erm
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in
MO
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uide
line
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lass
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By
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ilgt
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mp
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men
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20
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Em
ploy
men
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ndus
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rpos
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ay n
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ithin
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en S
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itte
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m
z L
oadi
ng s
pac
es m
ust
be
prov
ided
in
who
lly e
nclo
sed
buil
ding
Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
na
Pro
du
cti
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Facil
itie
s
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y o
f Ja
nu
ary
13
R
eco
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en
d t
hat
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ub
lic
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an
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rod
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on
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y-l
aw 2
01
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Su
db
ury
2
01
4
Mee
ting
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held
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ew
Faci
lity
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fit
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in e
xist
ing
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poss
ible
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end
men
ts to
th
e lig
ht in
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rial
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ustr
ial
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op
ted
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onin
g B
y-la
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hich
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u
se d
efi
nit
ion
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hese u
ses a
re
13
20
14
inclu
de n
ew
def
init
ion
s an
d
perm
itte
d in
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ious
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ustr
ial
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der
es
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lish
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ista
nce
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on
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it A
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ral
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le u
ses
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t ap
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r fa
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ight
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il 2
8
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opte
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ine
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ustr
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cial
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visi
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rom
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res
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l zo
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City
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8
Sta
ff t
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nd
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ilto
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20
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re
view
of
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ulat
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z
i ga
in b
ette
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ders
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ing
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A r
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orde
r to
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e th
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req
uire
men
ts
for
this
use
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
Oth
er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
Med
ical
Mar
ihu
ana
Pro
du
cti
on
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itie
s
Zo
nin
g
Ag
urn
lM
Mtif
rMvj
U
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if
IH
ita
Ad
dit
idri
al
Co
mm
ents
B
y-La
w
Zo
nes
Zo
nes
Sta
tus
Cit
y o
f Ju
ne 1
7
Inte
rpre
ted
as
an a
gric
ultu
ral
OP
A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
iou
s C
ity B
y-la
ws
an
d B
y-la
w
m
an
d d
ete
rmin
ed
th
at
the u
se i
s 1
4-1
62
z ap
pro
pri
ate
in t
he
urb
an a
rea
ad
op
ted
m
in
Em
plo
ym
ent
Are
a Ju
ne 2
5
D
c d
esig
nat
ion
s T
he
Off
icia
l P
lan
2
01
4
CO
A
men
dm
ent
pro
vid
es n
ew
jn
defi
niti
ons
and
per
mit
s th
e u
se
H O
in b
usi
nes
s pa
rk a
nd
ind
ustr
ial
zon
e ca
tego
ries
T
he
City
Z
on
ing
By
-law
s are
am
en
ded
o
to p
erm
it t
he
use
wit
hin
H
-lt
Indu
stri
al Z
ones
(al
read
yi i
inte
rpre
ted
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erm
itte
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An
cast
er B
y-la
ws
are
m
gt
amen
ded
to
incl
ude
faci
lity
in
Agr
icul
tura
l Z
on
es
sub
ject
to
m
siz
e l
imit
ati
on
s an
d s
etb
ack
z a _D
req
uir
emen
ts
To
wn
of
Du
nd
as
sect m
proh
ibit
s u
se -
no a
men
dm
ent
z H
pro
po
sed
Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
na
Pro
du
cti
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26
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ased
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se i
n B
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01
4-
No
N
o
Yes
No
20
14
co
njun
ctio
n w
ith t
he
74
Ad
op
ted
D
m
re
gula
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s s
taff
det
erm
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F
ebru
ary
26
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th
at th
is f
acili
ty i
s m
ore
sim
ilar
2
01
4(u
nd
er
z m
to
a p
ha
rma
ceu
tica
l A
pp
eal)
o
m
anuf
actu
ring
pla
nt
an
c CO
in
dust
rial
use
for
zon
ing
_m
purp
oses
Fa
cilit
y w
ould
be
co
nsi
dere
d w
ith
in t
he
o A
gric
ultu
ral u
se d
efin
ition
as
itg Z
in
volv
es t
he
grow
ing
of a
cro
p
o
Off
icia
l P
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th
at
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s a
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ased
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on q
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ls t
hat
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ount
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cilit
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3
0 m
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nera
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e m
ayz D
b
e pe
rmit
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ject
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sp
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y-la
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men
dm
ent
m
z
H
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
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ana
Pro
du
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on
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itie
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nd
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M
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ring
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ng
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bli
c
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N
A
Yes
No
M
issi
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ga
(co
nsi
sts
of
and
dis
trib
utio
n u
ses
perm
itte
d M
eeti
ng
to
m
anuf
actu
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duct
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as
of r
ight
in
in B
usi
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s b
e
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usi
ng
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d d
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mpl
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ent
and
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ule
d
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ign
atio
ns
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mp
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irin
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ino
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or
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gro
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rn
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aria
nce
is
only
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effe
ct f
or 5
y
ears
no
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nag
e is
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mit
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Jun
e 3
2
01
4
Rec
om
men
din
g Z
on
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-law
B
usi
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s li
cen
sin
g p
roto
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is
H
amen
dm
ent
to p
rovi
de a
new
als
o r
eco
mm
en
ded
to
ad
dre
ss
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defi
nit
ion
fo
r a
m
ed
icin
al
mat
ters
not
cap
ture
d i
n Z
onin
g
i sect pr
oduc
t m
anuf
actu
ring
fac
ility
D
an
d
med
ical
mari
hu
an
a a
nd
m
gt
to p
erm
it t
hese
fac
ilit
ies
as
a 3
man
ufac
turi
ng u
se in
m
z
emp
loy
men
t zo
nes
D
zm
To
wn
of
New
P
ropo
sed
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ing
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law
P
ub
lic
No
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 ^poundL~Ijl bull In reviewing Zoning By-law Nos 87-250 and 2006-50 a medical marihuana
production facility would not be permitted within any zone category as it is not a use
specifically defined in these By-laws nor is the use considered to fit within any other
existing permitted land use definition
bull Town-wide Zoning By-law amendments were submitted for Council consideration to
permit and regulate medical marihuana production facilities in Prestige Industrial
(MP) and Serviced Industrial (MS) zone categories subject to the following provisions
o New definition for medical marihuana production facilities to capture the permitted activitiesthat are to occur within a licensed production facility under the MMPR
o Separation distance reouirement of 150 metres (492 ft) from sensitive land
uses (ie lot in a residential or institutional zone or a lot containing a school day nursery community centre etc) This separation distance requirement is based on a potential for these facilities to be noxious uses (ie requirements for odour emission mitigation) and the corresponding MOE separation guidelinesfor industrial facilities and sensitive uses The separation distance requirement balances the MOE guidelines and comments received from the School Boards which requested a minimum separation distance of200 metres (656 ft) from school sites
o Prohibition of outdoor signage amp advertising accessory open storage in order to maintain consistency with federal regulations
o A reouirement for loading and delivery spaces to be located within the rearshyvard or within a wholly enclosed building This is to ensure that such activities are conducted away from publicview and to assist in maintaining a high-level security for these operations and
o Reouirement for a site-specific zoning bv-law amendment where a medical marihuana production facility is proposed outside of the Prestige Industrial or Serviced Industrial zone categories This recognizes that there may be certain facilities or specific locationswithin the Town outside of these zones that maybe appropriate This can be best determined through a site-specific application process
The outcome ofthe April 22 2014Council meeting was a referral of Report DP-2014-034 back tostaff to provide clarification and investigate the potential impacts ofincluding Medical Marihuana Production Facilities inAgricultural Zones within the Town (Resolution No 2014shy148) This report provides a further review of potential facilities within agricultural and rural areas of the Town and providesadditional information concerning the following
bull Conformity with Provincial Policy bull Other regulatory mechanisms for prospectivefacilities in rural areas o Public notification options and bull Property assessment implications
Wa vkv page 4of12 TOWN OF CALEDON
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
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Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
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Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
Pa--^DP-2014-082
Medical Marihuana Production Facilities
In developing an appropriate land use planning approach to regulate medical marihuana production facilities the prevailing question has been whether the use is most appropriately considered as an agricultural use or an industrial use In addressing this jssue it is important to consider the collective nature of these operations as a whole rather than evaluating a specific activity or series of activities in isolation The fundamental component of these operations is the growing of the marihuana plant Without the plant itself there would be no medical marihuana production facility Many definitions of agriculture include the growing of plants for human use or consumption as an agricultural activity The Ontario Ministry of Agriculture and Food has stated that the growing of medical marihuana is a form of agriculture The Peel Federation of Agriculture has taken the position that medical marihuana is an agricultural crop and production should be permitted in agricultural and rural areas of the Town
However it is the collective nature of these operations that best determines how these facilities are interpreted as an overall use of land There are other significant factors of these operations which need to be considered that are mandated by the MMPR and add significant complexity to this issue which are outlined as follows
bull Cannabis (Marihuana) is listed as a Schedule II substance under the Controlled
Drugs and Substances Act and the MMPR implemented under this Act facilitate a
production environment for medical marihuana which is similar to other controlled
narcotics and pharmaceutical production facilities Medical marihuana production involves the growing cultivation harvesting and drying of the marihuana plant followed by the processing (ie removal of excess plant material) testing packaging and storage of the dried marihuana The product is then shipped to authorized customers via secured shipping methods Any plant waste or medical marihuana product which-fails to meet the chemical composition requirements of that particular strain must be destroyed on-site
