1. LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
OBOA AMTS – Session C.15
September 30, 2014
Source of Images: (left to right, then top to bottom)

2. Medical Applications of CBD, THC

3. PRESENTATION OUTLINE MEDICAL MARIHUANA PRODUCTION FACILITIES (MMPF’s)
Health Canada Regulations
Site Selection & Investigation
Municipal & Public Perspectives
Case Studies
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

4. HEALTH CANADA REGULATIONS
June 2013 – Health Canada introduced new Marihuana for Medical Purposes Regulations (MMPR)
“… to treat marihuana as much as possible like other narcotics used for medical purposes... The regulations will provide access to quality-controlled marihuana for medical purposes, produced under secure and sanitary conditions, to those Canadians who need it.” (Health Canada)
March 31, 2014 – Previous Marihuana Medical Access Regulations (MMAR) repealed
April 1, 2014 – Authorizations to possess and production licenses under the MMAR expired
MMPR: licensing requirements for production facilities
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

5. Process to Produce Medical Marihuana Notify Local Authorities
HEALTH CANADA REGULATIONS
FEDERAL REGULATIONS: OLD vs. NEW
Former MMAR
New MMPR
Process to Produce Medical Marihuana
Require “Authorization to Possess”
Authorized individuals may be licensed to produce own medical marihuana supply or designate an individual to produce on their behalf
Personal/small scale production
Require producer’s license, subject to MMAR provisions
Commercial production
Notify Local Authorities
No requirement
Written notice required to local government, fire authority & police force, advising of proposed site address & activities
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

6. Process for individual to obtain dried medical marihuana
HEALTH CANADA REGULATIONS
FEDERAL REGULATIONS: OLD vs. NEW
Former MMAR
New MMPR
Process for individual to obtain dried medical marihuana
Individual requires Health Canada authorization (i.e. Authorization to Possess)
Individual requires authorization from health care practitioner (i.e. “prescription”)
Authorized individuals have three options to obtain supply: 1) produce own; 2) designate production; 3) purchase single strain through Health Canada
Authorized individuals register with a licensed producer; variety of producers to chose from that offer a variety of medical marihuana strains
Licensed producer fills order and ships via secure courier, directly to individual or health care practitioner, as specified
No permission for personal pick-up (e.g. from a pharmacy)
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

7. HEALTH CANADA REGULATIONS
FEDERAL REGULATIONS: OLD vs. NEW
Former MMAR
New MMPR
Production Site
No production site location restrictions; allows for in-home production
Production limited to a building/place in a building
All activities permitted under MMPR are prohibited in a dwelling place
Production , distribution & call-centre sites can be separate, but each require separate license
Storefronts or retail outlets are not permitted
Allows for outdoor production, provided production site is not adjacent to a school, public playground, day care facility, or other public place frequented mainly by persons under 18 years of age
Dried marihuana must be kept indoors
Produce, package, label marihuana (dried product) only indoors and at the producer’s site
Store cannabis (the plant) only indoors and at the producer’s site
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

8. Site Security Requirements
HEALTH CANADA REGULATIONS
FEDERAL REGULATIONS: OLD vs. NEW
Former MMAR
New MMPR
Site Security Requirements
Non-specific site security measures
Applicant to provide a description of the security measures that will be implemented
Security provisions to prevent unauthorized access, including: physical barriers, intrusion detection system, visual monitoring and recording devices, monitoring by personnel, secure storage of cannabis in accordance with Health Canada’s Security Directive (e.g. vault)
All aspects of business are subject to same security measures under MMPR (e.g. production , distribution and call-centre sites)
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

9. HEALTH CANADA REGULATIONS
FEDERAL REGULATIONS: OLD vs. NEW
Former MMAR
New MMPR
Production Practices
No requirements
Requirements for dried marihuana to undergo analytical testing, quality assurance approval, and be produced/ packaged/labelled/stored in accordance with sanitation program
Air Filtration
Areas within a site where cannabis is present must be equipped with an air filtration system to prevent escape of odours, pollen
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

10. SITE SELECTION *Conditional Offer
Type/Scale of Operation
Location, Site and Building Requirements
Available Real Estate, List Potential Sites
Review of Official Plan and Zoning
Engage Municipality
Approvals
Local
Acquire Land/Building
Federal Licensing
*Conditional Offer
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

11. SITE SELECTION Type/Scale of Operation
Range from small business operations (10,000 sq. ft. or less) to large floor areas (up to 400,000 sq. ft. +)
Multi-unit / multi-tenant configurations
Existing site/building or new development
Industrial facilities or rural/on-farm/greenhouse operations
Production and/or distribution
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

12. EXAMPLE: Agricultural/Rural
Source of Images: peacenaturals.com; instagram.com/PeaceNaturals
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

13. EXAMPLES: Industrial LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
Source of Images: tweed.com
Source of Images: Google Earth
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

14. SITE SELECTION Location/Site/Building Requirements Location
Separation from sensitive uses
Transportation/access
Labour force
Environmental constraints
Site/building condition and layout
Capital needs – repair/replacement/repurposing vs. new construction
Previous use, potential for contamination and remediation costs
Multi-tenant configurations and non-medical marijuana uses
Site/building condition audits
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

15. SITE SELECTION Location/Site/Building Requirements (cont’d)
Site servicing
Capacities of public or private water, sanitary; SWM
Fire suppression
Hydro and gas services
Requirements vary by scale and growing method (e.g. hydroponic vs. soil, natural vs. artificial light/heat, ventilation, etc.)
On-site power generation (e.g. rooftop solar panels)
Security
Site and building controls and surveillance
Local availability of security services
Emergency services
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

