Pubdate: Wed, 12 Feb 2014
Source: Nanaimo Daily News (CN BC)
Copyright: 2014 Nanaimo Daily News
Contact:  http://www.canada.com/nanaimodailynews/
Details: http://www.mapinc.org/media/1608
Author: Ben Ingram

MONEY FOLLOWS AS LEGAL POT ARRIVES IN THE CITY

It is the dawn of Marijuana Inc. and dollars have begun to flow into
Nanaimo by the millions.

A Duke Point construction site was abuzz with activity on Tuesday as
contractors worked to transform an industrial warehouse into a legal
growing operation that is expected to supply medical marijuana users
across the country.

Health Canada will formally launch its new medicinal marijuana program
on April 1, but in the meantime marijuana producer Tilray says the
construction budget for its Nanaimo facility exceeds $10 million.

"We'll be hiring," said Tilray vice president of patient research and
services, Philippe Lucas. "We're looking at a minimum of 40 employees
and looking for as many local hires as possible. We're really happy to
be here in Nanaimo."

Tilray is a company established by Lafitte Ventures, itself a Canadian
subsidiary of U.S. equity firm Privateer Holdings. That group was
established in 2010 to make strategic investments in a burgeoning
market for legal pot.

Lucas said he could not approximate the number of plants the Nanaimo
facility will produce, but he stressed the group intends to meet
whatever initial demand there may be.

The project has been designed to scale upwards, should the market
grow, and Tilray says it is "here to stay" in Nanaimo.

"We've got a pretty aggressive strategy to provide the absolutely best
possible cannabis supply in Canada, as well as a wide selection of
strains and genetics," said Lucas.

Tilray is in essence a biotech firm that will not only develop its own
strains of marijuana, but grow, package, and ship the final product to
the doors of registered users across Canada.

Some 14 strains of pot are expected to be available for purchase on
April 1. The shopping list includes names like purple kush, lemon haze
and specialty brands like 'Cannatonic.'

Nanaimo Mayor John Ruttan said he never imagined that the Harbour City
would one day be home to a multimillion-dollar legal grow-op.

City staff and officials had initially worried that marijuana growers
on Duke Point could apply for farm status and become eligible for
lower tax rates.

But Lafitte Ventures CEO Brendan Kennedy calmed those fears when he
informed council on Oct. 28 that the group would not try to dodge the
industrial tax base.

The mayor has since become convinced that Tilray and Lafitte intend to
be "good corporate citizens," but he said that does not mean the door
is open for other producers to set up on Duke Point without individual
consideration.

"They've demonstrated an interest in working with the city and
neighbours in that area to ensure what they're doing will be socially
acceptable," said Ruttan. "We welcome them into our community."

It remains to be seen what kind of tax revenue the facility could
generate. The previous assessment of $3.5 million for 1100 Maughan Rd.
generated about $85,000 annually for municipal coffers.

A new valuation of the property in lieu of improvements could see that
number rise. Tilray has hired contractors Heatherbrae Builders to
upgrade the building for production, packaging and testing of
medicinal marijuana.

Security upgrades are also necessary at the site.

Tilray says it has committed to locally sourcing employees, equipment
and materials whenever possible. Local engineering firms and
architects have also been hired.

In the coming months, the company expects to fill numerous positions,
from plant-trimmers to corporate employees.

A Nanaimo job fair has been discussed as a possible method to fill
vacancies.  
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MAP posted-by: Jo-D