bull Medical marihuana production facilities are employment-intensive operations
requiring skilled personnel such as horticulturalists botanists and lab technicians as well as a team of labourers to cultivate process and package the medical marihuana product In addition given the nature of these operations which require secured shipping to registered patients through an order processing and tracking system support personnel are necessitated to address patient inquires and process orders Security personnel and information technology specialists are also necessary to monitor site security and operations and to track all activities associated with product handling order processing and shipments as required by the MMPR These facilities are therefore employment-intensive operations depending on the size of the facility One licensed company Tweed Inc which operates a 16 hectare industrial facility at the former Hersheys plant in Smiths Falls Ontario expects to employ about 100 people with approximately 50000 plants when operating at full capacity
o Unigue to the production of medical marihuana in contrast to other medicinal plants
is the reouirement for on-site plant growing production storage and distribution in
accordance with federal regulations In addition all of the aforementioned activities must be conducted indoors subject to stringent security requirements prescribed by the MMPR and Federal Security Directive for controlled substances This again
Page 5 of 12
TOWN OF CALEDON
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 Va-t differs from other medicinal plants such as Echinacea ginseng or goldenseal wherein contrast these plants are not controlled substances which must be grown processed and distributed together at one indoor facility but may be grown or wildcrafted in a non-secure agricultural environment and then transported to a manufacturing and processing facility
bull The production of medical marihuana is not consistent with other medicinal plants
which are not controlled substances and not subject to requirements for consolidated
indoor growth and production at one facility All other controlled substances for
medical purposes are produced in pharmaceutical environments which are considered without question to be industrial uses Their production requirements are similar in nature to the medical marihuana production environment imposed by the MMPR
Based on the foregoing as well as previous background information staff remain of the opinionthat although the foundational component of these facilities is the growing of the marihuana plant which is considered as an agricultural activity the collective nature of these production facilities wherein the medical marihuana substance is grown processed tested packaged stored and distributed under one indoor facility is reflective of an industrial land use activity
Provincial Policy Review
o 2014 Provincial Policy Statement
When considering the question ofwhether medical marihuana production facilities should be permitted as-of-right in agricultural areas through the Zoning By-law the 2014 Provincial Policy Statement (PPS) provides policies forthe protection of prime agricultural areas for long-term use foragriculture PrimeAgricultural Areas are defined as areas where prime agricultural lands predominate being specialty crop areas andor Canada Land Inventory Class 1 2 or 3 lands The PPS treats prime agricultural areas as a land resource that is to be protected for agricultural activitiesdependent upon this resource
The 2014 PPS provides additional terminology aimed at facilitating additional opportunities forfarm-related uses Agriculture-related uses are defined as those farm-related commercial and farm-related industrial uses that are directly related to farm operations in the area support agriculture benefit from being in close proximity to farm operations and provide direct products andor servicesto farm operations as a primary activity In addition on-farm diversified uses are defined as uses that are secondary to the principal agricultural use of the property are limited in area and include butare not limited to home occupations home industries agri-tourism uses and uses that provide value-added agricultural products
o Greenbelt Plan 2005
The Protected Countryside lands within the Town consist of the Agricultural System and Natural System togetherwith Settlement Areas For SettlementAreas The Greenbelt Plan directsa range of urban development and related economic and social activities to these areas including residential commercial industrial and institutional uses
The Agricultural System intends to provide a permanentland base necessary to support long-term agricultural production and economic activity This system consistsof Specialty
Page 6 of 12
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
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the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
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Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
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Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
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right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 KHl COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will forward a copy of this report and report DP-2014-034 to Health Canada and the Regions of Peel and York the Counties of Wellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with all other abutting
bull municipalities for their information
2 DAPP staff will bring forward an implementing Zoning By-lawto Council in the near future
3 DAPP staff will provide Notice of Councils decision in accordance with the requirements of the Planning Act
4 DAPP staff will monitor for any appeals that may be received during the appeal period and wijl issue the appropriate affidavits provided that no appeals have been received
ATTACHMENTS
Schedule A - Comparison of Other Municipal Regulatory Approaches Schedule B- Report DP-2014-034
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 12 of 12
TOWN OF CALEDON
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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at M
arih
uan
a is
B
y-l
aw
YE
S
YE
S
NO
N
O
D
20
13
no
thin
g -
exis
ting
zo
nin
g
an a
gric
ultu
ral
prod
uct
and
will
6
05
92
51
4
i
m
req
uir
emen
ts w
ill e
nsu
re
meet
the
per
mit
ted
use
s in
an
P
ass
ed
Ap
ril
Tl
z
11
pro
per
sep
arat
ion
fro
m
Agr
icul
tura
l Z
one
A b
uild
ing
14
2
01
4
m
neig
hbou
ring
pro
per
ties
an
d
perm
it o
r a
chan
ge
of u
se
D
c O
BC
will
en
sure
pub
lic s
afet
y
perm
it w
ould
no
t be
requ
ired
if
C
O
or
b) c
han
ge
the
Zon
ing
to
an e
xist
ing
agri
cult
ural
bui
ldin
g
m
incl
ude
a de
fini
tion
of L
egal
w
as to
be
use
d f
or t
his
type
of
mdash
i M
arih
uan
a G
row
Op
erat
ion
s o
per
atio
n
o 5E
with
spe
cifi
c lo
cati
ons
z o
To
ro
nto
S
ep
tem
ber
Rec
om
men
d Z
onin
g B
y-la
w
H
Add
itio
nal
req
uir
emen
ts u
nd
er
Co
un
cil
N
A
NA
Y
es
No
bulllt
2
42
01
3
am
en
dm
en
t an
d i
nit
iate
a
co
nsid
era
tio
n i
nclu
de a
7
0m
ad
op
ted
pound
Publ
ic M
eeti
ng
Dra
ft B
y-la
w
setb
ack
fro
m s
en
siti
ve z
on
es
reco
mm
en
d
D
pro
po
ses
a n
ew d
efin
itio
n an
d
and
lan
d u
ses
acco
rdin
g to
ati
on
s f
or
1
11
m
to p
erm
it t
he
use
in
MO
E g
uide
line
D-6
(C
lass
II
By
-law
Apr
ilgt
^ E
mp
loy
men
t In
dust
rial
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d
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stri
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se)
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ldin
gs u
sed
2
20
14
(B
y
zm
Em
ploy
men
t H
eav
y I
ndus
tria
l fo
r sec
urit
y pu
rpos
es m
ay n
ot
law
a
(EH
) zo
nes
be l
ocat
ed w
ithin
fro
nt y
ard
en
actm
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t
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en S
tora
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not
perm
itte
d
TB
D)
m
z L
oadi
ng s
pac
es m
ust
be
prov
ided
in
who
lly e
nclo
sed
buil
ding
Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
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ihua
na
Pro
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es
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y o
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nu
ary
13
R
eco
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en
d t
hat
a P
ub
lic
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hu
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rod
ucti
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01
4shy
Su
db
ury
2
01
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Mee
ting
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held
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revi
ew
Faci
lity
may
fit
with
in e
xist
ing
11
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poss
ible
am
end
men
ts to
th
e lig
ht in
dust
rial
and
ind
ustr
ial
ad
op
ted
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Z
onin
g B
y-la
w w
hich
may
u
se d
efi
nit
ion
T
hese u
ses a
re
13
20
14
inclu
de n
ew
def
init
ion
s an
d
perm
itte
d in
var
ious
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ustr
ial
(un
der
es
tab
lish
ing
a d
ista
nce
Z
on
es
Faci
lity
may
als
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it A
pp
eal)
se
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wee
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cilit
ies
with
in A
gric
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ral
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o
an
d p
ublic
ly a
cces
sib
le u
ses
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efin
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Mos
t ap
prop
riat
e m
bull
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locati
on
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r fa
cili
ties
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th
e
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dust
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nes
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ight
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d h
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il 2
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Zon
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law
am
end
men
t z
20
14
ad
opte
d to
def
ine
Med
ical
o
M
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a P
rodu
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n F
acil
ity
-to
be
perm
itte
d in
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ustr
ial
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Zo
nes
with
spe
cial
pro
visi
on
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irin
g a
70m
buf
fer f
rom
a
m
lot
in a
res
iden
tial
co
mm
erci
al
gt
rura
l zo
ne
3 m
z D
City
of
Feb
ruar
y 1
8
Sta
ff t
o u
nd
ert
ak
e a
deta
iled
m
Ham
ilto
n
20
14
re
view
of
MM
PR
reg
ulat
ions
z
i ga
in b
ette
r un
ders
tand
ing
of
bulln
se
curi
tyv
enti
lati
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irem
ents
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d c
onta
ct
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espe
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rmal
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ract
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in
orde
r to
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eter
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e ap
pro
pri
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zon
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req
uire
men
ts
for
this
use
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
Oth
er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
Med
ical
Mar
ihu
ana
Pro
du
cti
on
Facil
itie
s
Zo
nin
g
Ag
urn
lM
Mtif
rMvj
U
^idegi
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if
IH
ita
Ad
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idri
al
Co
mm
ents
B
y-La
w
Zo
nes
Zo
nes
Sta
tus
Cit
y o
f Ju
ne 1
7
Inte
rpre
ted
as
an a
gric
ultu
ral
OP
A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
iou
s C
ity B
y-la
ws
an
d B
y-la
w
m
an
d d
ete
rmin
ed
th
at
the u
se i
s 1
4-1
62
z ap
pro
pri
ate
in t
he
urb
an a
rea
ad
op
ted
m
in
Em
plo
ym
ent
Are
a Ju
ne 2
5
D
c d
esig
nat
ion
s T
he
Off
icia
l P
lan
2
01
4
CO
A
men
dm
ent
pro
vid
es n
ew
jn
defi
niti
ons
and
per
mit
s th
e u
se
H O
in b
usi
nes
s pa
rk a
nd
ind
ustr
ial
zon
e ca
tego
ries
T
he
City
Z
on
ing
By
-law
s are
am
en
ded
o
to p
erm
it t
he
use
wit
hin
H
-lt
Indu
stri
al Z
ones
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read
yi i
inte
rpre
ted
as p
erm
itte
d)
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D
An
cast
er B
y-la
ws
are
m
gt
amen
ded
to
incl
ude
faci
lity
in
Agr
icul
tura
l Z
on
es
sub
ject
to
m
siz
e l
imit
ati
on
s an
d s
etb
ack
z a _D
req
uir
emen
ts
To
wn
of
Du
nd
as
sect m
proh
ibit
s u
se -
no a
men
dm
ent
z H
pro
po
sed
Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
na
Pro
du
cti
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F
ebru
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26
B
ased
on
revie
w o
f th
is u
se i
n B
y-la
w 2
01
4-
No
N
o
Yes
No
20
14
co
njun
ctio
n w
ith t
he
74
Ad
op
ted
D
m
re
gula
tion
s s
taff
det
erm
ined
F
ebru
ary
26
-n
th
at th
is f
acili
ty i
s m
ore
sim
ilar
2
01
4(u
nd
er
z m
to
a p
ha
rma
ceu
tica
l A
pp
eal)
o
m
anuf
actu
ring
pla
nt
an
c CO
in
dust
rial
use
for
zon
ing
_m
purp
oses
Fa
cilit
y w
ould
be
co
nsi
dere
d w
ith
in t
he
o A
gric
ultu
ral u
se d
efin
ition
as
itg Z
in
volv
es t
he
grow
ing
of a
cro
p
o
Off
icia
l P
lan
reco
gn
izes
th
at
H
-lt
farm
lan
d i
s a
reso
urc
e b
ased
50
|
on q
ualit
y of
soi
ls t
hat
is to
be
i O
pr
otec
ted
Rur
al c
ount
rysi
de
m
gt
are
as
do
not
co
nte
mp
late
in
dust
rial
typ
e fa
cilit
ies
as a
3
0 m
ge
nera
lly
perm
itte
d us
e m
ayz D
b
e pe
rmit
ted
sub
ject
to s
ite
s
sp
ecif
ic b
y-la
w a
men
dm
ent
m
z
H
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
ihu
ana
Pro
du
cti
on
Facil
itie
s
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ing
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g-R
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terp
rete
d a
s a
n i
nd
ust
rial
use
M
anuf
actu
ring
w
areh
ousi
ng
Pu
bli
c
NA
N
A
Yes
No
M
issi
ssau
ga
(co
nsi
sts
of
and
dis
trib
utio
n u
ses
perm
itte
d M
eeti
ng
to
m
anuf
actu
ring
pro
duct
ion
as
of r
ight
in
in B
usi
nes
s b
e
war
eho
usi
ng
an
d d
istr
ibut
ion)
E
mpl
oym
ent
and
Ind
ustr
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sch
ed
ule
d
des
ign
atio
ns
E
mp
loy
men
t zo
nes
R
equ
irin
g m
ino
r v
ari
an
ces t
o a
llo
w f
or
D
gro
win
gcu
ltiv
atin
g i
n th
ese
m
H
zon
es
sub
ject
to c
ondi
tion
s z
(gro
win
g ar
ea l
imite
d to
20
o
f m
D
tota
l G
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ap
pli
can
t o
bta
ins
c C)
H
ealt
h C
an
ad
a L
icen
ce
rn
v
aria
nce
is
only
in
effe
ct f
or 5
y
ears
no
sig
nag
e is
per
mit
ted
) o z o
Jun
e 3
2
01
4
Rec
om
men
din
g Z
on
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By
-law
B
