2026.05.04 CC Packet - Laserfiche WebLink

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Memorandum To: Bryan Bear, City Administrator From: Max Gort, Associate Planner Date: April 29, 2026 for the Planning Commission meeting of May 4, 2026 Re: Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC. – 13419 Fenway Boulevard North, Suite 103. 1. BACKGROUND: In 2025, the City Council adopted an ordinance relating to and regulating cannabis businesses within the City of Hugo. This ordinance was adopted in accordance with Minnesota Statutes Chapter 342, which established a regulatory framework for the sale and manufacturing of cannabis and hemp products, the licensing of cannabis and hemp businesses, and establish ed a State Agency known as the Office of Cannabis Management (OCM). The city’s ordinance established a procedure for cannabis businesses to register with the City of Hugo in conjunction with receiving their license from OCM, established which zoning districts would permit different types of cannabis businesses, and established performance standards for each type of cannabis business. State law requires cannabis businesses that conduct retail sales to consumers to register with the local government and allows local governments to limit the number of retail registrations to no fewer than one registration for every 12,500 residents. The City Council has chosen to limit the number of retail registrations available to two, which meets this state requirement. While state law only requires businesses that conduct retail sales to register with their local government, city ordinance requires that all cannabis businesses register with the city. Applicants for state-issued cannabis business licenses will have to receive preliminary license approval from OCM prior to applying for full license approval. OCM’s preliminary license review requires applicants to complete significant steps including a background check, but allows the applicant to have some confidence before developing the rest of the business , including securing a business location. State law allows applicants with preliminary license approval to apply for retail registration with their local government, which is limited in availability, before developing final plans for their prospective site. Applicants with preliminary license approval still need to develop final plans of record, receive approval of zoning compliance from the local government, and pass pre-licensure inspections from OCM before receiving their full license approval and beginning operations. State law requires applicants with preliminary license approval to complete the steps needed to receive full licensure within 18 months, with a one- time six-month extension available. G.X