Os ,~A COUNCIL REPORT ABBOTSFORD Report No.: PDS 060-2015 Executive Committee October 19, 2015 File No: 6970-20 To: Mayor and Council From: Mateja Seaton, Planning Technician Subject: Clarification of Variances for Processing Uses on Agricultural Lands RECOMMENDATIONS THAT Report No. PDS 060-2015, dated October 19, 2015, from the Planning Technician regarding clarification of Processing Uses on Agricultural Lands, be received for information. SUMMARY OF THE ISSUE At the March 30, 2015, Executive Committee of Council meeting, Council received Report No. PDS044-2015 to consider a Development Variance Permit (DVP) application for 260 Short Road (see Attachment C). The applicant proposed to increase the maximum permitted floor area of all buildings and structures used for a berry processing 2 2 facility from 3,731 m , approved under a previous variance, to 4,308.57 m . Council approved the DVP to proceed, but directed staff to report back to Council to clarify their recommendation of non-support outlined in report PDS044-2015 for any future applications requesting a variance to increase the maximum permitted facility size 2 beyond the permitted 2,000 m . DISCUSSION 1. In a Planning Development Services (PDS) report dated March 16, 2015 (see Attachment C) for a Development Variance Permit application for 260 Short Road, staff indicated that any application without previous Agricultural Land Commission (ALC) approval, where the subject property is in the Agricultural Land Reserve (ALR), zoned A 1 or A2 and designated as Agricultural in the Official Community Plan (OCP), would be brought forward with a recommendation of non- support by staff. 2. At the March 30, 2015 Executive Committee of Council meeting, Council requested a follow-up report for 260 Short Road to clarify staff's recommendation regarding DVP applications for berry processors within the ALR. At the time the follow-up report was about to be brought to Council in June, the federal government announced a $65 million trade deal with China and the provincial government announced new regulations to promote the use of cooperatively owned processing facilities (see Attachments A & B). Both of these announcements are anticipated to have a significant positive impact on blueberry production in the coming years. 3. Since the senior government announcements were released, Development Planning staff have been conducting additional follow-up research into the topic of on-farm berry processing, including correspondence with the B.C. Blueberry Council and Ministry of Agriculture staff. According to the B.C. Blueberry Council, blueberry crop L:\DlS\DlS-001 \Clarification Council Report\PDS060-2015.docx Report No. PDS 060-2015 Page 2 of 3 production has increased by 69% in the last 5 years, from approximately 90 million pounds in 2010 to approximately 152 million pounds in 2014. This increase in crop volume is indicative of a trend toward greater berry production and yield over the next few years. With more than $1 billion in sales in the past five years, British Columbia is now the largest highbush blueberry-growing region in the world. 4. Planning staff met with the Ministry of Agriculture on June 9, 2015, to discuss processing facilities and berry industry trends. Ministry staff estimate that blueberry crop volumes will increase to approximately 170 million pounds next year, and forecast 10-15 million pounds per annum growth between 2016 and 2024. Ministry staff are divided regarding increased processing and storage capacity in the berry industry. They understand the need to expand processing capacities within the Fraser Valley, but also note concerns around the use of ALR land for industrial scale processing facilities on agricultural land, and the need for regulations which differentiate between, and regulate, fresh packing, freezing, and cold storage uses. 5. The City is currently undertaking a comprehensive Agricultural Lands Review, during which the maximum permitted size of processing facilities on agricultural properties will be reviewed in more detail and in consultation with stakeholders such as the ALC and Ministry of Agriculture. Abbotsford Zoning Bylaw No. 2400-2014 currently permits farm product processing in agricultural zones (A 1 and A2) when accessory to an Agricultural Use (e.g. growing of berries). A condition of use for Processing is that it is permitted as long as buildings and structures housing such uses together do 2 not exceed a floor area of 2,000 m • As part of the Agricultural Lands Review, it is anticipated that the maximum size of processing facilities appropriate in an agricultural setting, and any conditions that should be considered when exceeding that threshold, will be reviewed in more detail with senior levels of government and other City departments. The initiative will also include a review of all water supply requirements to ensure that adequate fire protection is provided to these facilities, as well as Ministry of Environment requirements for waste discharge permits. 