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HomeMy WebLinkAboutPC Minutes 12.12.24 Minutes for the Planning Commission Meeting of Thursday, December 12, 2024 Chair Kleissler called the meeting to order at 7:00 pm. PRESENT: Andress, Arcand, Derr, Granger, Kelly, Kleissler, Petty ABSENT: Lessard STAFF: Rachel Juba, Community Development Director Max Gort, Associate Planner Pledge of Allegiance. Approval of Minutes for the Planning Commission Meeting of September 26, 2024 Chair Kleissler said she had seen her name listed in the minutes when she was absent from the September 26th meeting. Gort replied that this error would be corrected in the final version of the minutes. Commissioner Petty made a motion, seconded by Commissioner Arcand, to approve the minutes for the Planning Commission meeting of September 26, 2024. All ayes. Kleissler abstained. Motion carried. Public Hearing: Cannabis Ordinance Associate Planner Max Gort presented background on the cannabis ordinance that staff has been drafting. In 2023, the Minnesota Legislature enacted Chapter 342, which legalized adult -use cannabis, established regulatory framework for the adult-use cannabis industry, and established a state agency known as the Office of Cannabis Management (OCM). The legislation also allowed cities to enact a temporary moratorium on cannabis-related business activity during the period in which regulatory framework is set up. At its July 10, 2023 meeting the City Council adopted a 12 -month moratorium on the sale, testing, manufacturing, and distribution of cannabinoid products. The moratorium was extended in August of 2024, and is required by state law to expire on January 1, 2025. Staff has developed a draft ordinance to regulate cannabis businesses that includes definitions for cannabis related items, zoning districts where cannabis businesses would be permitted, performance standards for cannabis businesses, and a procedure for registering cannabis businesses with the City. Gort explained that the state licenses cannabis businesses through the OCM, and how the City is required to verify that a business proposal meets local zoning requirements as a condition of state license approval. After an applicant receives their license from the state, they would be required to register with the City prior to commencing operations. The City is permitted by state statute to limit December 12, 2024 PC Minutes Page 2 the number of cannabis retailers within the city to one per 12,500 residents. The draft ordinance proposed zoning cannabis businesses to allow retailers, lower-potency hemp edible retailers, and the retail locations of a cannabis microbusinesses, mezzobusiness, or medical cannabis combination business in commercial zoning districts (NS, C-1, C-2). All other cannabis business types are proposed to be permitted in industrial zoning districts (BP, I-3). Staff considered whether to expand cannabis cultivation as a permitted use in agricultural zoning districts. The City Council, EDA, and ORC all met to discuss the draft ordinance, and specifically whether to expand cultivation activity to rural zoning districts. All three groups provided comments indicating that they would prefer to keep cultivation restricted to industrial districts, and see how the activity functions in other communities prior to expanding the use to rural zoning districts. The draft ordinance outlines a process for a cannabis event organizer to apply for a special event permit for a cannabis event. Commissioner Petty asked about the difference between licenses and cannabis registrations. Gort explained that the license is issued by the state, whereas the City would register cannabis businesses independently. Commissioner Granger asked if the City can place a numerical limit on non-retail cannabis businesses, such as cultivators. Gort said that retailers are the only businesses that can have a numerical limit per state statute. Commissioner Arcand asked why the draft ordinance restricts cannabis cultivation to locating indoors. Gort stated that cultivation activity is likely to produce impacts such a s odor, traffic, and light that can be better managed in an indoor facility. Commissioner Granger asked if the liquor stores that currently sell lower-potency hemp edible products will still be able to do so. Gort stated that these businesses will need t o apply for a license from the state, and register with the city. Commissioner Arcand asked where medical cannabis can be sold. Gort stated that the state currently has a medical cannabis program that will largely remain unchanged under the new law, but that the retail locations for medical cannabis businesses would be permitted as conditional uses with the I-3 and BP zoning districts. Chair Kleissler opened the Public Hearing at 7:36 PM Dean Anderson, 7503 177th Street N, stated that he and a business partner purchased the property earlier in the year with the goal of using it to cultivate cannabis commercially. Anderson stated that he sent in a proposed addendum to the draft ordinance that would allow cannabis microbusinesses and mezzobusinesses to cultivate cannabis as a conditional use in the Future Urban Service (FUS) and Agricultural (AG) zoning districts. Anderson stated that he would plan to cultivate cannabis for his proposed microbusiness in Hugo and sell it at a retail location in Minneapolis. Beau Ryan, 7503 177th Street N, stated that she was involved with the purchase of the property with Mr. Anderson. Ryan stated that she has experience cultivating cannabis, took a course on cannabis December 12, 2024 PC Minutes Page 3 cultivation, and would like to be at the front end of the cannabis industry in Minnesota. Ryan stated that they would have to sell the property if the zoning in the ordinance would not allow them to cultivate cannabis. Chair Kleissler closed the Public Hearing at 7:50 PM Commissioner Granger asked if cannabis businesses would be able to located next to each other, and if the only limit on cannabis cultivation would be the size of the building. Juba stated that cannabis microbusinesses and mezzobusinesses apply for certain endorsements from the state to conduct specific activities. Dean Anderson came back to the podium and state that cities can restrict endorsements, and stated that restriction of microbusinesses and mezzobusinesses will allow for large businesses to dominate the market. Commissioner Petty asked if the state OCM can override local ordinance requirements. Commissioner Andress asked if the City can restrict water consumption for a cannabis cultivator, Juba stated that it would be difficult to meter the water used for irr igation. Commissioner Granger asked if there’s a precedent for managing or restricting crops, and gave tobacco as an example. Juba stated that cannabis is not listed by the state as an agricultural product, giving the City more ability to restrict it. Commissioner Petty asked if the Planning Commission can vote on the ordinance without considering the addendum presented by Mr. Anderson. Juba replied that the addendum is not part of their official packet, was not prepared by the City, and was not reviewed by the City Attorney. Juba stated that the Planning Commission can revisit the content of the addendum if they wish. Commissioner Petty made a motion, seconded by Commissioner Arcand, to recommend approval of the draft ordinance. Commissioner Granger asked if the ordinance can still be amended in the future, Juba said yes. Commissioner Andress stated that he views prohibiting cannabis cultivation in rural zoning districts as a means of restricting the property rights of farmers. Commissioner Petty stated that the use can be re- evaluated at a later time after the City has had a chance to see how it plays out in other communities. Commissioner Granger stated that he doesn’t like the idea of restricting property owner rights in this way, but sees the time-sensitive need to have an ordinance in place. Dean Anderson came back to the podium, and stated that the OCM halted their license pre-approval process and extended the approval timeline, but that they are running out of time to line up their permissions to apply for a license. Commissioner Petty stated that they need to consider the perspective of all Hugo residents, and that the Planning Commission has received several letters in opposition to cannabis proliferation, and that the City needs to evaluate ca nnabis cultivation as a land use further before deciding to permit it as a land use in rural zoning districts. December 12, 2024 PC Minutes Page 4 Commissioner Granger stated that the ordinance creation process has been intensive, and that while he empathizes with the desire to allow cultivation in rural zoning districts, that the ordinance needs to be put in place with more restrictions right now. No further discussion. The motion previously made by Commissioner Petty was brought to a vote. All ayes. Motion carried. The ordinance draft will be considered by the City Council at its January 6, 2025 meeting. New Business Old Business Juba stated that the Planning Commission will be contact to schedule goal setting in January. Adjournment Commissioner Derr made a motion, seconded by Commissioner Granger, to adjourn at 8:20 PM. All ayes. Motion carried. Respectfully Submitted, Max Gort, Associate Planner