HomeMy WebLinkAboutItem 05a - Zoning Text AmendmentCity of Lakeville
Planning Department
Memorandum
To: Planning Commission
From: Tina Goodroad, Community Development Director
Date: August 15, 2024
Subject: Packet Material for the August 22, 2024 Planning Commission Meeting
Agenda Item: Zoning Text Amendment
TEXT AMENDMENT-CANNABIS BUSINESSES
BACKGROUND
Legalization of cannabis was signed into law on May 30, 2023 (Chapter 342 of MN Law).
Commercial growing, processing, and retail sales will fall under the regulation of the new state
Office of Cannabis Management (OCM) who will begin licensing likely in early 2025. Special
pre-approval (2024 legislation) will be conducted this summer for verified social equity
applicants for the following license types: microbusiness, mezzobusiness, cultivator, retailer,
wholesaler, transporter, testing facility and delivery service. Social equity applicants with license
pre-approval may begin growing cannabis prior to adoption of final OCM rules but no retail
sales can take place until final rules are adopted.
The OCM will be responsible for all commercial regulation including licensing split between
cultivation, manufacture, distribution, and retail (see Guide for Local Governments). 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.
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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.
A zoning ordinance text amendment has been prepared to include the various license types into
appropriate zoning districts. Generally, cultivation, manufacture, distribution/transporting,
wholesaler fall within industrial districts while retail license (dispensaries) will be considered a
commercial use. A new Chapter 38 was created to provide a central location for performance
standards. The zoning ordinance amendment will be coupled with an amended Chapter 24 of the
city code to include all the requirements for licensing, registration, inspections, etc.
TEXT AMENDMENT-C-CBD DISTRICT
Staff has received a request for a stand-alone tattoo salon use within the C-CBD zoning district.
Cosmetic tattooing is allowed accessory to a licensed barber/beauty salon on-site service
business, but a sole operator of tattooing businesses requires an amendment to create its own
distinct use. Since we are amending permitted uses in the C-CBD district, staff decided to include
in this amendment versus waiting for the next round of zoning code amendments.
Action
City staff recommends approval of the proposed amendments as presented.
Attachment
Ordinance Amendment
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ORDINANCE NO.________
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 11 OF THE LAKEVILLE CITY CODE
THE CITY COUNCIL OF THE CITY OF LAKEVILLE ORDAINS:
Section 1. Section 11-2-3 of the Zoning Ordinance (Definitions) is hereby amended to
include the following definitions:
CANNABIS BUSINESSES RELATED: Unless otherwise noted in this section or chapter 24 of
this title, words and phrases contained in Minnesota Statutes, section 342.01 and the rules
promulgated pursuant to any of these acts, shall have the same meanings in this title.
A. Adult-Use Cannabis Product: As defined under Minnesota Statutes, section 342.01, subd.
4.
B. Cannabis Business. A cannabis microbusiness, cannabis mezzobusiness, cannabis
cultivator, cannabis manufacturer, dispensary, cannabis wholesaler, cannabis transporter,
cannabis testing facility, cannabis delivery services, or medical cannabis combination
business licensed, or any use otherwise authorized, under Minnesota Statutes, Chapter
342.
C Cannabis Cultivation: A cannabis business licensed for planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis plants, cannabis flower, hemp plants, or
hemp plant parts by a business licensed or authorized to cultivate cannabis or medical
cannabis pursuant to Minnesota Statutes Chapter,342.
D. Cannabis delivery service. A person or entity licensed or otherwise authorized to
purchase cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-
derived consumer products from licensed cannabis microbusinesses with a retail
endorsement, cannabis mezzobusinesses with a retail endorsement, dispensaries,
medical cannabis dispensaries, and medical cannabis combination businesses;
transport and deliver cannabis flower, cannabis products, lower-potency hemp edibles,
and hemp-derived consumable products to customers; and perform other actions
pursuant to Minnesota Statutes, Chapter 342.
