HomeMy WebLinkAbout08-21-24 Agenda Packet
M eeting L ocation: M unicipal Center
7100 147th Street West
Apple Valley, M innesota 55124
August 21, 2024
PLA N N IN G C O MMISSIO N T EN TAT IVE A G EN D A
7:00 P M
1.Call to Order
2.Approve Agenda
3.Approve Consent Agenda Items
Consent Agenda Items are considered routine and will be enacted with a
single motion, without discussion, unless a commissioner or citizen requests
to have any item separately considered. It will then be moved to the land
use/action items for consideration.
A.Approve Minutes of August 7, 2024 Regular Meeting
B.C annabis Ordinance - Set Public Hearing
Set public hearing to consider a draft cannabis ordinance.
4.Public Hearings
A.Orchard Place Apartments C omprehensive Plan Amendment - PC24-11-P
C onsider request to amend the C omprehensive Plan Designation of 5.62-
acre property on northwest corner of 157th Street West and English
Avenue from "C" (Commercial) to "HD" (High Density Residential, 12+
units/acre).
LO C AT IO N: Northwest corner of 157th Street West and English Ave
(Outlot D, Orchard Place 2nd Addition)
PET IT IO N ER: Trident Development, LLC; and Rockport, LLC .
B.Ordinance Amending Stormwater Management Requirements - PC 24-10-
O
C onsider Ordinance amending Section 155.350 concerning stormwater
management requirements.
LO C AT IO N: C itywide
PET IT IO N ER: C ity of Apple Valley
5.Land Use / Action Items
6.Other Business
A.Zoning Ordinance Amendment - Cannabis Business Ordinance
B.Review of Upcoming Schedule and Other Updates
Planning Commission - Wednesday, September 4, 2024 - 7:00 p.m.
Planning Commission - Wednesday, September 18, 2024 - 7:00 p.m.
C ity Council - T hursday, August 22, 2024 - 7:00 p.m.
C ity Council - T hursday, September 12, 2024 - 7:00 p.m.
7.Adjourn
Regular meetings are broadcast, live, on C harter C ommunications C able C hannel
180 and on the C ity's website at www.applevalleymn.gov
I T E M: 3.A.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:Consent A genda
Description:
A pprove Minutes of A ugust 7, 2024 Regular Meeting
S taff Contact:
B reanna Vincent, Department Assistant
Department / Division:
Community Development Department
AC T I O N RE Q UE S T E D:
Approve minutes of the regular meeting of August 7, 2024.
S UM M ARY:
T he minutes of the regular Planning Commission meeting is attached for your review and
approval.
B AC K G RO UND:
State statute requires the creation and preservation of meeting minutes which document the
official actions and proceedings of public governing bodies.
B UD G E T I M PAC T:
N/A
AT TAC HM E NT S :
Minutes
CITY OF APPLE VALLEY
PLANNING COMMISSION MINUTES
August 7, 2024
1. CALL TO ORDER
The City of Apple Valley Planning Commission Meeting was called to order by Chair Kurtz
at 7:00 p.m.
Members Present: Jodi Kurtz, Paul Scanlan, David Schindler, Becky Sandahl, Phil
Mahowald, and Douglas Hlas
Member(s) Absent: Jeff Prewitt
City staff members attending: Community Development Director Tim Benetti, Assistant City
Engineer Evan Acosta, Associate Planner Sydnee Stroeing, City
Attorney Sharon Hills, and Department Assistant Breanna Vincent.
2. APPROVAL OF AGENDA
Chair Kurtz asked if there were any changes to the agenda. – None.
MOTION: Commissioner Schindler moved, seconded by Commissioner Scanlan,
approving the agenda. Roll call vote: Ayes - 6 – Nays – 0.
3. CONSENT ITEMS
A. Approval of Minutes of July 17, 2024
MOTION: Commissioner Scanlan moved, seconded by Commissioner Schindler,
approving the minutes of July 17, 2024. Roll call vote: Ayes - 6 – Nays – 0.
4. PUBLIC HEARING
None
5. LAND USE
A. Cedar Valley Learning Center Setback Variance – 14420 Glenda Drive
Associate Planner Stroeing provided a brief presentation.
The applicant, Sean Kelly of Wold Architects, was present for questions.
Chair Kurtz asked why the addition could not be placed on the entrance on the north side.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
August 7, 2024
Page 2 of 4
Mr. Kelly stated that the addition could be placed on the north side but it would not help
the flow of visitor traffic as staff would be located on the other side and visitors would be
able to access the stairs prior to engaging with staff. The intent is that staff would engage
with visitors before they can access the stairs and other areas of the building. In order to
do the north side, the addition would need to be larger to accommodate moving staff into
that location as well and would also be more costly.
Chair Kurtz asked if there are students present in the building during regular school
hours.
Mr. Kelly stated that the building functions for community education including adult
education and early childhood education and does not follow the typical K-12 schooling
hours.
Commissioner Hlas asked if the north side entrance would be closed.
Mr. Kelly stated that the northern entrance would remain as it is necessary for building
egress.
Commissioner Hlas asked if there were going to be any other changes such as lighting.
Mr. Kelly stated there would be no other changes other than a sidewalk would be
modified to go around the addition.
Commissioner Mahowald pointed out that even if a card reader was installed on the
elevator to restrict access, there would still be an open stairwell near the north entrance.
Commissioner Scanlan asked if there would be directional signage added.
Mr. Kelly stated that the plans are preliminary for the purpose of the variance but
wayfinding signage would be necessary once approved.
Commissioner Scanlan commented that if the project were approved, he would like the
lighting to be evaluated so that there are no dark spots as this building is used in the
evenings.
Mr. Kelly stated that they would work with staff to ensure lighting is adequate on the site.
Commissioner Mahowald asked if there have been other variances along Cedar Ave with
smaller setbacks.
Associate Planner Stroeing stated that there have been smaller setbacks such as The
Legends (20’), Huntington Bank (10’), Cider Ridge (25’).
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
August 7, 2024
Page 3 of 4
Commissioner Mahowald asked if there is any consultation with MNDOT or any other
highway entities or are the setbacks only a concern of the City.
Associate Planner Stroeing stated that the City has not had to consult with MNDOT for
these variance requests in the past, they are not located in the right-of-way.
Assistant City Engineer Acosta stated that MNDOT would not review as these are county
roads and the City does not consult with the county on these requests.
Commissioner Sandahl pointed out that the applicant had stated earlier that it would be
cost prohibitive to have the vestibule located on the northern entrance, but since
economic considerations alone do not constitute a practical difficulty, are there other
reasons this entrance would not work?
Mr. Kelly stated that there would also be a loss of parking and affecting traffic flow, it
would not be just cost prohibitive.
Commissioner Schindler stated that he believes the request meets the definition of a
practical difficulty.
MOTION: Commissioner Scanlan moved, seconded by Commissioner Schindler, to
recommend approval of a variance reducing the setback from 50’ to 38’ from
Cedar Ave based on updated findings 1 through 9 and subject to conditions listed
in the staff report, for the construction of a secure vestibule at 14420 Glenda Drive.
Roll call vote: Ayes – 6 – Nays – 0.
6. OTHER BUSINESS
A. Review of Upcoming Schedule and Other Updates
The next Planning Commission meeting is scheduled for Wednesday, August 21, 2024,
7:00 p.m. The next City Council meeting is Thursday, August 8, 2024, 7:00 p.m.
CD Director Benetti shared that the August 21st meeting will be City Planner Kathy
Bodmer’s last meeting as she will be retiring on September 6th.
7. ADJOURNMENT
Chair Kurtz asked for a motion to adjourn.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
August 7, 2024
Page 4 of 4
MOTION: Commissioner Scanlan moved, seconded by Commissioner Schindler, to adjourn
the meeting at 7:23 p.m. Roll call vote: Ayes – 6 – Nays – 0.
Respectfully submitted,
______________________________________
Breanna Vincent, Planning Department Assistant
Approved by the Apple Valley Planning Commission
on 08/21/2024 . Jodi Kurtz, Chair
I T E M: 3.B.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:Consent A genda
Description:
Cannabis Ordinance - Set P ublic Hearing
S taff Contact:
A lex Sharpe, A I C P, Planning and Economic Dev. S pec.
Department / Division:
Community Development Department
Applicant:
City of Apple Valley
P roject Number:
P C24-12-O
Applicant Date: 60 Days: 120 Days:
AC T I O N RE Q UE S T E D:
Adopt resolution setting public hearing to consider a draft cannabis ordinance.
S UM M ARY:
T he Planning C ommission is requested to adopt the draft resolution setting a public hearing
for the September 18, 2024, meeting to receive comments regarding a draft cannabis
ordinance.
B AC K G RO UND:
§ 155.400 of the C ity's Zoning Ordinance requires that either an applicant, the Planning
Commission, or C ity C ouncil set a public hearing for a text amendment to the zoning
ordinance. T his item is procedural, all discussion on the ordinance will occur during the
public hearing.
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Ordinance
CITY OF APPLE VALLEY
PLANNING COMMISSION RESOLUTION NO. 2024 -
A RESOLUTION SETTING A PUBLIC HEARING FOR AMENDMENTS TO THE ZONING
ORDINANCE REGARDING CANNABIS BUSINESSES
WHEREAS, pursuant to Minnesota Statutes 462.357 the City of Apple Valley has
adopted, as Title XV of the City Code of Ordinances, zoning regulations to control land uses
throughout the City; and
WHEREAS, in 2023 and through amendments in 2024, the State of Minnesota Legislature
adopted into Statute: Chapter 342. Cannabis, which regulates cannabis businesses; and
WHEREAS, Chapter 155. Zoning, regulates land uses permitted within the City; and
WHEREAS, Chapter 155. Zoning, does not include land use provisions as adopted in State
Statute; and
WHEREAS, the Apple Valley Planning Commission finds that current conditions warrant
the consideration of text amendments to Chapter 155. To regulate cannabis businesses as related to
the Zoning Ordinance; and
WHEREAS, Section 155.400 of the City Code of Ordinances provides for such procedure
to effect an amendment to the Zoning Ordinance.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Apple Valley, Dakota County, Minnesota, that a public hearing before the Apple Valley Planning
Commission be set for September 18, 2024, at 7:00 p.m. to consider amendments to the zoning
ordinance regarding cannabis businesses.
ADOPTED this 21st day of August, 2024.
__________________________________
Jodi Kurtz, Chair
NOTICE OF PUBLIC HEARING
PROPOSED AMENDMENTS TO THE ZONING ORDINANCE
IN THE CITY OF APPLE VALLEY, DAKOTA COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that the Planning Commission of the City of Apple Valley,
Dakota County, Minnesota, will meet at the Municipal Center, 7100 W. 147th Street, on Wednesday,
September 18, 2024, at 7:00 p.m., or as soon thereafter as possible. The purpose of the meeting is
to hold a public hearing on proposed amendments to the zoning ordinance regarding cannabis
businesses.
NOTICE IS FURTHER GIVEN that these proceedings are instituted by action of the Apple
Valley Planning Commission.
All interested parties will be given an opportunity to be heard at said time and place.
DATED this ____th day of August, 2024.
_____________________________________
Christina M. Scipioni, City Clerk
I T E M: 4.A.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:P ublic Hearings
Description:
Orchard P lace Apartments Comprehensive P lan A mendment - P C24-11-P
S taff Contact:
K athy Bodmer, A I C P, City Planner
Department / Division:
Community Development Department
Applicant:
Trident Development, L L C and Rockport, L L C
P roject Number:
P C24-11-P
Applicant Date: 7/26/2024 60 Days: 9/24/2024 120 Days: 11/23/2024
AC T I O N RE Q UE S T E D:
Open public hearing, receive comments, close public hearing.
It is the policy of the Planning Commission to not take action on an item on the same
night as its public hearing.
S UM M ARY:
Trident Development, LLC, submitted an application to amend the land use designation of a
proposed 5.62-acre property from "C" (C ommercial) to "HD" (High Density Residential).
T he subject property is located on the northwest corner of 157th St. W. and English Ave. T he
subject property would be the southern 5.62 acres of the existing 16.2-acre Outlot D of
Orchard Place 2nd Addition development. Only the C omprehensive Plan amendment is
requested at this time. T he request for a rezoning, subdivision by preliminary plat, and site
plan review/building permit authorization would be requested separately after the
Comprehensive Plan Amendment process is completed.
Outlot D was originally planned to be part of the Orchard Place development, a large
commercial retail area on the northwest corner of Pilot Knob Road and 157th Street W. A
master plan created in 2017 showed a single large, big-box retail center on the west side of
the development with detached commercial buildings on the east along Pilot Knob Road.
West of the commercial area was a large ponding feature area with trails connected to the
North C reek G reenway. Once the area was under development, the peripheral commercial
sites along Pilot Knob Road were developed while the big box retail center lagged behind. A
revised master plan in 2019 showed two medium-sized big box retail buildings flanking a
center trailhead feature near the pond water feature. T he plan showed the commercial center
integrated with and connected to the trails and pedestrian amenities that are part of the North
Creek Greenway.
