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December 12, 2024 PC Minutes <br />Page 2 <br /> <br />the number of cannabis retailers within the city to one per 12,500 residents. The draft ordinance <br />proposed zoning cannabis businesses to allow retailers, lower-potency hemp edible retailers, and the <br />retail locations of a cannabis microbusinesses, mezzobusiness, or medical cannabis combination <br />business in commercial zoning districts (NS, C-1, C-2). All other cannabis business types are proposed to <br />be permitted in industrial zoning districts (BP, I-3). Staff considered whether to expand cannabis <br />cultivation as a permitted use in agricultural zoning districts. The City Council, EDA, and ORC all met to <br />discuss the draft ordinance, and specifically whether to expand cultivation activity to rural zoning <br />districts. All three groups provided comments indicating that they would prefer to keep cultivation <br />restricted to industrial districts, and see how the activity functions in other communities prior to <br />expanding the use to rural zoning districts. The draft ordinance outlines a process for a cannabis event <br />organizer to apply for a special event permit for a cannabis event. <br /> <br />Commissioner Petty asked about the difference between licenses and cannabis registrations. Gort <br />explained that the license is issued by the state, whereas the City would register cannabis businesses <br />independently. <br /> <br />Commissioner Granger asked if the City can place a numerical limit on non-retail cannabis businesses, <br />such as cultivators. Gort said that retailers are the only businesses that can have a numerical limit per <br />state statute. <br /> <br />Commissioner Arcand asked why the draft ordinance restricts cannabis cultivation to locating indoors. <br />Gort stated that cultivation activity is likely to produce impacts such a s odor, traffic, and light that can <br />be better managed in an indoor facility. <br /> <br />Commissioner Granger asked if the liquor stores that currently sell lower-potency hemp edible <br />products will still be able to do so. Gort stated that these businesses will need t o apply for a license <br />from the state, and register with the city. <br /> <br />Commissioner Arcand asked where medical cannabis can be sold. Gort stated that the state currently <br />has a medical cannabis program that will largely remain unchanged under the new law, but that the <br />retail locations for medical cannabis businesses would be permitted as conditional uses with the I-3 <br />and BP zoning districts. <br /> <br />Chair Kleissler opened the Public Hearing at 7:36 PM <br /> <br />Dean Anderson, 7503 177th Street N, stated that he and a business partner purchased the property <br />earlier in the year with the goal of using it to cultivate cannabis commercially. Anderson stated that he <br />sent in a proposed addendum to the draft ordinance that would allow cannabis microbusinesses and <br />mezzobusinesses to cultivate cannabis as a conditional use in the Future Urban Service (FUS) and <br />Agricultural (AG) zoning districts. Anderson stated that he would plan to cultivate cannabis for his <br />proposed microbusiness in Hugo and sell it at a retail location in Minneapolis. <br /> <br />Beau Ryan, 7503 177th Street N, stated that she was involved with the purchase of the property with <br />Mr. Anderson. Ryan stated that she has experience cultivating cannabis, took a course on cannabis