Laserfiche WebLink
To:Chair Bollis and Planning Commission Members <br />Adam Edwards, City Administrator <br />From:Laura Oakden, Community Development Director <br />Date:October 21, 2024 <br />Subject:#LA24-0000055, City of Orono Text Amendment: Cannabis, Public Hearing <br />Background <br />During the 2022 legislative session, the Minnesota Legislature legalized cannabis. In 2023, the <br />City of Orono put a moratorium on cannabis businesses throughout the city. Throughout 2024, <br />the city has been working with state guidelines and the Hennepin County licensing program to <br />develop the appropriate local regulations for cannabis businesses. The state will begin issuing <br />cannabis licenses for high-potency cannabis beginning in 2025. <br />Per State Statue 342, the local municipality can implement registration, inspections, and zoning <br />buffers for cannabis businesses. At the August 12, 2024 work session the city council reviewed <br />the role and policies for the city. The council gave direction for city staff to work with Hennepin <br />County regarding registration and inspection requirements. They also directed staff to develop a <br />zoning amendment to apply buffers allowed by state legislation and amend the definition section <br />of the City Code. <br />State statue allows for municipalities to apply the following: <br />1. 1,000 feet from schools <br />2. 500 feet from daycare, parks with amenities for minors and residential treatment <br />facilities. <br />Type of cannabis: <br />Medical Cannabis <br />Hemp-Derived CBD <br />Hemp-Derived Lower-potency THC products <br />Retail Cannabis (High-potency THC products) <br />Analysis: <br />Currently, if high potency cannabis businesses were to apply to develop in the city, they would <br />need to meet the zoning requirements of the district, which include retail/store fronts in the <br />business district and industrial uses in the industrial district. Within the business district, retail <br />cannabis would only be permitted in the B-1, B-3, B-4, B-5, B-6 RPUD districts and <br />warehousing/manufacturing would be permitted in the industrial District. A greenhouse is a <br />permitted use in the rural residential district as a Conditional Use Permit (CUP). <br />Staff suggests listing cannabis businesses as its own permitted use within the business and <br />industrial districts, with the requirement that the stipulated buffers are met. The businesses cannot <br />be a conditional use due to the review timing implemented by the state statue. Once a business <br />registration application has been submitted, the governing body has thirty (30) days to approve or <br />deny. A CUP process takes a minimum of sixty (60) days because of public hearing <br />requirements. To permit cannabis business and apply the appropriate buffers following the <br />council’s direction, staff has drafted the proposed language for review that list cannabis business <br />Application Summary: The City of Orono is proposing ordinance to amend the Zoning Code to <br />allow cannabis businesses as permitted uses within business and industrial districts <br />Staff Recommendation: Planning Department Staff recommends approval of the draft language <br />as written. <br />91