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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. B UD G E T I M PAC T: N/A AT TAC HM E NT S : 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: N/A AT TAC HM E NT S : 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 ) 2 (4 ) 7 (5) 9 (5) 10 3 ( 7 ) 2 ( 6 ) ( 9 ) 3 (6 ) 2 (4) 7 (6) 10 2 ( 6 ) 10 ( 5 ) (5) 1 7 ( 4 ) 13 ( 7 ) 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 G L E B A Y D R EMORY AVE FJO R D A V E FIRT R EE LN E A G LE C R E EKWAY 158TH CT W E AGLEBAY W A Y EASTBEND WAY 156TH WAY EAMES WAY EDDY CREEK WAY FINC H LN FAIRBOO K C 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 R Y P A T H ENGL ISH AVE DO DD BLVD FAIRFIELD D R C O B B L ESTONE LAKE PKW Y EVER GLAD E AVE 1 5 6 THSTW 154TH ST W COBBLESTONE L A K E P K WY S JOHN NY CAKE RID GE RD FAIR HILL WAY FAIRCH IL D WAY 153RD ST W EMPEROR AVE E A G L E B A Y D R EMORY AVE E M B L E M W A Y FI RT R EE LN E A G L E C R E EKWAY E AGLEBAY W A Y EASTBEND W A Y EVER GREEN AVE E L M WOOD WAY 158TH CT W 156TH WAY E A R L YBIRDCIR FINC H L N EAMES WAY EDDINGTON WAY E L M C R OFTWAY EDDY CREEK WAY FAIRBOOK C T EA G LE STO N E R D FESCUE CT FINESSE WAY 158TH ST W 1 5 8 T H S T W ENGL ISH AVE PILOT K NOB RD 158TH ST W 156TH ST W P P C C CC P P P HD MD LD LD LD MD LD LD LD LD LD MDLD LD MD 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: N/A 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. B UD G E T I M PAC T: N/A AT TAC HM E NT S : 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 Da t e S a v e d : 8 / 2 / 2 0 2 4 8 : 4 2 A M Pa t h : G : \ P u b l i c W o r k s \ A d m i n i s t r a t i o n \ C a n n a b i s O r d i n a n c e - S e n s i t i v e A r e a B u f f e r s \ C a n n a b i s O r d i n a n c e - S e n s i t i v e A r e a B u f f e r s . a p r x 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 Ga r d e n V i e w D r Ga l a x i e A v e Jo h n n y C a k e R i d g e R d Pi l o t K n o b R d Di a m o n d P a t h Ce d a r A v e Fl a g s t a f f A v e Ha y e s R d Pe n n o c k A v e Dodd B l v d 155th St W Fo l i a g e A v e 147th St W 145th St W Pal o m i n o D r 157th St W 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