AGENDA OPEN COUNCIL COUNCIL REPORT MAY 22, 2019 DATE

May 7, 2019

MEMO TO: K. KEHLER, CHIEF ADMINISTRATIVE OFFICER

FROM: B. C. RUSSELL, DIRECTOR OF COMMUNITY PLANNING AND BUILDING S. BEAUDOIN-LOBB, PLANNING TECHNICIAN II

SUBJECT: CONSIDERATION OF A NEW NON-MEDICAL CANNABIS RETAIL STORE, BC CANNABIS STORE AT 826 ISLAND HIGHWAY WEST – FILE: 4320-50-PCL004 APPLICANT: LIQUOR DISTRIBUTION BRANCH

PURPOSE: ADOPTION OF RESOLUTION TO THE LIQUOR AND CANNABIS REGULATION BRANCH

EXECUTIVE SUMMARY:

The Liquor Distribution Branch is seeking a positive resolution from Council to the Liquor and Cannabis Regulation Branch (LCRB) for a licence application for a new non-medical cannabis retail store named BC Cannabis Store. An opportunity for public input has occurred to allow Council to provide comment on the application to the LCRB.

NON-MEDICAL CANNABIS RETAIL STORE PAGE 2 BC CANNABIS STORE AT 826 ISLAND HIGHWAY WEST – FILE: 4320-50-PCL004

RECOMMENDATION:

THAT the report from the Director of Community Planning and Building and Planning Technician II dated May 7, 2019 entitled “Consideration of a New Non-Medical Cannabis Retail Store, BC Cannabis Store at 826 Island Highway West – File: 4320-50-PCL004” be received;

THAT having considered public input, the location, and the general impact on the community, Council indicates to the Liquor and Cannabis Regulation Branch that the Non-Medical Cannabis Retail Store application by the Liquor Distribution Branch for the store BC Cannabis Store at 826 Island Highway West, be approved.

BACKGROUND:

The Liquor Distribution Branch has made a Non-Medical Cannabis Retail Store licence application to the LCRB for a new store named BC Cannabis Store at 826 Island Highway West [Lot 1, District Lot 74, Nanoose District, Plan EPP27137].

The subject property is zoned Comprehensive Development Zone CD-12. This zone permits shopping mall as a permitted land use, a use that includes retail store. Retail store is defined to include cannabis trade allowing for the sale of cannabis and cannabis accessories where appropriately licenced.

The subject property is in proximity to the following:

• To the north is a collection of shops at Wembley Mall; • To the south is a collection of shops at Wembley Mall; • To the east is the parking lot of Wembley mall, across from which is Island Highway West; • To the west is Wembley Road, across from which is land located within the Regional District of Nanaimo, which appears to be residentially zoned.

The Licence Inspector has received and found acceptable the following items in support of the associated Business Licence application:

• Completed Retail Cannabis Sales Business Licence Application form, with signatures from authorized property owner(s); • Title Search; • Charges on title; • Company Search; • Site Plan; • Criminal Record Check; • Odour Control Plan; • Good Neighbour Agreement.

NON-MEDICAL CANNABIS RETAIL STORE PAGE 3 BC CANNABIS STORE AT 826 ISLAND HIGHWAY WEST – FILE: 4320-50-PCL004

The Business Licence Bylaw states that the hours of operation for cannabis trade shall be between 9 am and 11 pm daily. Actual operating hours may be less.

An opportunity for receiving written comment from the public within the immediate vicinity of the proposed establishment is being provided in satisfaction of provincial licensing requirements.

The City received confirmation from the applicant on April 12, 2019 that the notice sign was posted on the subject property. A time for submitting comments was provided until 4:00 pm on Friday, May 3, 2019. No comments were received.

The recommendations and comments the local government provides to the LCRB must:

• Be in writing (this may or may not be in the form of a resolution); • Show that the local government has considered the location of the proposed store; • Include the views of the local government on the general impact on the community if the application is approved; • Include the views of residents if the local government has gathered residents’ views, and a description of how they were gathered; • Include the local government’s recommendation as to whether the application should be approved or rejected and provide the reasons upon which the recommendation is based.

