City council is mulling a settlement offer to avoid a tribunal battle over a contentious planned medical marijuana greenhouse in Ancaster.

The Green Organic Dutchman, one of Canada's fastest-growing pot producers, applied last summer for a bylaw exemption to allow a $50-million, 123,000-square-foot cannabis greenhouse at the corner of Jerseyville and Alberton roads. (The current rural size limit is 20,000 square feet.)

The pre-election council rejected the proposal over the advice of its own planners, spurring an appeal to the Local Planning Appeal Tribunal (LPAT). A hearing was expected later this year.

But frustrated Ancaster Coun. Lloyd Ferguson recently revealed councillors narrowly voted to "step back" from anticipated plans to fight the appeal following a closed-door debate late Wednesday.

Ferguson convinced councillors to hold off, however, on a final vote on a proposed settlement offer until he consults with staff on the "city-wide implications" of the still-confidential offer.

"I need to meet with staff to understand the consequences (of a settlement). Does that open up rural Ancaster, all of rural Hamilton, to these monster marijuana growing facilities?" asked the upset councillor, who has been the most vocal opponent of the planned medical pot greenhouse.

Karine Cousineau, government affairs head for the cannabis company, said via email she is not aware of a decision yet by council on a prospective settlement, but emphasized officials are "confident in our position" ahead of a hearing and hopeful a resolution can be reached.

"Our expanded greenhouse operations have the support of our neighbours and the community," she wrote. "There are many patients across Canada that are in need of the medicine our greenhouses grow. We are looking forward to serving them."

The company began lobbying community members, the business community, local politicians and election candidates in earnest last fall ahead of the municipal election in the hopes of a council change of heart.

At the same time, it also prompted outrage by continuing construction on its planned large greenhouse — despite the council rejection — by applying for a building permit to house "potted mums" rather than pot. (Greenhouses larger than 20,000 square feet are allowed in rural Hamilton for flowers and vegetables — just not for cannabis.)

The city and the company have a "case management" meeting on the LPAT appeal Tuesday. It's not clear how long city council will be given to consider the still-secret settlement proposal.

Mayor Fred Eisenberger, who is an investor in the Green Organic Dutchman, is not voting on the matter.

Despite the legal delays, the pot company recently told investors it expects to be ready for commercial production at the Hamilton site by halfway through this year. It has also ramped up its anticipated annual capacity from 14,000 kilograms to 17,500 kilograms.

mvandongen@thespec.com

905-526-3241 | @Mattatthespec

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