T he petitioners state that there is currently not enough market demand to develop the
property as originally planned as a large-box or medium-box commercial shopping center.
Instead, they propose to develop the site with multiple family residential apartments which
will help to provide rooftops and activity for the nearby retail shopping area.
T he petitioners request consideration of only the C omprehensive Plan amendment at this
time, but provided a colored site plan and a color building rendering showing how the 4-story,
128-unit building might look. T he plans presented to date show a single building with a
combination of underground and at-grade garage parking to provide 128 garage units. Site
amenities include a community patio/grilling area, dog run, sport court and kids play area.
Sketch Plan and Resident C orrespondence: T he Planning C ommission reviewed a Sketch
Plan proposal of this project at its February 7, 2024, meeting. Following that meeting, two
letters were received from the public. T he letters are attached.
B AC K G RO UND:
When the City reviews a request to amend the comprehensive plan, it has the most discretion
to determine whether or not the use is appropriate for the location and consistent with the
development vision for the area. T he C ity's 2040 Comprehensive Plan for the area was
based on the Master Plan of Orchard Place presented in 2017 and updated in 2019. Large-
box retail was proposed first. Later, medium-box retail was presented. In the end, the east
side of the development along Pilot Knob Road developed quickly, but the larger pad sites
on the west side of the site have lagged.
Issues and questions for further discussion:
1. Have conditions changed that impact the land use vision for the area?
2. Is multiple family residential an appropriate use on this site?
3. Will multiple family residents be impacted by the nearby commercial development,
including some auto-oriented uses (car wash and tire installation store? How can
conflicts be mitigated?
Trident Development, LLC C omments:
Not uncommon to see high density housing next to retail areas. Apple Valley has
several examples surrounding the downtown and Central Village areas.
Apartments complement and benefit nearby businesses. T hey provide convenient
housing for employees and convenient access to retail and services for the residents.
High density housing provides a transitional use between higher intensity retail and
lower intensity housing.
Apple Valley's 2040 Comprehensive Plan:
"T he C ity benefits from high-density development by capitalizing on efficiencies in the
provision of infrastructure, services, and attached-building construction, and the
increased concentration of taxpayers per unit area."
"High-density residential neighborhoods benefit from proximity to services such as
shopping, transit, daycare, recreation, and other similar uses."
"Retail shopping centers and service providers likewise benefit from a dense local
customer base. Providing these uses near to high-density residential leads to mutual
efficiencies and lessens dependence on private vehicles."
"High-density residential developments should be located where services are currently
available and convenient or are expected to be in the future."
B UD G E T I M PAC T:
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Memo
Map
Applicant L etter
Correspondence
Correspondence
CITY OF
MEMO
Public Works
TO: Kathy Bodmer, AICP, City Planner
FROM: Evan Acosta, Assistant City Engineer
DATE: August 15, 2024
SUBJECT: Orchard Place 2nd Addition Trident Development Comp Plan Amendment
Kathy,
The following are comments regarding the materials submitted in the Orchard Place 2nd Addition Trident
Development Comp Plan Amendment Application.
General
1.The City’s Traffic Engineering Consultant has completed a preliminary traffic analysis
based on the proposed land use. Further analysis is required during the site plan
review process, when more site-specific information is available.
Traffic
•The proposed development consists of 128 apartment units, while the existing zoning would
allow for 73,498 square feet of retail space.
•The proposed apartment development is expected to generate 47 AM peak hour, 50 PM peak
hour, and 581 daily trips.
•The potential zoned retail space could have generated 259 AM peak hour, 664 PM peak hour,
and 6,945 daily trips.
•As a result, the proposed development would be expected to generate 212 fewer AM peak
hour, 614 fewer PM peak hour, and 6,364 fewer daily trips.
Land Use - ITE Code Units/Size AM In AM Out PM In PM Out Daily
Proposed Development
Multifamily Housing (Mid Rise) - 221 128 units 11 36 30 20 581
Zoned Potential Development
Shopping Center - 821 73,498 SF 161 98 319 345 6945
Difference 150 62 289 325 6364
Site
1.The sanitary sewer at the site will accommodate the proposed change in use.
a.Current Allocation: 2,000 Gal/AC/Day
b.Proposed High Density Use: 1,960 Gal/AC/Day
02418394
August 2024
Trip Generation Figure 1Trident Development Trip Generation Review
City of Apple Valley
1 (2)
(
6
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2
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7
(5) 9
(5) 10
3
(
7
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2
(
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7
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4 (10)
ORCHARD PLACEAPARTMENTS
µLOCATION MAP
SITE
Lunds &Byerlys
SchulerShoes ChaseBank
Mr. CarWash
ApprovedLes SchwabTires
Crisp & GreenNewt's Chipotle
Punch PizzaStarbucks
TexasRoadhouse
TargetApple ValleySouth
Apple ValleyLiquor
Think MutualBank
157TH ST W
160TH ST W
PILOT KNOB RD
155TH ST W
ENGLISH AVE
EVERGLADE AVE
156TH ST W
FAIR HILL WAY
154TH ST W
EMPEROR AVE
158TH ST W
EVERGREEN AVE
156TH WAY
FAIRBOOK CT
EVERGLADE CT
158TH ST W
PILOT KNOB RD
ENGLISH AVE
158TH ST W
Nearmap US
INS
P
HD
MIX
LD
LD
SITEHD
P
C
C
CC
P
P
HD
MD
LD
LD MD
LD
LD
LD
LD
LD
MD
LD
MD
HD
HD
157TH ST W
155TH ST W
PILOT KNOB RD
FINCH AVE
158TH ST W
E
M
B
R
Y
P
A
T
H
ENGLISH AVE
FAIRFIE
LD DR
DO D D BLVD
EVERGLADE AVE
C O B B L E S T ONE LAKEPKWY
1
5
6
THSTW
154TH ST W
COBBLESTONE L A K E P KWY S
JOHNNY CAKE RIDGE RD
FAIR HILL WAY
FAIRCHILD WAY
153RD ST W
EMPEROR AVE
E
A
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B
A
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FJO R D A V E
FIRT R EE LN
E A G LE C R E EKWAY
158TH CT W
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156TH WAY
EAMES WAY
EDDY CREEK WAY
FINC H LN
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T
FESCUE CT
FINESSE WAY
ENGLISH AVE
158TH ST W
158TH ST WPILOT KNOB RD
1 5 8 T H S T W
µ
ORCHARD PLACEAPARTMENTS
COMPREHENSIVE PLAN MAP ^
SITE
157TH ST W
155TH ST W
PILOT K
NOB
RD
FIN
C
H AV
E
FJORD AVE
158TH ST W
E
M
B
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154TH ST W
COBBLESTONE L A K E P K WY S
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153RD ST W
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E L M WOOD WAY
158TH CT W
156TH WAY
E
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FINC H L N
EAMES WAY
EDDINGTON WAY
E L M C R OFTWAY
EDDY CREEK WAY
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158TH ST W
1 5 8 T H S T W ENGL
ISH AVE
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NOB
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158TH ST W
156TH ST W
P
P
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MD
LD
LD
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LD
LD
LD
LD
LD
MDLD
LD
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HD
LD
HDINS
Existing
Proposed
PARCEL 1
461,727 SF
10.60 AC
PARCEL 2
244,993 SF
5.62 AC
51
7
.
7
5
DENOTES EXISTING CATCH BASIN
DENOTES EXISTING HYDRANT
DENOTES EXISTING SANITARY MANHOLE
DENOTES EXISTING STORM MANHOLE
DENOTES EXISTING UTILITY BOX
DENOTES EXISTING SERVICE OR CLEANOUT
DENOTES IRON MONUMENT FOUND
DENOTES IRON MONUMENT SET
DENOTES EXISTING POWER POLE
DENOTES EXISTING LIGHT POLE
DENOTES EXISTING CONSERVATION POST
OR WET LAND BUFFER POST
DENOTES EXISTING TREE8" TREE
000.0
DENOTES WOOD HUB
DENOTES NAIL
DENOTES EXISTING RETAINING WALL
DENOTES PROPOSED RETAINING WALL
DENOTES EXISTING ELEVATION
DENOTES PROPOSED ELEVATION
DENOTES AS BUILT ELEVATION
(000.0)
000.0
DENOTES EXISTING TREELINE
DENOTES DIRECTION OF SURFACE DRAINAGE
DENOTES EXISTING FENCE
LEGEND
DENOTES EXISTING F.E.S.
DATE____________ REG. NO._________
I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED
BY ME OR UNDER MY DIRECT SUPERVISION AND
THAT I AM A DULY LICENSED LAND SURVEYOR
UNDER THE LAWS OF THE STATE OF MINNESOTA.
EXHIBIT FOR OUTLOT D
APPLE VALLEY MINNESOTA
1
1
JM 5/20/2024
AS SHOWN
18492.01
PLYMOUTH, MN 55447
2655 CHESHIRE LANE NORTH
HJ DEVELOPMENT
NOTE:
483655-22-2024
From: Community Development <Community.Development@applevalleymn.gov>
Sent: Thursday, February 15, 2024 4:04 PM
To: Kathy Bodmer <Kathy.Bodmer@applevalleymn.gov>
Cc: Tim Benetti <Tim.Benetti@applevalleymn.gov>; Alex Sharpe
<Alex.Sharpe@applevalleymn.gov>; Sydnee Stroeing <Sydnee.Stroeing@applevalleymn.gov>
Subject: FW: Community member feedback regarding medium/high-density housing
From: Ryan Panning <XXXX>
Sent: Thursday, February 15, 2024 4:03 PM
To: Community Development <commdev@ci.apple-valley.mn.us>
Subject: Community member feedback regarding medium/high-density housing
Hi, I intended to contact the Planning Commission but there doesn't seem to be contact
information, so I was able to find this email address on the city site and figured I'd start here. What
is the best way to provide community feedback regarding development projects?
My concern is around medium/high-density housing and see that another large apartment complex
might be proposed for Apple Valley. To me it seems like apartment complexes have doubled in the
14 years I've lived in this area (although I don't have data to back that up) and so has traffic and the
sheer number of people. We don't even go to events at Kelly Park anymore due to the overcrowding,
being surrounded by apartment complexes now and limited parking. While there has been
expansion in single family homes as well, I feel that apartment complexes are more-so adding to
the traffic and overcrowding and just wanted to voice my concern with adding even more in the
limited undeveloped land that is left.
Again, just wanted to express my concerns to someone who helps lead development in the city,
otherwise my concerns wouldn't even be known to anyone else. I'd be happy to continue with
follow-up discussion, or if there is a better place to send my feedback.
Thanks,
Ryan Panning
13165 Floral Court
763-498-1132
I T E M: 4.B.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:P ublic Hearings
Description:
Ordinance A mending S tormwater Management Requirements - P C24-10-O
S taff Contact:
Matt Saam, Public Works Director
Department / Division:
Community Development Department
Applicant:
City of Apple Valley
P roject Number:
P C24-10-O
Applicant Date: 60 Days: 120 Days:
AC T I O N RE Q UE S T E D:
Open public hearing, receive comments, close public hearing. It is the policy of the Planning
Commission to not take action on an item on the same night as its public hearing.
However, if there are no outstanding questions or comments from the public or the Planning
Commission, the Planning C ommission may wish to move this item forward. T he following
motion is recommended to move the item forward:
Recommend approval of draft ordinance amending Section 155.350 to update and
clarify stormwater management requirements.
S UM M ARY:
Public Works staff is proposing amendments to Section 155.350 of the C ity's zoning
regulations. Section 155.350 sets forth drainage and impervious surface requirements. T he
purpose of the amendment is to delete the drainage requirement provisions which will be
moved to C hapter 152, Natural Resources Management regulations, with an Ordinance
Amendment that will be considered by Council within the next few weeks. T he drainage
requirements, when added to C hapter 152, will be amended to delete outdated stormwater
design criteria and to include that applicants must follow the C ity's Stormwater Management
Plan requirements when land is developed or disturbed. Section 155.350 will maintain the
impervious surface requirements.
B AC K G RO UND:
T he Minnesota Pollution C ontrol Agency issued a new Municipal Separate Storm Sewer
System (MS4) Permit in 2020. As required by the permit, the C ity must modify its
regulations and policies to be compliant with the latest revisions to the permit. In reviewing
the existing ordinances, staff determined revisions were needed to existing code to eliminate
outdated language and provide for a one-stop shop for development projects impacting land
use.
T he proposed ordinance amendment to C ity C ode C hapter 155, Section 155.350, drainage
requirements, will be moved to C ity C ode Chapter 152 with amendments to remove outdated
stormwater runoff design criteria and require compliance with the City's Surface Water
Management Plan requirements.
B UD G E T I M PAC T:
N/A
AT TAC HM E NT S :
Ordinance
CITY OF APPLE VALLEY
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF APPLE VALLEY, MINNESOTA, AMENDING
TITLE XV OF THE CITY CODE ENTITLED "LAND USAGE” BY AMENDING
SECTION 155.350 REGARDING STORMWATER MANAGEMENT.
