Cannabis company prefers smaller scale
If plans for vacant greenhouse come to fruition, Cayla Bio Developments Ltd., says 50K sq. ft. is more than enough
The company that wants to turn a derelict greenhouse into a cannabis production and distribution facility in Medicine Hat says the smaller scale will be used to its advantage.
John Zang, Calgary lawyer representing Cayla Bio Developments Limited, is not concerned about other cannabis producers scaling back, suggesting a smaller operation may be what is needed.
“This development is only 50,000 square feet,” said Zang.
He uses the analogy of a large-scale brewery compared to a small craft beer operation producing what some would consider a superior product.
This development can focus on a specific strain of cannabis that does not have to appeal to the whole country but rather target a niche market that could potentially include medical cannabis, said Zang. The focus will be to produce a high quality product.
On Wednesday the municipal planning commission passed a motion for council to make a decision on amending a land-use bylaw to redesignate the empty greenhouse at 1108 Seventh St. SW on the road to the Gas City Campground, from “mixed use” to “direct control,” to facilitate the development application process.
The cannabis production and distribution facility by Cayla could create up to 25 jobs, which aligns with city council’s desire to attract industry.
In April 2018 Aurora Cannabis announced plans for a greenhouse in the area that would be more than 1.2 million square feet and have the potential to employ hundreds of people. Aurora had secured a significant power deal with the City of Medicine Hat that included $6 million in waived development fees.
Aurora’s plans were later scaled back considerably and a number of employees were laid off earlier this year.
Zang is confident about the scale of the Cayla development and says federal regulations for a cannabis production facility will not disproportionately affect a smaller operation.
It is a new venture for Cayla but its principals have been involved in other similar companies previously.
The principals of Cayla, located in Calgary, have been involved in the construction of a greenhouse operation in Foremost, said Zang. That facility, Burton Growers, which is 25,000 square feet, has just been completed.
“They already got preapproval from Health Canada for that greenhouse,” said Zang.
Darren Hirsch, councillor and member of the municipal planning commission, says the land-use bylaw amendment is only the first stage in the process for this potential development. Many aspects will be addressed along the way including at the development permit stage.
Brian Varga, councillor and chair of the commission, says the city is not incurring any costs other than time. The developer has to cover the costs.
The location is adjacent to Hoopla’s mini golf and AutoStar. The city says it will cause minimal impact to adjacent properties. It is also near The Ridge — a medical office building — two hotels and Rustic restaurant.
It is in fairly close proximity to the airport. Light and odour nuisance are mentioned and mitigating measures would need to be put in place.
A traffic impact assessment will likely be required because the intersection of Seventh Street and the Trans-Canada Highway is extremely busy. This will be discussed further at the development permit stage.
A public hearing would also need to take place on the proposed amendment for use of that land.
Preliminary discussions of the implications have already identified the need for substantial electrical infrastructure upgrades to facilitate the proposed use. The city says these would have to take place at the developer’s expense.