Nanaimo city staff members have outlined three recommendations in response to a rezoning application for a medical marijuana production facility at Duke Point. One of the recommendations includes possibly rezoning or amending industrial land (I4) in Duke Point to exclude the production of medical marijuana as an acceptable use. The measure is intended as a way to protect the city's industrial tax base.



The city had previously designated I4 lands as suitable for medical marijuana production use. But officials are now worried that a new B.C. Assessment policy will allow operators of medical marijuana production facilities to apply for farm status for their property, making them eligible for a far lower tax assessment.



Lafitte Ventures Ltd. has applied to rezone light industrial (I2) at 1100 Maughan Rd. to I4 zoning in order to set up a medical marijuana facility in an existing warehouse building. Lafitte CEO Brendan Kennedy told council on Oct. 28 that his firm does not intend to apply for farm designation for the proposed facility and is willing to discuss entering into a legal agreement with the city that assurance is met. However, city manager Ted Swabey has said he is concerned the city could risk losing valuable industrial tax dollars if similar medical marijuana operations set up shop and applied for farm status.



In addition to changing I4 zoning, city staff recommend preparing a Section 219 covenant or other legal agreement to restrict land use at 1100 Maughan Rd. to medical marijuana production, although staff caution this measure could prove ineffective in the long term.



The city recently collected $77,000 property tax for the parcel, $49,000 of which flowed directly into city coffers, according to the report before councillors Monday.



A third recommendation is that the city bring the issue forward to the Union of B.C. Municipalities and/or the Local Government Management Association of B.C. Planning director Andrew Tucker said rezoning I4 lands would be a step for council to take if they want to restrict other applications for medical marijuana production in the area. "... It then means we're dealing with one lot rather than the whole of Duke Point (I4 lands)," he said. City lawyers are also looking at other options regarding I4 zoning, he added.



Tucker said city staff also believe the approach in the report is "low-risk," adding that Health Canada does not expect a large number of medical marijuana facility applications throughout the country.

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