The City Council of Apple Valley ordains:
Section 1. Title XV of the Apple Valley City Code is amended by revising Section 155.350
to read as follows:
§ 155.350 DRAINAGE REQUIREMENTS.
(A) No land shall be developed and no use shall be permitted that results in water runoff causing
flooding or erosion on adjacent property. Run-off shall be properly channeled into a storm drain,
watercourse, ponding area or other suitable facility. All land/property within the City shall be
subject to the City’s drainage and stormwater management regulations in accordance with the
City’s Stormwater Management Plan, Surface Water Management Plan or other operational plans
adopted by the City and in accordance with those regulations set forth in Chapter 152 herein
governing natural resources management regulations.
(B) An approved drainage plan shall be submitted and approved for any new, redeveloped,
or expanded commercial, industrial, multiple residential, and institutional development, subject to
the following requirements:
(1) A maximum storm water run-off coefficient of 0.6 for a five-year rainfall event
(2.4 cubic feet per second per acre). When the development drains immediately into a stormwater
trunk having a design capacity that can accommodate a run-off coefficient greater than 0.6, as
determined by the City Engineer and in accordance with the adopted Apple Valley Master
Stormwater Management Plan, the run-off coefficient of the drainage plan may be increased to no
more than 0.9.
(2) On-site infiltration of the first one-half inch of storm water resulting from any
rainfall event. The volume of infiltration necessary to achieve this standard is to be calculated with
the formula: Volume of infiltration area (acres feet) = (0.042') x (number of acres). This
requirement may be waived if the soil conditions are found to be unsuitable for infiltration or if
the infiltration is already being accomplished within the drainage district (as identified within the
adopted Apple Valley Master Stormwater Management Plan) in which the subject development
property lies.
(CB) The maximum impervious surface area on a lot or parcel with a one-family detached
dwelling (house) or lots with two-family attached dwellings (twinhome) shall not exceed the
following coverage:
2
Lot Size1 Maximum Impervious Coverage Allowed
10,000 sq. ft. or greater 35%
9,999 sq. ft. - 7,500 sq. ft. 40%
7,499 sq. ft. - 6,000 sq. ft. 45%
Less than 6,000 sq. ft. 50%
(1) Actual lot area shall be rounded up to the nearest whole number for determination of
its lot size hereunder.
(2) (a) Lots located within a "PD" (Planned Development) zoning district on which an
one-family detached dwelling (house) or lots with two-family attached dwellings (twin home) is a
permitted use shall comply with the requirements above, unless impervious surface coverage is
specifically addressed in the ordinance establishing the PD zoning district.
(b) Lots zoned for multi-family dwellings on which the dwelling units, attached or
detached, comprises the lot of record and the open space or yard surrounding the unit is not
exclusively owned by the dwelling unit owner and is instead owned as a CIC or other common
property interests, are not subject to this clause.
(DC) The maximum impervious surface area allowed hereunder may be increased up to
an additional 5% upon a showing of circumstances supporting good cause for additional
impervious surface area in excess of the limitations herein and upon the installation of a ci ty
approved on-site stormwater management facility. An application for a request hereunder shall be
filed with the City Clerk upon an application form furnished by the city. The application fee and a
performance security escrow, which shall be in an amount established by City Council resolution,
shall be paid and filed with the application.
(E D) Any lot or parcel that has impervious surface area in excess of the maximum area
allowed herein as of April 30, 2018, shall be deemed as legal nonconforming. The impervious
surface area existing on a lot as of April 30, 2018, may be maintained, repaired or replaced, but
may not be expanded. If the lot or parcel is redeveloped in its entirety, the impervious surface area
restrictions set forth herein shall apply.
Section 2. Summary approved. The City Council hereby determines that the text of the
summary marked "Official Summary of Ordinance No. ” a copy of which is attached hereto
clearly informs the public of the intent and effect of the ordinance. The City Council further
determines that publication of the title and such summary will clearly inform the public of the intent
and effect of the ordinance.
Section 3. Filing. A copy of the ordinance shall be filed in the office of the City Clerk.
This copy shall be available for inspection by any persons during regular office hours.
Section 4. Publication. The City Clerk shall publish the title of this ordinance and the official
summary in the official newspaper of the City with notice that a printed copy of the ordinance is
available for inspection by any person during regular office hours at the Office of the City Clerk.
3
Section 5. Effective date. This ordinance shall take effect upon its passage and the
publication of its title and the official summary.
PASSED by the City Council this day of , 2024.
Clint Hooppaw, Mayor
ATTEST:
Christina M. Scipioni, City Clerk
4
CITY OF APPLE VALLEY
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF APPLE VALLEY, MINNESOTA,
AMENDING TITLE XV OF THE CITY CODE ENTITLED "LAND USAGE” BY
AMENDING SECTION 155.350 REGARDING STORMWATER MANAGEMENT.
The following is the official summary of Ordinance No. passed by the City Council of
Apple Valley on , 2024:
Section 155.350 of the City Code is revised to update and clarify stormwater
management requirements as required under the federal National Pollutant Discharge
Elimination System Program regulated under the Clean Water Act in Title 33 of the
United States Code, and adopted by the laws of the State of Minnesota.
A printed copy of the ordinance is available for inspection by any person during regular office
hours in the office of the City Clerk at the Apple Valley Municipal Center, 7100 147th Street W.,
Apple Valley, Minnesota 55124.
I T E M: 6.A.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:Other Business
Description:
Zoning Ordinance A mendment - Cannabis Business Ordinance
S taff Contact:
A lex Sharpe, A I C P, Planning and Economic Dev. S pec.
Department / Division:
Community Development Department
AC T I O N RE Q UE S T E D:
No action is requested at this time. T his is for informational purposes only.
S UM M ARY:
In 2023, the Minnesota Legislature passed a bill legalizing adult use of cannabis and cannabis
businesses, part of this bill also created T he Office of C annabis Management (O C M). O C M
was created to regulate and oversee the cannabis industry in Minnesota.
At the August 8, 2024, C ity C ouncil informal meeting, staff introduced the background and
groundwork for a local cannabis ordinance. A copy of staff's memo is attached for reference.
As noted in the staff memo to Council, most cities have waited for O C M to provide a
draft/model ordinance and a guide for local governments which were released in mid-J une
2024. T his guide, which is attached, is on version three since the initial release to reflect new
legislation in 2024.
If the C ity seeks to adopt regulations for the cannabis industry within the C ity, a cannabis
ordinance must be adopted and published by J anuary 1, 2025. As this is when the
moratorium will expire and O C M will begin issuing preliminary licenses. A tentative
schedule was presented to the C ity C ouncil to meet the J anuary 1 deadline. T he City
Council must act on the ordinance no later than December 12, 2024 to allow adequate time to
publish as required by State statute.
T he Planning C ommission is asked to review this memo and the materials provided. T he
draft ordinance for zoning related regulations will be presented for the public hearing
scheduled at the September 18, 2024 Planning Commission meeting.
At the August 8th informal council meeting, the C ity C ouncil provided staff and the
Commission with direction on three guiding policy questions, which are the following:
1. Should the number of retail cannabis businesses be capped? If so, how should licenses
be determined?
Council Direction: Yes, limit to 5, the statutory minimum.
2. Should the City implement buffers as outlined in the State Statutes?
Council Direction: Yes, at the maximum buff ers as allowed by statute, see the
attached draf t map. C ouncil also directed staf f to evaluate buf f ers between retail
sales locations. This will be presented to the Commission on September 18th.
3. Which zoning districts should be considered for each type of use?
Council Direction: See the draft land use table attached.
B AC K G RO UND:
See the attached matrix for all cannabis businesses proposed zoning districts as supported by
Council. T he zoning districts noted in the table also apply to Planned Developments as their
underlying zoning district.
B UD G E T I M PAC T:
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AT TAC HM E NT S :
Background Material
I T E M: 4.
C O UNC I L ME E T I NG D AT E :A ugust 8, 2024
S E C T I O N:I nformal A genda I tem
Description:
Discuss New Cannabis Ordinance (20 min.)
S taff Contact:
A lex Sharpe, A I C P, Planning and Economic Dev. S pec. /
Tim Benetti, Community Development Director
Department / Division:
Community Development Department
Applicant:
City of Apple Valley
P roject Number:
P C24-12-O
Applicant Date: 60 Days: 120 Days:
AC T I O N RE Q UE S T E D:
No formal action is requested. Staff is requesting policy direction from the C ity C ouncil
regarding local regulations of cannabis businesses.
S UM M ARY:
During the 2023 Legislative Session, the State of Minnesota legalized the possession,
use, manufacturing, and sale of certain cannabis products. On J uly 27, 2023, the C ity of
Apple Valley approved Resolution 2023-108 authorizing the study of restrictions on the
operation of cannabis businesses and Ordinance 1124 adding section 157.02 Interim Use:
Cannabis Restrictions Study. T his ordinance restricted the sale of cannabis products while
the study was on-going ending no later than J anuary 1, 2025.
Staff has been anticipating the issuance of a model ordinance from the Office of C annabis
Management (O C M), the newly created office to regulate cannabis in the state of Minnesota.
In mid-J une, the O C M released “A Guide for Local Governments on A dult-Use Cannabis”,
which includes a model ordinance. T his document is currently on version 1.3 and is provided
as an exhibit for the C ouncil to reference throughout the process.
In developing the C ity's new cannabis ordinance, local governments may not prohibit the
possession, transportation, or use of cannabis, or the establishment or operation of a cannabis
business licensed under state law, nor may they require additional licensing of cannabis
businesses. However, they may adopt reasonable restrictions on the time, place, and manner
of cannabis business operations, register retail cannabis businesses, and enforce certain
zoning regulations within their jurisdiction, including buffers around potentially incompatible
uses. Staff is currently working on the draft cannabis ordinance in order to have a completed
ordinance adopted and published by J anuary 1, 2025.
As noted in Resolution 2023-108, C ommunity Development is the primary department
conducting the study to address the implementation of the new cannabis law in Apple Valley.
Representatives from A dministration, the C ity Clerk's office and the Police Department are
also involved in this process. T he O C M is the licensing and general enforcement body for
cannabis-based businesses. Local governments are permitted to register cannabis businesses
and enforce some zoning regulations. Local governments are also responsible for compliance
checks for age-verified sales and can inspect for compliance with city-specific regulations.
P olicy Direction
To begin work on a draft ordinance, staff is seeking policy direction on the following subjects
related to local regulation:
1. Should the number of retail cannabis businesses be capped? If so, how should licenses be
determined?
2. Should the C ity implement buffers as outlined in the State Statutes?
3. Which zoning districts should be considered for each type of use?
Tentativ e Schedule
To complete this ordinance prior to J anuary 1, 2025, staff has proposed a tentative schedule
attached to this report.
B AC K G RO UND:
Should the number of retail cannabis businesses be capped? I f so, how should licenses be
determined?
State Statute allows local governments to limit the number of retail sales locations to no
fewer than one registration for every 12,500 residents. T he Metropolitan C ouncil currently
estimates Apple Valley’s population for 2023 at 56,252. T he O C M has provided guidance
that every city of any size has to provide for one registration and as soon as they hit 12,501,
they need to provide for two. In Apple Valley's case, since our population is greater than
50,000, licenses could be capped at five. Should the City's population eventually reach
62,500, that number would need to be raised to six.
If caps are imposed, this limit would only apply to the retail sale of cannabis products, not to
cultivators, manufacturers, or wholesalers. A limit also does not apply to the retail sales of
the low-dose hemp-based products. Local governments are limited on their regulation for
low-dose hemp-based products, such as how they are displayed within a store (i.e., in a
locked case or behind a counter), but these potential local regulations are not specific to the
zoning ordinance.
By statute, retail sales of cannabis products are permitted to occur at retail locations,
cannabis microbusinesses with a retail operations endorsement, and cannabis
mezzobusinesses with a retail operations endorsement. A full definition of all cannabis
business types is included in the table of proposed land uses, but micro and mezzo
businesses include the production or manufacturing of cannabis products in addition to retail
sales. T his is similar to brewery or distillery regulations.
It is a policy question whether the total number of retail cannabis sales locations should be
limited within the City. T he C ity has required a conditional use permit for liquor sales when
above 3.2% and is the sole off-sale provider of liquor when above 3.2% within the
community. Apple Valley has not limited the total number of liquor licenses in the past. T he
total number of tobacco licenses has also not been limited. Other communities have limited
the number of liquor licenses in the past but found this to be cumbersome and removed this
restriction.
If the C ity C ouncil determines that the number of cannabis licenses should be restricted, staff
would recommend that they be awarded on a first-come, first-serve basis rather than a lottery
or other means. By the time a prospective cannabis retailer would apply for C ity registration,
they will have already been vetted by the O C M and approved for licensure. If there is an
influx of licenses on J anuary 1, 2025, applications can be time-stamped to ensure they are
awarded correctly. However, staff does not anticipate several applications early in the
process due to state and local regulations being developed late into 2024.
Additionally, local governments may also adopt reasonable restrictions on the time, place,
and manner of cannabis business operations provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses. For example, a current C ity ordinance
prohibits on sale or off-sale of liquor between certain hours. If the C ouncil wishes to address
hours of operation in the City's cannabis ordinance, that can certainly be added.
