This is the exact embedded text of the captured official document.
Snapshot 8107fe0d9ad3 · verified 2026-08-23 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
CORPORATE REPORT
NO: R055
COUNCIL DATE: April 8, 2024
REGULAR COUNCIL
TO:
Mayor & Council
DATE: April 4, 2024
FROM:
General Manager, Planning & Development
General Manager, Corporate Services
FILE: 3900-20
SUBJECT:
Cannabis Retail in Surrey - Policy Framework and Application Process
RECOMMENDATION
The Planning & Development Department and the Corporate Services Department recommend
that Council:
1.
Receive this report for information; and
2.
Endorse the policy framework and application process for regulating cannabis retail
stores, attached as Appendix "I" and as generally described in this report.
INTENT
The intent of this report is to seek Council's endorsement of the cannabis retail policy framework
and application process in Surrey, following feedback from Council on Corporate Report No. R137;
2023 at the Regular Council Public Hearing meeting of July 24, 2023 and subsequent outreach
with cannabis retail industry representatives and the public.
BACKGROUND
On July 24, 2023, through Corporate Report No. R137; 2023 (attached as Appendix "II"), staff
proposed a framework that would initially limit the number of store locations to one in each of
Surrey's six Town Centres (City Centre, Guildford, Fleetwood, Newton, Cloverdale, and
Semiahmoo) as designated in Surrey Official Community Plan Bylaw, 2013, No. 18020 (the "OCP"),
with a priority given to City-owned sites. The proposed process also contemplated that a
competitive process would then be held to select a business operator, with the selected property
and business owner being brought to Council for consideration. Additionally, it was proposed
that in those Town Centres where a City-owned property is not found, a privately owned property
would be determined through a competitive process and brought forward for Council
consideration.
Council referred the report back to staff, specifically to review the location of stores and the use of
City-owned property for the intended purpose, and to consult with the cannabis retail sector.
Staff subsequently reviewed and revised the proposed policy and have made revisions based on
additional best practice review and feedback following community engagement.
- 2 -
Community and Stakeholder Engagement
Staff hosted a cannabis retail stakeholder workshop in October 2023 to gain insights from the
retail industry and to better understand current best practices. Staff also undertook additional
research into current cannabis retail approaches of regional municipalities. Findings from the
stakeholder workshop and best practice research was used to refine the proposed policy
framework.
In January 2024, the City launched a public engagement campaign to gather public feedback on
the proposed cannabis retail policy framework. The campaign included a project website and
public survey. In total, 4,169 surveys were completed with 96% of respondents from Surrey. The
results were supportive of retail cannabis in Surrey with 68% of respondents supporting 12 or
more stores City-wide. Additionally, 51% of respondents reported they would be likely to visit
future cannabis retail stores in Surrey. A comprehensive engagement summary is attached as
Appendix "III".
DISCUSSION
Proposed Policy Framework
Locational Requirements
The policy allows for up to two retail stores per Surrey community - Whalley/City Centre,
Guildford, Fleetwood, Newton, South Surrey, and Cloverdale - to be permitted only in areas
designated City Centre, Town Centre, or Commercial in the OCP and on lots zoned C-5
Neighbourhood Commercial Zone, C-8 Community Commercial Zone, C-15 Town Centre
Commercial Zone, C-35 Downtown Commercial Zone, or CHI Highway Commercial Industrial
Zone.
Separation Distances
Any proposed locations must be a minimum of 200-metres from the following sensitive uses, as
measured from the front door of the store to the nearest property line of the sensitive use
location:
-
Public or Provincially funded Independent Schools;
-
City Community Centres and Recreation Centres; and
-
Existing Cannabis Retail or Production Locations within Surrey.
Application Process
The City will have a 60 day application window to receive applications in one or more community
areas at a time. A Request for Expressions of Interest ("RFEOI") will be used to solicit applications
which staff will review and evaluate based on established criteria.
Pre-screening
Complete applications will be pre-screened to ensure that they meet basic requirements around
the OCP designation, current zoning, and separation requirements, as well as having valid
ownership or a lease agreement for the proposed location with a letter of permission from the
- 3 -
owner/strata. Applicants will also be required to show proof of an application for a license from
the Liquor and Cannabis Regulation Branch ("LCRB").
Evaluation
Applications that respond to the City's RFEOI and that pass the pre-screening will then be
ranked, taking into consideration the following:
-
General compliance with the submission requirements of the RFEOI
-
Location
-
Separation distances
-
Related experience of the operator
-
Parking and access plan
-
Visibility, lighting, and Crime Prevention Through Environmental Design elements
-
Signage and façade design
Selection
The RFEOI process will result in up to two applications per community advancing to Council for
consideration of site-specific rezoning, including a public hearing. Various requirements may
then be needed ahead of retail operations including, but not limited to, a suitability letter from
the provincial licensing authority, a valid license from the LCRB, a valid license from the City, and
any required building permits for tenant improvements, development permit and/or sign permit.