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nes
s li
cen
sin
g p
roto
col
is
H
amen
dm
ent
to p
rovi
de a
new
als
o r
eco
mm
en
ded
to
ad
dre
ss
-lt
defi
nit
ion
fo
r a
m
ed
icin
al
mat
ters
not
cap
ture
d i
n Z
onin
g
i sect pr
oduc
t m
anuf
actu
ring
fac
ility
D
an
d
med
ical
mari
hu
an
a a
nd
m
gt
to p
erm
it t
hese
fac
ilit
ies
as
a 3
man
ufac
turi
ng u
se in
m
z
emp
loy
men
t zo
nes
D
zm
To
wn
of
New
P
ropo
sed
Zon
ing
By-
law
P
ub
lic
No
N
o
Yes
No
H
T
ecu
mseh
am
en
dm
en
t to
ad
d a
d
efin
itio
n
Mee
tin
g h
eld
fo
r M
ed
ical
Mari
hu
an
a
on
Ju
ly 9
P
rodu
ctio
n Fa
cilit
y a
nd
per
mit
2
01
4
this
use i
n U
rban
In
du
stri
al
Zo
ne a
nd
ex
clu
de s
uch
uses
from
agr
icul
ture
an
d h
obby
fa
rm d
efi
nit
ion
s
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
8 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
ihu
ana
Pro
du
cti
on
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itie
s
j bull
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Q
To
wn
of F
ort
Ja
nu
ary
20
U
se h
as b
een
in
terp
rete
d b
y R
eco
gn
izes
fac
ilit
ies
may
O
PA
18
a
nd
Y
es
Yes
Yes
Yes
m
Eri
e
20
14
st
aff
as
agri
cult
ural
an
d
empl
oy a
sig
nifi
cant
nu
mb
er o
f B
y-la
w 0
7shy
Tl
perm
itte
d w
ithin
Agr
icul
tura
l em
plo
yee
s r
equi
re s
igni
fica
nt
20
14
z m
R
ural
an
d O
pen
Sp
ace
wate
r an
d e
lectr
ical
reso
urc
es
Ad
op
ted
D
d
esig
nat
ion
s of
th
e O
P
OP
A
Giv
en
th
eir
in
du
stri
al
natu
re o
f Ja
nu
ary
20
gt
c in
tend
s to
per
mit
fac
ilitie
s th
e fa
cilit
y t
hey
shou
ld b
e 2
01
4
bull
m
jn
wit
hin
In
du
stri
al
Bu
sin
ess P
ark
ta
xed
indu
stri
ally
-no
dif
fere
nt
Is
and
Op
en S
pace (
perm
its
than
an
y o
ther
ind
ustr
ial
typ
e of
gr
owin
g pl
ants
) d
esig
nat
ion
s
deve
lopm
ent
Per
mit
ted
with
in
ml
zz
Ind
ust
rial
Bu
sin
ess P
ark
an
d
HO
_
j
Op
en S
pac
e de
sign
atio
ns
lt
su
bje
ct to
sit
e pl
an c
ontr
ol a
nd
-t
)
pound se
par
ated
70
m (
as p
er Z
BL
)
D
fro
m s
en
siti
ve l
an
d u
ses
m
I
Cit
y o
f Ja
nu
ary
28
P
rod
ucti
on
facil
itie
s are
G
iven
th
at
Healt
h C
an
ad
a i
s th
e
NA
N
o
No
Y
es
No
Win
dso
r
20
14
pe
rmit
ted
in m
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
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SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
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DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
Pa-iaDP-2014-082
notification process of this nature would not provide a sufficient mechanism to address public comment submitted through this process or allow for an appeal
Financial Implications
The Municipal Property Assessment Corporation (MPAC) has confirmed that a licenced medical marihuana production facility would be assessed as an industrial use Ifonly a portion of a property is occupied by a licenced facility only that portion of the property would be assessed as Industrial according to the extent of the facility
Any costs associated with processing applications for Official Plan Amendments andor Zoning By-law Amendments are charged accordingly within the fees bylaw
Should individuals require reference checks or inspections as part of their federal licence application process any associated charges are billed by the OPP through their fees bylaw
Applicable Legislation and Requirements
Controlled Drugs and Substances Act SC 1996 c19 as amended Marihuana for Medical Purposes Regulations SOR2013-119 Planning Act RS01990 c P 13 as amended 2014 Provincial Policy Statement Greenbelt Plan 2005 Niagara Escarpment Plan Oak Ridges Moraine Conservation Plan Town of Caledon Official Plan
Summary
Staff has interpreted medical marihuana production facilities as an industrial land use based on the collective nature of these operations which require the cultivation processing testing packaging and distribution of the substance to occur indoors within a licensed facility This is further supported on the basis that although the growth of medical marihuana is a foundational component of these operations the requirements for indoor growth and production mean that such facilities do not specificallyrequire agricultural or rural locations as they do not require native soils or large parcels of land for their function This is not consistent with other permitted agricultural and rural uses which are compatible with the rural environment and demonstrate a level of dependency and relationship with the rural community
There are issues of concern and uncertainty with permitting licensed medical marihuana productionfacilities as-of-rightwithin agricultural and rural areas of the Town Ifsuch facilities are permitted as-of-right in these locations there would not be a sufficient planning review process available to adequately address such potential issues The Industrial zone areas contemplated in the previous report (DP-2014-034) remain as the most appropriate zone areas for medical marihuana production facilities It must be understood however that this Zoning By-law review process broadly pertains to prospective medical marihuana production facilities throughout the Town There may be certain areas or proposed facilities that are appropriate in rural locations outside of the Prestige Industrial and General IndustrialZone areas that can be more appropriately reviewed through a site-specific Zoning By-law amendment application process
Page 11 of 12
TOWN OF CALEDON
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 Tgt2-I3
-~plusmn bull bull
Production facilities are noxious uses
which have a potential to impact surrounding sensitive land uses
There may be noise impacts associated with extensive HVAC
systems to control internal temperature humidity etc
discharge is to flow over land applied to land or there is a subsurface discharge MOE approval is required
Production facilities must be
equipped with ventilation and air filtration systems to
prevent odour and pollen
emissions under the MMPR
Destruction and disposal
activities must be conducted
according to applicable provincial legislation and not result in odour or smoke
emissions
MOE approval requirements
pertaining to air quality would not apply if facilities
are considered as permitted agricultural uses
MMPR does not consider noise
impacts
^i^9)jdikm
ampyDpoundm0pWz bull ^)_M^B use is permitted as-ofshy
right
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Zoning By-law Site Plan review and
amendment process approval process
provides an opportunity would provide an
to review a proposed opportunity to review
location to determine if possible mitigation
it is appropriate for a options only within the
specific facility site
Public Notification Options
At the April 22nd Council meeting Council requested clarification regarding the notification options for potential medical marihuana production facilities locating within rural areas The Planning Act does not provide a public notification process for a new use proposed where it is permitted as-of-right in the Official Plan and Zoning By-law The Act prescribes a public notification process as part of a development application (ie Official Plan Amendment Zoning By-law Amendment Minor Variance application Land Division application etc) which intends to assist in identifying and mitigating possible adverse impacts of a proposed new land use by providing an opportunity for interested members of the public to participate and comment on the proposal This notification process is only triggered through a planning application process because it is implied thatwhere a particular use is permitted bythe Official Plan and Zoning By-law the permitted use is appropriate for the subject lands and is generally appropriate for the surrounding area Should medical marihuana production facilities be permitted as-of-right within agricultural and rural zones there would not be a mechanism under the Planning Actto notify the surrounding community of a proposed facility in these areas Any alternative notification procedure adopted by the Town for proposed facilities in these circumstances may not be consistent with the Planning Act Furthermore a
Page 10 of 12
TOWN OF CALEDON
TA-I4DP-2014-082
i^^life^lBlMliMlWi sect|gt|Mfa3fe fe^gtZffif)icopylS]
The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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op
tio
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do
S
taff
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th
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arih
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a is
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S
YE
S
NO
N
O
D
20
13
no
thin
g -
exis
ting
zo
nin
g
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gric
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ral
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uct
and
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6
05
92
51
4
i
m
req
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ts w
ill e
nsu
re
meet
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per
mit
ted
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s in
an
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ass
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ril
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pro
per
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uild
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2
01
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m
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hbou
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per
ties
an
d
perm
it o
r a
chan
ge
of u
se
D
c O
BC
will
en
sure
pub
lic s
afet
y
perm
it w
ould
no
t be
requ
ired
if
C
O
or
b) c
han
ge
the
Zon
ing
to
an e
xist
ing
agri
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ural
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ldin
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incl
ude
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fini
tion
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egal
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as to
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use
d f
or t
his
type
of
mdash
i M
arih
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a G
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per
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cifi
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ons
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2
42
01
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en
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nit
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siti
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d
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pro
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ses
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ew d
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and
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ati
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or
1
11
m
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in
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line
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mp
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m
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Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
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al R
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y A
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s Fo
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db
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13
20
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inclu
de n
ew
def
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ustr
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re
view
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z
i ga
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ders
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DU
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A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
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er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
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7
Inte
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A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
iou
s C
ity B
y-la
ws
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d B
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se i
s 1
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z ap
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ent
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lan
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01
4
CO
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men
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ons
and
per
mit
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e u
se
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rk a
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tego
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he
City
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on
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use
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ded
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incl
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faci
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in
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on
es
sub
ject
to
m
siz
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imit
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s an
d s
etb
ack
z a _D
req
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emen
ts
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wn
of
Du
nd
as
sect m
proh
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se -
no a
men
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ent
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pro
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Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
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ihua
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01
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20
14
co
njun
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74
Ad
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m
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taff
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to
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o
m
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nt
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in
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use
for
zon
ing
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purp
oses
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cilit
y w
ould
be
co
nsi
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ith
in t
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o A
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itg Z
in
volv
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he
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cro
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late
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cilit
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ayz D
b
