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1 <br /> <br /> <br /> STAFF REPORT <br /> DATE: 12/3/2024 REGULAR AGENDA <br /> <br />TO: Planning Commission <br />FROM: Nathan Fuerst, AICP, Consulting Planner <br />AGENDA ITEM: Cannabis Regulations – Draft Registration and Land Use Standards <br />REVIEWED BY: Jason Stopa, Community Development Director <br /> Sophia Jensen, City Planner <br /> Joseph Sathe, Kennedy & Graven <br /> <br /> <br /> <br />BACKGROUND: <br />In 2023, Chapter 342 of Minnesota State Statues was established legalizing cannabis for <br />recreational adult use and the sale, possession, use, and growth of cannabis. The same statute also <br />created the Office of Cannabis Management (OCM), a new State agency that regulates cannabis <br />use and businesses in Minnesota. The OCM is currently finalizing rules and standards for <br />licensing and use of facilities that will deal with cannabis. The OCM recently closed the <br />application period for Social Equity Applicants and received over 1,800 applications. <br /> <br />Licenses are anticipated to be issued shortly after the rules are finalized in 2025. To avoid the <br />possibility of creating legal nonconforming uses, city staff are proposing that the City adopt <br />registration and land use standards before January 1, 2025. <br /> <br />On November 12, 2024, the City Council and several Planning Commissioners were present for a <br />joint workshop and provided staff with direction on regulations for cannabis and hemp businesses. <br /> <br />On November 25, 2024, the Planning Commission held a public hearing and discussed the <br />proposed regulations. <br /> <br />Given feedback received through the review process, the following general changes have been <br />made to staff’s proposed ordinances: <br />• Staff have drafted Ordinance 2024-20, and ordinance creating a registration process for <br />cannabis and hemp retail businesses. <br />• Ordinance 2024-21 was amended as follows: <br />o Cultivation in greenhouses is prohibited, buildings mut be compliant with design <br />standards. <br />o Requirement added for temporary cannabis events to be held indoors. <br /> <br /> <br />ISSUE BEFORE THE CITY: <br />The City Council is asked to review the proposed ordinances. If it seeks to adopt the standards, it <br />should do so or advise staff on changes for a future meeting. <br />