Two new marijuana grow ops proposed for rural areas southeast of city core

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An old Nestlé factory in Chesterville and a vegetable greenhouse operation near Greely could soon be converted into marijuana grow ops.

They are the latest entrants in the green rush as Canada moves toward legalizing recreational pot this summer.

Both proposals are backed by millions of dollars in financing, have ambitious expansion plans, and promise to create jobs in rural areas southeast of the city core. The companies have applied for licences from Health Canada; the Greely grow-op also needs a municipal zoning amendment.

In Chesterville, residents overwhelmingly support the cannabis production facility proposed by CannabisCo, said Eric Duncan, mayor of North Dundas Township. “This is great for our area. People are excited about the opportunity to have jobs back in the community.”

The Nestlé factory, which produced mainly coffee, closed in 2006. CannabisCo would provide about 200 stable, high quality jobs at the old factory, plus create a “ripple effect” by boosting sales at other local shops and services, said Duncan.

The Nestlé plant is large enough — it covers 373,000 square feet — and sits on 60 acres.

“It’s a perfect fit,” said Duncan.

Duncan said the town can take comfort in the experience of Smiths Falls, which has undergone an economic revival since Tweed marijuana moved into the old Hershey chocolate factory there. “Smiths Falls is a great example of how this can be done properly and safely.”

The proposal near Greely is from Artiva, the medical marijuana arm of LiveWell Foods. The company plans to convert greenhouses for vegetables on Ramsayville Road to cannabis production.

A zoning amendment is needed since the 100-acre site is restricted to agricultural uses and medical marijuana production facilities are only allowed in industrial zones. City of Ottawa staff, in a report to be considered by the agriculture and rural affairs committee on Thursday, endorses the amendment. There would be no loss of agricultural land, since the greenhouses are already there, the report notes.

When the city passed zoning bylaws in 2014 to allow medical marijuana facilities in industrial zones, it took a conservative approach, said the city report. Staff wasn’t even aware that licences could be obtained to grow marijuana in greenhouses.

The federal government had just begun a program to allow private companies to grow cannabis for medical patients. Most of the facilities were indoors.

Health Canada has so far issued 89 medical marijuana licences across the country. Those same companies will supply recreational marijuana when it becomes legal.

Executives from Artiva declined to be interviewed about their plans before Thursday.

“We are just trying to respect the process,” said company spokesperson Kimothy Walker. “The committee should hear from us before they hear it from the media.”

CannabisCo

Where: Chesterville, 60 kilometres southeast of Ottawa, at the former Nestlé coffee plant

The company: CannabisCo was formed last week as a subsidiary of IDP Group, which owns the plant

The funding: Cannabis Wheaton, a cannabis financing company created by Chuck Rifici, co-founder of Tweed marijuana, provided $12 million for the first phase of the facility, in exchange for a minority equity stake in the company and a cut of the cannabis produced there.

The proposal: The plant has 373,000 sq. ft of space. Plans are to start by transforming that into 100,000 sq. ft. of cultivation space, with options to expand to 300,000 sq. feet.

What’s needed: The company has applied for a licence from Health Canada. The proposal does not require a zoning change.

Artiva

Where: 5130 and 5208 Ramsayville Rd. near Greely, in rural southeast Ottawa, site of a vegetable greenhouse operation

The company: Artiva, the medical marijuana branch of LiveWell Foods

The proposal: In the first phase, about 54,000 square feet of greenhouse space would be converted for cannabis cultivation, while another building on the site would be used for packaging and storage. Future phases proposed adding another 646,000 square feet, including converting existing greenhouses and building new ones.

What’s needed: The company has applied for a licence from Health Canada. A proposed zoning amendment goes before a city committee on Thursday.

jmiller@postmedia.com

twitter.com/JacquieAMiller

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