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Provincial pot: Should all B.C. cities get the same piece of the tax revenue pie?

Reporter Nick Laba91裸聊视频檚 third and final instalment in his series on cannabis agriculture in B.C.

In this third and final part of Black Press Media91裸聊视频檚 special series on cannabis agriculture, reporter Nick Laba explores the debate as to whether B.C. municipalities with less cannabis economy should get the same share of tax revenues as those with more, with a look ahead to the industry91裸聊视频檚 uncertain future.

If one thing is clear in the haze left by businesses scrambling to join the green rush this past year, it91裸聊视频檚 the wide range of attitudes municipalities have toward the growing industry.

An 91裸聊视频淎gricultural Study Tour91裸聊视频 is the first item on the program at this year91裸聊视频檚 Union of B.C. Municipalities convention in Vancouver.

Its description includes challenges posed by increased development and land prices in the Fraser Valley, but notably omits a controversial crop that91裸聊视频檚 sure to dominate discussions at the five-day summit in September: cannabis.

Regardless of their individual pot policies, local governments are eager to receive a share of the excise tax on cannabis products. However, the province still hasn91裸聊视频檛 announced how it plans to dole out these revenues, and not everyone agrees on what amounts to a fair share.

On Vancouver Island, the District of North Cowichan had zoning bylaws in place on day one of legalization, and it allowed producers like Broken Coast to be a first-mover in the cultivation market.

Mayor Al Siebring said the decision to act quickly was two-fold.

91裸聊视频淭he primary driver was the economic development side 91裸聊视频 the notion that the community could benefit from this in terms of employment and things,91裸聊视频 he said. 91裸聊视频淎nother side to it is if we don91裸聊视频檛 move on this, it91裸聊视频檚 going to happen anyway.91裸聊视频

Siebring said that because of the pre-existing culture of growing pot, they didn91裸聊视频檛 want a situation where a bunch of grows were continuing to operate illegally under the legal regime.

Broken Coast was acquired by Aphria Inc. in January for $230 million. The producer, which names its strains after B.C.91裸聊视频檚 Gulf Islands, employs around 100 staff and has expansion plans that could add another 200 jobs.

In contrast, the City of Richmond back on the mainland has yet to approve any cannabis facilities 91裸聊视频 production, processing or retail 91裸聊视频 within its city limits. A single cultivator, Emerald Therapeutics, won a legal challenge from the city to operate on agricultural land last fall.

Other municipalities can91裸聊视频檛 even agree if they91裸聊视频檙e supporting the industry or not.

B.C. VIEWS:

Just a stone91裸聊视频檚 throw from downtown Squamish, along the Sea to Sky corridor, growers with personal cultivation licences are continuing to operate among the stumpy buildings of its industrial park.

Several of them say they want to apply to become licensed producers, but zoning restrictions prevent them from upgrading their existing grows or finding sites to build new ones.

At Pacific Northwest Garden Supply, the store equipping most of Squamish91裸聊视频檚 growers, co-owner Chris Leboulch said he91裸聊视频檚 approached a city staffer several times looking for a suitable lot to purchase.

91裸聊视频淪he91裸聊视频檚 like, 91裸聊视频極h, there91裸聊视频檚 lots of places.91裸聊视频 I91裸聊视频檓 like, 91裸聊视频榃ell, tell me where they are,91裸聊视频91裸聊视频 Leboulch said. 91裸聊视频淚91裸聊视频檝e been looking for eight months, and nothing 91裸聊视频 zero, zip. If I had a spot, I would sign up right now.91裸聊视频

Pacific Northwest Garden Supply sells hydroponic equipment and nutrients to most of Squamish91裸聊视频檚 growers. (Nick Laba/Black Press Media)

The City of Squamish disagrees its zoning requirements prevent new licensed cultivation sites, and said it hasn91裸聊视频檛 received any requests to rezone.

91裸聊视频淭he current change in zoning has taken a proactive, yet cautious approach to the evolving cannabis production industry, but it has also left the door open for variances to be considered as applications come forward,91裸聊视频 city staff said in an email statement.

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Fair share of the pot pie

Civic leaders across B.C. have expressed frustration with the province for being slow to announce its scheme to share the cannabis excise tax with municipalities, which are responsible for much of the related policy and enforcement.

