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2 <br /> <br />Local Regulations Allowed <br />The State of Minnesota and the new Office of Cannabis Management (OCM) have restricted <br />municipalities in how they can regulate cannabis. The following are the parameters set by the State that <br />influenced the creation of the ordinance. <br />1. Cities must allow one retail adult-use cannabis dispensary per 12,500 residents. The rule <br />has been interpreted to mean that a city with 12,501 would have to allow two dispensaries. <br />2. Cities are not permitted to cap non-retail cannabis businesses. <br />3. Cities may only charge a $500 registration fee and $1,000 renewal fee. <br />4. Cities are permitted to require a distance of 1,000 feet from schools and cannabis <br />businesses as well as up to 500 feet from daycares, residential treatment facilities, or an <br />attraction within a public park regularly used by minors. <br />5. OCM provided virtually no guidance on regulatory/welfare measurements that cities could <br />adopt to prevent odor or other nuisances. <br /> <br />OCM has created a “Local Government Guide” which is attached (Attachment 8) <br /> <br />Summary of Proposed Ordinance <br />1. The proposed ordinance would limit the City to one retail seller of adult-use cannabis. <br />2. The ordinance would allow the retailer of cannabis in the C-1, C-2, or I-1 District. Such use <br />could not be co-located with any residence (i.e. in a mixed-use building) <br />3. The other types of cannabis users (cultivators, manufacturers, wholesalers, etc.) could be <br />located in the I-1 District. They could not be adjacent to any property with a residence or that is <br />residentially zoned. <br />4. All cannabis uses would need to receive a Conditional Use Permit. <br />5. Cannabis uses must be 500 feet from schools, daycares, eligible parks, and residential treatment <br />facilities. <br />6. In the event of competing applications, a scoring system was created to avoid the City’s only <br />retail registration being determined solely on a first-come-first-served basis. The system prefers <br />single-tenant buildings, location in the I-1 District, and those who will only be retailing (as <br />opposed to cultivating and/or manufacturing) out of their location. <br /> <br />Items for the Planning Commission’s Consideration <br />The bulk of the content of the ordinances is regulatory/restating State law and allowed guidelines to <br />provide the City additional enforcement measures in the event one of the businesses becomes a <br />nuisance. This section addresses the items that Staff believe the City has the ability to modify <br />depending on Planning Commission and Council preferences. Please do not hesitate to raise other <br />questions, points, or concerns with items not discussed here. <br /> <br />Number of Cannabis Retail Locations <br />City Staff received feedback from the City Council at their 10/09/2024 meeting that they would like to <br />initially cap the number of registrations at one (1). Nothing precludes the City from allowing more <br />businesses at a later date. The minutes from the work meeting are attached (Attachment 6). <br /> <br /> <br />Zoning Districts Where Cannabis Businesses Will Be Permitted <br />Similarly, the City Council provided some initial feedback for the zoning districts they would like to <br />see cannabis in.