Nanaimo Council Approves Rezoning for On-Site Cannabis Sales at Duke Point Facility

A proposal to let a local cannabis producer open a small retail store inside its existing Duke Point facility has cleared a key hurdle: Nanaimo City Council has given the green light with third reading approval.

The rezoning application for 1100 Maughan Road — submitted by Broken Coast Cannabis on behalf of Dorada Ventures Ltd. — passed third reading following a public hearing on February 19, 2026. No members of the public spoke or submitted input during the hearing, according to the city’s official summary.

Broken Coast Cannabis operates as a premium craft cannabis brand under the umbrella of Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY). Tilray is a pharmaceutical, cannabis-lifestyle and consumer packaged goods company, incorporated in the United States.

This site-specific change adds “Cannabis Retail Store” as an accessory use in the Industrial (I4) zone, but only for this property and only while cannabis production and processing continue on-site. The retail area is capped at 500 square metres (about 5,380 square feet), with no new buildings or major site changes required.

• January 19, 2026: Council gave first and second reading to Zoning Amendment Bylaw 2026 No. 4500.239 with no opposition. Staff recommended moving forward, noting the proposal fits the city’s Official Community Plan, the 2018 Cannabis Retail Store Rezoning Criteria Policy, and provincial “Producer Retail Store” (PRS or “farmgate”) rules introduced in late 2022.
• February 19, 2026: Public hearing held in the Shaw Auditorium at the Vancouver Island Conference Centre. No public comments were received.
• Outcome: Third reading passed, advancing the bylaw toward final adoption (subject to any remaining provincial approvals from the BC Liquor and Cannabis Regulation Branch).

The property — the city’s only active cannabis production and processing facility — sits in an industrial area near the BC Ferries terminal, surrounded by other industrial uses, parkland, and no nearby homes. Staff had already confirmed no concerns from Island Health, the RCMP, or on traffic/parking impacts.

If the bylaw is formally adopted (likely soon, pending final provincial sign-off), Broken Coast could open a “farmgate”-style store selling directly to the public from the southern building facing Maughan Road. It would join a small number of similar on-site retail operations in B.C. (e.g., Salmon Arm, Victoria, Pitt Meadows).

No Community Amenity Contribution was required, as this is a minor accessory use inside an existing building with negligible new impacts.

Nanaimo is set to get its first on-site cannabis retail outlet — a low-key addition to the industrial edge of town that aligns with provincial changes and drew zero public pushback.