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City Council Regular Meeting Minutes September 10, 2024 Page 7 1 OCM has now developed a model ordinance for local government use and fine-tuning. Staff has 2 updated the model ordinance to fit St. Anthony's formatting and policy choices. The model 3 ordinance was provided for Council review. These retain the prohibition on use in public places, 4 and a separation buffer from specific land uses (1,000 feet for schools, 500 feet for parks 5 regularly used by minors, and 300 feet for childcare facilities and substance -abuse treatment 6 facilities. 7 8 The Planning Commission recommended approval, with discussion of the specific sections and 9 notes, and staff requests approval of the first reading of this ordinance. 10 11 The ordinance has a few areas of local choice, but generally, the State will handle all licensing, 12 with local governments reviewing the suitability of a location per its zoning district and building 13 code compliance. Sections A-G of the draft ordinance are largely administrative functions or 14 process requirements. There are a few areas of additional consideration as follows: 15 1. Number of licensed retail establishments. The State requires that all jurisdictions allow at 16 least one license for every 12,500 residents — the second license kicking in at a population 17 of 12,501. This draft ordinance anticipates the City limiting its licensees to the one 18 required, although the City can choose to allow more if it wishes to do so. This limitation 19 is found in Section K. 20 2. Location Change. In Section H, the City can choose to require a licensed retailer to restart 21 the full registration application process or allow a new location simply by notification 22 from OCM. The Planning Commission's discussion was mixed, landing with a 23 recommendation of the notification option only, rather than the more extensive re- 24 registration. The Commission's consensus was Option B. 25 3. Mixed Industrial/Retail Operations. The statute creates a class of retail licensees 26 identified as "Microbusinesses" and "Mezzobusinesses". These are essentially industrial 27 operations (growers, processors, etc.) distinguished from each other by size of operation. 28 They are distinguished from other industrial operations in that they are permitted to 29 obtain a "Retail Endorsement" permitting them to both process cannabis products and sell 30 products at retail. The comparable use would be a brewer taproom in which the brewer is 31 producing alcoholic beverages and operating an on -site drinking establishment. 32 33 Any retailers (including these) are subject to the buffer requirements. This draft is written 34 to exclude retail operations from the City's industrial areas — such that any micro- or 35 mezzo -business would not be permitted to offer on -sale products at locations in the 36 industrial districts. If on -site consumption similar to a taproom is preferred, this section 37 would require revision. 38 39 4. Hours of Operation. It is expected that a retail cannabis facility will maintain typical 40 retail hours. The State legislation allows the City to set more restrictive hours; however, 41 staff is not recommending this level of regulation. The legislation establishes maximum 42 retailing hours requiring closure of any retail operation between 2:00 a.m. and 8:00 a.m., 43 Monday through Saturday, and 2:00 a.m. and 10:00 a.m. on Sundays. This legislation 44 permits the City to limit hours to 10:00 a.m. and 9:00 p.m. 45