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2 <br /> <br />Chapter 342 of Minnesota law was established by the State Legislature in 2023 and amended in <br />2024 providing for the cultivation, manufacture and sale of adult use cannabis. The State is <br />currently completing the rulemaking process which will likely be completed after the first of the <br />year (2025). <br /> <br />The law created the Office of Cannabis Management (OCM) to oversee the implementation and <br />regulation of the adult-use cannabis market, the medical cannabis market, and the consumer <br />hemp industry. The OCM will be responsible for licensing Cannabis Businesses. There are 13 <br />different types of business licenses. These include: <br /> <br />Microbusiness Mezzobusiness Cultivator <br />Manufacturer Retailer Wholesaler <br />Transporter Testing Facility Event Organizer <br />Delivery Service Medical Cannabis Combo <br />Bus. Lower-Potency Hemp Manuf. <br />Lower-Potency Hemp <br />Retailer <br />Definitions for each business type are included in the draft ordinance. <br /> <br />The amendment to Chapter 617 provides for registration requirements for Cannabis Business <br />including, number of retail licenses allowed, buffer requirements from certain uses, and <br />performance standards. The City Council will be considering these amendments in January. <br /> <br />The amendment to Chapter 1007 relates to the City role as the zoning authority. Cannabis <br />businesses are viewed as any other type of legal business, subject to the City’s general zoning <br />regulations. A zoning ordinance text amendment has been drafted to include the various <br />license types into appropriate zoning districts. <br /> <br />The Planning and Zoning Board opened the public hearing on January 8, 2025 and it was <br />continued to the February 12, 2025 meeting. <br /> <br />ANALYSIS <br /> <br />For purposes of the Zoning requirements the primary focus will be on the appropriate districts <br />for each use. It is also necessary to determine whether the use is a permitted or conditional <br />use based on similar uses already established in the districts. <br /> <br />The licensed uses fall within the following categories: <br /> <br />Cultivation. Cannabis business licensed or endorsed for cultivation would be permitted as an <br />agricultural use and would be permitted indoor and outdoor in the R – Rural district. Indoor <br />cultivation would also be considered in Industrial districts. <br />