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SC
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DU
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A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
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pp
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hes
For
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and
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in B
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defi
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r a
m
ed
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mat
ters
not
cap
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d i
n Z
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nd
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as
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man
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se in
m
z
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men
t zo
nes
D
zm
To
wn
of
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law
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Mee
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01
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DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
8 o
f 8
Co
mp
aris
on
of
Oth
er M
un
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al R
egu
lato
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pp
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hes
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U
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18
a
nd
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es
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Yes
Yes
m
Eri
e
20
14
st
aff
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d
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sig
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re s
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fica
nt
20
14
z m
R
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Sp
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wate
r an
d e
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ical
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Ad
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d
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s of
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e O
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th
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in
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re o
f Ja
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20
gt
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tend
s to
per
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fac
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s th
e fa
cilit
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hey
shou
ld b
e 2
01
4
bull
m
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wit
hin
In
du
stri
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Bu
sin
ess P
ark
ta
xed
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stri
ally
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dif
fere
nt
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and
Op
en S
pace (
perm
its
than
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y o
ther
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ustr
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e of
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mit
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ct to
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nd
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)
pound se
par
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as p
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
TA-I4DP-2014-082
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The requirements for all facility operations to occur indoors subject to stringent security requirements means that facilities will consist of
large buildings with potentially significant exterior security features (ie exterior lighting fencing security buildings surveillance equipment etc) These characteristics may not be
appropriate for all agricultural and rural areas of the Town as they have a potential to be a visually
obstructive elements that are
inconsistent with the surrounding rural landscape and community
Facilities can be employment-intensive operations which coupled
with requirements for product distribution via secured shipping
methods implies that these facilities may impose demands on the rural road network in areas that may not be adequate to serve such requirements
Indoor production and security measures will require electrical
services that may not be
accommodated within all rural areas
of the Town
Requirements for indoor cultivation and production will require water and wastewater services that may not be accommodated within all rural areas
of the Town
bull Ensure that a proposed facility is appropriate for a rural location and is
compatible with the
surrounding environment and community
bull Ensure that facility does not visually impact the rural
landscape
bull Ensure there are no exterior
lighting impacts due to
surveillance (production if greenhouse operation)
bull Issues not addressed by MMPR
bull Ensure that a prospective facility is appropriate for the proposed location and
infrastructure is adequate to accommodate the use
bull Proposed facility needs to be reviewed to ensure that
adequate water supply can bull be provided and wastewater
can be sufficiently disposed without negative impacts
bull A Permit to Take Water
would be required from the
MOE only if the operation will draw more than 50000
Litres per day
0 If the water is discharged
into a municipal sewage system engineered storm pond or is transported off-site for treatment and
disposal no MOE approval is required Ifthe water
Site specific By-law amendment process provides opportunity to
review proposal to ensure use is
appropriate for location and visually compatible with
surrounding lands
Site specific By-law amendment process
provides opportunity to determine if a specific facility is appropriate
for proposed location
Site-specific Zoning
By-law amendment process provides opportunity to review
and determine if a
facility is appropriate for a specific location from a water and
wastewater servicing perspective
Review of proposed means of servicing is limited to design review through site plan approval (if applicable) MOE approval (if applicable)
and Building Permit
application process if
Site Plan review and
approval process
addresses specific matters such as
exterior architectural
design landscaping etc
Towns Site Plan
Control By-law would not apply to these operations if they are considered as an
agricultural use (would apply to facilities as permitted industrial
uses)
Site Plan review and
approval process only considers means of
site access Only road improvements associated with a
proposed access upgrade can be
facilitated through this
process
Site Plan review and
approval process
would only provide an opportunity to review proposed means of servicing There is limited control through
site plan approval if a facility is proposed in an area where there
may be adverse
impacts when it is permitted as-of-right by the Zoning By-law
Page 9 of 12
TOWN OF CALEDOI
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 YampT ^ Medical marihuana production facilities are not considered to be agricultural-related uses in accordance with the 2014 PPS as they are not directly related to farm operations in the area norwould such facilities benefitfrom being in close proximity to farm operations or provide directproductsandor services to the farming community
Based on the processing and security requirements for these operations as well as the post-production activities involved in a medical marihuana productionfacility the general nature of this use as a whole does not fitwithin prime agricultural area provincial policies Given the strict requirements for indoor cultivation and production these operations are not dependent upon prime agricultural soils or special farming conditions for their existence In addition a bona-fide farmer is not required to manage and operate a medical marihuana production facility Therefore there are no elements of these facilities that specifically require a location in agricultural areas unlike permitted agricultural and agricultural-related uses that exhibit a clear dependence and relationship with the agricultural environment
bull Medical marihuana production facilities cannot be considered a resource-based industrial use since there is no direct reliance on rural resources for their operation
bull Medical marihuana production facilities are not considered as an on-farm diversified use in accordance with the 2014 PPS
bull Medical marihuana production facilities are interpreted by the NEC as a permitted use in the NEP area and an amendment to the plan would therefore be required to facilitate this use
There is a lack of clear consistency between the general nature of these production facilities and provincial policies for agricultural and rural areas to warrant as-of-right zoning permissions for such facilities within these areas of the Town There may be opportunities however for a specific facility proposal to locate in an agricultural or rural area if that particular facility can demonstrate consistency with applicable policy This can be best determined through a specific review of a prospective facility location through a planning application process Such a review cannot be adequately facilitated ifas-of-right zoning permissions are in place for agricultural and rural areas
Regulatory Options for Prospective Facilities in Rural Areas
Given the nature of these operations as prescribed by the MMPR there are issues of concern and uncertainty with locating such facilities within agricultural and rural areas which cannot be addressed through an appropriate planning review process ifthey are permitted as-of-right in these areas through the Zoning By-law This review has identifiedsome concerns and uncertainties connected with land use compatibility as well as potential impacts related to services and environmental matters as noted below
ki trade^w Page 8of 12 TOWN OF CALEDON
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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P
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sin
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ark
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and
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in
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as p
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en
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P
rod
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on
facil
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s are
G
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th
at
Healt
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an
ad
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s th
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NA
N
o
No
Y
es
No
Win
dso
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20
14
pe
rmit
ted
in m
anuf
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le
ad a
gen
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n th
is m
atte
r t
hat
P
zo
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dist
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s N
ot p
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th
e p
urp
ose
of
pro
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any
oth
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on
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Sit
e m
ari
hu
an
a i
s fo
r m
ed
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pound P
lan
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ired
for
p
urp
ose
s an
d t
he
faci
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es a
re
new
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ldin
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nstr
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nd
si
mil
ar to
oth
er p
harm
aceu
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l1
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ansi
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stin
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oduc
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rms
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z m
in
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rial
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ldin
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and
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Pla
nnin
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aff
mS
co
nsi
der
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as a
n I
nd
ust
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w
m
U
se a
s sp
ecif
ical
ly a
s 2
m
Ph
arm
aceu
tical
Pro
du
cts
So
z
2 C
ity
of
Co
nsid
ere
d a
s a
C
urre
ntly
per
mit
ted
in a
ll 4
NA
N
o
No
Y
es
No
z-i
Bra
mp
ton
m
anuf
actu
ring
an
d p
roce
ssin
g In
du
stri
al
Zo
nes
O
use
an
d i
s pe
rmit
ted
in a
ll fo
ur
ind
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No
am
en
dm
en
ts a
re
cont
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to
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Zon
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By-
law
pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
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controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
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V2-3SCHEDULE B TO REPORT DP-2014-082
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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TOWN OF CALEDON
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the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
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TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
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TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
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Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
flgtage3of3)
DP-2014-082 ~l Crop Areas Prime Agricultural Areas and Rural Areas The Greenbelt Plan specifies that a full range of agricultural agriculture-related and secondary uses are permitted in Prime Agricultural Areas The Greenbelt Plan defines Agricultural-related uses as those farm-related commercial and farm-related industrial uses that are small-scale and directly related to the farm operation and are required in close proximity to the farm operation Secondary Uses are defined as uses which are secondary to the main use of the property including but not limited to home occupations home industries and uses that produce value-added agricultural products from the farm operation
Rural Area policies intend to support a range of recreational tourism institutional and resource-based commercialindustrial uses
o Oak Ridaes Moraine Conservation Plan (ORMCP)