Local governments are responsible to complete compliance checks for age-verified sales and
can inspect for compliance with city-specific regulations. T his includes the lower dose hemp
products.
Should the City implement buffers as outlined in the State Statutes?
Local governments are permitted by state statute to impose buffers from retail sales of higher
potency cannabis products to specific sensitive uses. T he buffers as permitted by the statue
are as follows:
• 1,000 feet from schools
• 500 feet from daycares
• 500 feet from residential treatment facilities
• 500 feet from “an attraction within a park that is regularly used by minors, including a
playground or athletic field”
Attached is a draft cannabis retail buffer map. T his map displays the potential maximum
buffers permitted by statute. To allow for a more concise map, any buffers that do not
intersect with a commercial or industrial properties are not shown.
T he City has been advised that buffers must be carefully considered to ensure that they are
not onerous enough to prevent the minimum number of retail sales locations mandated by
statute. Additional consideration is also warranted for specific buffers, such as those from
more fixed locations such schools and parks vs. locations which can open or close such as
daycares or treatment facilities. Staff relies on state databases for licensing to map daycares,
preschools and residential treatment facilities. T hese databases are like any data set, which
take time to update to changing conditions and are only accurate for a limited time period.
T here is a chance that once a cannabis business is operational in the city, a sensitive use may
decide to locate closer to the cannabis business than the specified minimum buffer area. In
that case, the cannabis business would likely be "grandfathered" and would be able to
continue operations, as they did not cause the buffer incompatibility.
Additionally, the C ity has not restricted or placed buffer requirements on tobacco or liquor
sales. If the C ouncil seeks to add buffer requirements, further evaluation is required to
ensure that the buffers combined with the zones designated by C ouncil do not effectively
prohibit cannabis retail sales.
Staff has evaluated whether the location of buffers centered on specific park amenities rather
than property line alters the findings. State guidance on where the buffer should be taken from
states that it shall be consistent with the municipality’s other zoning buffers. Apple Valley has
consistently measured buffers between uses from property line rather than the specific use on
a site. To further emphasize the need for a buffer to be measured from a park boundary, the
City is currently in the process of significantly altering the park system, adding a significant
number of "park amenities" and removing some currently in place. Most of these park
modifications will likely take place away from retail zoned areas, but some areas could be
impacted.
Statute also allows local governments to impose a buffer between retail sales locations.
However, unlike the previous buffers, the statute does not provide guidance on minimum or
maximum separation distances could be. C ities are cautioned not to place a buffer between
retail sales that would be restrictive to the point of limiting the total number of retail sales
locations required by law. Staff has not evaluated a buffer between sales locations as our
current ordinance does not include any similar separation between other land uses other than
from adult uses, of which there are none within the community and do not carry the same
state mandates for minimum locations. A dditionally, as this would be a local ordinance, the
City would be responsible for ensuring that enough potential retail locations existed within
the C ity to meet the minimum number of cannabis locations required by statute. C aution is
needed when placing a separation distance between retail sales to ensure the C ity would not
be in violation of statute.
W hich zoning districts should be considered for each type of use?
See the attached zoning table for a preliminary staff recommendation.
Staff is suggesting that a potential discussion starting point is to allow retail cannabis sales in
all zoning districts where off-sale liquor and/or tobacco retail sales are a permitted use by
right.
Within industrial zones, microbusinesses, mezzobusinesses, indoor cultivators, manufacturers,
wholesalers, transporters, testing facilities, delivery services, processors and medical be a
conditional use. T his would allow the C ity to address specific performance standards, such
as odor, storage of vehicles, etc. to be addressed as part of the conditional use.
T here are a limited number of "A G" Agricultural zoned properties within the community.
T hese properties are typically guided for future residential uses but also include the Pahl's
Greenhouse property. T he table proposes limiting all outdoor cultivators to A G zones as a
conditional use permit.
Cannabis Event Organizers and Cannabis Delivery Service uses are proposed to be a
permitted use similar to the retail locations with the anticipation that these uses would be
shared by a retail location rather than a standalone business operation. If they were to operate
as a separate business model, they would not be permitted to offer retail sales of cannabis
product at their locations and may still be subject to conditional use permits for activities
such as vehicle fleet storage, etc.
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Exhibit
Map
Exhibit
Exhibit
Exhibit
Presentation
Date Meeting/Event Purpose
August 8, 2024 CC Work Session Provide information to Council for policy direction
August 24, 2024 Public Hearing Notice PC holds public hearing
September 18, 2024 PC - Public Hearing Draft ordinance presented to Planning Commission
October 16, 2024 PC - Regular Action Seek PC recommendation on ordinance
October 17, 2024 Post final draft on website Must be posted 10 days before council action
November 12, 2024 PC- Regular First reading of ordinance
November 26 , 2024 CC Regular Second reading of ordinance - CC action
November 27, 2024 CC Regular Publication of ordinance at soonest date
December 12, 2024 CC Regular Back-up date for CC action - Publication in paper
Cannabis Ordinance Tasks and Timeline
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CITY OF APPLE VALLEY
CANNABIS RETAIL DISPENSARY BUFFER MAP
*Only those buffers that intersect with
properly zoned parcels are displayed here.
0 0.25 0.5 0.75
Miles
!I
School*
1000' Buffer
Park*
500' Buffer
Child Care/Preschool*
500' Buffer
Residential Treatment Facility*
500' Buffer
Land Use (2040)
Commercial
Industrial
Mixed Use
Mixed Business Campus
McAndrews Rd
140th St W
160th St W
150th St W
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Cannabis Businesses Preliminary Zoning Guide
Guiding Commercial Industrial Residential
Notes Zoning District NCC LB GB RB SC** VB** BP I-1 I-2 AG
Business Type
Cannabis Retailer P P P P
Cannabis Microbusiness CUP CUP CUP With retail endorsement retail sales could also occur
Cannabis Mezzobusiness CUP CUP CUP With retail endorsement retail sales could also occur
Cannabis Cultivator (Indoor only) CUP CUP CUP
Cannabis Cultivator (Outdoor) CUP
Cannabis Manufacturer CUP CUP CUP
Cannabis Wholesaler CUP CUP CUP
Cannabis Transporter CUP CUP CUP
Cannabis Testing Facility CUP CUP CUP
Cannabis Event Organizer P P P P If events may be held at the Organizer location a CUP may be considered
Cannabis Delivery Service P P P P
Medical Cannabis Cultivator CUP
Medical Cannabis Processor CUP CUP CUP Processing is all indoors. Could be a permitted use?
Medical Cannabis Retailer P P P P
Medical Cannabis Combination Business CUP CUP CUP If all activity is indoors, could this be a permitted use?
Lower-potency Hemp Edible Manufacturer CUP CUP CUP Retail sales of product produced on site is permitted in these zones
Lower-potency Hemp Edible Retailer P P P P P P P
Retail sales of this product are permitted where any other retail sales are permitted by
state statute
** There are currently no properties zoned with this designation.
Zoning Districts Descriptions
“NCC” - NEIGHBORHOOD CONVENIENCE CENTER DISTRICT - NCC districts are located at the periphery of residential neighborhoods and are intended to provide a limited range of over-the-counter convenience retail and service
uses to serve the daily and weekly needs of the adjoining residents.
“LB” – Limited Business District - Limited business districts are areas where uses are primarily restricted to office and professional services.
“GB” – General Business District - General business districts are designed for heavy uses and those businesses which tend to serve other businesses and industry as well as residents. These uses can be incompatible with residential
development; therefore, businesses in this zoning classification are concentrated and insulated as much as possible from residential areas.
“RB” - Retail Business District - Retail business districts are areas which are centrally located to serve the need for general retail sales.
**“SC” - Regional Shopping Center District - Regional shopping center district is an area designed to serve the monthly shopping needs of a population from a geographical area which extends beyond the corporate limits of the city.
**“VB” – Visitor Business District - Visitor business districts are areas located and developed primarily to serve the transient population attracted by Interstate Highway 35E, the Minnesota Zoological Garden or similar facilities.
“BP” – Business Park District - Business Park districts are designed for uses and businesses which provide and may combine office, corporate headquarters, research, light assembly, commercial recreation and storage within a building
shell. Without mitigation of impacts through requirements in this subchapter, these uses may be incompatible with residential development. Therefore, businesses in this zoning classification are concentrated, isolated and buffered as
much as possible from any adjoining residential areas.
“I-1” – Limited Industrial District - Limited industrial districts are areas which because of availability to thoroughfares, suitable topography and isolation from housing areas, are appropriate for manufacturing, warehousing and similar
industrial uses having a minimum of nuisance characteristics.
“I-2” – General Industrial District - General industry districts are designed to serve the smaller “quasi-industrial” uses, such as machine shops, sign shops, millworking establishments, and the like. These uses also include general
manufacturing, compounding, storage tanks for caustic or flammable or combustible liquids.
State Definition of Business Types
Cannabis microbusiness
This license grants the holder permission to cultivate marijuana plants and purchase cannabis seedlings, immature plants, and hemp plant parts from lice nsed cannabis microbusinesses, mezzobusinesses,
manufacturers, and wholesalers. Microbusinesses are limited to a plant canopy of 5,000 square feet for indoor grow sites or half an acre for outdoor cultivation. Additionally, licensees can buy hemp and canna bis
concentrates, produce synthetic cannabinoids, and sell adult-use cannabis flower, lower-potency hemp edibles, and hemp derived consumer products. Cannabis microbusinesses can also establish venues for onsite
consumption of edible cannabis products and lower-potency hemp edibles. With the appropriate endorsement, a licensed microbusiness can operate one retail location in Minnesota . Microbusinesses with a retail
endorsement are subject to 1 per 12,500 limitation and may be subject to additional separation standards such buffer distance s outlined above.
Cannabis mezzobusiness
The mezzobusiness license permits cannabis activities on a larger scale than a microbusiness license. Holders of a mezzobusiness license can cultivate marijuana for adult -use cannabis products and purchase hemp
plant parts. In addition to cultivation, licensees can buy, produce, package, and sell hemp and canna bis concentrates, synthetic cannabinoids, lower-potency hemp edibles, and edible cannabis products.
The mezzobusiness license allows indoor cultivation with a canopy of up to 15,000 square feet for mature flowering plants or outdoor cultivation on up to one acre. Furthermore, the license permits up to three retail
locations. However, mezzobusiness licensees cannot operate venues for on -site consumption of cannabis and lower-potency hemp edibles.
Mezzobusinesses with a retail endorsement are subject to 1 per 12,500 limitation and may be subject to additional separation standards such buffer distances outlined above.
Cannabis cultivator
A Minnesota cannabis cultivator license authorizes the holder to grow marijuana plants as well as package and label cannabis seedlings, immature plants, and flower for sale to other licensed cannabis businesses. The
license allows a cannabis grower to cultivate up to 30,000 square feet of plant canopy in an indoor location or up to two acr es in an outdoor location.
Cannabis manufacturer
This license entitles the holder to buy cannabis and hemp plant parts and concentrate; cannabis and hemp edibles; and artific ially derived cannabinoids from licensed microbusinesses, mezzobusinesses, cultivators,
wholesales, and other manufacturers. The license also authorizes the holder to manufacture these cannabis and hemp products as well as package and s ell them to other cannabis businesses.
Cannabis retailer
A cannabis retailer license holder can buy cannabis plant parts, cannabis products, lower potency hemp edibles, and hemp-derived products from licensed cannabis and hemp businesses for the sole purpose of selling
these to the final consumers. In Minnesota, a licensed retailer can have up to five locations. Retailers are subje ct to 1 per 12,500 limitation and may be subject to additional separation standards such buffer distances
outlined above.
Cannabis wholesaler
This license entitles the holder to buy immature cannabis plants and seedlings, cannabis flower, cannabis prod ucts, lower-potency hemp edibles, and hemp-derived consumer products from, and sell to, licensed
cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, and cannabis microbusinesse s. A cannabis wholesale license also allows the holder to buy hemp concentrate as
well as hemp plant parts and propagules from industrial hemp growers and processes.
Cannabis transporter
A cannabis transporter license is required to move cannabis and hemp plant parts as well as cannabis and hemp products between licensed cannabis businesses in Minnesota. This license authorizes the holder to
transport both medical and adult-use cannabis products.
Cannabis testing facility
A testing facility license is required for an independent third -party laboratory to obtain and test cannabis and hemp products grown or manufactured by licensed cannabis businesses in Minne sota.
Cannabis event organizer
This license authorizes the holder to organize a temporary cannabis event lasting up to four day s.
Cannabis delivery service
A cannabis delivery service license is required by any entity intending to deliver cannabis and hemp products, sold by licens ed retailers, to consumers.
Lower-potency hemp edible manufacturer
This license allows the holder to purchase hemp plant and plant parts as well as hemp concentrate and artificially derived cannabinoids from licensed cannabis and hemp businesses. Licensees can also manufacture
hemp concentrate, artificially derived cannabinoids, and lower potency hemp edibles and sell these to hemp and cannabis businesses in the state.
