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August 20, 2024 Page 2 2.Hours of Operation. As a general rule, it is expected that a retail cannabis facility will maintain typical retail hours. The state legislation allows the City to set more restrictive hours, however, staff is not recommending this level of regulation. Since the zoning ordinance sites a retail facility in a standard commercial retail district, it is expected that standard commercial hours will be followed. The has the ability to update this issue if it is found that specific concerns arise related to hours of operation. 3.Odor. There is language in the statute that references an ability to regulate uses based on odor, however, it is not clear at all how this would be accomplished or enforced. The City’s adopted prohibition of smoking in public places is intended to address the primary objection to odor, which is expected to be smoke. Whereas some industries can create odor emissions, there are PCA limitations on particulate matter and other emissions which would also apply. Staff is not recommending any additional odor-related regulation. 4.Low Potency Hemp Products. The City may be able to further limit the low-potency hemp sales currently allowed by law. St. Anthony has adopted a regulation that limits sales to those businesses that maintain a tobacco sales license. It is not expected that this would change as these products shift to State licensing. 5.Cannabis Events. The legislation created a requirement that Cities permit temporary “Cannabis Events”. These events would be located only where the City authorizes any other type of temporary event. If in public places, smoking or other consumption would not be allowed. If in indoor places, the Minnesota Clean Indoor Air Act would continue to apply. No additional regulation is anticipated at this time. 6.Other. There are a few administrative options for the City to consider, including how to “register” licensed establishments, enforcing compliance required by the law, and addressing licensee reapplication, among a few others. These aspects of the ordinance address clerical aspects of City operation rather than land use decision-making. PLANNING COMMISSION ACTION The cannabis topic is complex and has many facets that impact local government. Prior decisions on cannabis regulation are incorporated into this comprehensive ordinance, now that the State has created the model ordinance for local guidance. Municipal sales, law enforcement, and other administrative or General Code aspects of the law are left to separate consideration by City Council. Staff asks that the Commission discuss the various questions identified above, and provide recommendations as to the various elements of City authority. Staff will update the draft model reflecting staff and Commission comments for City Council consideration at upcoming meetings. For reference, a draft ordinance, based on the model, is attached. The yellow highlights are those areas that are optional, or reflect commentary only.