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G.6 Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota <br />Essence Cannabis, LLC. <br />The applicant, Mi Sota Essence Cannabis, LLC, has requested approval of a cannabis <br />microbusiness registration that would allow for cultivation, production of consumer products, <br />and retail operations. The business is proposed to operate under the name Carma Cannabis. The <br />microbusiness’ primary use would be cultivation of cannabis flower and production of consumer <br />products with cannabis flower, with an accessory use of retail sales of products manufactured on <br />site. The applicant has received preliminary license approval from the Minnesota Office of <br />Cannabis Management (OCM) and is requesting this registration to hold one of the two available <br />retail registrations within the city while they develop their final plans of record and apply for full <br />state license approval. The registration shall not become effective until the applicant has received <br />full state license approval. Staff recommends that the City Council approve the resolution <br />approving the cannabis microbusiness registration for Mi Sota Essence Cannabis, LLC, subject <br />to the conditions listed in the resolution. <br />G.7 Approve Water Surface Use Permit for Slalom Course on Sunset Lake <br />Dave Strub has made application to the City of Hugo for a Water Surface Use Permit to allow <br />water skiing on the slalom course on Sunset Lake. Washington County Sheriff’s Department <br />issues the permit after City Council approval. Staff recommends Council approve the <br />application for a Water Surface Use Permit for a slalom water skiing course on Sunset Lake. <br />H.1 Improvement Hearing for 2026 Bald Eagle Industrial Park Area Street Project <br />On February 27, 2025, the City Council authorized the preparation of a feasibility study for the <br />2026 Bald Eagle Industrial Park Area Street Improvement Project. City Council accepted the <br />completed study at the November 17, 2025, Council meeting. At the April 6, 2026, City Council <br />meeting, Council called for a Public Hearing to be held on May 4, 2026. Staff will present the <br />proposed improvements, the feasibility study findings and bid results in a PowerPoint <br />presentation for the public hearing. Total Project Costs have been identified to be $4,678,426 <br />with the amount to be funded by assessments being $1,021,356.84. Following the improvement <br />hearing, staff recommend approval of the resolution ordering the 2026 Bald Eagle Industrial Park <br />Area Street Improvement Project. <br />H.2 Assessment Hearing for 2026 Bald Eagle Industrial Park Area Street Project <br />At the April 6, 2026, regular Council meeting, the Council adopted a resolution declaring costs <br />to be assessed for the 2026 Bald Eagle Industrial Park Area Street Improvement Project and <br />scheduled the assessment hearing on the proposed assessments for May 4, 2026. The Notice of <br />Assessment Hearing has been published in the newspaper and mailed to the owners of each <br />parcel described in the assessment roll at least two weeks prior to the hearing. As part of the <br />assessment hearing, staff will give a PowerPoint presentation identifying the improvements, <br />costs and detail payment options. Staff recommends the Mayor open the assessment hearing to <br />take all comments and Council approve the resolution adopting assessments for the 2026 Bald <br />Eagle Industrial Park Area Street Improvement Project