Grey Highlands council is grappling with a site application that looks to establish a cannabis cultivation and processing facility in the downtown core of Markdale.
The municipality’s bylaws were created long before cannabis was legalized by the federal government. Now, with a cannabis processing facility on its doorstep, Grey Highlands is trying to determine if this new industry is suited for a downtown Markdale location.
“Both the Municipality’s official plan and the bylaw do not directly speak to cannabis operations - growing or retail sales,” said Michael Benner, director of building and planning services for Grey Highlands during the Grey Highlands council meeting held Feb. 19.
A company by the name of Matchbox Organics has applied under section 41 of the Planning Act, to establish a micro cannabis cultivation and processing facility within the existing building at 31 Walker Street in Markdale.
In the site application, Matchbox Organics outlines its operation as a micro cultivation and processing facility. Similar to what craft breweries are to the beer industry, these kinds of micro cultivation facilities are held to a production limit, in this case 600kg annually.
The company plans to produce legal medical and recreational high-grade, FDA/Health Canada approved cannabis through a state-of-the-art facility that will implement water recycling practices and high-efficiency lighting.
No pesticides will be used in the growing process of the plants and the company also outlines plans to install an air purification system that will include UV air purification, as well as black carbon filters to control odours.
The building at 31 Walker Street was formerly home to Four Seasons Party Rentals and is zoned as downtown commercial. According to Grey Highlands Official Plan, sites designated in the downtown commercial area allow for “light industrial uses, such as assembly, processing and repairing.”
However, Markdale resident and owner of Danby Bed and Breakfast, Barb Danby is concerned about her new neighbours.
“My property and a handful of properties on Walker Street, Main Street, Radford Street and possibly Toronto Street, will eventually fall under the adverse effects as defined in the Environmental Protection Act,” Danby said. “Will the municipality take responsibility for these adverse effects on some of the closest residents to the grow operation, which will arise from the site plan approval from this project?”
Danby presented to council at the Feb. 19 meeting, saying she is concerned about how appropriate this kind of business is in this location, as well as the possible odour, parking and security issues that might arise.
“Odour is the biggest issue in the cannabis industry, does Grey Highlands have an official policy regarding the cannabis industry and odour?” Danby said. “There is overwhelming evidence in Canada that the air filtration systems installed in accordance with federal cannabis regulations are woefully inadequate. Odour complaints are becoming an epidemic within one mile of an operation. This radius encompasses all of Markdale.”
The municipality has outlined several requirements for retail cannabis stores, however, the regulations for cannabis growing and processing facilities are a little less clear.
“The Grey Highlands cannabis policy bylaw 2019-024 discourages retail cannabis sale within 150 meters of a library, playground, park or sports field. Provincial regulations restrict any cannabis store being located within 150 metres of a public school,” Danby explains. “Grey Highlands states that this applicant is processing cannabis and will not have retail sales, and so the provincial and municipal policies do not come into play.”
If the site application is approved, Matchbox Organics may be able to position its operation within 150 metres of a school, baseball diamond, library, basketball court, playground and community centre.
“Obviously when our zoning bylaw was written, cannabis was not legal, so there is nothing in our zoning bylaw that regulates where this can go,” Benner said.
Matchbox Organics selected this site and location as it needs access to potable water for the plant’s growing cycle and they would prefer to have a sealed, concrete building protected from surrounding farms. According to the application, greenhouse and outdoor cannabis farms can suffer from cross-contamination, which makes their product fail standards.
The Town of Markdale could see several benefits if Matchbox Organics were to establish its operation in town, including expanding the municipalities business base, filling an otherwise empty building, attracting additional investment and job creation. As outlined in the application, Matchbox Organics has the potential to employ 25 full-time employees.
The proposed site plan was also brought to the attention of the Grey Highlands Library Board, due to the libraries close proximity to the proposed facility.
The library board echoed several of Danby’s concerns surrounding odour, but also raised the issue of the appearance of the building.
“We are concerned that the operation is near public facilities and near the municipal playground,” said Stewart Halliday, a library board member at the board meeting held Feb. 19. “It is also a concern that the odours may get out of hand. The appearance of the building also needs to fit in with the surroundings and be compatible with the neighbourhood.”
Library board members also raised the issue of parking. With the expectation that the business will have employees, the library board discussed the issue of the facility’s overflow parking ending up in municipal parking lots, including the library’s.
The size of the building requires the facility to have five parking spaces and a loading dock. The site plan outlines the company’s plan to establish three parking spaces and loading dock along the southeast property line. In addition, Matchbox Organics plans to take advantage of the town’s downtown zoning, which allows them to pay cash-in-lieu of the remaining two spots at $650, per spot, per year.
Many of the concerns brought forward by residents and board members have been acknowledged in the site plan, including the need for appropriate fencing, lighting, security and dust control.
Retail sales will not be permitted at this location and the company will also be limited on exterior signage, which includes no product advertisements.
The site plan is also very clear on odours, stating, “[the facility] will also need to demonstrate that the existing industrial building is able to handle the cultivation and processing of Cannabis such that there will be limited emission of pollen, dust, and odours to the surrounding area.”
Despite the proponents outlining several of its plans to deal with these issues in the site application, Markdale residents continue to have concerns as to how this business plans to operate once fully functional.
”What are the requirements for this property to comply with the Cannabis Act and security plan? More importantly, will security cameras be monitoring my property and my guests, invading my privacy? Will Matchbox Organics be able to remain in compliance with the requirements as my property is only two feet away?” Danby said as she presented to council.
Following a lengthy discussion, it was decided that council would require more time to examine the concerns brought forward. As such, the council referred the site plan application to a Committee of the Whole meeting scheduled for March 18.
Council also felt that due to the location of the proposed facility, it would be in the best interest of the community to hold a public input session, as well as gathering input from the surrounding facilities, including the library and the Markdale recreation committee, who operate the nearby sports fields.
“Under the Planning Act, a site application is one of the very few application types that does not require a public meeting. Most of the other applications do have a public consultation component to them,” Benner said. “I have a few concerns with this file so I would agree to a public consultation. Is the light industrial zone the proper zone or does it need to be a full industrial zone? I think these are all things we need to talk about more openly.”
Benner added that due to the legalization of cannabis in Canada, “a lot of municipalities in Ontario are looking at updating their policy documents to address this new land use and Grey Highlands would certainly have the ability to look at that.”
A public input session is planned for March 10 at 7PM at the Grey Highlands council chambers.
