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2026.05.04 CC Packet
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2026.05.04 CC Packet
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7/2/2026 2:10:39 PM
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7/2/2026 1:55:02 PM
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City Council
Document Type
Agenda/Packets
Meeting Date
5/4/2026
Meeting Type
Regular
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EXECUTIVE SUMMARY <br />Proposed Cannabis Microbusiness in Hugo, Minnesota <br /> <br />Business Overview <br />Mi Sota Essence Cannabis is the holder of a preliminary cannabis microbusiness license issued pursuant <br />to Minn. Stat. ch. 342 and is advancing toward final licensure utilizing 13419 Fenway Blvd N, Hugo, <br />Minnesota as its permanent site location. <br />Mi Sota Essence Cannabis will operate as a cannabis microbusiness with vertically integrated post-harvest <br />processing and a single on-site retail location. Retail operations will be conducted under the trade name <br />Carma, a registered DBA of Mi Sota Essence Cannabis. Mi Sota Essence Cannabis will remain the sole <br />licensed entity responsible for all regulated activities and compliance obligations at the site. <br />Facility & Location <br />The business will operate from 13419 Fenway Blvd N, Hugo, Minnesota, within an industrial building <br />suitable for indoor cannabis cultivation, processing, and retail in accordance with City of Hugo Code Sec. <br />90-280. The facility layout includes: <br />● Approximately 1,400 square feet of indoor cultivation and post-harvest space within the <br />warehouse <br />● A 16’ × 26’ vertical flower room, supported by vegetative/mother, drying and curing, <br />processing/packaging, secure storage/QA, and biosecurity areas <br />● Approximately 990 square feet of retail space, including a secured vault and back-of-house <br />storage <br />● Shared breakroom and restrooms. <br />All uses are physically separated by function and designed to comply with zoning, building code, fire <br />code, security, odor control, lighting, and signage requirements. <br />Cultivation Operations <br />Indoor cannabis cultivation will be one of the operational uses of the facility. All cultivation activity will <br />occur within enclosed, code-compliant rooms consistent with City of Hugo Code Sec. 90-280(d) and (f), <br />with total plant canopy maintained well below the 5,000 square foot limit applicable to cannabis <br />microbusinesses. <br />Cultivation operations will emphasize standardized genetics, repeatable production cycles, and craft <br />quality-focused harvest, drying, and curing practices. Cultivated cannabis will be allocated to on-site <br />processing, retail sales, and compliant wholesale distribution as permitted by state law. <br />Processing & Manufacturing <br />Post-harvest processing and manufacturing activities will be conducted on-site in enclosed rooms <br />consistent with City of Hugo Code Sec. 90-280(g). Initial processing activities will include flower <br />
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