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1 <br /> <br />CITY COUNCIL <br />REGULAR MEETING STAFF REPORT <br />AGENDA ITEM 7B <br /> <br />STAFF ORIGINATOR: Katie Larsen, City Planner <br /> <br />MEETING DATE: October 13, 2025 <br /> <br />TOPIC: Approval of 1st Reading of Ordinance No. 17-25 Zoning Ordinance <br />Text Amendment Relating to Cannabis Microbusiness and <br />Mezzobusiness <br /> <br />VOTE REQUIRED: Simple Majority <br />______________________________________________________________________________ <br /> <br />INTRODUCTION <br /> <br />The applicant, 2E Reality, LLC., submitted a land use application to amend the zoning ordinance <br />to allow cannabis microbusinesses and mezzobusinesses within the R, Rural Zoning District. <br /> <br />Complete Application Date: July 31, 2025 <br />60-Day Deadline: September 27, 2025 <br />60-Day Extension: November 28, 2025 <br />EDAC Meeting: August 7, 2025 <br />Park Board Meeting: N/A <br />Planning & Zoning Board Meeting: September 10, 2025 <br />City Council Work Session: October 6, 2025 <br />City Council Meeting: October 13, 2025 <br />October 27, 2025 <br /> <br />BACKGROUND <br /> <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 grouped 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 />Page 60 of 145