16. SITE SELECTION Official Plan and Zoning
Land use designation and zoning
Industrial/employment area focus
Agricultural/rural area
Limited in commercial areas
Not residential
Permitted uses and definitions
Local precedents
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

17. SITE SELECTION Engaging Municipalities Initial contact
Site location and nature of interest in property
Confidentiality
Meeting with key representatives
Present details and benefits of proposal
Initial feedback / reaction
Obtain information
Establish next steps and follow-up
Gauge level of support
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

18. SITE SELECTION Engaging Municipalities Formal correspondence
Notification to fire, police services
Planning and legal opinions
Determine zoning compliance
Identify approval requirements
Municipal Approvals
Site Plan
Building Permit
Other
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

19. MUNICIPAL PERSPECTIVES
Industrial or Agricultural?
Growing vs. producing vs. manufacturing
Agricultural commodity vs. controlled substance
No outdoor growing or processing permitted
Range of zoning approaches
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

20. PUBLIC PERSPECTIVES Key Issues Security
Compatibility – odour, traffic, noise
Signage/advertising
(Mis)Perceptions – crime, addiction, etc.
Political environment
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

21. CASE STUDIES #1. PROPOSED 20,000 SQ. FT. MMPF
Review of commercial, industrial and agricultural/rural real estate listings in the areas of Wellington, Dufferin and Perth Counties
Short list of 4 potential sites identified based on:
Review of zoning permissions and definitions
Separation from sensitive land uses
Ease of addressing security and site servicing
Client needs and price considerations
Preference to retrofit an existing building requiring minimal improvements
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

22. CASE STUDIES #1. PROPOSED 20,000 SQ. FT. MMPF Location #1:
Zoning: “Agricultural (A) Zone”
Permitted under current zoning, no amendment required
Subject to Site Plan control
Private servicing
Municipality receptive to proposal
Did not proceed (property sold)
Locations #2, #3:
Re-zoning required, municipality had significant concerns with the use
Did not proceed due to required approvals and lack of municipal support
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

23. CASE STUDIES #1. PROPOSED 20,000 SQ. FT. MMPF Location #4:
Zoning: “Light Industrial (M1) Zone”
Urban location, existing vacant industrial building
Permitted under current zoning, no amendment required
Initial concerns with “growing” under industrial zone, deemed to be included as part of “Research and Laboratory Facilities” definition
Subject to Site Plan control
Municipal servicing
Municipality receptive to proposal
Client proceeded with Location #4
Acquired land with zoning certificate from municipality
Federal licensing in process
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

24. CASE STUDIES #1. PROPOSED 20,000 SQ. FT. MMPF
Health Canada concerns regarding proximity to residential
Paragraph 26(1)(h) of MMPR
Risk to public health, safety or security
Risk of cannabis being diverted to an illicit market or use
“Close proximity to residential homes” – 100m?
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

25. CASE STUDIES #2. PROPOSED MULTI-TENANT 400,000 sq. ft. MMPF
Site/Location Details
Existing industrial building
Rural location
Official Plan: Rural, recognizes existing industrial use
Zoning: “Industrial (M1) Zone”
Good separation from sensitive uses (approx. 200m to nearest dwelling)
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

26. CASE STUDIES #2. PROPOSED MULTI-TENANT 400,000 sq. ft. MMPF
Site Investigation
Site and building tours with planning and engineering team (civil, mechanical, electrical, architectural)
Detailed review of building history, condition and permits/approvals
Environmental Site Assessment / Record of Site Condition
Building Condition Audit and Capital Cost Estimates
Review of on-site servicing systems, electrical, mechanical, HVAC, etc.
Detailed review of Official Plan policies and zoning applicable to the site
Independent planning and legal opinions
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

27. CASE STUDIES #2. PROPOSED MULTI-TENANT 400,000 sq. ft. MMPF Proposal
Divide the building internally into industrial units
Rent (or sell as condo units) to individual operators/tenants
Flexible space to allow different sizes and configurations
“Turn-key” – satisfy site and building/security requirements for licensing
Reserve approx. 50,000-75,000 sq. ft. for existing “non-MMPF” industries within the same building
Minimal external site works required (security fencing)
Phased development/retrofit of existing building
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

28. CASE STUDIES #2. PROPOSED MULTI-TENANT 400,000 sq. ft. MMPF
Component of MMPF
Existing Buildings/Facilities
Zoning By-law Permissions
Administrative office space
Existing office space
Permits offices
Facilities for producing/ making, processing, drying, inspecting, adapting for sale of medical marihuana
Existing spaces/facilities for production, drying, inspecting, grading, adapting products for sale
Permits processing facilities, producing/making and inspecting, grading and adapting for sale of goods and substances
Packing/storing/ warehousing/distribution of medical marihuana
Existing spaces/facilities for packing, storing, warehousing and shipping/ distribution
Permits warehousing which includes packaging, storage and distribution of goods and substances
Laboratory facilities for medical marihuana research and inspection
Space can be renovated for laboratory
Permits research and laboratory facilities
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

29. SUMMARY
New federal rules establish licensing requirements to regulate production facilities
Wide range of MMPF’s by type, scale, production methods, servicing requirements and other variables
Industrial locations attractive for many operations; some MMPF’s in rural settings
Variety of municipal perspectives, zoning approaches and techniques, public perceptions
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014

30. CONTACT Steve Wever, MCIP, RPP Senior Planner GSP Group Inc.
LICENSED MEDICAL MARIHUANA PRODUCTION FACILITIES
September 30, 2014