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June 25, 2024 Page 2 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 In August of 2023, the City adopted a moratorium on cannabis-related businesses (as authorized by the legislation), in anticipation of the State’s establishment of agency and rule- making activities. The State has created the Office of Cannabis Management (OCM) to carry out the requirements of the legislation, with an originally-anticipated start date of January, 2025. While that date may shift some, the City is seeking to update its zoning regulations to comply with the local land use impacts of the legislation. Included with this memo is a draft ordinance establishing basic zoning regulations in this regard, based on additional research and the Planning Commission’s discussion at its April and May 2024 meetings. One aspect of the City’s regulation to note is personal cannabis use, which was legalized by the 2023 legislation, took effect in August of last year. As a part of that process, the City separately established a prohibition on smoking in public places, which is applicable to any smoking or product. That aspect of the City’s regulation is not further addressed by the materials for this review. As additional guidance and requirements are adopted by the Office of Cannabis Management and/or the League of Minnesota Cities, additional changes or amendments are likely to follow this proposed amendment. The cannabis topic is complex and has many facets that impact local government. For the purposes of this review, these materials are 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 50