The required steps have been taken to permit Council to adopt a resolution which could be sent to the LCRB either in support of or opposition to the application.

OPTIONS:

Council may:

1. Pass a resolution indicating support of the application.

2. Pass a resolution indicating opposition to the application.

ANALYSIS:

1. Having considered comments from the public, the location, and the impact on the general community, this option provides Council with an opportunity to indicate to the LCRB that the application be approved.

NON-MEDICAL CANNABIS RETAIL STORE PAGE 4 BC CANNABIS STORE AT 826 ISLAND HIGHWAY WEST – FILE: 4320-50-PCL004

The proposed location is zoned appropriately to allow for a non-medical cannabis retail store. In addition, the site has been determined by the License Inspector to satisfy the distance separation requirements from sensitive uses such as schools, rehabilitation centres, registered daycares and senior care facilities.

As part of the Business Licencing requirements, the applicant must provide an acceptable criminal record check, complete an odour control plan and enter into a good neighbour agreement with the City. Given the aforementioned requirements and the retail nature of the establishment, it is expected that the impact on the general community should be minimal.

This option, if approved by the LCRB, will allow the Liquor Distribution Branch to operate a non-medical cannabis retail store named BC Cannabis Store.

2. If Council, after having considered public input, believes that the proposal is contrary to the community interest, Council may consider providing a resolution to the LCRB that the application be denied.

STRATEGIC PLANNING IMPLICATIONS:

Strategic plan implications were considered by Council during the development and implementation of non-medical cannabis trade regulations within the City. Individual applications are processed on a case-by-case basis and as such do not appear to have broader community or strategic plan implications.

FINANCIAL IMPLICATIONS:

There are no financial implications associated with the processing of this application other than the costs of advertising which are intended to be covered by the $750.00 application fee. A separate Business Licence fee in the amount of $1000 is also collected for cannabis retail businesses.

REFERENCES:

Attached: • Cover letter entitled “Cannabis Retail Store Application” from BC Liquor Distribution Branch, dated February 4, 2019; • Air photo; • Notice sign photo, received April 16, 2019; • Good Neighbour Agreement template.

NON-MEDICAL CANNABIS RETAIL STORE PAGE 5 BC CANNABIS STORE AT 826 ISLAND HIGHWAY WEST – FILE: 4320-50-PCL004

Other: • Local Governments’ Role in Licensing Non-Medical Cannabis Retail Stores, Liquor and Cannabis Regulation Branch, December 20, 2018; • "Business Licence Bylaw, 2018, No. 1550"; • Report from the Director of Administrative Services entitled "Regulatory Options for Legalizing Cannabis", dated June 4, 2018; • Report from the Director of Administrative Services entitled "Updated Regulatory Options for Legalizing Cannabis", dated September 7, 2018; • Report from the Director of Administrative Services entitled "Implementation of Regulatory Regime for the Recreational Cannabis Industry", dated November 8, 2018.

Respectfully submitted,

Original signed by S. Beaudoin-Lobb S. BEAUDOIN-LOBB, MCP Planning Technician II

Original signed by B. Russell B. C. RUSSELL, MCP, MCIP, RPP Director of Community Planning and Building

SBL/BR/wd

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:

Original signed by K. Kehler K. KEHLER, MPA Chief Administrative Officer

I:\Users\Planning\Licenses - Liquor & Cannabis 4320-50\1 Cannabis\19 - PLC004 BC CANNABIS STORE - 826 ISLAND HIGHWAY WEST \Agenda\Report-1.docx Q LIQUOR BRITISH DISTRIBUTION COLUMBIA BRANCH

February 4, 2019

City of Parksville 100 Jensen Avenue East Parksville, BC V9P 2H3

Dear Mayor and Councillors:

Re: Cannabis Retail Store Application

Please accept our application to locate a government operated cannabis retail store at Wembley Mall 826 Island Highway West

About the LDB The LOB is one of two branches of government responsible for the beverage alcohol and non-medical cannabis (cannabis) industries in B.C. Through the Liquor Distribution and Cannabis Distribution Acts, the LOB is mandated with the purchase and distribution of beverage alcohol and cannabis for the Province. As well, the LDB operates a number of public liquor stores (197 in total), and as of October 1ih, a public cannabis retail store in Kamloops, as well as an e-commerce platform to offer public on­ line sales of cannabis. The LOB is self insured as a branch of the BC government.