E. Cannabis or lower-potency hemp edible manufacturing. An entity licensed or otherwise
authorized for the creation of cannabis concentrate and manufacture of cannabis
products and hemp-derived consumer products for public consumption pursuant to
Minnesota Statutes, Chapter 342, an entity licensed or authorized to purchase hemp and
artificially derived cannabinoids to make hemp concentrate; manufacture artificially
derived cannabinoids and hemp edibles for public consumption; package and label
lower-potency hemp edibles for sale to customers; sell hemp concentrate, artificially
derived cannabinoids, and lower-potency hemp edibles to other cannabis businesses
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and hemp businesses; and perform other actions pursuant to Minnesota Statutes,
Chapter 342, or an entity in possession of a medical cannabis processor license
pursuant to Minnesota Statutes, Chapter 342.
F. Cannabis mezzobusiness. A person or entity licensed to cultivate, manufacture, and sell
products containing cannabis and related supplies and products and perform other
actions authorized under a cannabis mezzobusiness license pursuant to Minnesota
Statutes, Chapter 342.
G. Cannabis microbusiness. A person or entity licensed to cultivate, manufacture, and sell
products containing cannabis and related supplies and products and perform other
actions authorized under a cannabis microbusiness license pursuant to Minnesota
Statutes, Chapter 342.
H. Cannabis Retail Business: A state licensed retail location and the retail location(s) of a
mezzobusinesses with a retail operations endorsement, microbusinesses with a retail
operations endorsement, medical combination businesses operating a retail location,
excluding lower-potency hemp edible retailers, pursuant to Minnesota Statutes, Chapter
342.
I. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or
domestic, selling cannabis product to a consumer and not for the purpose of resale in
any form.
J. Cannabis testing facility. A facility licensed to obtain and test immature cannabis plants
and seedlings, cannabis flower, cannabis products, hemp plant parts, hemp concentrate,
artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived
consumer products from cannabis microbusinesses, cannabis mezzobusinesses,
cannabis cultivators, cannabis manufacturers, cannabis wholesalers, lower-potency
hemp edible manufacturers, medical cannabis cultivators, medical cannabis processors,
medical cannabis combination businesses, and industrial hemp growers pursuant to
Minnesota Statutes, Chapter 342.
K. Cannabis transporter. An entity licensed or otherwise authorized to transport immature
cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived
cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and
hemp-derived consumer products from a cannabis business to a cannabis business
pursuant to Minnesota Statutes, Chapter 342.
L. Cannabis wholesaler. An entity licensed or authorized to obtain, store, and sell or
otherwise transfer cannabis or hemp seeds, plants, flower, or other products for the
purpose of resale or other transfer to a cannabis business, but not to consumers,
pursuant to Minnesota Statutes, Chapter 342.
M. Dispensary. An entity in possession of a cannabis retailer license or otherwise
authorized to acquire, possess, transfer, sell, dispense, or distributes products
containing cannabis and related supplies and products pursuant to Minnesota Statutes,
Chapter 342.
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N. Lower Potency Hemp Edible: As defined under Minnesota Statutes, section 342.01, subd.
50.
O. Lower-potency hemp edible retailer. A person or entity licensed or authorized to acquire,
possess, transfer, sell, dispense, or distribute lower-potency hemp edible products and
related supplies and products pursuant to Minnesota Statutes, Chapter 342.
P. Medical cannabis combination business. An entity authorized to cultivate, manufacture,
and sell cannabis, hemp, and cannabis and hemp related supplies and products, and
perform other actions authorized under a medical cannabis combination license
pursuant to Minnesota Statutes, Chapter 342.
Q. Office of Cannabis Management: State of Minnesota Office of Cannabis Management, as
may be referred to as “OCM” in reference to this title.
R. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area
used by the general public, including, but not limited to, restaurants; bars; any other food
or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting
rooms; common areas of rental apartment buildings, and other places of public
accommodation.
S. Retail Registration: An approved registration issued by the city to a cannabis retail
business.
T. State License: An approved license issued by the Office of Cannabis Management to a
cannabis retail business.
