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May 21, 2024 Page 4 2812 Anthony Lane South (Jack and Jill Preschool and Childcare): This daycare parcel is located in an industrial park area. Exclusion of cannabis businesses of any distance will impact some potential retail locations, primarily as a part of a “micro-“ or “mezzo-“ business which does some form of industrial processing and proposes to also sell retail products as an aspect of the business. The number of parcels impacted will depend on the separation distance chosen. 2955 Pentagon Drive (Step by Step Montessori): This facility is located in the St. Anthony Shopping Center, zoned Commercial. Much of the shopping center area would be prohibited from retail sales, again depending on the size of the separation distance adopted. As noted, the statute permits (but does not require) the City to create exclusion distances from schools, parks, and childcare facilities to any cannabis facility that includes retail sales. For St. Anthony, the proximity of schools and parks to any potential Commercial or Industrial site is not applicable, given the geography and land use pattern. The primary issue would be the location of childcare facilities in the south portion of the city. There are three such facilities that would, if a separation distance is adopted, create an exclusion area for surrounding property. At its April meeting, the Planning Commission discussed whether the exclusion area was relevant to daycare, based on an assumption that unlike schools and parks, there is less likely to be unsupervised child presence using daycare facilities. The zoning action for the City would be an amendment to the Zoning Ordinance that eliminates the current total prohibition of cannabis businesses, and replacement with language related to separation where applicable. Although no impacts are foreseen for Schools and Parks as noted, staff would recommend adoption of the full State-allowed exclusion area for those uses (1,000 feet for schools, and 500 feet for parks). There continue to be discussions at the State level (both legislatively and agency-driven) that will continue to refine aspects of the law. As such, these protections would be consistent with the allowances, and address any unforeseen circumstances until additional guidance is provided. Guidance is likely to come from a variety of sources, including both the League of Minnesota Cities and the Office of Cannabis Management (in the form of a model ordinance). For childcare facilities, there is likely to be some pressure to adopt a limited separation zone from retail cannabis outlets. As noted, the full 500 feet would significantly limit retail outlets in the south area of the City. A distance of 250 feet would have a lesser impact, but still affect some potential sales locations. In the alternative, the City could create a limitation that prohibits retail sales on premises that abut a parcel with childcare, rather than default to the distance allowance. This would be effectively the same as a “1-foot” buffer. The attached draft ordinance incorporates alternative language for Planning Commission review and discussion. PLANNING COMMISSION ACTION If acceptable to the Commission, staff asks that the Commission further discuss the separation distance aspects of the potential regulations, and raise other issues as they may impact a final ordinance adoption. With these comments, and if the proposed Ordinance amendments