HomeMy WebLinkAbout08/07/2025 EDAC Combined Packet
ECONOMIC DEVELOPMENT ADVISORY
COMMITTEE AGENDA
Thursday, August 7, 2025
COMMITTEE MEETING, 8:00 A.M.
Community Room
1. Call to Order and Roll Call
2.Approval of Minutes: July 10, 2025
3. Discussion Items
A. Zoning Ordinance Amendment related to Micro and Mezzo Cannabis Businesses
B.Housing Trust Fund & Loan/Grant Program
C. Project Updates
Main Street Master Plan and AUAR
I35E Interchange
Market Place Drive
Otter Lake Road Extension
4. Adjournment
ADJOURNMENT
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: July 10, 2025
TIME STARTED:8:00 a.m.
TIME ENDED:9:36a.m.
MEMBERS PRESENT:Andrew Cravero, Blakely LaCroix, Patrick Kohler,
NathanVojtech, Barbara White, Chad Wagner,
Suzy Guthmueller, Randy Rennaker, Sam Bennett
MEMBERS ABSENT:Chris Spenner
STAFF PRESENT:Michael Grochala, Marissa Ertel
1.CALL TO ORDER
Mr. Vojtechcalled the Economic Development Advisory Committee meeting to order at
8:00 a.m. onJuly 10, 2025.
2.APPROVAL OF MINUTES
Mr. Craveromadea motionto approve the May 1, 2025meetingminutes.Motionwas
supported by Mr. LaCroix. Motion carried 9-0.
3.DISCUSSION ITEMS
A.Municipal Cannabis Dispensary
Minnesota Statutes, Chapter 342, adopted in 2023 and amended in 2024 authorizes the
cultivation, manufacturing and sale of cannabis products. The City adopted amendments
to Chapters 617 (Licensing) and 1007 (Zoning) in early 2025 establishing regulations for
the registration of cannabis business and zoning requirements.
Both state law and City Code Chapter 617 allows for the City to operate a municipal
cannabis store. A license for a municipal cannabis store is in addition to the registration
limitations of 1 per 12,500 residents. 13 cities are reported to have appliedfor a
municipal cannabis retail license, including Anoka communities Anoka and Blaine.
The City Council recently discussed the possibility of establishing a municipal retail store
as a potential revenue generator. On June 23, 2025, the City Council authorized the
preparation of a Feasibility/Market Study to evaluate the potential viability of a municipal
DRAFTMINUTES
Economic Development Advisory Committee
March 2, 2023
Page 2
store by Great White Companies MN, LLC. The study is anticipated to be presented to the
City Council at their works session on July 7, 2025.
If the City moves forward, it would likely be under a public/private partnership whereby a
private entity would own and operate the store and profit share with the City. However,
no decisions have been made by the City Council, at this time, other than tostudy the
opportunity.
Bill Parker withGreat White Companies, LLC waspresent to discuss the feasibility study
and answer questions regarding the viability of the operation and cannabis retail business
in general.
Mr. Bennett had questions regarding the $125.00 amount in the draft feasibility study.
Mr. Parker explained this would be the average spend per user per month.
Mr. Cravero spoke about the projected salaries and Mr. LaCroix had questions regarding
whetherthe presented salary would be feasible. Mr. Parker stated that with the projected
number of consumers this would be a reasonable projection. Mr. LaCroix also had
concerns regarding traffic arounda future cannabis retailer. Mr. Parker stated this is one
of the main areas that they investigatewhen looking for a future store.
Mr. Bennett wanted clarity on how much the City would be involved. Mr. Grochala stated
that the City Council would want a non-complete clause, but other than that the City
would be hands off. Mr. Wagner wanted to know whether the City would get a portion of
the sin tax. Mr. Parker explained that the State recently passed legislation that removed
the percentage that would be retained by the municipality.
Mr. Rennaker asked for more clarity on how the federal law factors in and what this
would mean for the municipal store. Mr. Parker explained that the current administration
is being pushed to classify cannabis from schedule one to schedule three. Moving to
schedule three would mean this would not be just a cash-basedsystem.
Mr. Vojtech had questions about whetherthis would be strictly a recreational license. Mr.
Parker explained that the way the state set up the licensing, it would not make sense to
get a medical dispensing license. Mr. Vojtech questioned if there was a reason the City
didn’t have a municipal liquor store. Mr. Grochala explained that since there arealready
severalliquor stores in the city it wouldn’t be beneficial, with cannabis the City would be
getting in at the ground floor.