The ORMCP consists of Natural Core Area Natural Linkage Area Countryside Area and Settlement Area policies that collectively intend to protect the ecological and hydrological features and functions of the Oak Ridges Moraine The settlement area designation intends for urban development and permits a range of residential commercial industrial and institutional uses
The ORMCP intends to encourage agricultural and other rural uses within designated Countryside Areas by protecting prime agricultural areas and providing for the continuation of agricultural normal farm practices and other rural land uses The ORMCP permits agriculture and agriculture-related uses within Countryside Areas as well as small-scale commercial industrial and institutional uses provided that they are not within prime agricultural areas and are supportive of or essential to other rural uses Agriculture-related uses are defined in the ORMCP as commercial and industrial uses that are (a) small scale (b) directly related to a farm operation and (c) required in close proximity to the farm operation
o Niagara Escarpment Plan (NEP)
Niagara Escarpment Commission (NEC) staff has reviewed the issue of potential medical marihuana production facilities within the NEP area and interpret the use as not meeting the definitions of an agricultural use specialty crop or institutional use in the NEP An NEC interpretation report was presented to the Commission on October 17 2013 to this effect
o Provincial Policy Review Summary
bull Medical marihuana production facilities are consistent with the settlement area policies of the ORMCP and Greenbelt Plan as they are considered an industrial land use
bull Provincial policies intend for on-farm diversified uses to be secondary or subordinate to a farm use Although growing medical marihuana can be considered on its own as an agricultural activity the required processing packaging testing and distribution activities that must accompany this growth are not secondary activities but are instead necessary functions that collectively form a licensed medical marihuana production facility and are not considered as on-farm diversified uses
Page 7 of 12
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at M
arih
uan
a is
B
y-l
aw
YE
S
YE
S
NO
N
O
D
20
13
no
thin
g -
exis
ting
zo
nin
g
an a
gric
ultu
ral
prod
uct
and
will
6
05
92
51
4
i
m
req
uir
emen
ts w
ill e
nsu
re
meet
the
per
mit
ted
use
s in
an
P
ass
ed
Ap
ril
Tl
z
11
pro
per
sep
arat
ion
fro
m
Agr
icul
tura
l Z
one
A b
uild
ing
14
2
01
4
m
neig
hbou
ring
pro
per
ties
an
d
perm
it o
r a
chan
ge
of u
se
D
c O
BC
will
en
sure
pub
lic s
afet
y
perm
it w
ould
no
t be
requ
ired
if
C
O
or
b) c
han
ge
the
Zon
ing
to
an e
xist
ing
agri
cult
ural
bui
ldin
g
m
incl
ude
a de
fini
tion
of L
egal
w
as to
be
use
d f
or t
his
type
of
mdash
i M
arih
uan
a G
row
Op
erat
ion
s o
per
atio
n
o 5E
with
spe
cifi
c lo
cati
ons
z o
To
ro
nto
S
ep
tem
ber
Rec
om
men
d Z
onin
g B
y-la
w
H
Add
itio
nal
req
uir
emen
ts u
nd
er
Co
un
cil
N
A
NA
Y
es
No
bulllt
2
42
01
3
am
en
dm
en
t an
d i
nit
iate
a
co
nsid
era
tio
n i
nclu
de a
7
0m
ad
op
ted
pound
Publ
ic M
eeti
ng
Dra
ft B
y-la
w
setb
ack
fro
m s
en
siti
ve z
on
es
reco
mm
en
d
D
pro
po
ses
a n
ew d
efin
itio
n an
d
and
lan
d u
ses
acco
rdin
g to
ati
on
s f
or
1
11
m
to p
erm
it t
he
use
in
MO
E g
uide
line
D-6
(C
lass
II
By
-law
Apr
ilgt
^ E
mp
loy
men
t In
dust
rial
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d
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stri
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se)
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ldin
gs u
sed
2
20
14
(B
y
zm
Em
ploy
men
t H
eav
y I
ndus
tria
l fo
r sec
urit
y pu
rpos
es m
ay n
ot
law
a
(EH
) zo
nes
be l
ocat
ed w
ithin
fro
nt y
ard
en
actm
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t
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en S
tora
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not
perm
itte
d
TB
D)
m
z L
oadi
ng s
pac
es m
ust
be
prov
ided
in
who
lly e
nclo
sed
buil
ding
Pag
e 4
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
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ihua
na
Pro
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es
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y o
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nu
ary
13
R
eco
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en
d t
hat
a P
ub
lic
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hu
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rod
ucti
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01
4shy
Su
db
ury
2
01
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Mee
ting
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held
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revi
ew
Faci
lity
may
fit
with
in e
xist
ing
11
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poss
ible
am
end
men
ts to
th
e lig
ht in
dust
rial
and
ind
ustr
ial
ad
op
ted
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Z
onin
g B
y-la
w w
hich
may
u
se d
efi
nit
ion
T
hese u
ses a
re
13
20
14
inclu
de n
ew
def
init
ion
s an
d
perm
itte
d in
var
ious
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ustr
ial
(un
der
es
tab
lish
ing
a d
ista
nce
Z
on
es
Faci
lity
may
als
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it A
pp
eal)
se
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wee
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cilit
ies
with
in A
gric
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ral
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o
an
d p
ublic
ly a
cces
sib
le u
ses
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efin
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Mos
t ap
prop
riat
e m
bull
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locati
on
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r fa
cili
ties
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th
e
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dust
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nes
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ight
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d h
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il 2
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Zon
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law
am
end
men
t z
20
14
ad
opte
d to
def
ine
Med
ical
o
M
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a P
rodu
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n F
acil
ity
-to
be
perm
itte
d in
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ustr
ial
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Zo
nes
with
spe
cial
pro
visi
on
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irin
g a
70m
buf
fer f
rom
a
m
lot
in a
res
iden
tial
co
mm
erci
al
gt
rura
l zo
ne
3 m
z D
City
of
Feb
ruar
y 1
8
Sta
ff t
o u
nd
ert
ak
e a
deta
iled
m
Ham
ilto
n
20
14
re
view
of
MM
PR
reg
ulat
ions
z
i ga
in b
ette
r un
ders
tand
ing
of
bulln
se
curi
tyv
enti
lati
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irem
ents
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d c
onta
ct
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espe
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rmal
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ract
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in
orde
r to
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eter
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e ap
pro
pri
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zon
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req
uire
men
ts
for
this
use
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
Oth
er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
Med
ical
Mar
ihu
ana
Pro
du
cti
on
Facil
itie
s
Zo
nin
g
Ag
urn
lM
Mtif
rMvj
U
^idegi
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if
IH
ita
Ad
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idri
al
Co
mm
ents
B
y-La
w
Zo
nes
Zo
nes
Sta
tus
Cit
y o
f Ju
ne 1
7
Inte
rpre
ted
as
an a
gric
ultu
ral
OP
A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
iou
s C
ity B
y-la
ws
an
d B
y-la
w
m
an
d d
ete
rmin
ed
th
at
the u
se i
s 1
4-1
62
z ap
pro
pri
ate
in t
he
urb
an a
rea
ad
op
ted
m
in
Em
plo
ym
ent
Are
a Ju
ne 2
5
D
c d
esig
nat
ion
s T
he
Off
icia
l P
lan
2
01
4
CO
A
men
dm
ent
pro
vid
es n
ew
jn
defi
niti
ons
and
per
mit
s th
e u
se
H O
in b
usi
nes
s pa
rk a
nd
ind
ustr
ial
zon
e ca
tego
ries
T
he
City
Z
on
ing
By
-law
s are
am
en
ded
o
to p
erm
it t
he
use
wit
hin
H
-lt
Indu
stri
al Z
ones
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read
yi i
inte
rpre
ted
as p
erm
itte
d)
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D
An
cast
er B
y-la
ws
are
m
gt
amen
ded
to
incl
ude
faci
lity
in
Agr
icul
tura
l Z
on
es
sub
ject
to
m
siz
e l
imit
ati
on
s an
d s
etb
ack
z a _D
req
uir
emen
ts
To
wn
of
Du
nd
as
sect m
proh
ibit
s u
se -
no a
men
dm
ent
z H
pro
po
sed
Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
ator
y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
na
Pro
du
cti
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F
ebru
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26
B
ased
on
revie
w o
f th
is u
se i
n B
y-la
w 2
01
4-
No
N
o
Yes
No
20
14
co
njun
ctio
n w
ith t
he
74
Ad
op
ted
D
m
re
gula
tion
s s
taff
det
erm
ined
F
ebru
ary
26
-n
th
at th
is f
acili
ty i
s m
ore
sim
ilar
2
01
4(u
nd
er
z m
to
a p
ha
rma
ceu
tica
l A
pp
eal)
o
m
anuf
actu
ring
pla
nt
an
c CO
in
dust
rial
use
for
zon
ing
_m
purp
oses
Fa
cilit
y w
ould
be
co
nsi
dere
d w
ith
in t
he
o A
gric
ultu
ral u
se d
efin
ition
as
itg Z
in
volv
es t
he
grow
ing
of a
cro
p
o
Off
icia
l P
lan
reco
gn
izes
th
at
H
-lt
farm
lan
d i
s a
reso
urc
e b
ased
50
|
on q
ualit
y of
soi
ls t
hat
is to
be
i O
pr
otec
ted
Rur
al c
ount
rysi
de
m
gt
are
as
do
not
co
nte
mp
late
in
dust
rial
typ
e fa
cilit
ies
as a
3
0 m
ge
nera
lly
perm
itte
d us
e m
ayz D
b
e pe
rmit
ted
sub
ject
to s
ite
s
sp
ecif
ic b
y-la
w a
men
dm
ent
m
z
H
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
ihu
ana
Pro
du
cti
on
Facil
itie
s
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ing
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g-R
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terp
rete
d a
s a
n i
nd
ust
rial
use
M
anuf
actu
ring
w
areh
ousi
ng
Pu
bli
c
NA
N
A
Yes
No
M
issi
ssau
ga
(co
nsi
sts
of
and
dis
trib
utio
n u
ses
perm
itte
d M
eeti
ng
to
m
anuf
actu
ring
pro
duct
ion
as
of r
ight
in
in B
usi
nes
s b
e
war
eho
usi
ng
an
d d
istr
ibut
ion)
E
mpl
oym
ent
and
Ind
ustr
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sch
ed
ule
d
des
ign
atio
ns
E
mp
loy
men
t zo
nes
R
equ
irin
g m
ino
r v
ari
an
ces t
o a
llo
w f
or
D
gro
win
gcu
ltiv
atin
g i
n th
ese
m
H
zon
es
sub
ject
to c
ondi
tion
s z
(gro
win
g ar
ea l
imite
d to
20
o
f m
D
tota
l G
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ap
pli
can
t o
bta
ins
c C)
H
ealt
h C
an
ad
a L
icen
ce
rn
v
aria
nce
is
only
in
effe
ct f
or 5
y
ears
no
sig
nag
e is
per
mit
ted
) o z o
Jun
e 3
2
01
4
Rec
om
men
din
g Z
on
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By
-law
B
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nes
s li
cen
sin
g p
roto
col
is
H
amen
dm
ent
to p
rovi
de a
new
als
o r
eco
mm
en
ded
to
ad
dre
ss
-lt
defi
nit
ion
fo
r a
m
ed
icin
al
mat
ters
not
cap
ture
d i
n Z
onin
g
i sect pr
oduc
t m
anuf
actu
ring
fac
ility
D
an
d
med
ical
mari
hu
an
a a
nd
m
gt
to p
erm
it t
hese
fac
ilit
ies
as
a 3
man
ufac
turi
ng u
se in
m
z
emp
loy
men
t zo
nes
D
zm
To
wn
of
New
P
ropo
sed
Zon
ing
By-
law
P
ub
lic
No
N
o
Yes
No
H
T
ecu
mseh
am
en
dm
en
t to
ad
d a
d
efin
itio
n
Mee
tin
g h
eld
fo
r M
ed
ical
Mari
hu
an
a
on
Ju
ly 9
P
rodu
ctio
n Fa
cilit
y a
nd
per
mit
2
01
4
this
use i
n U
rban
In
du
stri
al
Zo
ne a
nd
ex
clu
de s
uch
uses
from
agr
icul
ture
an
d h
obby
fa
rm d
efi
nit
ion
s
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
8 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
hes
For
Med
ical
Mar
ihu
ana
Pro
du
cti
on
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itie
s
j bull
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Q
To
wn
of F
ort
Ja
nu
ary
20
U
se h
as b
een
in
terp
rete
d b
y R
eco
gn
izes
fac
ilit
ies
may
O
PA
18
a
nd
Y
es
Yes
Yes
Yes
m
Eri
e
20
14
st
aff
as
agri
cult
ural
an
d
empl
oy a
sig
nifi
cant
nu
mb
er o
f B
y-la
w 0
7shy
Tl
perm
itte
d w
ithin
Agr
icul
tura
l em
plo
yee
s r
equi
re s
igni
fica
nt
20
14
z m
R
ural
an
d O
pen
Sp
ace
wate
r an
d e
lectr
ical
reso
urc
es
Ad
op
ted
D
d
esig
nat
ion
s of
th
e O
P
OP
A
Giv
en
th
eir
in
du
stri
al
natu
re o
f Ja
nu
ary
20
gt
c in
tend
s to
per
mit
fac
ilitie
s th
e fa
cilit
y t
hey
shou
ld b
e 2
01
4
bull
m
jn
wit
hin
In
du
stri
al
Bu
sin
ess P
ark
ta
xed
indu
stri
ally
-no
dif
fere
nt
Is
and
Op
en S
pace (
perm
its
than
an
y o
ther
ind
ustr
ial
typ
e of
gr
owin
g pl
ants
) d
esig
nat
ion
s
deve
lopm
ent
Per
mit
ted
with
in
ml
zz
Ind
ust
rial
Bu
sin
ess P
ark
an
d
HO
_
j
Op
en S
pac
e de
sign
atio
ns
lt
su
bje
ct to
sit
e pl
an c
ontr
ol a
nd
-t
)
pound se
par
ated
70
m (
as p
er Z
BL
)
D
fro
m s
en
siti
ve l
an
d u
ses
m
I
Cit
y o
f Ja
nu
ary
28
P
rod
ucti
on
facil
itie
s are
G
iven
th
at
Healt
h C
an
ad
a i
s th
e
NA
N
o
No
Y
es
No
Win
dso
r
20
14
pe
rmit
ted
in m
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
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SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
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DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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01
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8S
CH
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UL
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A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
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Mun
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al R
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s Fo
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SC
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DU
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A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
5 o
f8
Co
mp
aris
on
of
Oth
er
Mu
nic
ipal
Reg
ula
tory
Ap
pro
ach
es F
or
Med
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Mar
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s
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tus
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y o
f Ju
ne 1
7
Inte
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as
an a
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OP
A N
o
23
Y
es
Yes
Yes
Yes
D
Ham
ilto
n
20
14
u
se in
var
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s C
ity B
y-la
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an
d B
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m
an
d d
ete
rmin
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at
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se i
s 1
4-1
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z ap
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he
urb
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ted
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in
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ent
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5
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01
4
CO