6. Based on the new information received through announcements and consultation with other agencies regarding the anticipated blueberry industry future growth production trends, staff will be recommending a revised approach to these type of variances (as compared to the March 16, 2015 Council Report) for on-farm berry processing facilities, as follows: • Continue to review each application as it is submitted, and consider each proposed variance on its individual merits, in particular in relation to its servicing and transportation impacts to the city's infrastructure; and • Complete an in-depth policy review on the policy topic of on-farm processing in conjunction with the Agricultural Lands Review, including consultations with blueberry industry stakeholders, the ALC, Ministry of Agriculture, and the general public. L:\DlS\DlS-001\Clarification Council Report\PDS060-2015.docx Report No. PDS 060-2015 Page 3 of 3 FINANCIAL PLAN IMPLICATION No financial plan implications are anticipated. IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION This strategic direction is consistent with the Agriculture Strategy. SUBSTANTIATION OF RECOMMENDATION Staff recommend that Development Variance Permit applications for processing facilities be reviewed on a case-by-case basis until such time as the Agricultural Lands Review is complete. This recommendation is in line with recent senior government announcements and policy changes that promote the expansion of the blueberry industry in British Columbia. Prepared by: Mateja Seaton Department Head Approval: Planning Technician Siri Bertelsen General Manager of Planning & Development Services Reviewed by: Darren Braun Director of Development Planning Enclosures: Attachment A - Government of Canada - News Release - Harper Government Secures Access for Fresh British Columbia Blueberries to China Attachment B - Ministry of Agriculture - B.C. Government News - New Regulations Encourage Farming on ALR Land Attachment C - Report No. PDS044-2015, dated March 16, 2015 L:\DlS\DlS-001\Clarification Counci I Report\PDS060-2015 .docx Harper Government Secures Access for Fresh British Columbia Blueberries to China - Ca... Page 1 of 3 Government Gouvernement ATTACHMENT A of Canada du Canada •••Home .. News .. News Releases .. Harper Government Secures Access for Fresh British Columbia Blueberries to China ...... Agriculture and Agric:ulture et News Release • ...,... Agri·Food Canada Agroali mentaire Canada e Share this page Harper Government Secures Access for Fresh British Columbia Blueberries to China June 24, 2015 -Abbotsford, British Columbia -Agriculture and Agri-Food Canada (AAFC) The Honourable Gerry Ritz, Minister of Agriculture, and the Honourable Ed Fast, Minister of International Trade, and Member of Parliament for Abbotsford, today announced that Canada and China have agreed to sustained market access for fresh British Columbia blueberries. Chinese inspectors are expected to visit Canada this summer to carry out a pre-shipment inspection and to authorize the first shipments of blueberries to China. Once fully implemented, the Canadian blueberry industry estimates new access to this important market to be worth $65 million annually. On the occasion of this important announcement, Minister Fast and the Honourable Norm Letnick, British Columbia's provincial Agriculture Minister, visited Westberry Farms in Abbotsford, British Columbia (B.C.) today to see first-hand how blueberry producers will benefit from this new market access. Quick Facts • British Columbia is the largest highbush blueberry-producing region in the world, with production more than doubling in the last decade. • In 2014, British Columbia produced about 65,500 tonnes of highbush blueberries, worth more than $110 million. http://news.gc.ca/web/article-en.do ?nid=99 l 209 10/8/2015 Harper Government Secures Access for Fresh British Columbia Blueberries to China - Ca... Page 2 of 3 • With a population of more than 1.4 billion, China is one of the fastest-growing economies in the world. • Blueberries are Canada's largest fruit export in terms of value and volume. Quotes "By continuing to promote Canada's food and agriculture sector as a reliable and safe supplier of choice for Chinese consumers, we are making sure our agriculture industry remains a key driver of the Canadian economy." - Agriculture Minister Gerry Ritz "This is great news for B.C.'s world-class blueberries. Our government's top priority is to create jobs, growth and long-term prosperity for all Canadians,