Lower-potency hemp edible retailer
Retailers with this license can buy lower-potency hemp edible obtained from licensed cannabis and hemp businesses allowed to manufacture them. Licensees can also sell lower-potency hemp edible to adults aged 21
or older.
Medical cannabis cultivator
A medical cannabis cultivator license allows the license holder to grow cannabis plants with a total canopy size of 60,000 sq uare feet and sell the harvest plant parts to licensed medical cannabis processors and
retailers in the state.
Medical cannabis processor
This license allows the holder to buy hemp plant parts, hemp concentrate as well as medical cannabis flower and concentrate f rom licensed medical cannabis cultivators and other medical cannabis processors. The
licensee can also manufacture hemp concentrate and medical cannabis products to sell to medical cannabis retailers and other medical cannabis processors.
Medical cannabis retailer
A medical cannabis retailer license holder can buy medical cannabis flower and medical cannabis products from licensed cannabis businesses in the state and sell these to registered medical cannabis patients at their
dispensary location.
Medical cannabis combination business
Licensed medical cannabis combination businesses can grow and buy cannabis plants for medical and adult -use cannabis purposes. They can also manufacture medical and adult-use cannabis products and sell
these directly to consumers. This broad license is a cultivator, processor, and retailer license for medical and adult-use markets. A business with this license can only cultivate medical cannabis plants with a maximum
plant canopy of 60,000 square feet. A separate area must be designed f or cultivating cannabis meant for the adult-use market. This area can be no larger than half of the area reserved for cultivating medical cannabis
in the preceding year.
A Guide for Local Governments
on Adult-Use Cannabis
Version 1.3
Updated July 11, 2024
Table of Contents
Introduction ............................................................... 3
About OCM ............................................................... 4
Cannabis License Types ............................................. 5
Adult-Use Cannabis Law ........................................... 7
Cannabis Licensing Process........................................ 8
General Authorities .................................................. 10
Zoning and Land Use ................................................ 12
Local Approval Process ............................................. 15
Inspections and Compliance Checks ........................ 18
Municipal Cannabis Stores ...................................... 19
Creating Your Local Ordinance ............................... 20
Additional Resources ................................................ 21
Introduction
This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and
how local governments can expect to be involved. The guide also provides important
information about Minnesota’s new Office of Cannabis Management (OCM), and the
office’s structure, roles, and responsibilities. While medical cannabis continues to play an
important role in the state’s cannabis environment, this guide is primarily focused on the
adult-use cannabis law and marketplace.
The following pages outline the variety of cannabis business licenses that will be issued,
provide a broad summary of important aspects of the adult-use cannabis law, and cover a
wide range of expectations and authorities that relate to local governments. This guide also
provides best practices and important requirements for developing a local cannabis
ordinance.
Chapter 342 of Minnesota law
was established by the State
Legislature in 2023 and was
updated in 2024. Mentions of
“adult-use cannabis law” or “the
law” throughout this guide refer
to Chapter 342 and the changes
made to it.
As of this guide’s date of
publication, state regulations
governing the adult-use
cannabis market have not yet
been published—this document
will be updated when such
regulations become effective.
This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and
municipal officials seeking legal advice should consult an attorney.
Page 3
About OCM
Minnesota’s Office of Cannabis Management is the state regulatory office created to
oversee the implementation and regulation of the adult-use cannabis market, the medical
cannabis market, and the consumer hemp industry. Housed within OCM are the Division
of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis
program, and the Division of Social Equity, which promotes development, stability, and
safety in communities that have experienced a disproportionate, negative impact from
cannabis prohibition and usage.
OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its
regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated
to:
Promote public health and welfare.
Protect public safety.
Eliminate the illicit market for cannabis flower and cannabis products.
Meet the market demand for cannabis flower and cannabis products.
Promote a craft industry for cannabis flower and cannabis products.
Prioritize growth and recovery in communities that have experienced a
disproportionate, negative impact from cannabis prohibition.
OCM governs the application and licensing process for cannabis and hemp businesses,
specific requirements for each type of license and their respective business activities, and
conducts enforcement and inspection activities across the Minnesota cannabis and hemp
industries.
Page 4
License Types
Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role
in the cannabis and hemp supply chain. In addition to license types below, OCM will also
issue endorsements to license holders to engage in specific activities, including producing,
manufacturing, and sale of medical cannabis for patients.
Microbusiness
Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Microbusiness may also operate a single retail location.
Mezzobusiness
Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Mezzobusiness may also operate up to three retail locations.
Cultivator
Cultivators may cultivate cannabis and package such cannabis for sale to another licensed
cannabis business.
Manufacturer
Manufacturers may manufacture cannabis products and hemp products, and package such
products for sale to a licensed cannabis retailer.
Retailer
Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products,
hemp products, and other products authorized by law to customers and patients.
Wholesaler
Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from another licensed cannabis business.
Wholesalers may also import hemp-derived consumer products and lower-potency hemp
edibles.
Page 5
License Types (continued)
Transporter
Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis
products, and hemp products to licensed cannabis businesses.
Testing Facility
Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from licensed cannabis businesses.
Event Organizer
Event organizers may organize a temporary cannabis event lasting no more than four days.
Delivery Service
Delivery services may purchase cannabis, cannabis products, and hemp products from
retailers or cannabis business with retail endorsements for transport and delivery to
customers.
Medical Cannabis Combination Business
Medical cannabis combination businesses may cultivate cannabis and manufacture
cannabis and hemp products, and package such products for sale to customers, patients,
or another licensed cannabis business. Medical cannabis combination businesses may
operate up to one retail location in each congressional district.
Lower-Potency Hemp Edible Manufacturer
Lower-potency hemp edible manufacturers may manufacture and package lower-potency
hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp
edibles to other cannabis and hemp businesses.
Lower-Potency Hemp Edible Retailer
Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers.
Each license is subject to further restrictions on allowable activities. Maximum cultivation
area and manufacturing allowances vary by license type. Allowable product purchase,
transfer, and sale between licensees are subject to restrictions in the law.
Page 6
The Adult-Use Cannabis Law
Minnesota’s new adult-use cannabis law permits the personal use, possession, and
transportation of cannabis by those 21 years of age and older, and allows licensed
businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis
and cannabis products.
For Individuals
Possession limits:
Flower - 2 oz. in public, 2 lbs. in private residence
Concentrate - 8 g
Edibles (including lower-potency hemp) - 800 mg THC
Consumption only allowed on private property or at licensed businesses with on-site
consumption endorsements. Consumption not allowed in public.
Gifting cannabis to another individual over 21 years old is allowed, subject to
possession limits.
Home cultivation is limited to four mature and four immature plants (eight total) in a
single residence. Plants must be in an enclosed and locked space.
Home extraction using volatile substances (e.g., butane, ethanol) is not allowed.
Unlicensed sales are not allowed.
For Businesses
Advertising:
May not include or appeal to those under 21 years old.
Must include proper warning statements.
May not include misleading claims or false statements.
Billboards are not allowed.
The flow of all products through the supply chain must be
tracked by the state-authorized tracking system.
All products sold to consumers and patients must be
tested for contaminants.
Home delivery is allowed by licensed businesses.
Page 7
The Cannabis Licensing Process
An applicant will take the following steps to proceed from application to active licensure.
As described, processes vary depending on social equity status and/or whether the type of
license being sought is capped or uncapped in the general licensing process.
License Preapproval: Early Mover Process for Social
Equity Applicants
The license preapproval process is a one-time application process available for verified social
equity applicants. State law requires OCM to open the application window on July 24,
2024, and close the window on August 12, 2024. The preapproval process is available for
the following license types, and all are capped in this process: microbusiness, mezzobusiness,
cultivator, retailer, wholesaler, transporter, testing facility, and delivery service.
Applicant’s social equity applicant (SEA) status verified.
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues license preapproval.
Applicant with license preapproval* submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
When regulations are adopted, license becomes active, operations may commence.
*For social equity applicants with license preapproval for microbusiness, mezzobusiness, or
a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if
OCM receives approval from local governments in a form and manner determined by the
office. This is only applicable to cultivation and does not authorize retail sales or other
endorsed activities of the licenses prior to the adoption of rules.
Preapproval steps:
Page 8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
The Cannabis Licensing Process (cont.)
The general licensing process will align with the adoption of rules and OCM will share more
information about the timing of general licensing process. The general licensing process
includes social equity applicants and non-social equity applicants.
General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues preliminary approval.
Applicant with preliminary approval submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
License becomes active, operations may commence.*
General Licensing: Microbusiness, Wholesaler, Transporter, Testing
Facility, Event Organizer
Complete application and submit application fees.1.
Application vetted for minimum requirements by OCM.2.
For qualified applicants, OCM completes background check of vetted applicant and
issues preliminary approval.
3.
Selected applicant submits business location and amends application accordingly.4.
OCM forwards completed application to local government.5.
Local government completes certification of zoning compliance.6.
OCM conducts site inspection.7.
License becomes active, operations may commence.*8.
1.
2.
3.
4.
5.
6.
7.
8.
9.
*For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer),
a valid local retail registration is required prior to the business commencing any retail sales.
See Page 16 for information on the local retail registration process.
Page 9
General Authorities
Local governments in Minnesota have various means of oversight over the cannabis market,
as provided by the adult-use cannabis law. Local governments may not issue outright bans on
cannabis business, or limit operations in a manner beyond what is provided by state law.
Cannabis Retail Restrictions (342.13)
Local governments may limit the number of retailers and microbusiness/mezzobusinesses
with retail endorsements allowed within their locality, as long as there is at least one retail
location per 12,500 residents. Local units of government are not obligated to seek out a
business to register as cannabis business if they have not been approached by any potential
applicants, but cannot prohibit the establishment of a business if this population
requirement is not met. Local units of government may also issue more than the minimum
number of registrations. Per statutory direction, a municipal cannabis store (Page 19)
cannot be included in the minimum number of registrations required. For population
counts, the state demographer estimates will likely be utilized.
Tribal Governments (342.13)
OCM is prohibited from and will not issue state licenses to businesses in Indian Country
without consent from a tribal nation. Tribal nations hold the authority to license tribal
cannabis businesses on tribal lands – this process is separate than OCM’s licensing
process and authority. Subject to compacting, Tribal nations may operate cannabis
businesses off tribal lands. There will be more information available once the compacting
processes are complete.
Taxes (295.81; 295.82)
Retail sales of taxable cannabis products are subject to the state and local sales and use tax
and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows:
20% to the local government cannabis aid account and 80% to the state general fund.
Local taxes imposed solely on sale of cannabis products are prohibited.
Cannabis retailers will be subject to the same real property tax classification as all other
retail businesses. Real property used for raising, cultivating, processing, or storing cannabis
plants, cannabis flower, or cannabis products for sale will be classified as commercial and
industrial property.
Page 10
General Authorities (cont.)
Retail Timing Restrictions (342.13)
Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and
10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day.
Operating Multiple Locations with One License
Certain cannabis licenses allow for multiple retail locations to be operated under a single
license, with the following limitations:
Retailers: up to five retail locations.
Mezzobusinesses: up to three retail locations.
Microbusinesses: up to one retail location.
Medical cannabis combination businesses: one retail location per congressional
district. Additionally, medical cannabis combination businesses may cultivate at more
than one location within other limitations on cultivation.
For all other license types, one license permits the operation of one location. Each retail
location requires local certification and/or registration.
Page 11
Zoning and Land Use
Buffer Guidelines (342.13)
State law does not restrict how a local government conducts its zoning designations for
cannabis businesses, except that they may prohibit the operation of a cannabis business
within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or
an attraction within a public park that is regularly used by minors, including playgrounds
and athletic fields.
Zoning Guidelines
While each locality conducts its zoning differently, a few themes have emerged across the
country. For example, cannabis manufacturing facilities are often placed in industrial
zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis
retail facilities align with general retail establishments and are prohibited from allowing
consumption or use onsite, and are also required to have plans to prevent the visibility of
cannabis and hemp-derived products to individuals outside the retail location. Industrial
hemp is an agricultural product, and should be zoned as such.
Cannabis businesses should be zoned under existing zoning ordinances in accordance with
the license type or endorsed activities held by the cannabis business. Note that certain
types of licenses may be able to perform multiple activities which may have different
zoning analogues. In the same way municipalities may zone a microbrewery that
predominately sells directly to onsite consumers differently than a microbrewery that sells
packaged beer to retailers and restaurants, so too might a municipality wish to zone two
microbusinesses based on the actual activities that each business is undertaking. Table 1,
included on Pages 13 and 14, explains the types of activities that cannabis businesses might
undertake, as well as, some recommended existing zoning categories.
Page 12
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of Activity Comparable
Districts
Municipal
Considerations
Cultivation
Cultivator
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
"Cultivation" means any
activity involving the planting,
growing, harvesting, drying,
curing, grading, or trimming
of cannabis plants, cannabis
flower, hemp plants, or hemp
plant parts.