Revenue generated through the LDB's wholesale and retail operations is directed to the Provincial Government and contributes to supporting vital public services such as health care and education. For the 2017/2018 fiscal year, the LOB contributed $1 .12 billion to fund government services. Revenue generated through LDB's newly implemented cannabis operations (both wholesale and retail) will also be directed back to the Province to support important public services.

Location of Proposed Cannabis Retail Store This location was selected by the LOB for a proposed cannabis retail store for a number of reasons, including that the site is: • Located in a large retail complex and therefore consistent with the nature of the immediate area; • Easily accessible to customers; and • Not expected to adversely impact traffic in the surrounding area, given its location in an already established retail complex.

Building and Site The following considerations were taken into account when evaluating the appropriateness of the site and building for a cannabis retail store: • The intended use of the site is consistent with the "retail" nature of the immediate area. • The size of the proposed cannabis retail store is approximately 5.100 square feet.

2625 Rupert Street, , , VSM 3T5 t 604.252.3021 ( 604.252.3026 w www.bcldb.com • The site provides for ample parking and efficient traffic flow as it is an existing retail development.

Communitv Impact The LOB works closely with the Liquor and Cannabis Regulation Branch (LCRB) and the Ministry of Public Safety and Solicitor General to encourage the safe and responsible consumption of alcohol and cannabis in BC. The LOB is committed to working in partnership with local governments to ensure a smooth introduction of the legal cannabis retail market to BC communities. While government-operated cannabis retail stores do not require a licence from the LCRB1, we are committed to following all municipal zoning processes and meeting all bylaw requirements, as well as working with local law enforcement agencies to maintain public safety and to mitigate, and respond to, any negative impact on the community.

Social Responsibility is part of the LDB's Mission Statement and one of the four pillars we have identified that supports our success. Our efforts are focused on three themes: encouraging and promoting responsible use of alcohol and cannabis, reducing the impact our business has on the environment, and giving back to the communities we serve. We meet these objectives by: • Delivering products that meet strict product safety and quality requirements - all cannabis products will be purchased through the LDB wholesale channel; product will be lab tested and will only be purchased from producers that have been licensed by Health Canada. • Ensuring accountability of our key business partners (e.g. Licensed Cannabis Producers). • Promoting the safe and responsible use of beverage alcohol and cannabis through social responsibility campaigns aimed at keeping alcohol and cannabis out of the hands of youth*, preventing driving under the influence, and informing the public about associated health risks. • Actively discouraging customers from engaging in high-risk behaviour like drinking or consuming cannabis and driving, consuming alcohol or cannabis during pregnancy and participating in sporting activities while under the influence of alcohol or cannabis; • Increasing awareness of the dangers associated with over-consumption or risky behaviour through various in-store campaigns with strategically placed messaging; • Raising money through in-store fundraising campaigns for dry grad celebrations, Red Cross disaster relief, kids in need, and local community charities (through the Provincial Government's Employee Workplace charitable giving campaign); and • Incorporating environmental sustainability into all facets of our business with a goal of reducing our environmental footprint and being a leader in sustainable retailing.

* Keeping cannabis out of the hands of minors will be a top priority for the LDB. Unlike liquor stores, minors will not be permitted to enter cannabis retail stores, even if they are accompanied by a parent or guardian. When entering the store, there wiJ/ be an ID check at the entrance. Individuals without ID or minors (even those accompanying someone of legal age) wiJ/ not be permitted in the store. As well, all staff will be required to complete a provincial training program.

1 As a branch of the Ministry of Attorney General, the LOB does not require a formal license from the LCRB to operate a retail cannabis store - written confirmation from the LCRB is attached.

