Town grants extension on building permit requirement for planned cannabis facility

MINTO – Krosinski Enterprises has been granted a second extension on a deadline to obtain a building permit for a planned marijuana production facility in the Palmerston Industrial Park.

In July of 2017, town council approved an offer from Jack Krosinski of Krosinski Enterprises Ltd. to purchase 15 acres in the park for a medical cannabis production facility and, “as the law permits,” recreational cannabis.

Krosinski paid the full asking price of $15,000 per acre and was also granted first refusal on an additional three acres for possible future expansion.

The original agreement required the purchaser to obtain a building permit within one year of the closing of the sale for a structure covering 15% of the lot.

On Sept. 18, 2018 council granted a one-year extension on that provision.

Last week, at its Aug. 6 meeting, council received a letter from Krosinski indicating that on May 2, Health Canada issued Krosinski Enterprises Ltd. a Confirmation of Readiness (CoR) letter for the Palmerston Cannabis Cultivation and Processing Facility, confirming the company had requirements for licensing based on submitted facility plans.

However, on June 14, Health Canada unveiled its latest set of regulations pertaining to the manufacturing and distribution of cannabis derived edibles, concentrates and topicals.

“Somewhat unexpectedly, the integration of secondary product processing under the unveiled regulations came with new technical provisions that now call for major design changes to the facility,” explained Krosinski in his letter.

“These redesigns, due to the new and onerous regulatory burdens, take a great amount of time, coordination and additional capital resources.”

In a report to council, business and economic development manager Belinda Wick-Graham recommended council approve a requested six-month extension from the current due date of Sept. 30, 2019.

Wick Graham indicated the town’s chief building official is also in agreement with the extension.

“We know it’s moving in the right direction,” she told council.

“Mr. Krosinski has always maintained communication with town staff throughout this process and we are comfortable with a six-month extension and are confident that the lines of communication on progress will be kept open and we will ensure council is kept up- to date as we move forward to site plan control,” states Wick-Graham in the report.

Mayor George Bridge noted the new plan calls for a larger building and potentially “more employment” than originally anticipated.

“It’s probably a good thing. It’s like anything else, it takes a little longer,” the mayor commented.

Council approved a six-month extension on the building permit application requirement. However, the extension does not apply to the option to purchase the additional land, which will expire Oct. 1, 2020.

Wick-Graham advised council that Krosinski received his Health Canada approval five days before new requirements came into play that state new applicants for licences to cultivate, process or sell cannabis — for either medical or recreational purposes — must have a fully-built site that meets the regulations when they submit their application.

Cambridge-based Blackrose Reserve Inc., which in March purchased a 1.73-acre parcel in the in Palmerston Industrial Park for a micro cannabis production facility, will be compelled to operate under the new requirement, Wick-Graham explained.