2025.01.06 CC Packet - Laserfiche WebLink

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Memorandum To: Bryan Bear, City Administrator From: Max Gort, Associate Planner Date: December 31, 2024, for the City Council Meeting of January 6, 2025 Re: Approve Cannabis Ordinance and Ordinance Amending Fee Schedule 1. PLANNING COMMISSION MEETING UPDATE: At its Thursday, December 12, 2024 meeting the Planning Commission held a public hearing and considered the proposed ordinance relating to and regulating cannabis businesses in th e City of Hugo. There were two people that spoke during the public hearing, both requesting that the Planning Commission consider allowing cannabis cultivation as a conditional use within rural zoning districts. The Planning Commission had a discussion on the ordinance and the request made by the people who spoke during the public hearing. There were some Commissioners who were interested in allowing some cannabis cultivation activity in rural zoning districts, but generally the Planning Commission felt that it would be beneficial to keep the restriction to commercial and industrial zoning districts. The Planning Commission was comfortable with the rest of the ordinance as presented, including the special event permit criteria, zoning districts proposed, business registration procedure, and not including buffers in the ordinance. The Planning Commission voted unanimously to recommend approval of the ordinance to the City Council. 2. BACKGROUND AND MEETING UPDATES: By enacting Minnesota Statutes 2023, Chapter 342, the Minnesota Legislature has provided a regulatory framework for the sale and manufacturing of cannabis and hemp products, the licensing of cannabis and hemp businesses, and establishes a State Agency known as the Office of Cannabis Management (OCM). Section 342.13 of the act allows a local unit of government to adopt “reasonable restrictions on the time, place, and manner” of the operation of cannabis businesses. On July 10, 2023, the City Council enacted a 12 -month moratorium on the sale, testing, manufacturing, and distribution of cannabinoid products within the city, that was extended on August 5th, 2024 until January 1, 2025. The City Council gave some high -level direction to staff at a workshop on April 22, 2024 which included not prohibiting us e of cannabis in public places, not to consider a municipal cannabis store, and not to increase the limit of retail registrations beyond the minimum required by state statute. At that time, the OCM had not published any additional guidance for local govern ments. On September 3, 2024, the OCM released a guide for local governments as well as a model cannabis ordinance. Staff began to draft an ordinance relating to and regulating cannabis businesses within the City of Hugo, which would include definitions of cannabis businesses, a procedure for registering cannabis businesses within the city, zoning and land use designations G.29