Next Steps
Pending approval by Council of this report, staff will prepare the RFEOI documents and seek to
open the application window in Q2 of 2024.
CONCLUSION
Following an initial review by Council and a consultation session with the cannabis retail industry
and general public, staff seek Council's endorsement of the policy framework and application
process as outlined in this report.
Original signed by
Original signed by
Don Luymes
Joey Brar
General Manager, Planning & Development
General Manager, Corporate Services
Appendix "I" Policy Framework and Application Process
Appendix "II" Corporate Report No. R137; 2023
Appendix "III" Public Engagement Summary
https://surreybc.sharepoint.com/sites/pdgmadministration/document library/corporate reports/future/cannabis retail in surrey/cannabis retail in surrey - policy framework and application process.docx
APPENDIX "I"
Proposed Policy Framework and Application Process
Subject to Council endorsement and further refinements, staff propose the following policy
framework and application process relating to cannabis retail in Surrey.
Policy Framework
Locational Criteria
Up to 2 retail outlets per Surrey community (Whalley/City Centre, Guildford,
Fleetwood, Newton, South Surrey, Cloverdale)
Permitted only in areas designated City Centre, Town Centre, or Commercial in the OCP
Permitted only on lots zoned C-5, C-8, C-15, C-35, or CHI (and CD zones based on these)
Separation Distances
Proposed locations must be a minimum of 200m from the following sensitive uses (as measured
from the centre point of the front door of store to nearest property line of sensitive use):
Public or Provincially-funded Independent Schools
City of Surrey Community Centres & Rec Centres
Existing Cannabis Retail or Production locations within Surrey
Request for Expression of Interest Pre-screening
Complete applications that respond to the City's Request for Expression of Interest ("RFEOI") will
be pre-screened to ensure that they meet the base requirements:
OCP (City Centre, Town Centre, or Commercial designation)
Current Zoning (C-5, C-8, C-15, C-35, CHI)
Separation Distances
Operator has valid ownership/lease of proposed location and Letter of
Permission from owner/strata
Proof of an application for a Cannabis Retail Store Licence to the Liquor and
Cannabis Regulation Branch ("LCRB")
General compliance with the submission requirements of the RFEOI
RFEOI Scoring Process
Applications that respond to the City's RFEOI and that pass the pre-screening will then be
ranked, taking into consideration the following:
-
Location (20 points)
-
Separation distances (10 points)
-
Related experience of the operator (25 points)
-
Parking and access plan (10 points)
-
Visibility, lighting, and Crime Prevention Through Environmental
Design ("CPTED") elements (10 points)
-
Signage and façade design (5 points)
- 2 -
Selection
Staff would inform applicants of the results of the RFEOI selection process, and up to two
applications per community would then advance to Council for consideration of site-specific
rezoning, including a public hearing. Various requirements may then be needed ahead of retail
operations, including but not limited to a suitability letter from the provincial licensing authority, a
valid license from the LCRB, a valid license from the City, and any required building permit for
tenant improvements, development permit and/or sign permit.
Application Process
ltsURREv
the future lives here.
CITY MANAGER'S
DEPARTMENT
CORPORATE REPORT
NO:
COUNCIL DATE:
REGULAR COUNCIL
TO:
Mayor & Council
DATE: July 20, 2023
FROM:
General Manager, Planning & Development
FILE:
3900-20
General Manager, Engineering
SUBJECT:
Cannabis in Surrey - Policy Overview, Next Steps, and the Future
RECOMMENDATION
The Planning & Development Department and the Engineering Department recommend that Council:
1.
Receive this report for information;
2. Approve a policy framework for regulating cannabis retail stores, attached as Appendix 'T' and as
generally described in this report;
3.
Direct staff to develop a detailed procedure and criteria for Council's consideration that will enable:
a.
assessing and selecting proponents to operate cannabis retail businesses; and
b. rezoning selected properties where such businesses will be permitted to operate;
4. Direct staff to close rezoning applications received for cannabis retail stores at 7380 King George
Boulevard (7923-0066-00) and at 13650 -102 Avenue (7923-0048-00), and to refund all application
fees;
5. Approve a City-owned site at 13455 - 72 Avenue in the Newton Town Centre as an initial "pilot"
location for a cannabis retail store; and
6. Direct staff to initiate a rezoning process for the property at 13455 - 72 Avenue to permit a cannabis
retail store.
