Vancouver Councillors Approve Psychedelics Store Amid Police Investigation

The sale, distribution, and possession of so-called magic mushrooms—which contain the hallucinogen psilocybin—are illegal in Canada, but there has been little uniformity in how police services deal with dispensaries selling them. (Moha El-Jaw/Shutterstock)

A Vancouver store that previously lost its license for selling psychedelics has had its license restored, despite an ongoing police investigation into the business.

Medicinal Mushroom Dispensary had its license re-instated by two Green Party councillors during a special meeting held on March 5.

The shop’s business license was suspended in May 2023 for “gross misconduct” for selling illegal substances. However, the stores continued to operate and were the target of a police raid in November 2023.

On Nov. 1, 2023, Vancouver police said they searched three storefronts in the city as part of an ongoing investigation of the sale of illegal psychedelic drugs.

“We have been clear that anyone who breaks the law by illegally trafficking controlled drugs and substances could be arrested and charged with a criminal offence,” Sergeant Steve Addison said at the time. “This includes people who traffic drugs for profit from unlicensed and illegal retail businesses.”

VPD said charges may be recommended after the investigation has concluded.

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During the special council meeting, store owner Dana Larsen’s activities were discussed, and chief license inspector Sarah Hicks detailed findings, which include a website and news stories where Mr. Larsen openly discusses selling mushrooms and other psychedelics.

Prior to the March 5 meeting, Mr. Larsen submitted a new application for a business license, in which he indicated he would continue to sell the drugs, the councillors were told.

Ms. Hicks told the committee the new business license application indicated the store would be a retail-novelty shop, selling books, posters, arts, gifts, plants, and entheogens, which is another word for chemical substances from plants.

Councillor Pete Fry, who voted to reinstate the license, noted the owner had not been “technically” convicted. He also said he has seen a lot of businesses in Vancouver selling mushrooms.

He also compared the decision to re-license the shop to the situation in 2015, when the City of Vancouver allowed cannabis stores to operate.

“There are dozens of [mushroom] shops in YVR providing safe supply to willing consumers,” Mr. Fry said in a social media post. “We saw this pattern in 2015 with cannabis and where CofV prioritized harm reduction and smart regulation over politics and prohibition.”

The other councillor who supported the decision, Adriane Carr, also compared it to the situation in 2015.

“Today @PtFry & I voted to issue a business license for education & advocacy re: medicinal psychoactive substances (eg psilocybin fungi) used to treat depression, PTSD. Same 1st step as #Vancouver did in 2015 w/cannabis which Feds legalized in 2021. Key is safe, not street supply,” she said in a March 5 post on X, formerly Twitter.

Vancouver Mayor Ken Sim said he was disappointed the councillors had used their positions for activism.

“We are extremely disappointed in the decision made by Councillors Pete Fry and Adriane Carr to use their distinct role at a business licensing hearing to engage in activism on matters beyond the jurisdiction of the City of Vancouver and not endorsed by council direction,” he said in a statement released on March 5.

Mr. Sim also said that they believe the decision to suspend the business license was “appropriate.”

“The sale of psilocybin products (hallucinogenic mushrooms) is not permitted by the federal government. All business license holders are obligated to adhere to both federal and provincial laws in addition to municipal regulations.”

Mr. Sim added that he understood the significance of the discussion, but that it should take place at the national level, not at a city business licensing one.

Mr. Fry responded to the mayor’s statement, saying he intended to call for a regulatory framework to be developed for psychedelics.

“Our rational for rejecting ‘gross misconduct’ claim was based on evidence presented,” Mr. Fry said in a post on X.

“The ‘activism’ comes next week when we introduce motion to have staff report back on a regulatory framework for psychedelics, similar to Medical Marijuana framework Vancouver led w/ in 2015.”

The Epoch Times reached out to VPD but did not hear back by publication time.