The City of Victoria is considering legal action against landlords who lease retail space to cannabis dispensaries that continue to operate after being turned down for rezoning.
Victoria Mayor Lisa Helps said she’s upset at the number of cannabis dispensaries that continue to operate after failing to meet city zoning and licensing requirements.
“We took the risk. We created this regulatory regime. There are rules. There is a level playing field and those that are approved are approved and those that aren’t should shut down,” Helps said.
Fines against dispensaries appear to be having little effect.
The city has issued 212 tickets worth $154,675 for offences ranging from operating without a licence to improper signage to consumption on premises. Staff say only a small fraction of the fines have been paid and most are being disputed.
The city has filed injunctions against three dispensaries, and they are working their way through the court system.
Helps said she’s frustrated at building owners who are leasing space to cannabis dispensaries that have been denied rezoning.
Councillors last week agreed to send letters to those landlords advising them that they are renting to an operator who is not in compliance with the city’s bylaws.
“I think there has to be some personal responsibility taken by the building owners,” Helps said.
Councillors had preliminary discussions about the possibility of taking legal action against the landlords and then continued that conversation in closed session to receive legal advice.
Helps later confirmed the city is considering legal action against the landlords.
Victoria in 2016 became the only municipality in Greater Victoria to regulate cannabis businesses — requiring that existing operations apply first for rezoning and then get business licences.
Since then, say city staff, it has received 39 rezoning applications. Twelve have been approved, 11 have been declined and five have been cancelled. Seven business licences have been approved and five are in process.
Under zoning provisions, dispensaries must not be within 200 metres of a school or 400 metres of each other.
It’s a provision that has troubled Coun. Geoff Young because it creates both a “first come, first served” approach to zoning and because it eventually could squeeze out any new operators — including those who wait for this summer’s federal regulations legalizing recreational pot before making an application.
“I don’t think we should be surprised that those who have been excluded from operation entirely or primarily on the grounds that another operator is within the 400-metre limit … I don’t think we should be surprised that those operators are protesting,” Young said.
Under the city’s process, a business licence is not issued to a dispensary until rezoning has been approved.
Cannabis dispensaries have been permitted to continue operations while taking steps toward rezoning, but have been expected to come into compliance with business licensing requirements, which include: no cannabis consumption on premises, operating hours restricted to between 7 a.m. and 8 p.m., and a maximum of two display signs without any images.
They also have to meet strict security and ventilation requirements. No one younger than 19 is permitted on site.