2625 Rupert Street, Vancouver, British Columbia, VSM 3T5 t 604.252.302 1 f 604.252.3026 w www.bcldb.com Store Operations BC Cannabis Stores will be bright, clean, welcoming and professional, with the intent of creating a safe and favourable alternative to purchasing cannabis from the illicit market. Storefronts will have frosted windows to align with Health Canada's requirements that cannabis not be visible to minors.

All cannabis products carried by BC Cannabis Stores are sourced from federally licensed cannabis producers that are required to meet Health Canada's guidelines for quality control, Good Production Practices, and inventory management.

All stores will employ unionized staff - stores in large municipalities will have approximately 12-20 employees and stores in smaller municipalities will have approximately 6-12 employees. Each store will have a Store Manager, at least one Assistant Store Manager, and staff comprised of full and part­ time Cannabis Consultants. All employees go through criminal background checks. Store hours may vary by each store location, but most stores will be open from Monday to Sunday 10 am fo 10 pm.

The LDB's neighbourhood strategy includes:

• Mandatory full day training program, Keep It Safe, required for all staff. This program covers best practices for dealing with intoxicated customers, suspicious activities, and instances of violence, theft or nuisance, Additional topics covered include understanding canrn;\bis related laws and strategies for maintaining a safe environment for employees and customers. • Implementation of procedures on how to deal with unruly customers, store safety, loitering, and consumption outside the premises. For example, procedures are in place to ensure there are at least 2 employees in the store at all times and that stores are armed and locked outside business hours. For events that occur outside of the store, staff are trained to contact mall security, if applicable, or to call 911. • BC Cannabis Stores have a two ID policy. Customers must show two pieces of ID, one of which must be issued by a government agency and includes their name, birth date, and picture. The second must include an imprint of their name, signature and/or picture. Staff receive training on conducting ID checks and identifying signs of altered ID documents. • Defective product will be transported to an off-premise location to be destroyed. Stores will not incinerate or dispose of cannabis products on premise, reducing the risk that cannabis will come into the hands of minors or the_illicit market.

Security Customer, employee, and community safety is paramount. The LOB brings over 40 years of experience in working with local government, enforcement agencies, and security experts in establishing and operating secure retail stores in BC. Crime Prevention Through Environmental Design (CPTED) principles are utilized in all of our retail stores layouts.

BC Cannabis Stores are supported by the LDB's Corporate Loss Prevention department and privately contracted security personnel are available to work in conjunction with store staff to ensure security practices and protocols are followed.

All BC Cannabis Stores will have:

• Centrally maintained province-wide intruder and fire monitoring systems; • Interior and exterior camera surveillance; • Locked and tempered glass display cases for cannabis accessories;

2625 Rupe1i Street, Vancouver. British Columbia, VSM 3TS t 604.252.302 1 f 604,252.3026 w www.bcldb.com • A secure storage room where product will be kept that will require access cards to enter; • Durable and reliable commercial-grade doors and locks; • Security shutters; and • Smash-resistant windows.

Further details regarding BC Cannabis Stores and the LDB's social responsibility efforts are included in the attached presentation. If you require additional materials or have any questions we would be very happy to provide it. We thank you in advance for your consideration of our application.

Michae -an­ Executive Director - Cannabis Operations BC Liquor Distribution Branch

Attachments: 1 . BC Cannabis Stores presentation 2. Property information and site map

2625 Rupert Street, Vancouver. British Columbia, V5M 3T5 t 604.252.302 1 f 604.252.3026 w www.bcldb.com

NOTICE OF APPLICATION hOIHllOICALCAl>'IAIU$ R£TAll..1101U.•RL PCl.004 Parl

Good Neighbour Agreement (Cannabis)

This agreement made this~- day of ______

WHEREAS (the "Business Licensee"):

A. Wishes to demonstrate to the City of Parksville (the "City"), the City's affiliate associations, and the citizens of Parksville its efforts to be a responsible corporate citizen for the City of Parksville.

B. Recognizes its role as a responsible corporate citizen and responsible neighbour wit hin the community and agrees to work with the City and its departments to resolve concerns.

C. Wishes to promote Parksville as a vibrant, safe, and attractive community for the enjoyment of everyone, including residents, visitors, businesses, and theirworkers.

