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October 8, 2024 Page 3 the one required, although the City can choose to allow more if it wishes to do so. This limitation is found in Section (K) in the attached version. 2.Location Change. In Section (H), the City can choose to require a licensed retailer to restart the full registration application process, or allow a new location simply by notification from OCM. The Planning Commission’s discussion was mixed, landing with a recommendation of the notification option only, rather than the more extensive re- registration. The Commission’s consensus was “Option b” (highlighted in yellow). 3.Mixed Industrial/Retail Operations. The statute creates a class of retail licensees identified as “Microbusinesses” and “Mezzobusinesses”. These are essentially industrial operations (growers, processors, etc.) distinguished from each other by size of operation. However, they are distinguished from other industrial operations in that they are permitted to obtain a “Retail Endorsement”, permitting them to both process cannabis products and sell products at retail. The comparable use would be a brewer- taproom in which the brewer is producing alcoholic beverages and operating an on-site drinking establishment. Any retailers (including these) are subject to the buffer requirements in Note 1. above. However, this draft is written to exclude retail operations from the City’s industrial areas – such that any micro- or mezzo-business would not be permitted to offer on-sale products at locations in the industrial districts. This language is included in Section (M)(1) and (2). If on-site consumption similar to a taproom is preferred, this section would require revision. 4.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. The legislation establishes maximum retailing hours requiring closure of any retail operation between 2:00am and 8:00am, Monday through Saturday, and 2:00am and 10:00am on Sundays. The legislation permits the City to limit hours to 10:00am and 9:00pm. The Planning Commission discussed this aspect of the code, and also recommended no additional limits on hours of operation. 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 Council has the ability to update this issue if it is found that specific concerns arise related to hours of operation. The relevant section, if the Council decides to do so, is found in Section (N) of the attached draft ordinance. 5.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 could also apply.