Closing time for unlicensed pot shops
DEADLINE NEARS: As many as 130 businesses that don’t meet city regulations could face fines, legal action
In just over a week, unlicensed marijuana shops in Vancouver will have to close their doors or be subject to fines and legal action.
Andreea Toma, the city’s director of licensing, said it’s too early to tell exactly how many will shutter, but according to figures provided by the city, that number could be as high as 130.
After seeing a significant increase in the number of marijuana-related businesses in Vancouver, and in the absence of a clear regulatory framework from the federal government, the city decided to come up with its own regulations last year.
In April 2015, council received a report from staff about proposed regulations and referred them to a public hearing. After the four-day hearing, council adopted the regulations on June 24.
The city then put out a call to all marijuana-related businesses and compassion clubs to apply by Aug. 21 to operate a legal business.
A total of 176 businesses applied. Of those that applied, 135 were rejected in October 2015 because they violated the zoning and development bylaw’s rules about where pot shops can operate. They have to be in commercial zones and at least 300 metres from schools, community centres, neighbourhood hous- es and facilities that serve vulnerable youth, as well as other marijuana-related businesses.
The 135 businesses were told they could operate until April 29. It is unclear how many are still open.
Toma said there were three businesses that didn’t take part in the application process, and they were ordered to close right away. One has closed, one has changed its business model and one continues to operate illegally. Toma said it has been fined multiple times and the city has begun legal action.
Of the 135 businesses that were rejected, 62 appealed to the city’s Board of Variance. The board started hearing appeals in February and has since denied nine appeals and deferred two so that more information could be submitted. Two appeals were successful.
An appeal hearing for four businesses was scheduled for Wednesday. Those included Divine Ventures, the Chronic Hub Social Club Society, the B.C. Compassion Club Society and the Kerrisdale Therapeutic Healing Society.
Messages left with the first three businesses weren’t returned by deadline. Updated contact information couldn’t be located for the fourth business.
Toma said enforcement against medical-marijuana-related businesses that continue to operate without a business licence after April 29 is unrelated to the Board of Variance appeal process. Therefore, any that remain open after that date are subject to enforcement.
Sixty- and 30-day notices were sent to property and business owners to remind them of the deadline. During the first week of May, bylaw officers will conduct an enforcement blitz to check on compliance.
Toma cautioned that all of the figures the city provided are “a snapshot in time,” making it hard to estimate how many businesses will close next week.
Once a business has met the zoning requirements, it can apply for a development permit. Toma said the city has approved seven development permits and is currently reviewing 15 applications.
The next step is applying for a business licence. The city has received four applications for business licences, but none have been issued to date. Toma said she hopes they will be issued before summer.
Coun. Kerry Jang said the process shouldn’t be a surprise to any of the dispensaries working their way through the process.
“This is exactly what we told all the pot dispensaries we were going to do,” Jang said Wednesday. “They said, ‘You know, we want to be treated like any other business because it is a legitimate thing.’ It helps with the legalization process and so on and so forth. So we said, ‘OK, fine. Be careful what you ask for.’
“But with rules, not all of you are going to make it through.”
Jang said it’s not the “end of the world” for dispensaries that aren’t granted permits, that they’ll simply have to find another location in which to set up shop once the next stage of applications opens up.