Section 2. Title 11, Chapter 38 of the City Code (Zoning Ordinance -Reserved) is hereby
amended to read as follows:
Chapter 38
CANNABIS BUSINESS USES
11-38:1: Purpose
11-38-3: General Performance Standards
11-38-5: Cannabis Uses in Commercial Districts Performance Standards
11-38-7: Cannabis Uses in Industrial Districts Performance Standards
11-38-1: PURPOSE:
The purpose of this chapter is to establish provisions for the opportunity as well as controls of
cannabis business uses within the city.
11-38-3: General Performance Standards
A. A cannabis retail business must be registered with the city in accordance with Chapter 24
of the City Code.
B. A cannabis business must provide evidence of a state license under Minnesota Statues,
section 342.14 and all applicable state laws and regulations.
C. All cannabis businesses must be in compliance with the provisions of Chapter 24, of the
City Code and all applicable state laws and regulations related to the operation of the
cannabis business.
11-38-5: Cannabis Businesses in Commercial Districts Performance Standards:
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A. Hours of Operation: A cannabis business operating in a Commercial District shall be
limited to occur between the hours of ten o’clock (10:00) AM to ten o’clock (10:00) PM
B. Standards for Cannabis in the O-P Office Park District:
1. The cannabis business shall be conducted entirely with a principal structure and
all outside storage is prohibited.
2. All waste and recycling containers shall be kept within a principle or accessory
building.
3. Hours of operation: seven o’clock (7:00) AM to ten o’clock (10:00) PM.
4. Sufficient measures and means of preventing any gas, vapors, odors, smoke,
debris, dust, fluids or other substances from exiting a cannabis business shall be
provide for at all times.
5. Cannabis cultivations shall not be perceptible form the exterior of the building in
which cultivation occurs.
6. Security:
a. Burglary alarm systems with audible and police notification components
that are professionally monitored and maintained in good working condition
shall be installed on all doors, windows, and access points.
b. Surveillance cameras shall be installed and operate twenty-four (24) hours
a day, seven (7) days a week, with thirty (30) day video storage, to monitor
all entrances and trash receptacles, along with the interior and exterior of
the premises shall be required.
c. Exterior lighting shall be required sufficient for observers to see and for
cameras to record, that is either constantly on or activated by motion
detectors, subject to the requirements of section 11-16-17 of this title
d. Deadbolt locks shall be installed and utilized on all exterior doors and locks
shall be installed on all other windows or access points.
e. Additional security requirements including, but not limited to, security
guards, steel doors, and steel window coverings shall be required as
determined by city staff.
7. Conditional Uses. For cannabis businesses designated as conditional uses:
a. Site, ventilation, and building security plans must be submitted to the City
for review and must be compliant with applicable state rules.
b. Additional security requirements may be required as conditions of approval.
11-38-7: Standards for Cannabis Businesses in Industrial Districts:
A. The cannabis business shall be conducted entirely with a principal structure and
all outside storage is prohibited.
B. All waste and recycling containers shall be kept within a principle or accessory
building.
C. Hours of operation: seven o’clock (7:00) AM to ten o’clock (10:00) PM. Retail
operation (microbusiness license only) is limited to ten o’clock (10:00) AM to ten
o’clock (10:00) PM.
D. All on-site consumption of cannabis (in a microbusiness licensed facility only) shall
be entirely indoors.
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E. Sufficient measures and means of preventing any gas, vapors, odors, smoke,
debris, dust, fluids or other substances from exiting a cannabis business shall be
provide for at all times.
F. Cannabis cultivation shall not be perceptible from the exterior of the building in
which cultivation occurs.
G. Security:
1. Burglary alarm systems with audible and police notification components
that are professionally monitored and maintained in good working condition shall
be installed on all doors, windows, and access points.
2. Surveillance cameras are required and must operate twenty-four (24)
hours a day, seven (7) days a week, with thirty (30) day video storage, to
monitor all entrances and trash receptacles, along with the interior and
exterior of the premises.
3. Exterior lighting shall be required sufficient for observers to see and for
cameras to record, that is either constantly on or activated by motion
detectors, subject to the requirements of section 11-16-17 of this title.
4. Deadbolt locks shall be installed and utilized on all exterior doors and locks
shall be installed on all other windows or access points.
