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June 11, 2024 Page 2 CITY COUNCIL ACTION Staff requests that the City Council consider adoption of the attached Ordinance 2024-03 As a zoning regulation, it may be adopted in a single reading, or the Council may consider the item over three readings as is common to other Ordinance amendments as desired. Staff recommends that the moratorium ordinance enacted last August continue in force as further materials are generated by the State of Minnesota over the next several months. PLANNING COMMISSION RECOMMENDATION The Planning Commission reviewed the proposed regulations and ordinance at a discussion meeting in April, and then at a public hearing at its May 21, 2024 regular meeting. No members of the public submitted comments, nor were any present to comment at the hearing. The Commission voted to recommend approval of the proposed ordinance, with the bulk of the discussion centered on the prospective buffer distance between commercial childcare facilities and any cannabis retailer. The statute permits the City to create a buffer of up to 500 feet for such facilities. The Planning Commission believes that this distance was overly restrictive, given the nature of the uses, and the mapping of potential exclusion zones if adopted to the fullest extent. Following its discussion, the Commission recommends a separation buffer of 100 feet between cannabis retailers and licensed commercial childcare facilities. BACKGROUND AND REVIEW The cannabis topic is complex and has many facets that impact local government. For the purposes of this review, these materials limited to impacts on land use regulation and zoning. For most of this, the requirements will be addressing business regulation – business type, location, and related concerns. Municipal sales, law enforcement, and other administrative or General Code aspects of the law are left to separate consideration by City Council. Land Use Aspects of Cannabis Legalization. The legislation creates several categories of licensing for Cannabis business activity. The State OCM will assume all requirements for licensing of cannabis businesses, including retailers, manufacturers, transporters, and warehousing. The law includes all types of cannabis product, including hemp-THC products and medical cannabis. The law provides that the City may not prohibit the business uses for cannabis products due merely because of the nature of the product. Therefore, where the City allows manufacturing, a business that manufactures a cannabis product licensed by the State must be accommodated. There can be no additional limits for these businesses, such as number of licensees, proximity to other uses, etc. Included in the types of licensed businesses are retailers, however, retailing can be limited by the City under specific circumstances. There are six categories of retail business that are called out for these limitations: Cannabis “Mezzo-businesses”, Cannabis “Micro-businesses”, 26