Appealing city refusal of pot shops draws mixed results
Striving to overcome city refusals of their businesses has proven a buzz kill for many would-be cannabis store operators.
The Subdivision and Development Appeal Board (SDAB) has 28 times upheld city officials’ initial rejection of cannabis stores, while one shop’s earlier approval was shot down after it was challenged.
That compares with the board ruling in the retailers’ favour 15 times, by overturning the city’s initial store refusals.
And out of eight cases where appeals were tossed out or withdrawn, three of the outlets involved were rejected by the city and SDAB.
The decisions against the stores are virtually always based on their failure to meet proximity criteria, such as being too close to schools, daycares or previously approved cannabis shops.
But some appeals are lodged by residents who are opposed to either cannabis or those who retail it setting up in their neighbourhood, said Dave Porteous, leasing manager for Four20 Premium Market, who’s fought several SDAB battles.
“The criteria’s really supposed to be about planning but, for some people, it’s about a moral compass that’s against cannabis, so they can hold people up,” said Porteous.
The Calgary-based pot retailer lost one appeal of a city ruling opposing one of their stores in Marda Loop but overturned another to gain approval for what’s considered a marquee location on Stephen Avenue Walk.
On the Marda Loop decision that went against them due to the proximity of an approved cannabis store, Porteous said of their effort: “we dubbed that our Doug Flutie Hail Mary pass.”
And while he wouldn’t condemn the appeals process, he said it has been used by competitors to wage a business war against them and spark costly delays in opening.
“They just basically stalled us on places we could have had open last Oct. 17, we’re paying leases (for unused space) so it’s a very frustrating thing,” said Porteous.
But some have overcome city roadblocks that involved public opposition as much as location criteria.
Two months ago, prospective owners of a marijuana store at 1343 Northmount Dr. N.W. in Brentwood won their appeal despite residents’ and the community association’s vociferous opposition, and city officials citing multiple schools and students in the area.
An SDAB ruling Nov. 12 determined it would be unfair to hold a cannabis store to tougher standards than a liquor merchant.
To fast-track the volume of cannabis store-related appeals, the SDAB has streamlined the process by adding more staff, hearing hours and by changing its quorum rules.
The SDAB said it expects to hear the final appeals by late February.
Meanwhile, the city says it has halted issuing business licences to cannabis stores since Alberta Gaming, Liquor and Cannabis imposed a freeze of its pot vending permits in November.
That shouldn’t result in a backlog of approvals once the province lifts its moratorium, whose duration remains indefinite, said Matt Zabloski, the city’s lead on cannabis legalization.