INTENT
The intent of this report is to seek Council's approval of a general framework to guide the regulation of
cannabis retail stores in Surrey, and to receive Council's direction to develop a detailed process based on this
framework to select initial sites and proponents for this land use.
BACKGROUND
The Federal Government introduced and approved Bill C-45 legislation that legalized the production,
processing, sale, and use of recreational cannabis in Canada. The cannabis legalization legislation came into
effect on October 17, 2018.
The Province of British Columbia, through the Liquor and Cannabis Regulation Branch ("LCRB"), is
responsible for the procurement and wholesale distribution of recreational cannabis to local retailers. Local
retailers have to be pre-approved by the Province's LCRB before they can apply for a business license with
the municipality they seek to operate in.
Both the Federal and Provincial Governments have left the control of cannabis retail regulations to be
determined by the Local Governments.
APPENDIX "II"
- 2 -
It is important to note that ahead of the legalization deadline and in reviewing the challenges cannabis
legalization represents for municipalities, on March 12, 2018, Council considered Corporate Report
No. Ro49; 2018 (attached as Appendix "II"), proposing to prohibit non-medical (recreational) cannabis,
production, and distribution within Surrey, prior to Bill C-45 becoming law. This approach provided time to
develop a comprehensive cannabis framework for the City. Notwithstanding the City's stance, two
applications for rezoning of privately-owned properties to permit cannabis retail stores have been submitted,
at 7380 King George Boulevard (7923-0066-00) and 13650 -102 Avenue (7923-0048-00).
DISCUSSION
In the years since legalization of recreational cannabis, most municipalities in the lower mainland have
implemented regulations regarding cannabis retail stores, ranging from relatively permissive to relatively
restrictive. These regulations tend to focus on the overall number of permitted stores, the separation of
approved stores from other cannabis stores (and from other "sensitive land uses" such as schools, parks, and
other locations where children and youth may typically gather), and site design guidelines (scale, parking,
visibility, signage, etc.). As required by Provincial regulation, a condition of approval to operate is a letter
from the LCRB confirming the "good operator" status of the applicant.
Staff are proposing a general framework for regulating cannabis retail stores, as set out in Appendix "I", that
initially limits the number of store locations to one in each of Surrey's six Town Centres as designated in the
Official Community Plan (City Centre, Guildford, Fleetwood, Newton, Cloverdale, and Semiahmoo). Where
a City-owned site is available which meets locational criteria set out in the framework, it may be proposed as
the initial location within that Town Centre and brought to Council for consideration of rezoning. For these
sites, a competitive process will be held to select a business operator, based on criteria and a scoring system
(to be developed). Where there is no City-owned site available in a Town Centre which meets locational
criteria, a competitive process will be held to select both a site and business operator, and in these cases the
selected property will be brought to Council for consideration of rezoning along with the business operator.
As an initial "pilot" site, staff have identified a City-owned property at 13455 - 72 Avenue within the Newton
Town Centre that meets locational criteria set out in Appendix "I". Staff is seeking Council endorsement of
this location as an initial "pilot" site (see Appendix "II"). If this site is endorsed, staff will prepare a City-
initiated rezoning proposal for Council's consideration in the Fall of 2023, along with a concurrent selection
process of a business operator for this location.
In order to ensure an equitable and open selection process of sites and business operators, staff recommend
that the previously submitted rezoning applications at 7380 King George Boulevard (7923-0066-00) and at
13650 -102 Avenue (7923-0048-00) be closed, and all application fees refunded. These applicants would then
be invited to participate in selection processes as set out in Appendix "I".
Next Steps
If Council approves the recommendations in this report, staff will:
-
Bring forward a report setting out a more detailed selection process, conditions, and criteria, along
with a proposed monitoring and reporting process, for Council's consideration;
-
Advance a site-specific rezoning application to permit a cannabis retail store at
13455 - 72 Avenue;
-
Issue a Request For Proposals from qualified applicants to be selected as the business operator for a
cannabis retail store at 13455 - 72 Avenue in Newton Town Centre as an initial "pilot" site;
-
Identify additional City-owned locations within Town Centres for potential cannabis stores, and
identify those Town Centres where appropriate City-owned sites are not available; and
-
Prepare Requests For Proposals for these additional selection processes, following Council direction.
Legal Services
This report has been reviewed by Legal Services.
CONCLUSION
Recreational cannabis products have been legalized for production, distribution, and sale in Canada since
2018, and cannabis retail stores are common in many lower mainland jurisdictions. This report sets out a
measured framework, including locational and operator selection processes, to permit a limited number of
bis retail businesse o operate legally in Surrey, with an emphasis on City-owned properties.
e
Scott Neuman, P.Eng.
