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Memorandum <br />To: Hugo City Council <br />From: Max Gort, Associate Planner <br />Date: November 13, 2024, for the Planning Commission Meeting of November 18, 2024 <br />Re: Update on the Draft Cannabis Ordinance <br />1.BACKGROUND: <br />By enacting Minnesota Statutes 2023, Chapter 342, the Minnesota Legislature has provided a <br />regulatory framework for the sale and manufacturing of cannabis and hemp products, the <br />licensing of cannabis and hemp businesses, and establishes a State Agency known as the Office <br />of Cannabis Management (OCM). Section 342.13 of the act allows a local unit of government to <br />adopt “reasonable restrictions on the time, place, and manner” of the operation of cannabis <br />businesses. On July 10, 2023, the City Council enacted a 12-month moratorium on the sale, <br />testing, manufacturing, and distribution of cannabinoid products within the city, that was <br />extended on August 5th, 2024 until January 1, 2025. The City Council gave some high-level <br />direction to staff at a workshop on April 22, 2024 which included not prohibiting use of <br />cannabis in public places, not to consider a municipal cannabis store, and not to increase the <br />limit of retail registrations beyond the minimum required by state statute. At that time, the <br />OCM had not published any additional guidance for local governments. <br />On September 3, 2024, the OCM released its most recent guide for local governments as well as <br />a model cannabis ordinance. Staff has begun to draft an ordinance relating to and regulating <br />cannabis businesses within the City of Hugo, which would include definitions of cannabis <br />businesses, a procedure for registering cannabis retailers within the city, zoning and land use <br />designations for cannabis businesses, performance standards for cannabis businesses, and <br />processes related to temporary cannabis events. Staff is seeking Council direction on a number <br />of items within the draft ordinance, including proposed zoning, buffer requirements, proposed <br />fees, and temporary cannabis events. <br />2.STAFF RECOMMENDATION: <br />Staff recommends the City Council discuss items presented related to the cannabis ordinance. <br />Staff recommends that the City Council direct the Ordinance Review Committee to review the <br />draft cannabis ordinance. <br />Staff recommends that the City Council set a public hearing on the draft cannabis ordinance at <br />the Planning Commission meeting of Thursday, December 12, 2024. <br />J.1