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4 <br />fees, process for city council review, approval, and ba sis for denial, the process for <br />renewal of a registration, the process by which the city addresses violations and <br />grounds for suspension of a registration. State statute sets a limit on how much local <br />governments can charge for registration of cannabis bus inesses based on the business <br />type. The proposed registration fees are: <br /> <br />Business Type City Initial Fee City Renewal Fee <br />Microbusiness $0 $1,000 <br />Mezzobusiness $500 $1,000 <br />Cultivator $500 $1,000 <br />Manufacturer $500 $1,000 <br />Retailer $500 $1,000 <br />Wholesaler $500 $1,000 <br />Transporter $250 $500 <br />Testing Facility $500 $1,000 <br />Delivery Service $250 $500 <br />Event Organizer $375 N/A <br />LPHE Mfr. $500 $500 <br />LPHE Retailer $125 $125 <br />Med. Comb. $500 $1,000 <br /> <br /> *The above fees are proposals and are subject to change. <br /> <br />Registration applications may be denied by the City Council if the application does not <br />meet ordinance requirements, or the applicant does not have a valid state -issued <br />license. Additionally, registration applications for retailers are limited to one <br />registration per 12,500 residents, which would allow a maximum of two retailers to <br />locate and register within the City of Hugo. T he City Council is not obligated to approve <br />a retail registration application if the number of registered retailers across Washington <br />County exceeds one registration per 12,500 residents. <br /> <br />E. Proposed Zoning <br /> <br />Staff reviewed the types of businesses for which OCM will be issuing licenses, and <br />following OCM guidance, considered how each business type compares to existing uses <br />within the zoning code. <br /> <br />When considering cannabis cultivation, staff reviewed the state statute requirements <br />and draft rules for cannabis cultivator operations, and determined that several factors <br />will guide the type of land use and impact that cultivators will generate. Key factors <br />include requirements for security and exterior lighting, the desire to control <br />environmental factors within cultivation area, and the requirement to control odor, <br />staff is recommending that cultivation activity be restricted to occur indoors. Staff <br />found that cannabis cultivators will likely generate an impact that is more consistent <br />with uses allowed in industrial zoning districts than those typically found in agricultural <br />zoning districts. <br />