Manager, Planning & Development
General Manager, Engineering
Appendix "I"
Appendix "II"
Appendix "III"
Proposed General Framework for Approving Cannabis Retail Stores
Site Map for 13455 - 72 Avenue
Corporate Report No. Ro49; 2018
h1tps!//surreybc.sharcpoint.com/si1es/pdgnudministr,1tion/documcnc libr.iry/r<'gu!.ir council corpor.itc rcports/101)/juty 24th/c.:innJ.bis in surrey - policy overview, nut stt'ps, ;md the future (with cng.)/c.;,.nn.ibis in surrey- policy overview, next steps, ;md the futurc.doa
*Appendices Available Upon Request*
City of Surrey
Retail Cannabis
Framework
Survey Results Summary
March 2024
APPENDIX "III"
SURVEY SUMMARY
2
Surrey Retail Cannabis Framework | March 2024
Where we are
Who we reached
Introduction
The City has developed a draft framework to guide the sale of recreation cannabis. The framework builds on other
municipalities frameworks and input from the cannabis industry. The timeline below highlights the key stages in
the City's process to develop the framework.
The following is a summary of survey results from a recent survey the City conducted (between January 20 -
Febuary 5, 2024) to get input on the proposed framework.
BY THE NUMBERS
PROFILE OF SURVEY PARTICIPANTS
Survey Respondents
Live in Surrey
Where in Surrey Survey Participants Live
Survey Participants
City of Surrey Profile
The sale of recreational
cannabis use became
legal in Canada.
Surrey amends zoning bylaw
to align with new legislation to
allow time to assess how to
proceed.
City conducts community
engagement on proposed
framework.
City consults with
cannabis industry.
City develops draft
framework to permit
sale of cannabis.
Bring forward proposed
policy on retail Cannabis
to Council
Federal Cannabis Act
2018
2024
2023
4169
96%
25%
30%
South Surrey
Newton
Fleetwood
Cloverdale
Guildford
Whalley
City Centre
20%
15%
10%
5%
0%
Non-Surrey Residents Relation to Surrey
I visit Surrey occasionally
I work in Surrey
I commute into Surrey (for work, school, etc.)
I go to school in Surrey
Other
51%
35%
32%
3%
28%
SURVEY SUMMARY
3
Surrey Retail Cannabis Framework | March 2024
Who we reached
Age of Survey Participants
Ethnicity / Cultural Origin
Annual Household Income
0-19
years
19-34
years
35-64
years
65+
years
31%
36%
31%
23%
1%
29%
27%
21%
British Isles
Other European
South Asian
Other North American
Chinese
Other East and South East Asian
French
Indigenous
Latin, Central and South American
Aran/West Asian
Other
Prefer not answer
38%
28%
17%
14%
6%
5%
5%
5%
2%
1%
2%
11%
Less than $30,000
$30,000 to $59,999
$60,000 to $99,999
$100,000 to $149,999
$150,000 or more
Don't Know
Prefer not to answer
0%
5%
10%
15%
20%
25%
Survey Participants
City of Surrey Profile
Survey Participants
City of Surrey Profile
SURVEY SUMMARY
4
Surrey Retail Cannabis Framework | March 2024
What we heard: Locational requirements
1. Limiting the number of cannabis stores to 12 city-wide
We asked participants if they agree with limiting the
number of cannabis stores to 12 city-wide.
Overall 68% of participants support 12 or more stores
city-wide. 39% strongly agree/agree and 62% of those
who strongly disagree/disagree, said limiting the number
of cannabis stores to 12 city-wide is too few locations.
This results in 68% supporting.
Too few locations
62%
Too many locations
38%
68%
Support 12 (or more) cannabis
stores city-wide
Overall Support
39% Strongly agree/agree
47% Strongly disagree/disagree
-
62% Too few locations
-
38% Too many locations
11% Neutral
3% I don't know/no opinion
Level of agreement of those who strongly
disagree/disagree
What participants said
12 is too few locations
12 is too many locations
If participants strongly disagree/disagree, we asked please tell us why. The reasons for disagreeing fall into two
areas: (1) Participants feel 12 is too few locations and (2) Participants feel 12 is too many locations.
Top 3 comments
Top 3 comments
Not enough for size of city/ won't meet
demand.Oppose limits.
Concerns about drug use, drug addiction,
and health impacts.
Should be treated like liquor stores i.e.,
located everywhere / not limited.
Increases exposure/ accessibility to youth.
