HomeMy WebLinkAboutitem 03 agenda memoCity of Lakeville
Community & Economic Development
Memorandum
To: Economic Development Commission
From: Tina Goodroad, Community Development Director
Copy: Kati Bachmayer, Economic Development Coordinator
Justin Miller, City Administrator
Date: December 5, 2023
Subject: EDC Agenda Memo
Downtown Parking Needs Assessment
During the summer, staff has been working with consultants HKGi on the Downtown Parking Needs
Assessment. This effort included three meetings with downtown business owners to hear their input
regarding parking use, shared parking and improvements to increase parking capacity in downtown.
The project is completed, and the study addresses current and future parking demands in downtown
Lakeville. The final report includes strategies to meet the needs of a variety of parking users and our
downtown businesses. A major outcome of the study is a concept plan for improving the accessibility
and aesthetics of the “west” city-owned parking lot at the southwest corner of 209th Street and
Howland Avenue. The proposed plan includes a new trailhead, improved sidewalks, crosswalks and
pedestrian-scaled landscaping and lighting - all aimed at making the west lot feel like it’s part of
downtown. A new wayfinding plan was also prepared to help improve signage to more effectively
direct visitors to the available downtown public parking lots.
Preliminary costs estimates have been prepared for the improvements to the west lot and regional
trailhead. Staff is already in conversations with Dakota County regarding funding for the trailhead
portion. A copy of the final report is attached.
Cannabis Zoning Discussion
Legalization of cannabis was signed into law on May 30, 2023. Commercial growing, processing,
and retail sales will fall under the regulation of the new state Office of Cannabis Management
(OCM) who will begin licensing as early as January 1, 2025. OCM will be responsible for all
commercial regulation including licensing split between cultivation, manufacture, distribution,
and retail. Cities are responsible for registration. If the business has a valid state license, passes
the compliance checks, and has paid all the fees and taxes, the city must issue the registration.
State Statute requires that a city must issue at least one registration per 12,500 residents. For
Lakeville, this means up to six registrations.
Municipal regulations are generally preempted. Cities may not ban use, possession, or
transportation. Cities cannot prohibit businesses from operating if licensed by the state.
However, cities do have a role when it comes to zoning. Cannabis businesses are viewed as any
other type of legal business, subject to the City’s general zoning regulations. A condition of
obtaining a full-strength retail license will be demonstrating compliance with local zoning
regulations. Local ordinances can be adopted to regulate reasonable restrictions on the time,
place, and manner of operation of a cannabis business.
The statute also specifically mentions setbacks that may be incorporated into ordinances: 1,000
feet from a school and 500 feet from a daycare, residential treatment facility or “attraction within
a public park that is regularly used by minors: like a playground, playfield, etc. These limitations
are not required but an option. The statute also limits hours allowing businesses to sell between
10:00 a.m. and 9:00 p.m.; cannot sell between 2:00 a.m. and 8:00 a.m. (10:00 a.m. on Sundays).
City’s may restrict the hours not listed in statute.
Next Steps
Consider appropriate zoning districts for cultivation, manufacture, distribution, and retail
locations (dispensaries) and whether the uses should be permitted, conditional, interim or
accessory. The I-1, Light Industrial and I-2, General Industrial zoning districts allow for
manufacturing, warehouse and distribution as permitted uses. Cultivation/manufacturing of
cannabis is conducted internally due to temperature control requirements.
Retail sales are permitted uses in the C-1, Neighborhood Business District, C-2, Highway
Commercial District, C-3, General Commercial District and C-CBD, Commercial-Central
Business District. A dispensary would be considered a retail use. Considering the possible
distance limitations allowed by statute, these retail districts are the most impacted by the
limitations. A map has been prepared that displays the distance limitations over the zoning
districts.
Discussion
Staff is looking for Economic Development Commission input on the different types of cannabis
uses (growing/manufactuing, distribution, and retail sales) and the appropriate zoning district(s)
for each. Should these uses be permitted, conditional, interim or accessory? Does the commission
want to see the distance limitations included in a future ordinance? We have had similar
conversations with the Planning Commission and can share that feedback at the meeting.
Project Updates:
Development Updates will be provided at the meeting.