Mr. Kohler had concerns about the medical impacts of cannabis. Mr. Parker explained that
since cannabis is still classified as schedule one there have not been many studies
regarding the medical impact of regular cannabis use.
DRAFTMINUTES
Economic Development Advisory Committee
March 2, 2023
Page 3
The Board had more questions about how the money brought intothe City would be
used. Mr. Grochala explained that the City Council is still in early discussions about the
municipal license, but this is something that would be considered by the Council.
4.PROJECT UPDATES
Mr. Grochala updated the committee on current City projects.
5.ADJOURNMENT
Ms. Guthmuellermade a motionto adjourn the meeting at 9:36a.m.Motion was
supported by Mr. LaCroix. Motion was carried 6-0.
Respectfully submitted,
Marissa Ertel,Community DevelopmentAdministrative Assistant
DRAFTMINUTES
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3A
STAFF ORIGINATOR:Michael Grochala, Community Development Director
MEETING DATE:August 7, 2025
TOPIC:Amendment to Zoning Ordinance to Allow Cannabis Micro and
Mezzo Businesses in the Rural Zoning District
BACKGROUND
In March of 2025 the City amended City Code Section 1007 (Zoning Ordinance) to provide for
Cannabis Businesses within the specific zoning districts of the City. Generally, the 13 license,
types (now 14 based on 2025 legislation) were group with similar non cannabis related
businesses. For example, cannabis cultivation was provided for in rural districts where
agricultural uses are allowed, retail in commercial districts and production/manufacturing in
industrial districts.
Two of the license categories, microbusiness and mezzobusiness, allow for cultivation,
production and retail sales, at different intensities. Both license types are limited to the City’s
industrial districts because of the multiple use potential. Licensed businesses within these
categories must also receive an “Endorsement” from the Office and Cannabis Management
(OCM) to operate a specific use such as retail on a site.
The City recently rejected the certification of a microbusiness because of its location within a
rural zoning district. The owner has since met with City staff to discuss the operation, which is
currently a hemp growing operation in the City. While the owner has a microbusiness license
from the state, they are only seeking the Cultivation endorsement for the specific site. The
owner has been joined by another interested party in seeking an amendment to the zoning
ordinance to allow both micro and mezzo businesses in the R, Rural District, limited to
cultivation.
Cannabis Cultivation is a permitted use in the R, Rural Zoning District and allows for up to
30,000 square feet of plant canopy indoors and 2 acres of mature flowering plants outdoors.
Cultivation under a microbusiness endorsement is limited to 5,000 square feet indoors and one-
half acre outdoors. A mezzobusiness endorsement is limited to 15,000 square feet indoors and
one acre outdoors.
Since the growing limitations from micro and mezzo businesses are less than what is already
allowed under the cultivation license staff is supportive of the request, provided that the
1
endorsement can be limited to cultivation. Staff is working with the City Attorney to review this
issue.
EDAC CONSIDERATION
Staff is requesting EDAC input on allowing cannabis micro and mezzo businesses, limited to
cultivation endorsement, in the rural zoning district.
ATTACHMENTS
1.Cannabis License and Endorsement Type table
2.Cannabis Use Zoning District Table.
2
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½ acre outdoors
or
to 2 acres
retailer
plants
limited
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and sell immature
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Notes 1 retail license (same site)outdoors + 3 retail license (retail use is not on same site)indoor only)IOutdoor BTransport cannabis and hemp products betweendistribute
BC, Business CampusP PPPPP P
GI, Gen IndustrialPPP PPPPPP PP
Industrial Districts LI, Light IndustrialPPP PPPPPP PP
GB, General Business P P P
LB, Limited Business P P P
Commercial DistrictNB, Neighborhood Business P P P
RuralR, Rural PP P
potency potency
--
Cannabis License TypeCannabis MicrobusinessCannabis Mezzobusiness(indoor)(outdoor)Cannabis Cannabis RetailerCannabis WholesalerCannabis TransporterFacilityMedical Cannabis Medical Cannabis
RetailerMedical Cannabis Combo BusinessLowerHemp Edible LowerHemp Edible Retail
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3B
STAFF ORIGINATOR:Michael Grochala, Community Development Director
MEETING DATE:August 7, 2025
TOPIC:Local Housing Trust Fund
BACKGROUND
In 2023 the Minnesota Legislature approved a new metro-wide sales and use tax for affordable
housing. The purpose of the aid is to help metropolitan local governments develop and
preserve affordable housing within their jurisdictions. The annual appropriation comes from a
sales and use tax imposed within Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and
Washington Counties. Cities with a population of over 10,000 within these counties are eligible
to receive aid. The City of Lino Lakes will begin receiving funds in 2024.
