Kapuskasing aims to profit from medical marijuana business

There's a different kind of drug deal going down in Kapuskasing.

The northern Ontario town's economic development corporation will sign a memorandum of understanding Thursdaywith CannAssistCanada, a producer of pharmaceutical grade cannabis.

The public-private partnership involves the creation of amarijuana production facility, to be built on municipal land near the airport. It's expected to create 60 full time jobs, initially.

Kapuskasingmayor AlSpaceksays the town is supplyingthe serviced land, and in return will get a five per cent equity in the business.

Not only will the community see new jobs and profits from the production, but Spacek says there will also be economic spin-offs fromsub-contractors interested in joining the market.

First products to market bylate 2018

The cost to build the facility is estimated around $8.5 million, saysCannAssistCanada CEO JaniceBritton.

Before shovels hit the ground, Britton says they needto get all the necessary permits in placeand choose a commercial developer.

Construction on the 45,000square foot building should start in the spring, and take eight months to complete.

Brittonexpects the first medical marijuana productsto be ready to distribute to customers by late 2018.

For now theKapuskasing facility is meant for medical marijuana production, but that could change in the future.

"Certainly that's a discussion that we've had,"Spaceksays.

"I think that market is a little bit uncertain at this point from a production stand-pointbecause of the economics and the business model, but certainly that's something that I'm sure everyone will be looking at closely as an opportunity down the road,"he adds.

"Our primary focus is medical [marijuana]. Of course, right now that'sall we can focus on. But once the recreationalmarket opens up we would sell into both markets,"Brittonsays.

"There is just huge opportunity to expand ... there just won't be enough producers to supply the demand, initially," she adds.

Brittonalso saysCannAssistCanada has been in negotiationswith several other communities to develop similar partnerships to the one they now have withKapuskasing.

Logical step for Kapuskasing

There has been a lot of interest in the marijuana production facility from aroundKapuskasing.

Spacek says the townprovided an opportunity for residents to raise concerns or ask questions about the project. He says during two separateconsultationsessions nonegative comments were recorded.

"One of the things that makes northern Ontario attractive is the desire for people to have economic growth and development," Spaceksays.

"At the same time a higher level of tolerance, not so much a NIMBY [not in my back yard] syndrome that you might see in the more highly-populated centres of southern Ontario."

According to Spacek,there are a lot of young people born and raised in Kapuskasing whowant to return because of the lifestyle, the cost of living,and the quality of life.

"We have all of those dynamics working in our favour."

This agreement has been years in the making. The application was submitted to the federal government in January 2014, but Spaceksays he started working on finding a cannabis production company to relocate to the town after an agriculture research facility was left vacant in 2011.

Spacekcalls this a logical step for Kapuskasing.

"We like to think we have a reputation for being forward thinking when it comes to economic development and keeping our community vibrant and stable, economically and socially."