5. Additional security requirements including, but not limited to, security
guards, steel doors, and steel window coverings shall be required as
determined by city staff.
H. Vehicles:
1. All vehicles stored on site shall comply with provisions in chapter 22 of this
title and shall be enclosed in a secured fenced area. No non-business-
related vehicles shall be stored on site.
I. Conditional Uses. For cannabis businesses designated as conditional uses:
1. Site, ventilation and building security plans must be submitted to the City
for review and must be compliant with applicable state regulations.
2. Additional security requirements including may be required as condition of
approval.
Section 3. Section 11-71-3 of the Zoning Ordinance (C-1 District, Permitted Uses) is
hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
C. Cannabis Retailer/Dispensary meeting performance standards of Chapter 38 of this title.
D. Cannabis Medical Retailer/Dispensary meeting performance standards Chapter 38 of this
title.
Section 4. Section 11-72-3 of the Zoning Ordinance (C-2 District, Permitted Uses) is
hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
C. Cannabis Retailer/Dispensary meeting performance standards of Chapter 38 of this title.
D. Cannabis Medical Retailer/Dispensary meeting performance standards of Chapter 38 of
this title.
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Section 5. Section 11-73-3 of the Zoning Ordinance (C-3 District, Permitted Uses) is
hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
C. Cannabis Retailer/Dispensary meeting the performance standards of Chapter 38 of this
title.
D. Cannabis Medical Retailer/Dispensary meeting the performance standards of Chapter 38
of this title
Section 6. Section 11-74-3 of the Zoning Ordinance (C-CBD District, Permitted Uses) is
hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
C. Cannabis Retailer/Dispensary meeting the performance standards of Chapter 38 of this
title.
D. Cannabis Medical Retailer/Dispensary meeting the performance standards of Chapter 38
of this title.
E. Tattoo Salon
Section 7. Section 11-75-3 of the Zoning Ordinance (O-P District, Permitted Uses) is
hereby amended to add the following provisions with subsequent sections number accordingly:
B. Cannabis Businesses: cultivator (including medical), manufacturer (including medical and
low-potency Hemp edible), mezzobusiness, testing facility, and wholesaler meeting the
performance standards in Chapter 38 of this title.
Section 8. Section 11-75-7 of the Zoning Ordinance (O-P District, Conditional Uses) is
hereby amended to add the following provisions with subsequent sections number accordingly:
D. Cannabis Businesses: transporter and delivery service meeting the performance
standards in Chapter 38 of this title.
Section 9. Section 11-86-3 of the Zoning Ordinance (I-1, Permitted Uses) is hereby
amended to add the following provisions with subsequent sections number accordingly:
C. Cannabis Businesses: cultivator (including medical), manufacturer (including medical and
low-potency Hemp edible), mezzobusiness, testing facility, and wholesaler meeting the
performance standards in Chapter 38 of this title.
Section 10. Section 11-86-7 of the Zoning Ordinance (I-1, Conditional Uses) is hereby
amended to add the following provisions with subsequent sections number accordingly:
C. Cannabis Businesses: microbusiness, medical combined transporter and delivery service
meeting the performance standards in Chapter 38 of this title.
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Section 11. Section 11-87-3 of the Zoning Ordinance (I-2, Permitted Uses) is hereby
amended to add the following provisions with subsequent sections number accordingly:
C. Cannabis Businesses: cultivator (including medical), manufacturer (including medical and
low-potency Hemp edible), mezzobusiness, testing facility, and wholesaler meeting the
performance standards in Chapter 38 of this title.
Section 12. Section 11-87-7 of the Zoning Ordinance (I-2, Conditional) is hereby amended
to add the following provisions with subsequent sections number accordingly:
C. Cannabis Businesses: microbusiness, medical combined transporter and delivery service
meeting the performance standards in Chapter 38 of this title.
Section 13. This Ordinance shall be effective immediately upon its passage and
publication according to law.
ADOPTED by the Lakeville City Council this __ day of ___, 2024.
CITY OF LAKEVILLE
BY: ________________________
Luke Hellier, Mayor
ATTEST
BY: ________________________
Ann Orlofsky, City Clerk