Too many pot stores? Not according to provincial law

The chronic stream of new pot shops opening in Collingwood has prompted some to suggest it’s time to pass on new applications.

Several comments submitted after a CollingwoodToday article about a new application for a cannabis store at the former KFC location expressed “enough is enough.” A letter submitted to CollingwoodToday by a regular visitor to town suggested the town should be limiting the number and location of new stores before the town is “overrun.” 

In the last three years, six cannabis stores have opened in Collingwood with another two proposed for First Street locations. 

While cannabis sales may be legal now, there is no legislation limiting the number of retail stores allowed in a municipality.

Municipalities were given a choice in early 2019 to opt-in or opt-out of allowing cannabis retail stores within their boundaries. The province does not allow an opt-in decision to be reversed.

Collingwood council voted on January 14, 2019, in favour of allowing cannabis retail stores within the municipality, after several discussions, more than one staff report, and a public meeting. 

After deciding to allow cannabis retail, the town’s authority on any further controls were blunted by provincial law.

Town of Collingwood staff said the province was clear before municipalities started opting in or out for cannabis retail that there would be no limit on the number of cannabis stores allowed to locate in a given municipality. 

“The province indicated that store concentration will ultimately be determined by market demand,” said Collingwood's manager of planning, Lindsay Ayers, in an email. 

Since the sale and distribution of cannabis are regulated by the Alcohol and Gaming Commission of Ontario (AGCO) the province is the authority for issuing licenses, a process that requires the applicant to submit a location. The licence, if approved, is issued to that applicant for that location exclusively.

The Cannabis Licence Act states municipalities do not have authority to pass a Planning Act bylaw that would distinguish between using a building for sale of cannabis, and one that cannot be used for a cannabis store based on the zoning designation.

“As such, municipalities cannot specifically zone for cannabis retail stores,” said Ayers, noting the town’s official plan would include cannabis retail stores in the “retail commercial establishment” category. 

A retail commercial establishment, generally, is permitted by the town’s zoning bylaw in the C1 and C2 commercial zones. 

The town did create a policy statement (not a bylaw), endorsed by council, to indicate preferred locations for cannabis stores. The locations were within C1 and C2 zoning, which includes mostly the downtown core, and the section of commercial space on High Street. The policy also indicates the town would prefer no stores within 200 metres of any parks or schools. 

The AGCO will not approve a licence for a cannabis retail store that is less than 150 metres from a school or private school, but does not indicate any buffer zones for parks.

There are at least three stores already opened or proposed in areas where the town identified it doesn't want cannabis stores to open.

Ayers confirmed town staff have filed three objections to the AGCO about cannabis retail license applications for stores in Collingwood. 

The purpose of the policy statement is to give the town’s planning staff parameters for providing comments and objections on AGCO applications for cannabis retail licenses. It is not the same as a bylaw. 

“Despite the town’s objections, the AGCO still issued a retail store authorization for one store and the other two objections we filed are still under AGCO review with no decision made to date,” said Ayers. 

According to Ayers, the town will continue to review AGCO applications for cannabis retail stores in Collingwood and provide comments where applicable. 

Ultimately, though, the decision falls under the jurisdiction of the AGCO. 

Once the AGCO approves an application and issues a licence for a retail store at a specified address, the town cannot withhold a building permit either. 

According to Greg Miller, the town’s chief building official, if the proposed location is approved by the AGCO and the building permit satisfies applicable law, the town must issue the permit. 

Six cannabis stores have opened in Collingwood since December 2019. There are three stores on Hurontario St., two on Balsam St, and one on First Street. 

The two stores awaiting AGCO approval are Tokyo Smoke (510 First Street, formerly Ashanti), and Value Buds (70 First Street, formerly KFC). The public notice and comment period has ended for both applications. 

There is a 15-day window for public feedback for every cannabis retail licence application to the AGCO. During that time, the AGCO will accept comments on “public interest,” which is limited to “public health and safety, restricting access to youth, and illicit activities.” 

You can find out more from the AGCO about the retail cannabis licence application process online here.