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Memorandum To: Hugo Planning Commission From: Max Gort, Associate Planner Date: December 9, 2024, for the Planning Commission Meeting of December 12, 2024 Re: Public Hearing – Creation of an ordinance relating to and regulating cannabis b usinesses 1. 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 use 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 governments. On September 3, 2024, the OCM released its most recent 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 for cannabis businesses, performance standards for cannabis businesses, and processes related to temporary cannabis events. At its meeting of November 18, 2024, the City Council gave some high-level direction to staff on a number of items to be included within the draft ordinance. After some discussion, the City Council recommended that staff proceed to draft an ordinance with the zoning districts proposed, no buffers in place for cannabis businesses, and for temporary cannabis e vents to be included in the special event permitting process. At its meeting of November 19, 2024, the EDA heard a presentation f rom staff asking for similar comments on the direction of the cannabis ordinance. The EDA had some debate about whether to require buffers to limit the ability to advertise to minors, but they agreed that this concern could be addressed through regulating signage specifically for cannabis business. Generally, the EDA was comfortable with staff’s recommendation for zoning districts, buffers, and the inclusion of cannabis events within the special event permitting process. At its meeting of December 2, 2024, the Ordinance Review Committee (ORC) discussed the D.1