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Ottawa landlord ordered to forfeit part of property rented to unsanctioned pot dispensaries

An Ottawa property owner was forced to forfeit part of his property after renting space to unsanctioned pot shops. THE CANADIAN PRESS IMAGES/Lars Hagberg

A landlord in Ottawa says he’s waiting to reclaim a building he owns on Preston Street after he was ordered to forfeit part of the property because he had rented space to unsanctioned cannabis dispensaries.

In a statement on Tuesday, Ottawa police said the two-storey building at 352 Preston St. was rented to two unsanctioned pot shops between June 2016 and September 2018, the most recent of which was CannaLife.

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The Superior Court of Justice of Ontario ordered the restraint of the property on Sept. 5, 2018, according to police. Months later, on Aug. 20, 2019, an Ontario Superior Court justice ruled that 352 Preston St. was “an offence-related property,” the news release said.

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Since the unsanctioned marijuana dispensaries only set up shop on the main floor of the property, Judge Peter Doody ordered the owner to forfeit “a proportionate value of that property in the way of a significant sum” instead of the property itself, the police department said.

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When reached on Wednesday morning, real estate agent John Sanders confirmed that he is the owner of 352 Preston St. He declined to disclose the amount of money he was ordered to pay but said he’s made the payment and is waiting to get his building back.

He said he didn’t want to comment further on the case, claiming the order he received almost a year ago forbids him from speaking to media.

“I’m too scared to say anything,” Sanders said.

Ottawa police said they issued letters to building owners renting space to pot dispensaries starting in the summer of 2016, warning the shops were illegal and that they “could be subject to civil or criminal forfeiture.” A letter to the owner of 352 Preston St. was delivered in June 2016, according to the statement.

“Despite this, the owner continued to allow the illegal activity on his property,” police said.

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The Public Prosecution Service of Canada decided the Crown would “apply to restrain the property with a view to seek forfeiture” in consultation with the Ottawa police’s provincial asset forfeiture unit, the police department noted.

Police said there hasn’t been an unsanctioned pot dispensary in the building since early September 2018.

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Sanders said he’s the only property owner he knows of that has faced forfeiture for renting to unsanctioned cannabis dispensaries.

Ottawa police said they’re not seeking similar forfeiture from any other properties in the city at this time, but the force “believes this is an effective strategy for compliance of property owners who permit illegal [marijuana] dispensaries to operate out of their property,” Insp. Carl Cartright said in the release on Tuesday.

“We will continue to monitor this issue and will address any arising concerns from other Ottawa locations,” said Cartright, who works in the criminal investigations directorate.

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