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men
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jn
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ons
and
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mit
s th
e u
se
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rk a
nd
ind
ustr
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e ca
tego
ries
T
he
City
Z
on
ing
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s are
am
en
ded
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to p
erm
it t
he
use
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hin
H
-lt
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read
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gt
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ded
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incl
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in
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on
es
sub
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to
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s an
d s
etb
ack
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req
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ts
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nd
as
sect m
proh
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s u
se -
no a
men
dm
ent
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pro
po
sed
Pag
e 6
of
8S
CH
ED
UL
E
A T
O R
EP
OR
T D
P-2
01
4-0
82
Com
pari
son
of O
ther
Mun
icip
al R
egul
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y A
ppro
ache
s Fo
r Med
ical
Mar
ihua
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20
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co
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74
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s m
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01
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to
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rma
ceu
tica
l A
pp
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o
m
anuf
actu
ring
pla
nt
an
c CO
in
dust
rial
use
for
zon
ing
_m
purp
oses
Fa
cilit
y w
ould
be
co
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dere
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ith
in t
he
o A
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ultu
ral u
se d
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as
itg Z
in
volv
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he
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cro
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as
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cilit
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ayz D
b
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men
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ent
m
z
H
SC
HE
DU
LE
A
T
O R
EP
OR
T D
P-2
01
4-0
82
P
age
7 o
f 8
Co
mp
aris
on
of
Oth
er M
un
icip
al R
egu
lato
ry A
pp
roac
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For
Med
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Mar
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M
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(co
nsi
sts
of
and
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utio
n u
ses
perm
itte
d M
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to
m
anuf
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ring
pro
duct
ion
as
of r
ight
in
in B
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s b
e
war
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usi
ng
an
d d
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ion)
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mpl
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and
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ns
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or
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nce
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only
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ct f
or 5
y
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e 3
2
01
4
Rec
om
men
din
g Z
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-law
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s li
cen
sin
g p
roto
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is
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amen
dm
ent
to p
rovi
de a
new
als
o r
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mm
en
ded
to
ad
dre
ss
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defi
nit
ion
fo
r a
m
ed
icin
al
mat
ters
not
cap
ture
d i
n Z
onin
g
i sect pr
oduc
t m
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ring
fac
ility
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an
d
med
ical
mari
hu
an
a a
nd
m
gt
to p
erm
it t
hese
fac
ilit
ies
as
a 3
man
ufac
turi
ng u
se in
m
z
emp
loy
men
t zo
nes
D
zm
To
wn
of
New
P
ropo
sed
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ing
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law
P
ub
lic
No
N
o
Yes
No
H
T
ecu
mseh
am
en
dm
en
t to
ad
d a
d
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itio
n
Mee
tin
g h
eld
fo
r M
ed
ical
Mari
hu
an
a
on
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ly 9
P
rodu
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n Fa
cilit
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nd
per
mit
2
01
4
this
use i
n U
rban
In
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nd
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clu
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uch
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
-SSLSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
Pagel of 10 TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 raquo deg ^deg^ raquo DP-2014-034
Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
Page 2 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 DP-2014-034
whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
Page 3 of 10
TOWN OF CALEDON
SCHEDULE B TO REPORT DP-2014-082 amp 3-LfishyDP-2014-034
regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
hbt -ltfitt^w Page 4of 10 TOWN OF CALEDON
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controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
H laquotradetrade Page 5 of 10
TOWN OF CALEDON
V2-3SCHEDULE B TO REPORT DP-2014-082
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
TOWN OF CALEDON
pa-a^SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
Page 7 of 10
TOWN OF CALEDON
pP-SoSCHEDULE B TO REPORT DP-2014-082
DP-2014-034
the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
Page 8 of 10
TOWN OF CALEDON
SCHEDULE MB TO REPORT DP-2014-082 ^ DP-2014-034
concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
Page 9 of 10 TOWN OF CALEDON
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
Page 10 of 10
TOWN OF CALEDON
1-S3SCHEDULE B TO REPORT DP-2014-082
PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
fPage2of3)
SCHEDULE B TO REPORT DP-2014-082
Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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pa-as SCHEDULE B TO REPORT DP-2014-082
DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
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Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
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whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
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controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
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In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
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concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
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PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
(Page 1 of 3)
SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
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Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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DP-2014-034
To Mayor and Members of Council
From Development Approval ampPlanning Policy Department
Meeting 2014-04-22
Subject Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment All lands within the Town of Caledon File Number RZ13-15
RECOMMENDATIONS
That Report DP-2014-034 regarding Medical Marihuana Production Facilities Proposed Town-wide Zoning By-law Amendment for all lands within the Town of Caledon be received and
That Comprehensive Zoning By-law Nos 2006-50 and 87-250 as amended be amended to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories within all land in the Town of Caledon as well as specific requirements within the General Provisions sectionand
That Staff Report DP 2014-034 beforwarded to Health Canada and the Regions of Peel and York the Counties ofWellington Dufferin and Simcoe the Cities of Brampton and Mississauga along with allother abutting municipalities fortheir information
EXECUTIVE SUMMARY
The production and distribution of medical marihuana is subject to the Marihuana for Medical Purposes Regulations (MMPR) under the Controlled Drugs and Substances Act These regulations were recently introduced by Health Canada in July 2013 and now permit larger-scale commercial medical marihuana production facilities subject to federal licence requirements in a similar manner to the production of other narcotics used for medical purposes Municipal Zoning By-law conformity is recognized by Health Canada as forming part of the MMPR licence application process
The new MMPR provide greater awareness of proposed facility locations and detailed requirements for site security and production However little direction is provided in terms of locational criteria beyond the exclusive prohibition of facilities locating within a residential dwelling and a requirement for all production activities to occur indoors The Town has therefore undertaken a review of the Official Plan and Zoning By-laws relative to the new MMPR in order to ensure that new facilities licenced under these regulations will be appropriately located in areas of the Town that can adequately accommodate such uses without adverse land use impacts
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Activities taking place within these medical marihuana production facilities will include the growing producing (ie plant drying separation etc) storing packaging and shippingdistribution of medical marihuana to prescribed individuals only via secured shipping methods All production and storage activities must occur indoors subject to stringentsecurity and air filtrationventilation requirements prescribed by the regulations Additional laboratory analysistesting and controlled destruction of medical marihuana will also occur within these facilities Based on the nature of medical marihuana production facilities and the corresponding MMPR these facilities are consistentwith the Industrial policies of the Town Official Plan
Comprehensive Zoning By-laws 2006-50 and 87-250 do not permit medical marihuana production facilities in any zone category as this is nota use specifically defined inthese By-laws nor is it considered to fit within any other existing permitted land use definition Therefore amendments to these By-laws have been prepared to incorporate specific definitions for these facilities which will be permitted within the Prestige Industrial and Serviced Industrial zone categories subject to certain locational criteria The proposed amendments have been circulated to all external agencies and internal departments for their review and comments and a Public Meeting was held on February 19 2014 The Zoning By-law review has been finalized based on this process and the corresponding amending By-laws have been placed on the agenda for Council consideration
DISCUSSION
Purpose (background)
The federal government has jurisdiction over the production distribution and use of medical marihuana Cannabis (marihuana) is listed as a Schedule II narcotic under the Controlled Drugs and Substances Act SC 1996 c 19 as amended Contained in this act are the new Marihuana for Medical Purposes Regulations (MMPR) which were introduced by Health Canada on June 6 2013 and formally announced in the Canada Gazette on June 19 2013 These new regulations permit commercial medical
marihuana production facilities subject to federal licensing requirements in a manner similar to that of pharmaceuticals and othernarcotics used for medical purposes
Municipal zoning by-law conformity is recognized as part of the licensing process under the new regulations Health Canada has stated in various information publications and media materials that municipal zoning by-laws must be respected through the licence application process Federal licence applicants are required under the MMPR to provide written notification to the senior officials of local government fire and police authorities advising of their intent to submit a federal licence application This is meant to ensure that local authorities are aware of their site location proposed activities and is also intended to provide an opportunity for the municipality to review a proposed facility to determine if all applicable zoning regulations will be met This then enables the municipality to communicate any concerns directly to the licence applicant to determine
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whether or not all by-laws including zoning can be complied with before a licence application is submitted
Part 1 Section 12ofthe MMPR lists the activities that a licensed producer may conduct within their facility which include the possession production selling providing shipping delivering transporting and destruction of cannabismarihuana Production packaging and storage activities must be conducted indoors subject to stringent security requirements which are prescribed by the regulations The sales and distribution of medical marihuana is restricted to only those authorized patients who are registered with the licensed producer Distribution cannot occur on site but may only be shipped to the individuals registered address via secured shipping methods in discrete and tamper-proof packaging
While the new MMPR provide greater awareness and restrictions regarding the production of medical marihuana there are still uncertainties about how the MMPR will be implemented specifically with regard to where and how these facilities are to be situated The MMPR provide specific direction on security operations and production requirements but there is little guidance provided with regard to locational criteria and land use compatibility The MMPR does however exclusively prohibit these facilities from operating within a dwelling and specifically require that medical marihuana must be grown produced and stored indoors It is anticipated that this would be grown within a building rather than a greenhouse as it would be more challenging for a greenhouse to provide the security measures required by the regulations (ie physical barriers to prevent access 24-hour surveillance intrusion detection and monitoring systems etc) Furthermore the growth of medical marihuana is a sophisticated and delicate process which requires very specific environmental and climatic conditions for optimal production Growth and production therefore typically occur hydroponically which requires specific systems controlling heat humidity and air filtrationventilation as well as specialized lighting systems and a specialized growing medium