The City has three years from the receipt of the local affordable housing aid to spend it on a
qualifying project. Any unspent funds must be transferred back to Minnesota Housing Finance
Agency. Funds are considered spent on a qualifying project if they are transferred to a local
housing trust fund. Ehlers and Associates provided an overview of the program to the EDAC in
October of 2023. A copy of their memorandum is included for committee review.
The EDAC previously supported the idea of establishing a local housing trust fund for purposes
of administering the housing aid. This would allow the City additional time to establish a
program and expend funding. Staff has prepared a draft ordinance for discussion purposes.
The provision includes a range of both funding sources that could go into the fund as well as
potential uses of the funds. Legislatively this gives the City the most flexibility as we evaluate
potential program options.
With a number of new members on the EDAC staff is bringing this item back for discussion prior
to proceeding with consideration by the City Council.
EDAC CONSIDERATION
Staff is requesting EDAC comments on the proposed ordinance and any additional information
necessary to advance the proposal.
ATTACHMENTS
1
1. Ehlers Memo, October 2023
2. Draft Housing Trust Fund Ordinance
2
Public Hearing: Draft Posted to Website:
st
1 Reading: Publication:
nd
2 Reading:Effective:
CITY OF LINO LAKES
ORDINANCE NO. XX-24
AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING
TRUST FUND
The City Council of Lino Lakes ordains:
Section I. Chapter XX, of the Lino LakesCity Code is amended by adding Article XX to provide as
follows:
Article XX. AFFORDABLE HOUSING TRUST FUND
XXX.XX. Definitions. The following definitions apply in this Article.
Persons of verylow income means families and individuals whose incomes do not exceed 50
percent of area median income, as median income was most recently determined by the United
States Department of Housing and Urban development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of low income means families and individuals whose incomes do not exceed 80 percent
of the area median income, as median income was most recently determined by the United
States Department of Housing and Urban development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of moderate income means families and individuals whose incomes exceed 80 percent,
but do not exceed 115 percent, of area median income, as median income was most recently
determined by the United States Department of Housing and Urban development for the
Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as
adjusted for smaller and larger families.
XXX.XX. Pursuant to the authority granted to the city under Minnesota Statutes Section 462C. I
6, an affordable housing trust fund is established to provide loans and grants to for-profit and
non-profit housing developers for the acquisition and capital and soft costs necessary for the
creation of new affordable renter and owner-occupied housing, and for the acquisition,
rehabilitation and preservation of existing affordable housing including Naturally Occurring
Affordable Housing (NOAH).
XXX.XX. The Affordable Housing Trust Fund shall be funded from multiple sources including:
(a)Buy-in funds from Developers.
(b)Private cash donations from individuals and corporations designated for the Affordable
Housing Trust Fund.
(c)Payments in lieu of participation in current or future affordable housing programs.
(d)Grants and loans from a state or federal source
(e)Principal and interest from Affordable Housing Trust Fund loan repayments and all other
income from Trust Fund activities.
(DThe sale of real and personal property.
(g)Local government appropriations, development fees and other funds as designated from
time to time by the city council.
(h)Tax Increment Finance (TIF) pooled funds.
XXX.XXThe city may use money from the Affordable Housing Trust Fund to assist proposed
projects or programs to develop or preserve affordable housing for persons of very low, low and
moderate income to include:
(a)Making loans at interest rates below or at market rates in order to strengthen the financial
feasibility of proposed projects.
(a)Guaranteeing of loans.
(b)Enhancement of county, state, and federal affordable housing programs.
(c)Financing the acquisition, demolition, and disposition of property for affordable housing
projects.
(d)Funding or financingthe rehabilitation, remodeling, or new construction of affordable
housing.
(e)Funding to facilitate affordable homeownership opportunities including down payment
assistance, second mortgages, closing costs, etc.
(f)Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.)
(g)Other uses as permitted by law and approved by resolution of the city council.
XXX.XX. The city shall determine the terms and conditions of repayment of loans and grants from
the Affordable Housing Trust Fund including the appropriate security and interest, if any, should
repayment be required. Interest on loans and grants shall be as established by the city from time
to time or at the time of approval of a specific project or program.
XXX.XX. Financial Oversight. The City Administrator, or designee, will administer and supervise
the affordable housing trust fund account and the city’s Finance Director will administer the fund.
Adopted by the Lino Lakes City Council this ____ day of ________________, 2024.
____________________________
Rob Rafferty, Mayor
ATTEST:
________________________
Roberta Colotti, CMC
City Clerk