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Shelburne, Digby courting Halifax developer rebuffed by Municipality

140 Shelburne jobs at stake in bid rejection

In the midst of the controversy about the Shelburne Municipal Council's decision to reject a tax-sale offer from successful and award-winning Halifax developer Besim Halef and his BANC Group developments, two other municipalities in the region have shown some interest in having an industrial medical cannabis operation planned by Halef's daughter within their boundaries.

Before the Shelburne Municipal Council rejected Halef's high bid on the tax sale for the Bowood property, AtlantiCann Medical Inc had planned to headquarter that firm in the Municipality.

Warden, Council actions roundly criticized
At a public meeting of Council last week, warden Roger Tayor insinuated that Besim Halef might be a tax scofflaw if he owned property in Shelburne. Some in the room seemed shocked at the comment and Taylor and his council were roundly criticized online for their actions.

Town of Shelburne encourages development
At least one official from the Town of Shelburne is very interested in letting Mr. Halef know that Shelburne would welcome BANC, Halef, AtlantiCann and associated businesses to set up shop in Shelburne.  

Councilman - and current mayoral candidate - Roy O'Donnell was an "early adopter" of the idea to situate the marijuana operation in Shelburne. 

In 2013, O'Donnell introduced a motion at his council requiring the Town to pursue the possibility of encouraging medical cannabis (marijuana) operators to the region. He cited the South West Nova Scotia Temperature and Solar Radiation Study of 2012, which described the area as ideal for agriculture and stated "the area offers significant potential for high value agriculture crop production."

 

Town staff was directed to send letters to potential medical cannabis growers and include photographs of potential sites, including Bowood. "I became aware that AtlantiCann was considering an application to Health Canada and contacted Christine Halef to solicit her interest in Shelburne," O'Donnell says.

 

"Since the Municipality seems conflicted about welcoming BANC, Mr. Halef and AtlantiCann Medical to the Municipality, I would be very interested in a discussion with the principals in the project to invite them to consider the Town of Shelburne."

 

Properties available
The Town possesses several properties that O'Donnell thinks might work well for AtlantiCann and feels confident that they would find a willing and able workforce here. There is every indication that the legal cannabis industry is set for explosive growth, from both the medical standpoint and likely legalization of recreational marijuana. "I think any town or municipality would be crazy to pass up the opportunity to get in on the ground floor of this industry." 

 

Earlier Monday, principals with Atlanticann told SCT that, since the news has circulated about the recent rejection by the Municipality of Shelburne, the economic development department of the Municipality of Digby has expressed interest to AtlantiCann in location their operation there. 

 

Municipal councilor disappointed
Shelburne Municipal councilman David Levy also sees the great economic benefits of fostering local growth in the cannabis industry and was disappointed about his Council's decision to decline Halef's offer. "Growing the business base here is critical," he said in an interview. "Adding jobs to the area is a critical function of the Municipal Council and I have every intention of supporting any action on our part that would encourage BANC and Mr. Halef to continue to consider or re-consider Bowood as a location."

 

As an indication about the growth potential of the industry, a CBC report about a recent cannabis expo said that one independent insurance agent has more than 800 clients - including big companies licensed by the federal government - committed to the legal cannabis trade. 

 

Legalization coming
Canadian Health Minister Jane Philpott announced in April that legislation for legalization in Canada would be introduced next spring, and in June, the federal government launched a task force to study how regulation could work. 

 

Industry experts expect the sector continue growing as the federal government moves toward legalizing marijuana for recreational use. After legalization, the industry in Canada is expected to balloon to $750 million yearly.

 

Jobs, investment, production

In a presentation to Municipal Council last week, AtlantiCann vice president Ed Cayer explained to Council that the planned 30,000 square foot facility has an projected annual production for 2017 of 1600 kgs rising to 9,000 kgs by 2020. The cannabis has an estimated annual taxable production value of $1.8 million for 2017, rising to $10 million in 2017. Construction and re-fitting costs for the former gymnasium at Bowood are estimated at $4 million with start-up costs in year one of $2.4 million. The project is expected to produce 140 jobs by 2020. 
 

Land guarantee
O'Donnell told SCT in an interview Monday, that, should be the next mayor he can guarantee that land in the Town would be made available to AtlantiCann or any other licensed cannibas grower. O'Donnell said that, by Thursday, he will have a "position paper" with specifics posted on his campaign web site. "I can assure Mr. Halef and Atlanticann that, under an O'Donnell administration, the Town will bend over backwards to support a business with so much up-side potential."

 

Warden's slur "reasonable"?
None of the Municipal Councilors contacted by SCT would offer an explanation for the rejection of the BANC offer or the slur of Halef by warden Taylor. Taylor told SCT he had "nothing to say" on the matter and deputy warden Norm Wallet decined to provide any reasoning behind the decision or his suggestion that Taylor's insult of the developer was "reasonable".

 

Edging out the competition
An economic development specialist familiar with Shelburne and the Bowood property speculated that one reason could be that development at Bowood would interfere with the Municipality's efforts to promote a new industrial park nearby. Improvements at the Shelburne Industrial Park and recent sophisticated and costly marketing efforts for "Greater Shelburne" are estimated to have cost $200,000 or more. "In business," he said, "you always try to edge out or eliminate the competition."

 

The Bowood property is part of a re-tendering process by MODS, with bids due October 20.

 

No guarantees
With at least two other jurisdictions pursuing BANC and AtlantiCann, and considering the treatment by Taylor and the Council, there is no guarantee that BANC will re-offer on the property in October. 


 

SEE PREVIOUS STORIES

 

Developer challenged, lauded: /content/developer-challenged-shelburne-lau...

 

Muni to re-tender proprty: /content/shelburne-muni-re-tender-bowood-pr...

 

Rejection beyond comprehension: /content/shelburne-muni-council-rejection-m...

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