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3 <br /> <br />The same adjustment is recommended for microbusiness and mezzobusiness within the NB, <br />Neighborhood Business District, the LB, Limited Business District, and the GB, General Business <br />District zoning districts. Currently, a cannabis retail business is a permitted use within these <br />business zoning districts. As proposed, a microbusiness or mezzobusiness licensed business <br />with a retail operations endorsement would be allowed to operate in a business district and be <br />limited to retail operations. On site consumption would not be allowed. These businesses <br />would be subject to the limitation on retail registrations which is capped at 2 (1 per 12,500 per <br />persons)in Lino Lakes. <br /> <br />EDAC Recommendation <br /> <br />The Economic Development Advisory Committee (EDAC) discussed allowing a microbusiness or <br />mezzobusiness in the R, Rural District, limited to cultivation endorsement at their August 7, <br />2025 meeting. This discussion preceded the City Attorney review and did not include <br />discussion on retail operations endorsement. The EDAC supported the change to allow <br />microbusiness or mezzobusiness with cultivation endorsement in the R, Rural District provided <br />sales were prohibited. <br /> <br />The Board also had concerns regarding the implications if a property were rezoned and <br />whether that would potentially increase the number of potential retail registrations. The <br />number of retail registrations are restricted under City Code and limited to one per 12,500 <br />persons. A rural property with a cultivation endorsement, if rezoned to commercial zoning <br />district, would not change those limitations. <br /> <br />Planning & Zoning Board Recommendation <br /> <br />The Planning & Zoning Board held a public hearing on September 10, 2025. The applicant, Jarod <br />Anderson, spoke. There were no other public comments. The Board recommended approval 6- <br />1 of the zoning ordinance text amendment with the confirmation that microbusiness and <br />mezzobusiness cultivation in industrial zoning districts are only allowed indoors. Staff confirms <br />this is correct. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends approval of the 1st Reading of Ordinance No. 17-25. <br /> <br />ATTACHMENTS <br /> <br />1. Microbusiness and Mezzobusiness Cannabis License and Endorsement Types <br />2. Zoning District Summary Table <br />3. Ordinance No. 17-25 <br />Page 5 of 52