The post-growing production component of these facilities includes harvestingseparation drying packaging and related destruction of marihuana which collectively forms the most significant part of these operations In addition given the regulatory requirements for medical marihuana to be shipped via secured shipping methods subject to strict packaging and labelling requirements these activities are also an integral part of medical marihuana production facilities Laboratory analysistesting will also be conducted within these facilities since medical marihuana is produced in various strains in terms of chemical breakdown and composition to meet certain medical specifications Because of the specialized and production-oriented nature of these operations these facilities can be very labour-intensive operations and may employ a number of skilled workers
A staff report (DP-2013-110) was presented to Council on September 3 2013 which provided a more detailed review of the requirements prescribed by the MMPR as well as a review of the background and transition from the previous regulatory regime to the new
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regulations The outcome of this report was a direction for staff to review the regulatory options for the Town to appropriately facilitate these operations in conjunction with the federal regulations and to initiate Official Plan and Zoning By-law amendments as necessary
In order to maintain consistency with the federal Controlled Drugs and Substances Act Marihuana for Medical Purposes Regulations the Town must ensure that the necessary land use controls are in place to appropriately allocate where and how these federally-regulated facilities may be located within the Town This report has been prepared based on this review and provides recommendations concerning future medical marihuana production facilities within the Town of Caledon
Planning Review
Town of Caledon Official Plan
Throughout the review of medical marihuana production facilities and the corresponding MMPR there has been considerable question as to whether these facilities should be considered as an agricultural use or an industrial use The Official Plan contains agricultural and rural area policies which generally intend to protect agricultural resources promote a viable and sustainable agricultural industry and maintain the unique open rural character of the Town Specifically the Official Plan defines agricultural uses as the cultivation of the soil and the associated production of field crops vegetables fruit horticultural crops and nursery stock and the limited processing storage promotion and selling of such products primarily produced on the farm the breeding care andor keeping of livestock Although this definition does not account for all specific types of possible agricultural uses it does capture the normal farm practicesthat are consistentwith and appropriate for the agriculturalrural community In addition there is specific recognition of the relationship between normal farming practices and the use or cultivation of the landssoil Given the nature of medical marihuana production facilities and the requirements for indoor growth and production there does not appear to be a dependence upon the soils and the rural environment for such facilities to function Furthermore the use is not intended to service the agricultural and rural community which is a general policy requirement of agricultural-related commercial and industrial uses seeking establishment in rural areas Based on the regulatory requirements and the security standards involved with these facilities as well as the extensive production packaging testing and distribution activities involved with these operations the production of medical marihuana does not fit within the realm of normal farming practices as envisioned by the agricultural and rural policies of the Official Plan
As noted previously in this report Cannabis (Marihuana) is listed a Schedule II substance under the Controlled Drugs and Substances Act The MMPR implemented under this Act intend facilitate a production environment for medical marihuana in manner similar to other controlled pharmaceutical production facilities All other
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controlled substances used for medical purposes are produced in pharmaceutical facilities which are considered as industrial uses Based on the nature of these operations coupled with the federal regulatory requirements for these operations medical marihuana production facilities are consistent with the Industrial policies of the Town Official Plan The specific uses permitted within the Prestige Industrial and General Industrial designations include processing and packaging operations laboratories research and development facilities and related office facilities among other uses (5541 and 5551) The uses permitted within these industrial designations are reflective of the production packaging laboratorytesting distribution and shipping activitieswhich form the primary components of medical marihuana production facilities In addition these facilities may be heavily reliant upon security and electrical water and transportation infrastructure given the nature of their operations which is consistent with other industrial uses One of the key objectives of the Industrial Policies in this regard is to direct industrial development within the Town to Rural Service Centres (Mayfield West Bolton) and IndustrialCommercial Centres (Tullamore) in order to concentrate activities and to maximize the use of available sanitary water and transportation infrastructure (5531)
Zoning By-law No 2006-50 as amended
Staff has undertaken a review of Zoning By-law No 2006-50 and has determined that a medical marihuana production facility would not be permitted in any zone category as it is not a use specifically defined in the By-law nor is it considered to fit within any other existing permitted land use definition The Zoning By-law has not considered the commercial production of medical marihuana as a permitted land use because prior to the recent implementation of the MMPR by the Federal Government this use would not have been lawfully permitted under the Controlled Drugs and Substances Act Staff is therefore recommending a Town-wide amendment to Comprehensive Zoning By-law No 2006-50 to permit and regulate medical marihuana production facilities in Prestige Industrial (MP) and Service Industrial (MS) zone categories as well as specific requirements within the General Provisions section to provide criteria for future facilities in the Town An implementing by-law with details of the proposed modifications has been placed on the agenda for Council consideration In reviewing the MMPR and the nature of these operations certain areas of concern were identified to be addressed through the Towns zoning regulations which are discussed as follows
a) Permitted zone categories
The Prestige Industrial (MP) and Serviced Industrial (MS) zone categories can suitably accommodate medical marihuana production facilities given the nature of their operations and the federal regulatory requirements they are subject to The Unserviced Industrial (MU) zone may not be an appropriate zone category for these facilities given the potential servicing requirements for this use This conflicts with the nature of the dry type industrial uses permitted within this zone category which do not require large amounts of water Therefore medical marihuana production facilities are not
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contemplated as a use permitted as of right within the Unserviced Industrial zone category through this Zoning By-law review exercise The Prestige and Serviced Industrial zones are appropriate for this use based on the provision of both hard and soft servicing infrastructure in these areas and conformity with the Prestige and General Industrial policies of the Official Plan
b) Types of permitted activitiesto occur within these facilities
A new definition for Medical Marihuana Production Facilities has been proposed as
follows which in order to maintain consistency with the MMPR captures the permitted activities that may be undertaken by a federally-licensed medical marihuana producer
Medical Marihuana Production Facility means a building or portion thereof used for growing producing packaging testing destroying storing or distribution of Marihuana or Cannabis and authorized by a license issued by the federal Minister of Health pursuant to Section 25 of the Marihuana for Medical Purposes Regulations SOR2013-119 under the Controlled Drugs and Substances Act SC 1996 c 19 as amended For purposes of clarification no part of this use whether accessory or not may be located outside
c) Proximityto sensitive land uses
The destruction of medical marihuana is a key aspect of these operations The federal regulations require that destruction activities be conducted in accordance with all applicable federal provincial and municipal environmental legislation and does not result in any exposure to smoke emissions In addition the regulations require that medical marihuana production facilities are equipped with a ventilation and filtration system to eliminate any odour or pollen emissions Separation from sensitive land uses (ie residential institutional uses) is appropriate in light of the potential for odour and pollen emissions from these facilities Furthermore since these facilities are intended to be highly secure areas under the MMPR an adequate separation from publicly accessible uses and residential areas would assist in maintaining a higher level of security for these sites
A medical marihuana production facility may be considered as a Class Iindustrial facility within the Ministry of the Environment Guideline D-6 Compatibility Between Industrial Facilities and Sensitive Land Uses Class I Industrial Facilities are defined as a place of business for a small scale self-contained plant or building which producesstores 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 andor vibration There are daytime operations only with infrequent movement of products andor heavy trucks and no outside storage The corresponding recommended separation distance from Class l facilities is 70 metres (230 ft) which is considered in these guidelines to be the potential influence area for such operations
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In reviewing the proposed Zoning By-law modifications both the Peel District School Board and the Dufferin Catholic District School Board expressed concerns with the potential proximity of these facilities to school sites within the Town and requested a separation distance requirement of 200 metres (656 ft) from school sites be included within the amending zone provisions According to the School Boards this recommended separation distance was determined based on their review of the separation distances proposed by other municipal jurisdictions for similar facilities Based on staffs review of the facility separation distances contemplated in other jurisdictions the separation distance noted in the amending By-law is 150 metres (492 ft) This achieves a balance between the separation distances recommended by the School Boards (200 metres) and the Guideline D-6 recommendation (70m from Class 1 Industrial Facilities) and is consistent with that which is being considered in other jurisdictions The School Boards have confirmed that they are satisfied with this 150 metre separation distance requirement
d) Location of certain activities on the site that are related to the facility
The MMPR require that all production activities must occur indoors Salesdistribution of medical marihuana cannot occur on-site and is only permitted to be shipped directly to the registered individual via secured shipping methods The regulations do not intend for there to be any outdoor storage or public advertising and display associated with these facilities Because the Zoning By-law would otherwise allow for accessory open storage and exterior signage for industrial uses the following provisions are included in the amending By-law to maintain consistency with the federal regulations
No outdoor signage or advertising shall be permitted
Accessory Open Storage is not permitted with a medical marihuana production facility
In addition concerns were expressed regarding the potential frequency and visibility of the delivery and loading activities that will occur at these facilities To assist in maintaining the higher level of security intended for these sites it is recommended that these activities be conducted away from public view and either at the rear of the building or within the enclosed building facility This is achieved through the inclusion of the following provision
LoadingDelivery Spaces must be located only within the rear yard or within a wholly enclosed building
Zoning By-law No 87-250 as amended
Comprehensive Zoning By-law No 87-250 remains in effect for those lands within the Oak Ridges Moraine Conservation Plan area (ORMCP) but has been repealed through
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the enactment of By-law 2006-50 for all remaining lands within the Town outside of this plan area Staff has similarly reviewed this By-law in consideration of medical marihuana production facilities and determined that this use would also not be permitted in this By law as it is not a specifically defined use nor is it considered to fit within any other existing permitted land use definition The intent of this Town-wide Zoning By-law review exercise is to determine an appropriate land use definition for these facilities and allocate them to appropriate areas within the Town namely the prestige industrial and serviced industrial zoned areas The lands within the ORMCP area that remain subject to By-law 87-250 do not contain any areas zoned in the prestige industrial or serviced industrial zone categories Therefore a medical marihuana production facility would continue to remain as a use not permitted within the ORMCP area under the jurisdiction of By-law 87-250 as a result of this Town-wide amendment exercise However for purposes of clarity new definitions for a medical marihuana production facility and related terminology are proposed for incorporation in this By-law These definitions are consistent with those proposed within Zoning By-law 2006-50 as discussed previously in this report The basis for the inclusion of these definitions into By-law 87-250 notwithstanding the absence of any prestige industrial and serviced industrial zone categories remaining in effect under this By-law is to address any uncertainty regarding the possible consideration of these facilities within other currently defined uses A specific By-law to amend Zoning By-law No 87-250 has been included on the agenda for Councils consideration
CONSULTATIONS
Public Meeting
A Public Meeting was held on the proposed Zoning By-law Amendment application at the Town Hall on Wednesday February 19 2014 Notice of the Application and Public Meeting was advertised in the Caledon Citizen and Caledon Enterprise on January 30 2014 In addition this notice was provided to all commenting agencies and neighbouring RegionCountymunicipal jurisdictions on January 24th 2014