Of the 10-per-cent tax, the federal government takes 2.5 per cent. The remainder goes to the province, with the understanding that a portion will go to local government. In a statement last July, the Union of B.C. Municipalities proposed they should get almost half of the projected $125 million over the first two years.

People in the industry say municipalities that prohibit the industry shouldn91裸聊视频檛 get a piece of the pie, and Siebring agrees.

91裸聊视频淭o me, that makes total sense because the reality is that when you have these kinds of operations, be they dispensaries or agricultural operations, there are potentially some security concerns and increased RCMP costs,91裸聊视频 the North Cowichan mayor said. 91裸聊视频淚f you don91裸聊视频檛 have them and you91裸聊视频檙e not bearing those costs, why would you grab a share of that revenue?91裸聊视频

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Municipalities like Richmond counter by saying all civic governments should receive a significant share of the revenue to offset extras costs for policing, bylaw enforcement, training, community education and outreach.

In the Township of Langley, where production giant Zenabis received a licence for its two-million-sq.-ft. greenhouse complex in August, Coun. Nathan Pachal said the simplest solution is per-capita.

91裸聊视频淚f you try to get more complicated than that, I think things get really messy, really quick,91裸聊视频 he said.

91裸聊视频極vertaken by the East91裸聊视频

As the legal market rounds out its first year, much uncertainty remains for the future of the plant with such deep roots running through the province.

With the global trend of liberalizing weed laws, will B.C. bud continue to make a stamp on the world stage, or will the name be preserved only in marketing clich茅s?

B.C. could lose out to more progressive provinces, according to Pasha Brands government relations director Susan Chapelle, whose Vancouver-based company works with prohibition-era growers and lobbies for the craft industry.

91裸聊视频淣ew Brunswick has opened up cannabis. There91裸聊视频檚 500 jobs in their industrial park outside of St. Andrews, with tilapia farming and aquaponics,91裸聊视频 she said. 91裸聊视频淸Their mayor] opened the world cannabis conference with, 91裸聊视频榃e91裸聊视频檙e celebrating this economy.91裸聊视频 British Columbia built this economy and now we91裸聊视频檙e being overtaken by the East.91裸聊视频

Susan Chapelle owns an integrated health clinic in Squamish. During her time as a city councillor, she helped to implement progressive zoning bylaws. (Nick Laba/Black Press Media)

Chapelle said the cannabis economy adds high-paying tech jobs and offers an alternative to today91裸聊视频檚 housing-dependent rural economies, which would collapse if development slows.

Tantalus Labs CEO Dan Sutton 91裸聊视频 who said his Maple Ridge facility started getting pushback only after residents found out it was going to grow cannabis 91裸聊视频 predicts public perceptions will soften as the industry develops.

91裸聊视频淚 think that we will have hundreds of outdoor cannabis farms in British Columbia, actually in production, let91裸聊视频檚 say over the next five years,91裸聊视频 he said. 91裸聊视频淚n that timeline, it91裸聊视频檚 also entirely reasonable that we will see farm gate sales. This is something that was promised by the [BC] NDP.91裸聊视频

Farm gate sales, similar to tasting rooms at wineries, allow customers to drive up and talk to the people who make a product. Sutton said this will help ease the stigma as well.

Tantalus Labs in Maple Ridge has around 30 full-time employees and hires temporary workers for labour-intensive harvests. (Nick Laba/Black Press Media)

There are already dozens of websites for cannabis tourism companies waiting for laws to allow them to take members of the public to visit cultivation sites.

But with such a high value crop moving into mainstream agriculture, there are bound to be consequences.

Canada has enough arable land that food security won91裸聊视频檛 be an issue, said Martin Collins, policy and planning director for the Agricultural Land Commission. What it likely will do, is increase the price of farmland.

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91裸聊视频淵ou don91裸聊视频檛 pay $150,000 an acre for farmland to put your cow out there,91裸聊视频 he said. 91裸聊视频淔armland values are negatively affected, in terms of value, by the highest-value ag crop, and the trouble with cannabis is it91裸聊视频檚 so valuable. It91裸聊视频檚 going to distort land values for agriculture.91裸聊视频

As its first year goes up in a puff of smoke, the first chapter in the book of legal bud has barely been written. Many more stories are still to come.

Read the other two instalments:

Nick Laba is a 2019 graduate of the Langara College journalism program. He pursued this investigative series in partnership with Black Press Media.


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