This is all temporary.
Nelson city council passed the first three readings of a new pot dispensary bylaw on Monday evening, but their assumption is the federal government’s coming legalization will make their work redundant within the next three years.
“This really is a temporary thing, allowing this until we see what the federal government is going to do,” councillor Mike Dailly said during the meeting.
“Then it will be ground zero, and we’re going to have to start all over again.”
The process so far has been a little confusing, and very controversial. Council rescinded their original bylaw attempt, which would have restricted any dispensaries from operating within Nelson city limits though it remained unclear what effect that would have had on the six existing shops.
The latest bylaw incorporates a $5,000 annual business license and a regulatory framework that sets out a list of fines for various offences, rules for operation and deadlines for paying fees. Council also put a cap on the number of dispensaries that will be approved at six.
There will be a public hearing on the new bylaw on March 6, before council votes on final adoption.
The original bylaw was supported by Mayor Deb Kozak as well as Councillors Bob Adams and Janice Morrison, but the trio are now at odds. On Monday night all three readings passed with the support of Kozak, Anna Purcell, Val Warmington and Dailly — Robin Cherbo was absent.
Community feedback was solicited prior to the meeting, and council received correspondence from two dispensaries and 36 residents. The primary feedback was that the proposed $5,000 business license fee was too high, the restrictions on signage too strong and the security requirements too stringent.
But Nelson Police Chief Paul Burkart disagrees.
According to a council document, Burkart said, “because the dispensaries often deal in cash and have a desired product, they are at higher risk of being targeted in thefts, break and enters and robberies.”
Burkart recommended that the security requirements in the bylaw remain as written.
Now council has to figure out how to make the bylaw work. One of the first questions: what happens if they receive more than six applications?
“This is new territory,” city manager Kevin Cormack said.
“We’ll look at the quality of the application and the people behind the businesses, but ultimately council might have to make some tough choices. Hopefully we’ll have six or less.”
He noted the business licenses will belong to the business owner, not the property manager, and they will be non-transferable. Also, a license is required for each individual location.
Morrison and Adams both made a point of expressing their opposition to the bylaw, though they praised the work done by staff. When the upcoming public hearing on March 6 was mentioned, Adams said it was unnecessary.
“We don’t need a public hearing,” he said. “We already know it’s illegal.”
As far as fees are concerned, council feels the $5,000 is necessary to set up the regulatory framework and enforce it.
“Unlike prescription drugs and alcohol which are regulated provincially and federally, the city would be 100 per cent responsible for regulating the dispensaries,” the bylaw reads.
“Council recently chose to regulate short-term rentals and substantially increased these fees from those charged to bed and breakfasts.”
Kozak said key to their bylaw development process was observing what other communities were doing, and the new bylaw is heavily derivative of the ones introduced in Vancouver, Victoria and Squamish.
“If you look at our population, we have one dispensary for every 1,800 residents. Compare that to Victoria, which is one for 20,000 people. If you’re just thinking Nelson, it would seem we’re pretty well served.”