Indoor:
Industrial,
Commercial,
Production
Outdoor:
Agricultural
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Cannabis
Manufacturing,
Processing,
Extraction
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This group of endorsed
activities turn raw, dried
cannabis and cannabis parts
into other types of cannabis
products, e.g. edibles or
topicals.
Industrial,
Commercial,
Production
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Hemp
Manufacturing
Lower-Potency
Hemp Edible
(LPHE)
Manufacturing
These business convert hemp
into LPHE edible prodcuts.
Industrial,
Commercial,
Production
Odor
Waste, water, and
energy
Wholesale
Wholesale
Cultivator
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This activity and license type
allows a business to purchase
from a business growing or
manufacturing cannabis or
cannabis products and sell to
a cannabis business engaged
in retail.
Industrial,
Commercial,
Production
Need for
transportation from
facility
Security
Page 13
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities
Page 14
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of
Activity
Comparable
Districts
Municipal
Considerations
Cannabis Retail
Retailer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This endorsed
activity and license
types allow a business
to sell cannabis and
cannabis products
directly to
consumers.
Retail,
Neighborhood
Shopping Districts,
Light Industrial,
Existing districts
where off-sale liquor
or tobacco sales are
allowed.
Micros may offer
onsite consumption,
similar to breweries.
Micros and Mezzos
may include multiple
activities: cultivation,
manufacture, and/or
retail.
Transportation Cannabis
Transporter
This license type
allows a company to
transport products
from one license
type to another.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Delivery Cannabis Delivery
This license type
allows for
transportation to the
end consumer.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Events Event Organizer
This license entitles
license holder to
organizer a
temporary event
lasting no more than
four days.
Anywhere that the
city permits events
to occur, subject to
other restrictions
related to cannabis
use.
On site
consumption.
Retail sales by a
licensed or endorsed
retail business
possible.
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities (continued)
Local Approval Process
Local governments play a critical role in the licensing
process, serving as a near-final approval check on
cannabis businesses nearing the awarding of a state
license for operations. Once an applicant has been
vetted by OCM and is selected for proceeding in the
verification process, they are then required to receive
the local government’s certification of zoning
compliance and/or local retail registration before
operations may commence.
Local Certification of Zoning Compliance (342.13;
342.14)
Following OCM’s vetting process, local governments must certify that the applicant with
preliminary approval has achieved compliance with local zoning ordinances prior to the
licensee receiving final approval from OCM to commence operations.
During the application and licensing process for cannabis businesses, OCM will notify a
local government when an applicant intends to operate within their jurisdiction and request
a certification as to whether a proposed cannabis business complies with local zoning
ordinances, and if applicable, whether the proposed business complies with state fire code
and building code.
According to Minnesota’s cannabis law, a local unit of government has 30 days to respond
to this request for certification of compliance. If a local government does not respond to
OCM’s request for certification of compliance within the 30 days, the cannabis law allows
OCM to issue a license. OCM may not issue the final approval for a license if the local
government has indicated they are not in compliance.
OCM will work with local governments to access the licensing software system to
complete this zoning certification process.
Page 15
Local Approval Process (cont.)
Local Retail Registration Process (342.22)
Once the licensing process begins, local government registration applies to cannabis
retailers or other cannabis/hemp businesses seeking a retail endorsement. Local
governments must issue a retail registration after verifying that:
The business has a valid license or license preapproval issued by OCM.
The business has paid a registration fee or renewal fee to the local government;
Initial registration fees collected by a local government may be $500 or half the
amount of the applicable initial license fee, whichever is less, and renewal
registration fees may be $1,000 or half the amount of the applicable renewal
license fee, whichever is less.
The business is found to be in compliance with Chapter 342 and local ordinances.
If applicable, the business is current on all property taxes and assessments for the
proposed retail location.
Local registrations may also be issued by counties if the respective local government
transfers such authorities to the county.
Determining a Process for Limiting Retail Registrations
If a local government wishes to place a limitation on the number of retailers and
microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as
long as there is at least one retail location per 12,500 residents, see Page 10), state law
does not define the process for a local government’s selection if there are more applicants
than registrations available. A few options for this process include the use of a lottery, a
first-come/first-serve model, a rolling basis, and others. Local governments should work
with an attorney to determine their specific process for selection if they wish to limit the
number of licensed cannabis retailers per 342.13. Local governments are not required to
limit the number of licensed cannabis retailers.
Page 16
Local Approval Process (cont.)
Local governments are permitted specific authorities for registration refusal and
registration suspension, in addition to—and not in conflict with—OCM authorities.
Registration and Renewal Refusals
Local governments may refuse the registration
and/or certification of a license renewal if the
license is associated with an individual or business
who no longer holds a valid license, has failed to pay
the local registration or renewal fee, or has been
found in noncompliance in connection with a
preliminary or renewal compliance check.
Local Registration Suspension (342.22)
Local governments may suspend the local retail registration of a cannabis business or
hemp business if the business is determined to not be operating in compliance with a
local ordinance authorized by 342.13 or if the operation of the business poses an
immediate threat to the health and safety of the public. The local government must
immediately notify OCM of the suspension if it occurs. OCM will review the
suspension and may reinstate the registration or take enforcement action.
Expedited Complaint Process (342.13)
Per state law, OCM will establish an expedited complaint process during the rulemaking
process to receive, review, read, and respond to complaints made by a local unit of
government about a cannabis business. Upon promulgation of rules, OCM will publish
the complaint process.
At a minimum, the expedited complaint process shall require the office to provide an
initial response to the complaint within seven days and perform any necessary
inspections within 30 days. Within this process, if a local government notifies OCM
that a cannabis business poses an immediate threat to the health or safety of the public,
the office must respond within one business day.
Page 17
Inspections & Compliance Checks
Local governments are permitted specific business inspection and compliance check
authorities, in addition to—and not in conflict with—OCM authorities.
Inspections and Compliance Checks (342.22)
Local governments must conduct compliance
checks for cannabis and hemp businesses
holding retail registration at least once per
calendar year. These compliance checks must
verify compliance with age verification
procedures and compliance with any applicable
local ordinance established pursuant to 342.13.
OCM maintains inspection authorities for all
cannabis licenses to verify compliance with
operation requirements, product limits, and
other applicable requirements of Chapter 342.
Page 18
Municipal Cannabis Stores
State law requires OCM issue a license to a
city or county seeking to operate a single
municipal cannabis store if the city or
county:
As authorized in Chapter 342.32, local
governments are permitted to apply for
a cannabis retail license to establish and
operate a municipal cannabis store.
Submits required application information to OCM,
Meets minimum requirements for licensure, and
Pays applicable application and license fee.
A municipal cannabis store will not be included in the total count of retail licenses issued by
the state under Chapter 342.
A municipal cannabis store cannot be counted as retail registration for purposes of
determining whether a municipality’s cap on retail registrations imposed by ordinance.
Page 19
Creating Your Local Ordinance
Local governments may not prohibit the possession,
transportation, or use of cannabis, or the establishment
or operation of a cannabis business licensed under state
law.
Local governments may adopt reasonable restrictions on
the time, place, and manner of cannabis business
operations (see Page 11).
Local governments may adopt interim ordinances to
protect public safety and welfare, as any studies and/or
further considerations on local cannabis activities are
being conducted, until January 1, 2025. A public hearing
must be held prior to adoption of an interim ordinance.
If your local government wishes to operate a municipal
cannabis store, the establishment and operation of such
a facility must be considered in a local ordinance.
As authorized in 342.13, a local government may adopt a local ordinance regarding
cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in
a timely manner is critical for the ability for local cities or towns to establish local control as
described in the law, and is necessary for the success of the statewide industry and the
ability of local governments to protect public health and safety. The cannabis market’s
potential to create jobs, generate revenue, and contribute to economic development at
the local and state level is supported through local ordinance work. The issuance of local
certifications and registrations to prospective cannabis businesses is also dependent on
local ordinances.
Model Ordinance
For additional guidance regarding the creation of a cannabis related ordinance, please
reference the addendum in this packet.
Page 20
Additional Resources
OCM Toolkit for Local Partners
Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information,
including a toolkit of resources developed specifically for local government partners. The
webpage will be updated as additional information becomes available and as state
regulations are adopted.
These resources are also included in the addendum of this packet.
Toolkit resources include:
Appendix A: Model Ordinance
Appendix B: Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Appendix C: Enforcement Notice from the Office of Cannabis Management
Appendix D: Notice to Unlawful Cannabis Sellers
Local Organizations
There are several organizations who also have developed resources to support local
governments regarding the cannabis industry. Please feel free to contact the
following for additional resources:
League of Minnesota Cities
Association of Minnesota Counties
Minnesota Public Health Law Center
Page 21
Appendix A: Model Ordinance
Cannabis Model Ordinance
The following model ordinance is meant to be used as a resource for cities, counties, and townships within
Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering
using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction.
Certain items are not required to be included in the adopted ordinance: ‘OR’ and (optional) are placed
throughout for areas where a jurisdiction may want to consider one or more choices on language.
Section 1 Administration
Section 2 Registration of Cannabis Business
Section 3 Requirements for a Cannabis Business (Time, Place, Manner)
Section 4 Temporary Cannabis Events
Section 5 Lower Potency Hemp Edibles
Section 6 Local Government as a Retailer
Section 7 Use of Cannabis in Public
AN ORDINANCE OF THE (CITY/COUNTY OF ______) TO REGULATE CANNABIS
BUSINESSES
The (city council/town board/county board) of (city/town/county) hereby ordains:
Section 1. Administration
1.1 Findings and Purpose
(insert local authority) makes the following legislative findings:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes,
chapter 342, which authorizes (insert local authority) to protect the public health, safety,
welfare of (insert local here) residents by regulating cannabis businesses within the legal
boundaries of (insert local here).
(insert local authority) finds and concludes that the proposed provisions are appropriate
and lawful land use regulations for (insert local here), that the proposed amendments will
promote the community's interest in reasonable stability in zoning for now and in the
future, and that the proposed provisions are in the public interest and for the public good.
1.2 Authority & Jurisdiction
A county can adopt an ordinance that applies to unincorporated areas and cities that have
delegated authority to impose local zoning controls.
(insert local authority) has the authority to adopt this ordinance pursuant to:
a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to
adopt reasonable restrictions of the time, place, and manner of the operation of
a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.
b) Minn. Stat. 342.22, regarding the local registration and enforcement
requirements of state-licensed cannabis retail businesses and lower-potency
hemp edible retail businesses.
c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places.
d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning
ordinances.
Ordinance shall be applicable to the legal boundaries of (insert local here).
(Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here).
However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has
not adopted conflicting provisions.
1.3 Severability
If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional
or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not
be affected thereby.
1.4 Enforcement
The elected body of a jurisdiction can choose to designate an official to administer and
enforce this ordinance.
The (insert name of local government or designated official) is responsible for the
administration and enforcement of this ordinance. Any violation of the provisions of this
ordinance or failure to comply with any of its requirements constitutes a misdemeanor
and is punishable as defined by law. Violations of this ordinance can occur regardless of
whether or not a permit is required for a regulated activity listed in this ordinance.
1.5 Definitions
1. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01
and the rules promulgated pursuant to any of these acts, shall have the same meanings in
this ordinance.
2. Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the
approved amount of space from seed or immature plant to mature plant. harvest
cannabis flower from mature plant, package and label immature plants and seedlings
and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a
cannabis manufacturer located on the same premises, and perform other actions
approved by the office.
3. Cannabis Retail Businesses: A retail location and the retail location(s) of a
mezzobusinesses with a retail operations endorsement, microbusinesses with a retail
operations endorsement, medical combination businesses operating a retail location,
(and/excluding) lower-potency hemp edible retailers.
4. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or
domestic, selling cannabis product to a consumer and not for the purpose of resale in any
form.
5. Daycare: A location licensed with the Minnesota Department of Human Services to
provide the care of a child in a residence outside the child's own home for gain or
otherwise, on a regular basis, for any part of a 24-hour day.
6. Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50.
7. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to
as “OCM” in this ordinance.
8. Place of Public Accommodation: A business, accommodation, refreshment,
entertainment, recreation, or transportation facility of any kind, whether licensed or not,
whose goods, services, facilities, privileges, advantages or accommodations are extended,
offered, sold, or otherwise made available to the public.
9. Preliminary License Approval: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
10. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area
used by the general public, including, but not limited to, restaurants; bars; any other food
or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting
rooms; common areas of rental apartment buildings, and other places of public
accommodation.
11. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23.
12. Retail Registration: An approved registration issued by the (insert local here) to a state-
licensed cannabis retail business.
13. School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that
must meet the reporting requirements under Minn. Stat. 120A.24.
14. State License: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
Section 2. Registration of Cannabis Businesses
A city or town can delegate authority for registration to the County. A city or town can still adopt specific
requirement regarding zoning, buffers, and use in public places, provided said requirements are not in
conflict with an ordinance adopted under the delegated authority granted to the County.
2.1 Consent to registering of Cannabis Businesses
No individual or entity may operate a state-licensed cannabis retail business within (insert
local here ) without first registering with (insert local here).
Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
2.2 Compliance Checks Prior to Retail Registration
A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of
retail registration.
Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall
not) conduct a preliminary compliance check to ensure compliance with local ordinances.
Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license
application from OCM, (insert local here) shall certify on a form provided by OCM whether
a proposed cannabis retail business complies with local zoning ordinances and, if
applicable, whether the proposed business complies with the state fire code and building
code.
2.3 Registration & Application Procedure
2.3.1 Fees.
(insert local here) shall not charge an application fee.
A registration fee, as established in (insert local here )’s fee schedule, shall be charged to
applicants depending on the type of retail business license applied for.
An initial retail registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall
include the initial retail registration fee and the first annual renewal fee.
Any renewal retail registration fee imposed by (insert local here) shall be charged at the
time of the second renewal and each subsequent renewal thereafter.
A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal
state license fee under Minn. Stat. 342.11, whichever is less.
A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration fee,
defined under this section, of the adult-use retail business.
2.3.2 Application Submittal.
The (insert local here) shall issue a retail registration to a state-licensed cannabis retail
business that adheres to the requirements of Minn. Stat. 342.22.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. The address and parcel ID for the property which the retail registration is
sought;
iv. Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
v. (Insert additional standards here)
(B) The applicant shall include with the form:
i. the application fee as required in [Section 2.3.1];
ii. a copy of a valid state license or written notice of OCM license
preapproval;
iii. (Insert additional standards here)
(C) Once an application is considered complete, the (insert local government
designee) shall inform the applicant as such, process the application fees, and
forward the application to the (insert staff/department, or elected body that will
approve or deny the request) for approval or denial.
(D) The application fee shall be non-refundable once processed.
2.3.3 Application Approval
(A) (Optional) A state-licensed cannabis retail business application shall not be
approved if the cannabis retail business would exceed the maximum number of
registered cannabis retail businesses permitted under Section 2.6.
(B) A state-licensed cannabis retail business application shall not be approved or
renewed if the applicant is unable to meet the requirements of this ordinance.
(C) A state-licensed cannabis retail business application that meets the requirements
of this ordinance shall be approved.
2.3.4 Annual Compliance Checks.
The (insert local here) shall complete at minimum one compliance check per calendar
year of every cannabis business to assess if the business meets age verification
requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24]
and this/these [chapter/section/ordinances].
The (insert local here ) shall conduct at minimum one unannounced age verification
compliance check at least once per calendar year.
Age verification compliance checks shall involve persons at least 17 years of age but under
the age of 21 who, with the prior written consent of a parent or guardian if the person is
under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products under the
direct supervision of a law enforcement officer or an employee of the local unit of
government.
Any failures under this section must be reported to the Office of Cannabis Management.
2.3.5 Location Change
A jurisdiction may decide to treat location changes as a new registration, or alternatively
treat a location change as allowable subject to compliance with the rest of the registration
process.
A state-licensed cannabis retail business shall be required to submit a new application for
registration under Section 2.3.2 if it seeks to move to a new location still within the legal
boundaries of (insert local here).
or
If a state-licensed cannabis retail business seeks to move to a new location still within the
legal boundaries of (insert local here), it shall notify (insert local here) of the proposed
location change, and submit necessary information to meet all the criteria in this
paragraph.
2.4 Renewal of Registration
The (insert local here) shall renew an annual registration of a state-licensed cannabis retail
business at the same time OCM renews the cannabis retail business’ license.
A state-licensed cannabis retail business shall apply to renew registration on a form
established by (insert local here).
A cannabis retail registration issued under this ordinance shall not be transferred.
2.4.1 Renewal Fees.
The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
2.4.2 Renewal Application.
The application for renewal of a retail registration shall include, but is not limited to:
• Items required under Section 2.3.2 of this Ordinance.
• Insert additional items here
2.5 Suspension of Registration
2.5.1 When Suspension is Warranted.
The (insert local here) may suspend a cannabis retail business’s registration if it violates
the ordinance of (insert local here) or poses an immediate threat to the health or safety
of the public. The (insert local here) shall immediately notify the cannabis retail business
in writing the grounds for the suspension.
2.5.2 Notification to OCM.
The (insert local here) shall immediately notify the OCM in writing the grounds for the
suspension. OCM will provide (insert local here) and cannabis business retailer a response
to the complaint within seven calendar days and perform any necessary inspections within
30 calendar days.
2.5.3 Length of Suspension.
A jurisdiction can wait for a determination from the OCM before reinstating a registration.
The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
The (insert local here ) may reinstate a registration if it determines that the violations have
been resolved.
The (insert local here) shall reinstate a registration if OCM determines that the violation(s)
have been resolved.
2.5.4 Civil Penalties.
Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty,
as specified in the (insert local here)’s Fee Schedule, for registration violations, not to
exceed $2,000.
2.6 Limiting of Registrations
A jurisdiction may choose to set a limit on the number of retail registrations within its
boundaries. The jurisdiction may not however, limit the number of registrations to fewer
than one per 12,500 residents.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
no fewer than one registration for every 12,500 residents within (insert local legal
boundaries here).
(Optional) If (insert county here) has one active cannabis retail businesses registration for
every 12,500 residents, the (insert local here) shall not be required to register additional
state-licensed cannabis retail businesses.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
(insert number <= minimum required).
Section 3. Requirements for Cannabis Businesses
State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner
of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a
buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis
to adopt such restrictions.
3.1 Minimum Buffer Requirements
A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis
business within a certain distance of schools, daycares, residential treatment facilities, or
from an attraction within a public park that is regularly used by minors, including a
playground or athletic field. Buffer requirements are optional. A jurisdiction cannot
adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction
should use a measuring system consistent with the rest of its ordinances, e.g. from lot
line or center point of lot.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-1,000] feet of a school.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a day care.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a residential treatment facility.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of an attraction within a public park that is regularly used by minors, including
a playground or athletic field.
(Optional) The (insert local here) shall prohibit the operation of a cannabis retail business
within [X] feet of another cannabis retail business.
Pursuant to Minn. Stat. 462.367 subd. 14, nothing in Section 3.1 shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation
at the same site if a (school/daycare/residential treatment facility/attraction within a
public park that is regularly used by minors) moves within the minimum buffer zone.
3.2 Zoning and Land Use
For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses
can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also
determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot
outright prohibit a cannabis business. A jurisdiction should amend their Zoning
Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they
are permitted, conditional, or interim uses. While each locality conducts its zoning
differently, a few themes have emerged across the country. For example, cannabis
manufacturing facilities are often placed in industrial zones, while cannabis retailers are
typically found in commercial/retail zones. Cannabis retail facilities align with general
retail establishments and are prohibited from allowing consumption or use onsite and
are also required to have plans to prevent the visibility of cannabis and hemp-derived
products to individuals outside the retail location. Cannabis businesses should be zoned
under existing zoning ordinances in accordance with the license type or endorsed
activities held by the cannabis business.
3.2.1. Cultivation.
Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use)
in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Manufacturer.
Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a
(type of use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Hemp Manufacturer.
Businesses licensed or endorsed for low-potency hemp edible manufacturers permitted
as a (type of use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Wholesale.
Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use)
in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Retail.
Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of
use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Transportation.
Cannabis businesses licensed or endorsed for transportation are permitted as a (type of
use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Delivery.
Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in
the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.3
3.4
Hours of Operation
A jurisdiction may adopt an ordinance limiting hours of operation to the hours between
10 a.m. and 9 p.m., seven days a week. State statute prohibits the sale of cannabis
between 2 a.m. and 8 a.m., Monday through Saturday, and between 2 a.m. and 10 a.m.
on Sundays.
(Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
between the hours of (insert time here) and (insert time here).
(Optional) Advertising
Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the
building or property of the business, unless otherwise limited by (insert local here)’s sign
ordinances.
Section 4. Temporary Cannabis Events
Any individual or business seeking to obtain a cannabis event license must provide OCM information
about the time, location, layout, number of business participants, and hours of operation. A cannabis
event organizer must receive local approval, including obtaining any necessary permits or licenses issued
by a local unit of government before holding a cannabis event.
4.1 License or Permit Required for Temporary Cannabis Events
4.1.1 License Required.
A cannabis event organizer license entitles the license holder to organize a temporary
cannabis event lasting no more than four days. A jurisdiction should determine what type
of approval is consistent with their existing ordinances for events.
A license or permit is required to be issued and approved by (insert local here) prior to
holding a Temporary Cannabis Event.
4.1.2 Registration & Application Procedure
A registration fee, as established in (insert local here)’s fee schedule, shall be charged to
applicants for Temporary Cannabis Events.
4.1.3 Application Submittal & Review.
The (insert local here) shall require an application for Temporary Cannabis Events.
(A)An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i.Full name of the property owner and applicant;
ii.Address, email address, and telephone number of the applicant;
iii.(Insert additional standards here)
(B)The applicant shall include with the form:
i.the application fee as required in (Section 4.1.2);
ii.a copy of the OCM cannabis event license application, submitted pursuant
to 342.39 subd. 2.
The application shall be submitted to the (insert local authority), or other designee for
review. If the designee determines that a submitted application is incomplete, they shall
return the application to the applicant with the notice of deficiencies.
(C)Once an application is considered complete, the designee shall inform the
applicant as such, process the application fees, and forward the application to the
(insert staff/department, or elected body that will approve or deny the request) for
approval or denial.
(D)The application fee shall be non-refundable once processed.
(E)The application for a license for a Temporary Cannabis Event shall meet the
following standards:
A jurisdiction may establish standards for Temporary cannabis events which the event
organizer must meet, including restricting or prohibiting any on-site consumption. If
there are public health, safety, or welfare concerns associated with a proposed cannabis
event, a jurisdiction would presumably be authorized to deny approval of that event.
•Insert standards here
(G)A request for a Temporary Cannabis Event that meets the requirements of this
Section shall be approved.
(H)A request for a Temporary Cannabis Event that does not meet the requirements
of this Section shall be denied. The (insert city/town/county) shall notify the
applicant of the standards not met and basis for denial.
(Optional) Temporary cannabis events shall only be held at (insert local place).
(Optional) Temporary cannabis events shall only be held between the hours of (insert start
time) and (insert stop time).
Section 5. (Optional) Lower-Potency Hemp Edibles
A jurisdiction can establish different standards or requirements regarding Low-Potency Edibles. A
jurisdiction can consider including the following section and subsections in their cannabis ordinance.
5.1 Sale of Low-Potency Hemp Edibles
The sale of Low-Potency Edibles is permitted, subject to the conditions within this
Section.
5.2 Zoning Districts
If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low-Potency
Edibles can take place in. A jurisdiction can also determine if such activity requires a
Conditional or Interim Use permit.
Low-Potency Edibles businesses are permitted as a (type of use) in the following zoning
districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
5.3 (Optional) Additional Standards
5.3.1 Sales within Municipal Liquor Store.
A jurisdiction that already operates a Municipal Liquor Store may sell Low-Potency
Edibles within the same store.
The sale of Low-Potency Edibles is permitted in a Municipal Liquor Store.
5.3.2 Age Requirements.
A jurisdiction is able to restrict the sale of Low-Potency Edibles to locations such as bars.
The sale of Low-Potency Edibles is permitted only in places that admit persons 21 years
of age or older.
5.3.3 Beverages.
The sale of Low-Potency Hemp Beverages is permitted in places that meet requirements
of this Section.
5.3.4 Storage of Product.
A jurisdiction is able to set requirements on storage and sales of Low-Potency Edibles.
Low-Potency Edibles shall be sold behind a counter, and stored in a locked case.
Section 6. (Optional) Local Government as a Cannabis Retailer
(insert local here) may establish, own, and operate one municipal cannabis retail business
subject to the restrictions in this chapter.
The municipal cannabis retail store shall not be included in any limitation of the number
of registered cannabis retail businesses under Section 2.6.
(insert local here) shall be subject to all same rental license requirements and procedures
applicable to all other applicants.
Section 7 Use in Public Places
No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in a public place or a place of public accommodation unless the premises is an
establishment or an event licensed to permit on-site consumption of adult-use.
Appendix B: Hemp Flower and Hemp-
Derived Cannabinoid Product Checklist
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 1
Office of Cannabis Management
Department of Health
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Minnesota Statute 18K.02, Definitions
Minnesota Statute 152.01, Subdivision 9
Minnesota Statute 151.72, Sale of Certain Cannabinoid Products
Minnesota Statute 152.0264, Cannabis Sale Crimes
Minnesota Statute 342.09, Personal Adult Use of Cannabis
Question Yes No Comments Additional Information
Business License and Registration Compliance
Is the business registered with
the Minnesota Department of
Health?
All businesses selling hemp-derived cannabinoid products must
be registered. See Hemp-Derived Cannabinoid Products
(www.health.state.mn.us/people/cannabis/edibles/index.html)
If the business offers on-site
consumption, do they have a
liquor license?
Local authorities issue on-site consumption licenses. These are
required for all businesses permitting on-site consumption of
THC.
Product Compliance – All Products
Does the business ensure that all
sales are made to persons 21
years old or older?
Only persons 21 years of age or older may purchase hemp-
derived cannabinoid products, with the exception of topicals.
These products may be sold to anyone.