The purpose of the Public Meeting was to review the basis of the proposed Town-wide Zoning By-law review with the Public and Members of Council and to respond to any questions on the matter Five individualsspoke to the proposed By-law modifications All of the speakers noted that they are currently involved with medical marihuana production or represent medical marihuana producers who are either contemplating or are currently pursuing Federal licence applications for specific sites within the rural area Concerns were expressed with the proposed Zoning By-law review as it would not specifically permit these facilities on their rural properties Many of the speakers requested that an amending By-law include permissions for these facilities to locate within agriculturalrural areas In particular it was suggested that the highly-secured nature of these facilities along with the requested separation distances from sensitive land uses could be better accommodated by locating these facilities in remote agriculturalrural areas In addition
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concerns were raised regarding the anticipated timelines for the Zoning By-law amendment process relative to the transition period for the new regulations It was also suggested that individual sites should be viewed on a case-by-case basis instead of a Town-wide Zoning By-law amendment which broadly applies to any future facility proposed within the Town
In response to these comments staff noted that the proposed Town-wide Zoning By-law amendment is necessary to maintain consistency with the federal regulations and intends to proactively allocate appropriate locations for any future medical marihuana facility proposed within the Town This allocation is based on the nature of these facilities the corresponding regulations and a review of those areas of the Town that can adequately accommodate this use The question of whether these facilities should be considered in agriculturalrural areas or within industrial areas has been reviewed extensively throughout this zoning by-law amendment process and is discussed in the report The By-law to amend Zoning By-law No 2006-50 includes a provision which stipulates that any proposal to permit a medical marihuana production facility in a zone otherthan Prestige orServiced Industrial zone categories shall require approval of a site -specific Zoning By-law amendment An amendment to the Official Plan may also be required depending on the nature of the operation relative to the specific policies applicable to the proposed site This would allow for a site specific review of a facility that is proposed in a location outside of the Prestige or Serviced Industrial zones in order to determine if the proposed location is appropriate adequate servicing infrastructure (ie transportation electricity water service etc) is available and there will be no adverse land use impacts
Questions were also raised at the Public Meeting regarding the draft zoning provision proposed which would prohibit any additional use on a lot where a medical marihuana production facility exists This provision was intended to ensure that should a facility be located in a multi-unit industrial building another use could not located in an adjacent or nearby unit that could be adversely impacted by the operation The concerns expressed indicated that this provision would be prohibitive for smaller operations intending to locate within existing industrial buildings and would favour only larger-scale operations Based on a further review of the permitted uses within the Prestige Industrial and Serviced Industrial zone categories this requirement has been removed from the final amending By-law The issue regarding compatibility with adjacent uses within a multishyunit building is addressed by the 150 metre separation distance requirement from sensitive land uses already included in the amending By-law
Agency and Department Review
The Zoning By-law amendment application and supporting background report were circulated to all appropriate external agencies and internal departments for their review and comment Comments received through the review of this application are detailed in Schedule A attached to this report The amending By-laws which are included on the agenda for Council consideration have been prepared in a manner that reflects all
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agency and department comments
Financial Implications
There are no immediate financial implications at this time Current MPAC guidelines would assess the property or production area as industrial tax class
Applicable Legislation and Requirements
Controlled Drugsand Substances Act SC 1996 c19 as amended Marihuana for MedicalPurposes Regulations SOR2013-119 Planning Act RSO 1990 c P 13 as amended Town of Caledon Official Plan Townof Caledon Comprehensive Zoning By-law No 2006-50 as amended Town of Caledon Comprehensive Zoning By-law No 87-250 as amended
COMMUNITY BASED STRATEGIC PLAN
Strategic Objective Goal 2 Complete Our Community of Communities Strategic Objective 2D- Manage Growth and Use Land Wisely Strategic Objective Goal 5 Cultivate a Diverse and Prosperous Economy Strategic Objective 5A- Meet Employment Needs
NEXT STEPS
1 DAPP staff will provide Notice of Councils decision in accordance with the requirements in the PlanningAct
2 DAPP staffwill monitor for anyappeals that maybe received during the following twenty day appeal period
3 DAPP staffwill issue an affidavit provided no appeals have been received
ATTACHMENTS
Schedule A - Comment Sheet
Prepared by Brandon Ward
Approver (L1) Rob Hughes
Approver (L2) Mary Hall
Approver (L3) Carey deGorter
Approver (L4) Douglas Barnes
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PUBLIC MEETING
COMMENT SHEET
PIMDate February 192014 Prepared February 112014
Planner Brandon Ward
Ext 4283
Proposed Zoning By-law Amendment Application Zoning By-law Reviewfor Facilitating Licensed Medical Marihuana Production Facilities
All lands within the Town of Caledon
File Number RZ13-09
Thefollowing comments were received regarding the above-noted file
EXTERNAL AGENCY COMMENTS
Dufferin-Peel Catholic District School Board - February 52014
TheBoard has concerns with respecttothe potential locations ofmedical marihuana production facilities in relation to school sites
TheBoard has reviewed the proposed amending By-law inrelation to the minimum separation distancesthathave been applied schools inotherjurisdictions and requires thata minimum 200m separation distance from the medical marihuana production facilities to schools within theTown In addition the Board requeststhat medical marihuana production facilities notbe permitted within landszoned forinstitutional or residential uses
Peel District School Board - February 52014
Based on a review ofthe proposed Zoning By-law Amendment the Board has concernswith respect to theseparation distances proposed for medical marihuana production facilities Proposed Section 4205 in the amending By-law requires a 150m separation from a medical marihuana production facility toa school or lots in the institutional or residential zone category TheBoard has reviewed minimum separation distances from medical marihuana production facilities to schools in other jurisdictions and requests that this 150mseparation distance be revised to 200m
TheBoard agrees with theTowns approach to permit medical marihuana production facilities only within Prestige Industrial andServiced Industrial zonecategories
Niagara Escarpment Commission - February 62014
The NEC has no concerns with the proposed By-law However it should be noted that the NEC interprets that a medical marihuana facility is nota permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban centre Escarpment Recreation or Mineral Resource Extraction Areas ofthe Niagara Escarpment Plan as itdoes not meet the definition of an agricultural use specialty crop or institutional use The NEC considered the matter of medical marihuana facilities in the NEP area at its meeting on October 17 2013 The final recommendation endorsed by the Commission at that meeting isas follows
That the Niagara Escarpment Commission
1 Interpret that a medical marijuana facility is not a permitted use in the Escarpment Natural Escarpment Protection Escarpment Rural Minor Urban Centre Escarpment Recreation or Mineral Resource Extraction Areas of the NEP
2 Require a NEP Amendment in the event that a medical marijuana facility is proposed in the NEP
3 Direct staff to propose amendments to Ontario Regulation 82890 when timing is appropriate to make clear that medical marijuana facilities do not fall within the definition of general or special agricultural development and
4 Address the matter as deemed necessary as part of the 2015 Plan Review to explicitly clarify the provisions of the NEP respecting this use (eg modify definitions)
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SCHEDULE B TO REPORT DP-2014-082 3-SH Comments have not been receivedfromthe following agencies
Credit Valley Conservation Authority Lake Simcoe Regional Conservation Authority Nottawasaga Valley Conservation Authority Toronto Region Conservation Authority Region ofPeel Regional Municipality of Halton Regional Municipality ofYork County ofWellington County ofDufferin County ofSimcoe City of Brampton CityofVaughan Township of King Township of East Garafraxa Town ofOrangeville - Planning Department
Township ofAdjala-Tosorontio - Planning Department Town ofHalton Hills - Planning Department Town ofNewTecumseth - Planning Department Town ofErin - Planning Department Town ofMono - Planning Department Niagara Escarpment Commission Enbridge Consumers Gas Ontario Power Generation
Hydro One Networks Inc Bell Canada Development and Municipal Services Control Centre
RogersCommunications Inc OPP
Canada Post
CP Rail
TOWN OF CALEDON - DEPARTMENT COMMENTS
Economic Development- January 82014
We havereviewed the proposed draft amending By-law andoffer thefollowing comments
1 Section 3 (Medical Marihuana Production Facility - 4207) ofthe draft amending By-law statesWhere a medical marihuana production facility use islocated ona lot noother use shall be permitted onthelot orwithin the building as a whole
a) We interpret this section toonly permit medical marihuana facilities in free-standing industrial buildings This provision may hinder smaller operations from establishing within existing industrial areas and may facilitate only larger-scale operations based onthe limited availability ofexisting free-standing buildings with small floor areas within the Town of Caledon
b) Provided that the producer can meet the requirements ofthe Ontario Building and Fire Codes as well as theFederal licensing requirements for these facilities we are unclear as towhy this restriction has been proposed to prohibit this type ofuse within a multi-unit industrial building
2 Proposed Section 4203 ii) acurrent and valid letter ofauthorization allowing a municipally appointed officer oran officer ofthe law toenter thepremises for the purpose of inspection ofdocuments andthings relevant toan inspection obtaining information from any person concerning a matter related tothe inspection and making examinations and taking tests samples and photographs necessary for the purposes ofthe inspection during which time noperson onthepremises shall hinder orobstruct orattempt to hinder orobstruct anofficer in the discharge of his or her duties
a) This section should make reference to inspection under the auspices oftheOntario Building and Fire Codes
3 Proposed Section 4205 A medical marihuana production facility shall be at least 150m from a lot in an institutional orresidential zone category orfrom any day nursery school community centre ortraining facility aimed primarily at children less than16 years ofage0
a Amapping exercise should becompleted in support ofthis provision which visualizes those lands where a newfacility may be located inaccordance with these requirements
Parks amp Recreation - January 242014
No further commentsor concerns with thisapplication
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Development Approval ampPlanning Policy- Engineering - January 232014 No further comments orconcerns with this application
Development Approval ampPlanning Policy- Landscape -January 62014 No further comments or concerns with this application New facilities subject to Site Plan approval will be required to conform to the Town of Caledon Industrial Commercial Design Guidelines for landscape requirements
Fire amp Emergency Services - January 242014
In order to minimize the potential of fire in these facilities and ensure compliance with the Ontario Building Code Ontario Fire Code and Electrical Safety Code aprovision should be included in the proposed amending By-law requiring that approvalsbe obtained from the Town Building and Fire Departments as well as the Electrical Safety Authority prior to commencing operations
Corporate Services Finance - February 32014 No further comments from those provided in the Background Report
Planning Law Office - February 42014
1 In paragraph no 1ofthe draft By-law the Medical Marihuana Production Facility (MMPF) definition states For purposes of clarification no part of this operation whether accessory ornot may be located outside
Additional clarification should be provided to state that the MMPF use and any ancillary uses shall be located within a wholly enclosed building
2 In paragraph no 3ofthedraft By-law section 4203 (ii) permits an officer of the law to enter the premises and carry out certain actions Based onsections 8 and 9oftheMunicipal Freedom ofInformation and Protection of Privacy Act RS01990 cM56 (MFIPPA) municipalities may not be authorized to disclose and share information with law enforcement agencies about MMPR licensees Also police officers should not beable to attend with municipal officers at inspections unless they are doing sopursuant totheir own search warrants orthe court hasissued some sortofadministrative warrant to allow same Therefore the reference toor an officer ofthe lawshould be deleted
3 Section 4207 of the draft By-law should be re-worded for clarity purposes
4 Arestriction should be considered in the amending By-law to ensure that loading and delivery spaces are situated within the enclosed building and away from public view
Policy amp Sustalnabilitv Heritage - January 312014 There are no heritage concems with the proposed zoning by-law amendment Further heritage review of proposed new facilities can be provided atthe Site Plan application stage
Development Approval ampPlanning Policy- Urban Design - February 112014 No comments orconcerns regarding the proposed zoning by-law amendment
Regulatory and Inspection Services - February 62014 Section 4203 ii) of the proposed amending by-law should include wording which allows a municipally appointed officer or an officer ofthe law to examine record or copy any document or data for purposes of inspection
Comments have notbeen received from the following departments
Building ampSupport Services Public Works Engineering Policy ampSustainability
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