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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE <br />AGENDA ITEM 3A <br />STAFF ORIGINATOR:Michael Grochala, Community Development Director <br />MEETING DATE:August 7, 2025 <br />TOPIC:Amendment to Zoning Ordinance to Allow Cannabis Micro and <br />Mezzo Businesses in the Rural Zoning District <br />BACKGROUND <br />In March of 2025 the City amended City Code Section 1007 (Zoning Ordinance) to provide for <br />Cannabis Businesses within the specific zoning districts of the City. Generally, the 13 license, <br />types (now 14 based on 2025 legislation) were group with similar non cannabis related <br />businesses. For example, cannabis cultivation was provided for in rural districts where <br />agricultural uses are allowed, retail in commercial districts and production/manufacturing in <br />industrial districts. <br /> <br />Two of the license categories, microbusiness and mezzobusiness, allow for cultivation, <br />production and retail sales, at different intensities. Both license types are limited to the City’s <br />industrial districts because of the multiple use potential. Licensed businesses within these <br />categories must also receive an “Endorsement” from the Office and Cannabis Management <br />(OCM) to operate a specific use such as retail on a site. <br /> <br />The City recently rejected the certification of a microbusiness because of its location within a <br />rural zoning district. The owner has since met with City staff to discuss the operation, which is <br />currently a hemp growing operation in the City. While the owner has a microbusiness license <br />from the state, they are only seeking the Cultivation endorsement for the specific site. The <br />owner has been joined by another interested party in seeking an amendment to the zoning <br />ordinance to allow both micro and mezzo businesses in the R, Rural District, limited to <br />cultivation. <br /> <br />Cannabis Cultivation is a permitted use in the R, Rural Zoning District and allows for up to <br />30,000 square feet of plant canopy indoors and 2 acres of mature flowering plants outdoors. <br />Cultivation under a microbusiness endorsement is limited to 5,000 square feet indoors and one- <br />half acre outdoors. A mezzobusiness endorsement is limited to 15,000 square feet indoors and <br />one acre outdoors. <br /> <br />Since the growing limitations from micro and mezzo businesses are less than what is already <br />allowed under the cultivation license staff is supportive of the request, provided that the <br />1 <br /> <br />