Need more competition to ensures quality,
selection.
Limit more - significantly (6 or less).
1
1
2
2
3
3
SURVEY SUMMARY
5
Surrey Retail Cannabis Framework | March 2024
What we heard: locational requirements
2. Limiting the number of cannabis stores to 2 within each Surrey community
We asked participants if they agree with limiting the
number of cannabis stores to 2 stores in each Surrey
community
Overall, 66% support 2 or more stores within each Surrey
community. 36% strongly agree/agree and 63% of those
who strongly disagree/disagree said limiting the number
of cannabis stores to 2 within each Surrey community
was too few locations.
66%
Support 2 or more cannabis stores
within each community
Overall Support
Too few locations
63%
Too many locations
37%
What participants said
2 is too few locations
2 is too many locations
36% Strongly agree/agree
48% Strongly disagree/disagree
-
63% Too few locations
-
37% Too many locations
13% Neutral
4% I don't know/no opinion
Level of agreement of those who strongly
disagree/disagree
If participants strongly disagree/disagree, we asked please tell us why. The reasons for disagreeing fall into two
areas: (1) Participants feel 2 stores in each community is too few locations and (2) Participants feel 2 stores in
each community is too many locations.
Top 3 comments
Top 3 comments
Let the market determine the number of
stores.
Concerns about youth / limit access away
from youth.
Quantity should be based on population
size/ geographical size/ density.
Support one store per community.
Apply the same considerations as liquor
stores.
Concerns about drugs/ health impacts/ drug
addictions.
1
1
2
2
3
3
SURVEY SUMMARY
6
Surrey Retail Cannabis Framework | March 2024
3. Additional Requirements
1.
Permit cannabis stores in town centres and
commercially designated areas as identified by the
Official Community Plan.
2. Permit cannabis stores on lots zoned for commercial
use (C-5, C-8, C-15, C-35, CHI, or Comprehensive
Development Zone based on these commercial
zones) that allow retail stores.
3. Limit cannabis stores to sensitive uses and exposure
to children and youth by restricting cannabis stores to
200 m or more from:
-
Schools (public and private)
-
Community and recreation centres
-
Parks and playgrounds
-
Existing cannabis retail and production
locations
What we heard: Locational requirements
We asked participants if there were any other
requirements we should consider in addition to the
location and other criteria (listed below) the City is
proposing:
49%
No
23%
Yes
28%
I don't know
What participants said
If participants said yes, the City should consider additional requirements, we asked please explain. Here's
what participants said:
Top 3 comments
Extend separation distance from schools (where a distance is
mentioned, between 300m - 1km).
Consider other sensitive areas - residential, daycares, malls, transit
stations, high risk/ crime areas, places of worship, hospitals, dog
parks, etc.
Extend separation distance in general.
1
2
3
SURVEY SUMMARY
7
Surrey Retail Cannabis Framework | March 2024
4. Other Considerations for Application and Selection Process
We asked participants if there is anything
else that we should consider regarding the
application and selection process in addition to
the following:
What we heard: Application & selection process
If applicants meet all the pre-screening (location
criteria) requirements, applications will then be
reviewed and ranked. The following selection and
scoring criteria are proposed to assess the most
suitable candidates:
1.
Experience of the operator
2. Parking and access plan
3. Visibility, lighting and crime prevention design
4. Signage and building face design
5. Surrey-based business
What participants said
If participants said yes that the City should consider additional requirements for the application and selection
process, we asked please explain. Here's what participants said:
Top 3 comments
Criminal/ police background check (including no gang affiliation/
organized crime/ money laundering etc.).
Police presence in area/ enforcement of regulations/ regular audits.
Avoid locating stores in sensitive areas (e.g., near schools and
residential areas), requiring a business plan, and encourage
competition.
1
2
3
49%
No
23%
Yes
28%
I don't know
SURVEY SUMMARY
8
Surrey Retail Cannabis Framework | March 2024
5. Visits to cannabis stores located
in other municipalities
6. Likelihood of participants to visit
retail cannabis stores in Surrey
What we heard: Visits to cannabis stores
Of those that supported 12 or more cannabis stores and 2 or more stores in each community, we
wanted to know whether they currently visit or intend to visit cannabis stores in the future.
We asked do you visit retail or online
cannabis stores in other municipalities?
We asked how likely are you to visit a
cannabis store in Surrey?
51%
Very likely/likely
52%
Yes
51% Very likely/likely
41% Very unlikely/likely
6% Neutral
2% I don't know/no opinion
52% Yes
45% No
3% I don't know
Next Steps
Feedback collected from this survey was used to help refine the proposed retail cannabis policy framework.