D. Recognizes that City Council has made good neighbour agreements mandatory on an annual basis as part of maintaining a Retail Cannabis Sales Business Licence and that non­ compliance with this agreement may be brought to the attention of the Business Licence Inspector or City Council, which may, in turn, require the business owner(s) to attend a Business Licence Suspension and/or Cancellation Hearing.

E. Recognizes that Cannabis Retail Licence establishments have a civic responsibility beyond the legislated requirements of the Cannabis Control and Licensing Actto control the conduct of their patrons; and that the Cannabis Control and Licensing Act, the policies of the Liquor and Cannabis Regulation Branch, City bylaws, and other statutes and legislation shall, as the case may require, take precedence over this agreement.

F. Recognizes that should the Business Licensee's Cannabis Licence be suspended or cancelled, its Business Licence will also be suspended or cancelled and that, should Cannabis Retail Business Licence incidents occur and remain unresolved, the City may exercise its power to place conditions on the associated Business Licence (e.g. regulating hours of operation).

AND WHEREAS the City wishes to:

G. Commend the Business Licensee for its recognition of its civic responsibilities and commitment to fostering a good working relationship with the City and the Business Licensee's neighbours.

H. Demonstrate its commitment to early resolution of disputes with the Business Licensee in relation to this agreement whenever possible. Good Neighbour Agreement (Cannabis) Page 2 of 3

NOW THEREFORE in conjunction with and in consideration of obtaining, continuing to hold, or renewing a Business Licence, the Business Licensee covenants and agrees with the City as set out in Schedule "A" attached to forming part of this Agreement.

IN WITNESS WHEREOF the parties have executed this agreement in the City of Parksville, Province of British Columbia, this ___ day of ______

The Business Licensee by its authorized signatory:

Signature

Print Name

On behalf of the City of Parksville by its Business Licence Inspector:

Signature

Print Name Good Neighbour Agreement (Cannabis) Page 3 of 3

SCHEDULE "A" to Good Neighbour Agreement (Cannabis)

The Business Licensee covenants and agrees with the City to:

1. Ensure there will be no tolerance for criminal activity within or adjacent to the Premises.

2. Prohibit minors from entering or remaining on the Premises.

3. Ensure that any person working in the business is at least 19 years of age.

4. Not permit a person to work in the licensed business without having first submitted a police information check for that employment, as per the Cannabis Control and Licensing Act.

5. When incidents occur that require RCMP involvement, co-operate and ensure that all Business Licensee staff co-operate with RCMP members and not impede or obstruct an investigation in any way.

6. Promptly bring to the attention of the RCMP any criminal charges brought against the licence holder or any employees of the licensed business.

7. Notify the City's Business Licence Inspector within 24 hours of the change in contact informat ion for responsible person or persons.

8. Prohibit banners, flags, string lighting, or similar means of advertising and display on the Premises at any time.

9. Prohibit the consumption of any alcoholic/cannabis products on the Premises.

10. Prohibit the sale of food products from the Premises, except for the sale of tinctures, capsules, edible oils, and other products permitted under the Cannabis Control and Licensing Act.

11. Prohibit smoking or vaping of any substance within the business area.

12. Discourage patrons from smoking/vaping or consuming purchased product immediately outside the premises to minimize impacts to pedestrians and the neighbourhood, and to comply with the British Columbia Health Act and WorkSafeBC in regard to smoking laws.

13. Undertake monitoring and promotion of the orderly conduct of patrons immediately outside the premises, including those congregating outside during open hours, and discourage patrons from engaging in behaviour that may disturb the peace, quiet, and enjoyment of the neighbourhood.

14. Assign staff to inspect the outside of the premises each day of operation to ensure that there is no litter, garbage, or other foreign objects associated with the business left within the general area of the Premises.

15. Work with the City, its depart ments, and the community to promptly resolve any issues of concern.

16. Submit to periodic full inspections of the Premises that will be carried out by various departments of the City.

17. Participate in any programs initiated by the City and/or RCMP to coordinate and monitor Cannabis Retail Licence activities within the community.