Does the business have all edible
cannabinoid products, except
beverages, behind the counter or
in a locked cabinet?
Businesses must ensure all edible cannabinoid products are
secure and inaccessible to customers.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 2
Question Yes No Comments Additional Information
Only delta-8 and delta-9 are
allowed for human consumption.
Does the business sell edibles or
beverages with any other
intoxicating cannabinoids?
MDH has identified products containing many different
intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC,
delta-10, delta-11, delta-8p, delta-9p, etc. The product must
contain only delta-8 and/or delta-9.
Does the business sell any edible
products that are similar to a
product marketed to or
consumed by children?
Edible products that appear similar to candy or snacks
marketed toward or consumed by children are not allowed.
Does the label on the edible or
beverage state “Keep out of
reach of children”?
All products must include the warning label “Keep out of reach
of children.”
Is the manufacturer’s name,
address, website, and contact
phone number included on the
label or provided through a QR
code?
If not, the product is not in compliance.
Does the QR code on the product
bring the user to a Certificate of
Analysis on the website, which
includes the name of the
independent testing laboratory,
cannabinoid profile, and product
batch number?
All products must be tested by batch in an independent,
accredited laboratory. The results must include the
cannabinoid profile.
Does the label on the product
indicate the cannabinoids by
serving and in total?
The label must indicate the potency by individual serving as
well as in total.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 3
Question Yes No Comments Additional Information
Does the label on the product
make any claim the product
offers any kind of health benefit?
Health claims are not permitted on hemp or cannabis products
unless approved by the FDA. At this time, there is not an
approved statement.
Does the label on the product
state that the product does not
claim to diagnose, treat, cure or
prevent any disease?
The manufacturer cannot claim the product will provide any
health benefit unless the product has been formally approved
by the FDA.
Does the business sell CBD (or
other forms of cannabidiol) in
the form of a softgel, tablet, or
tincture?
Non-intoxicating cannabinoids may only be sold in the form of
an edible, beverage, or topical. Therefore, softgels and tablets
cannot be sold. Tinctures must be labeled as either an edible or
beverage and comply with the edible or beverage
requirements.
Product Compliance – Edibles
Does the edible product contain
more than 5 mg delta-8 and/or
delta-9 per serving?
Edibles may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the edible product
package/container contain more
than 50 mg total THC (delta-8
and/or delta-9)?
Edibles may not exceed 50 mg total delta-8 or delta-9 per
package. The edible cannot contain any other form of THC or
intoxicating cannabinoid.
Are all the edible product’s
servings clearly marked,
wrapped, or scored on the
product?
Edible product servings must be clearly distinguished on the
product. Bulk products that require the consumer to measure
are not allowed.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 4
Question Yes No Comments Additional Information
Does the business sell any edible
products in the shape of bears,
worms, fruits, rings, ribbons?
Edibles in shapes that appeal to children are not allowed.
Is the edible product in a child-
proof, tamper-evident, opaque
container?
All edibles must be in a container that is child-resistant and
tamper evident. If the container is clear, the business must
place the edible into an opaque bag at the point of sale. Clear
bags are not allowed.
Product Compliance - Beverages
Does the beverage product
contain more than 5 mg delta-8
or delta-9 per serving?
Beverages may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the beverage product
contain more than 2 servings?
Beverages cannot exceed two servings, regardless of the THC
potency.
Is the beverage product in an
opaque container?
If the beverage is in a clear container, the business must place
the beverage in an opaque bag at the point of sale.
Product Compliance – Smokables (non-flower)
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain more
than 0.3% THC?
A product’s certificate of analysis will show the concentration
of THC the product contains. The certificate typically is found
through the QR code on the product package. In MDH’s
experience, most vapes contain 50% - 90%+ THC.
Pre-rolls may consist of raw hemp flower. These products are
not regulated by 151.72. However, if a pre-roll is labeled as
“infused” or “coated” have additional cannabinoids applied to
the material, of which the product typically exceeds the 0.3%
THC limit.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 5
Question Yes No Comments Additional Information
Does the business sell vapes, pre-
rolls, dabs, or other smokeable
products that contain other
intoxicating cannabinoids, such
as HHC?
MN Statutes do not allow any cannabinoid, other than delta-8
or delta-9, to be sold if the cannabinoid is intended to alter the
structure or function of the body. HHC is a cannabinoid known
to have potency greater than THC.
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain CBD?
Non-intoxicating cannabinoids cannot be smoked, vaped, or
inhaled.
Product Compliance – Flower
Does the business sell raw hemp
flower?
Raw hemp flower must contain 0.3% or less of delta-9 on a dry
weight basis. Products exceeding 0.3% delta-9 dry weight are
marijuana, and are illegal for sale.
THC-A is the non psychoactive precursor to delta-9. Once
heated THC-A converts to delta-9. In that process some
amount of THC-A is lost.
To determine whether, once heated, the hemp flower will
exceed the allowable 0.3% of delta-9, one can use a
decarboxylation formula which takes into account the
conversion of THC-A into delta-9.
That formula is as follows:
Total THC = (0.877 X THC-A) + d-9 THC)
Raw flower must include a certificate of analysis to show
testing below 0.3% delta-9.
• A lack of a certificate of analysis would constitute an
illegal sale.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 6
Question Yes No Comments Additional Information
• A certificate of analysis showing that under the
decarboxylation formula that delta-9 would exceed
the 0.3% threshold would also indicate the flower is
cannabis and not hemp and therefore being sold
illegally.
Product Compliance – On-Site Consumption
If the business offers on-site
consumption, do they serve the
edible or beverage in its original
packaging?
The business may not pour out or remove an edible from its
original packaging.
If the business offers on-site
consumption, do they mix a
cannabis-infused beverage with
alcohol?
The business may not mix cannabis-infused products with
alcohol.
If the business offers on-site
consumption, do they permit
customers to remove from the
premises products which have
been removed from their original
packaging?
Products which have been removed from their original
packaging cannot be removed from the premises by the
customer.
NOTE: If a person suspects that a hemp-derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint
form at Submitting Hemp-Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html).
Appendix C: Enforcement Notice from
the Office of Cannabis Management
Enforcement Notice 1
Enforcement Notice from the Office of Cannabis
Management
Dear Registered Hemp Derived Cannabinoid Business:
The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing
the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota
Statutes Chapter 342.
When Minnesota legalized the sale of adult-use of cannabis flower, cannabis products, and lower-potency hemp
edibles/ hemp-derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota
Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of
Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or
retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal.
The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label
of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM,
inspectors from MDH will begin to examine any flower products being sold during their regular inspections to
determine whether they are indeed hemp flower or cannabis flower.
In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related
to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the
process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw
flower products will include reviewing the certificate of analysis for compliance in several areas, including:
Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA).
Products for sale without a COA will constitute an illegal sale.
A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3%
Delta-9 dry weight are considered marijuana and are therefore illegal to sell.
A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed
0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent
test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will
be considered illegal.
Minnesota Statutes, Chapter 342 governs Minnesota’s cannabis market, and empowers OCM to ensure
regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis
flower and cannabis products “without a license issued under this chapter that authorizes the sale.”
Enforcement Notice 2
To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are
expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware
that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for
violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any
product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules
adopted under this chapter[.]” Furthermore, violations of law may be considered in future licensing decisions
made by OCM.
As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they
fall within the thresholds outlined above. If you have any questions related to the products you are selling,
please send an email to cannabis.info@state.mn.us.
Thank you for your attention to this matter.
Charlene Briner
Interim Director
Office of Cannabis Management
Appendix D: Notice to Unlawful
Cannabis Sellers
Notice to Unlawful Cannabis Sellers
This notice is to inform you that your current course of action may run afoul of Minnesota law, and
continuing this course of action may result in civil actions and potential criminal prosecution. To avoid
such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of
cannabis and cannabis products.
Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s
cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter
342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale
of cannabis flower and cannabis products “without a license issued under this chapter that authorizes
the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis
licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation
of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6
(www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a
$1,000,000 for violations of this law.
Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM
is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in
violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted
to be sold at your retail location might be distributed in violation of the law, and would therefore be
subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2
(www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the
cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency
hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this
chapter have been complied with or the item is found not to be in violation of this chapter or rules
adopted under this chapter.”
While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency
hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions,
Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the
unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation,
manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of
the limits in 152.0264 is illegal.
If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that
the sale of those products is consistent with Minnesota Statutes, chapter 151.72
(www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your
business be registered with the Commissioner of Health, and that all products are in compliance with the
relevant statutes.
Finally, in addition to the state laws outlined above, please be aware that any retail location must be in
compliance with local government ordinances and zoning requirements.
OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to
ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to
open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased.
Current New Ordinance Plan to Plan to Plan to Any Plans to Plan to Impose Any Plans to Plan to
Moratorium Under Cap Number of Impose Buffer Require Local Address Other Restrictions on Regulate Restrict
Jurisdiction in Place?Development?Establishments? Minimums?Registration?License Types?Low-Dose THC?Special Events?Smoking?
Apple Valley Yes
Yes, draft to be
available in
September,
adoption by year
end
Likely Yes Likely Yes Likely Yes Yes, in Zoning
Ordinance Unsure at this time Likely Yes Unsure
Burnsville No
Yes, city council
consideration
August 27
No, pending city
council
consideration
No, pending city
council
consideration
Yes, as required by
state
No, pending city
council consideration
No, pending city
council
consideration
No, pending city
council
consideration
No, pending
city council
consideration
Eagan Yes
Discussed with
Council in June,
final adoption in fall
Likely No, maybe 5
retail and more in
industrial zones
No, did not work
well for liquor Yes Will be addressed in
zoning
No, 43 low-dose
locations already Unsure
Restrict in
parks,
complaint
based
Empire
Yes, enacted
last month to
address
wholesale
cultivation
Staff working on it
now
Population of 3,400
residents Yes Yes Yes, cultivation Unsure Unsure Likely not
Farmington Yes, enacted
last month Looking at it now Yes Yes Yes Unsure Unsure Unsure Unsure
Hastings No Not yet Likely no Probably not, maybe
around schools Unsure
Through zoning
ordinance, address
Ag land too
Probably not Unsure
Smoking and
vaping already
restricted
Inver Grove
Heights Yes Early stages Likely Yes Maybe schools Yes Unsure No restrictions Unsure No smoking on
public property
DRAFT - Subject to Change
Update on Planned Cannabis Regulatory Framework Across Dakota County Jurisdictions as of July 26, 2024
Current New Ordinance Plan to Plan to Plan to Any Plans to Plan to Impose Any Plans to Plan to
Moratorium Under Cap Number of Impose Buffer Require Local Address Other Restrictions on Regulate Restrict
Jurisdiction in Place?Development?Establishments? Minimums?Registration?License Types?Low-Dose THC?Special Events?Smoking?
Lakeville No
To Council this
week, August
public hearing
Yes, up to six
500 feet around
schools likely,
similar to alcohol
Unsure
Will address in zoning
ordinance, have been
asked about
cultivation
No Unsure
Smoking
already
restricted in
parks
Lilydale
Mendota
Heights No Early stages Yes Yes Yes Unsure Unsure Unsure
Yes, in parks,
perhaps social
host ordinance
Northfield No Yes, for September
work session Yes No buffer for alcohol
or low dose Yes Yes
No, muni sells THC
beverages and
edibles now. Perhaps
muni dispensary?
Already have in
place for
smoking
Rosemount Yes Under review, adopt
by end of year Yes at 3 Yes Unsure Yes, will address Ag
land No Unsure
Yes, restrict in
parks- Kennedy
Graven
language
South St. Paul
West St. Paul
Dakota
County No
Public Health &
Sheriff working on
it
Unsure Unsure
Yes, in
unincorporated
areas
Yes, address Ag land Unsure
Need to update
assemblage
ordinance
Need to review
parks
ordinance
DRAFT - Subject to Change
Update on Planned Cannabis Regulatory Framework Across Dakota County Jurisdictions July 26, 2024
I T E M: 6.B.
P L A NNI NG C O MMI S S I O N ME E T I NG D AT E:August 21, 2024
S E C T I O N:Other Business
Description:
Review of Upcoming S chedule and Other Updates
S taff Contact:
B reanna Vincent, Department Assistant
Department / Division:
Community Development Department
AC T I O N RE Q UE S T E D:
N/A
S UM M ARY:
Next P lanning Commission Meetings:
Wednesday, September 4, 2024 - 7:00 p.m.
Public hearing applications due by 9:00 a.m. on Wednesday, August 7, 2024.
Site plan, variance applications due by 9:00 a.m. on Wednesday, August 21, 2024.
Wednesday, September 18, 2024 - 7:00 p.m.
Public hearing applications due by 9:00 a.m. on Wednesday, August 21, 2024.
Site plan, variance applications due by 9:00 a.m. on Wednesday, September 4, 2024.
Next City Council Meetings:
T hursday, August 22, 2024 - 7:00 p.m.
T hursday, September 12, 2024 - 7:00 p.m.
B AC K G RO UND:
N/A
B UD G E T I M PAC T:
N/A