Pubdate: Wed, 08 Jan 2014
Source: Windsor Star (CN ON)
Copyright: 2014 The Windsor Star
Contact:  http://www.canada.com/windsorstar/
Details: http://www.mapinc.org/media/501
Author: Doug Schmidt

$12M TO FUND MEDICAL MARIJUANA SITE

Secure Facility Could Employ 50 by End of Year

LAKESHORE - The birth of a new industry for the region was announced 
Tuesday with a $12-million investment in a high-security facility 
that could employ 50 people by the end of the year to grow medical marijuana.

"We stand ready to meet every expectation that Health Canada has for 
the safe, highly controlled, professional management of this 
medicinal tool for doctors," said Joe Byrne, board chairman of the 
WindsorEssex Economic Development Corporation and an investor in CEN 
Biotech, a subsidiary of Michigan-based Creative Edge Nutrition.

Leasing a 27,000-square-foot barn a half-minute's drive from the 
Essex County OPP headquarters, CEN Biotech president Bill Chaaban 
said the plan is to add a 58,000-square-foot growing facility in the 
spring and have the operation "up and running seven months from now."

"CEN Biotech is the first out of the gate, but I expect more," WEEDC 
CEO Sandra Pupatello told The Star. She said she can't divulge 
details, but last month another company, Startup ECGreen, received 
rezoning approval from Tecumseh town council to set up a similar but 
smaller commercial grow op in the Oldcastle Business Park.

A Health Canada spokeswoman cautioned, however, that there are more 
than 380 applications currently being processed, with only three - 
two in the Toronto area and one in Saskatchewan - licensed so far to 
grow, package and sell marijuana to registered patients.

Pupatello said CEN Biotech recently obtained a "ready-to-build" 
letter from Health Canada, which she referred to as a "critical step 
in the very gruelling process" toward being licensed by the federal agency.

Pupatello, who was part of the official announcement at the Jim 
Shaban farm off Manning Road just south of Highway 401, said CEN 
Biotech is part of a new growth sector in the local economy, 
producing goods for the "life sciences" market.

"Walk into any grocery store or pharmacy - natural products are 
expanding," Pupatello told The Star. She also said a growing number 
of doctors are recognizing the benefits and prescribing marijuana to 
help treat the effects of everything from glaucoma and nerve pain to 
chemo-induced nausea, seizures and multiple sclerosis.

Also at the news conference was Donald Strilchuck, who retired as a 
detective after 33 years with the Windsor Police Service and who was 
introduced as head of corporate security for CEN Biotech.

Byrne, a lawyer, businessman and former town and county politician, 
said security at the Lakeshore facility will resemble that of a 
federal penitentiary, with double perimeter fencing, 24/7 on- and 
off-site monitoring including night-vision cameras, as well as 
guards, including two former city police officers and an off-duty 
uniformed OPP officer.

The business proponents have received RCMP clearance, and nobody gets 
inside without criminal checks, according to the principals.

"It's just one more crop ... with special rules," said Chaaban. 
Upwards of 40,000 marijuana plants will be grown hydroponically from 
seed, with up to 1.3 million pounds of medical marijuana to be 
produced annually, subject to demand. The product, all electronically 
tracked, is grown, harvested, dried and packaged on-site and then 
sent by courier to the patient/client.

"It's interesting to note that Windsor-Essex might indeed be the 
prime location to marry high level security with agribusiness 
expertise," said Pupatello.

Following growing crime and fire hazard concerns, Health Canada set 
an April 1 deadline for the switch from thousands of individual 
personal-use growers of medical marijuana to a more regulated and 
corporate-controlled regime. As of the end of 2012, there were 13,362 
registered medical marijuana users in B.C. and 8,617 in Ontario, the 
top two provinces.

In a Forbes profile last week, Creative Edge Nutrition, an American 
nutritional supplement company, indicated big potential revenues, 
with current medical marijuana users paying up to $6 per gram, while 
the production cost to CEN Biotech was anticipated to cost up to $1 per gram.

Chaaban sees current export potential to such countries as The 
Netherlands, Uruguay and Israel, while there's even a potential to 
branch out locally into commercial hemp production. Given the 
"onerous" requirements and "hassle" of establishing a safe and secure 
supply of medical marijuana, Pupatello said establishing such a 
network here could provide an excellent opportunity for WindsorEssex 
County to cash in on becoming a supplier to other jurisdictions.

Byrne said it was the start of a new industry: "Our community houses 
the continent's most robust, secure border environment and as a hub 
for agriculture expertise, our region boasts the country's best hub 
for horticulture," he said.

Lakeshore mayor and county Warden Tom Bain said "We know we have to diversify."
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MAP posted-by: Jay Bergstrom