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Planning commission denies two cannabis retail applications

Oct 17, 2018 | 5:05 PM

Development permit applications for a pair of proposed cannabis retail sales (CRS) locations in downtown Red Deer have been denied by The City’s Municipal Planning Commission (MPC).

This on the first day of cannabis legalization in Canada where potential retailers are hoping to see their new business ventures up and running as soon as possible.

One of the two applications before MPC on Wednesday was proposed to be located at 4804 – 50 Avenue, currently known as ‘Smoker’s Corner,’ a merchandise sales store with plans to be converted to a ‘Canna Cabana’ store.

However, The City’s current Land Use Bylaw (LUB) requires a minimum separation distance of at least 300 metres between CRS outlets to avoid ‘clustering’ of those retailers in one particular area of the city.

Inspections and Licensing officials point out a nearby CRS location has already been approved at 5111-49 Street, just 179 metres away, but recommended approval of the application, saying the orientation of the store fronts face different streets and are not visible from one another.

Members of MPC however felt the variance of 121 metres was excessive and therefore defeated the motion to approve the application.

Canna Cabana spokesperson Jason Kostiw says the decision is unfortunate for them but that he understands MPC’s concerns.

“In this instance as an existing cannabis-related retailer (Smoker’s Corner), I really felt that it had a better shot,” laments Kostiw. “The use wouldn’t really change, we would be adding one item to the inventory and our customer base is very loyal, they’re very supportive. Neighbouring businesses, we have a great relationship and a lot of support from them.”

He says Canna Cabana will now have to move on to the appeal process through the Subdivision and Development Appeal Board (SDAB).

“With the split decision, it does show that there is support for the application,” states Kostiw. “We just want to promote a culture of respect and we really think our brand of Canna Cabana provides a sophisticated, yet approachable and educational experience for new and existing users.”

A second CRS development permit application proposed for 5213 – 50 Avenue next to Hempnstuf in downtown Red Deer was not recommended for approval by Inspections and Licensing and was also denied by MPC on Wednesday.

The application from Lemuel Jairal was denied due its proximity to two other nearby CRS locations already approved at 5121-50 Avenue (89 metres away) and 5511- 50 Avenue (291 metres away).

David Elliott, owner of Hempnstuf, says the decisions are unfortunate as in his research the ‘clustering’ of cannabis retail sales locations has proven to be a successful strategy in places like Colorado for example.

“The whole neighbourhood was revived because there was such a large influx of new customers,” he exclaims. “This also discouraged crime because the more people you have walking around the neighbourhood with cell phones, they can call police, so crime dropped to nothing.”

He says with a large number of vacant buildings in downtown Red Deer, the cannabis retail sales industry could really help revitalize the city’s core.

“The whole area really needs an influx of cash,” states Elliot. “Cannabis is going to be one of the businesses that will be able to put a large amount of money into the community and their customers will also want to buy other products from other stores nearby. It’s the downtown core that’s in desperate need of entrepreneurial capital.”

Erin Stuart, Inspections and Licensing Manager with the City of Red Deer says 18 CRS development permit applications have been received so far, with 10 of them having been approved since August. Each has yet to be granted a cannabis retail sales license from AGLC, which is required before they can open their doors and begin selling cannabis.

“They are all located in the C1 (City Centre Commercial) and C4 (Commercial – Major Arterial) Districts as they are the only two districts that allow for cannabis retail sales use,” states Stuart. “However, they are spread out throughout the city.”

Stuart adds from a City perspective, they feel they were able to process the applications in an organized and relatively quick fashion.

“Based on today, there was a resolution passed by our Municipal Planning Commission referring to council for their consideration, just to provide guidelines around variances to that separation distance,” explains Stuart. “Just to further give the development authority guidelines as to how to determine whether variances are considered excessive or not, so that will be on a future council agenda.”

While Health Canada oversees the licensing of cannabis producers in Canada, Alberta Gaming and Liquor Commission (AGLC) is responsible for the wholesale and distribution of retail cannabis products in Alberta.

Albertacannabis.org is the only legal recreational online cannabis store in the province. 

According to AGLC, there are currently 19 licensed retail cannabis providers in Alberta — none in Red Deer at this time.

There are 17 Alberta retailers currently with an interim cannabis license. But again, none in Red Deer.

For more information on the province’s cannabis framework, visit aglc.ca/cannabisab.