HomeMy WebLinkAbout3c. Cannabis Zoning UpdateCity of Lakeville
Memorandum
To:Economic Development Commission
From:Tina Goodroad, Community Development Director
Copy:Kati Bachmayer, Economic Development Manager
Justin Miller, City Administrator
Date:August 22, 2024
Subject:Packet Material for the August 27th EDC Meeting
Agenda Item: Cannabis Zoning Discussion
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.
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
2
regulations. Local ordinances can be adopted to regulate reasonable restrictions on the time,
place, and manner of operation of a cannabis business.
nd.
nd to review the license types and
seek direction on uses as permitted or conditional. A table has been created with the license types
and zoning districts with the council direction. Generally, cultivation, manufacture,
distribution/transporting, wholesaler fall within industrial districts while retail license
(dispensaries) will be considered a commercial use. Even as permitted uses, standards can be
added to the ordinance requirement meeting all OCM rules related to the specific license type
and meeting license requirements outlined in statute. The rules will dictate requirements for
buildings including ventilation, odor control, security, etc.
nd the Planning Commission will hold a public hearing to consider the text
amendment to add the cannabis business types based on the table.
Cannabis License/Zoning District
Commercial District Industrial Districts
Zoning District
C‐1 Neighbor
Comm.
C‐2 Hwy
Comm.
C‐3, General
Comm. C‐CBD
I‐1, Light
Ind
I‐2, Gen
Ind
O‐P,
Office
Park
Cannabis License Type
Cannabis Microbusiness CUP CUP No
Indoor cultivation of plants up to 5,000 sq ft or up to half acre outdoors + 1 retail
license (same site)
Cannabis Mezzobusiness P P P
Indoor cultivation of plants up to 15,000 sq ft or up to 1 acre outdoors + 3 retail
license (retail use is not on same site)
Cannabis Cultivator (indoor)P P P Indoor cultivation of up to 30,000 sq ft plant canopy
Cannabis Cultivator (outdoor) No No No Outdoor cultivation of up to 2 acres
Cannabis Manufacture P P P Manufacture cannabis and hemp products
Cannabis Retailer P P P P Cannabis retailer (342.27 stipulates display, storage, hrs operation; security)
Cannabis Wholesaler P P P Buy and sell immature plants
Cannabis Transporter P P P Transport cannabis and hemp products between
Cannabis Testing Facility P P P Third‐party testing any products grown or manufactured
Cannabis Delivery Service CUP CUP CUP Delivery with on‐site vehicles
Medical Cannabis Cultivator P P P 60,000 sq ft of plant canopy
Medical Cannabis Manu P P P Manufacture medical cannabis products
Medical Cannabis Retailer P P P P Purchase medical cannabis flower and producsts and sell or distribute
Medical Cannabis Combo business CUP CUP No Cultivator, processor, and retailer
Lower‐potency Hemp Edible Manuf P P P
Lower‐potency Hemp Edible retail P P P P
Kingsley Lake
O r c h a r d L a k e
East
Lake
L a k e M a r i o n
Steve
Michaud
Park
Foxborough
Park
Valley
Lake Park
Antlers
Park
Casperson
Park
King Park
Aronson Park
Avonlea Park
KE
N
W
O
O
D
T
R
L
160TH ST W
210TH ST W
DO
D
D
B
L
V
D
DODD
BLVD
179TH STW
JUNI
P
E
R
W
A
Y
179TH ST W
215TH ST W
KENWOODTRL
185TH ST W
CEDAR
AVE
162ND ST W
179THST W
185TH ST W
KENRICK
AVE
PI
L
O
T
K
N
O
B
R
D
202ND ST W
200TH ST W
CenturyMiddleSchool
CherryviewElementarySchool
ChristinaHuddlestonElementarySchool
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La
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EastviewElementarySchool
Kenwood TrailMiddle School
LakeviewElementarySchool
Lake MarionElementarySchool
LakevilleNorth HighSchool
LakevilleSouth HighSchool
NorthTrailElem.School
Oak HillsElementarySchool
ParkviewElem.School
McGuireMiddleSchool JF
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Sc
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All Saint'sCatholicSchool
East LakeElementary
Un
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Schools
Parks (with playgrounds, ball fields, etc.)
Retail Zoning Districts
C-1
C-2
C-3
C-CBD
M-1
M-2
PUD (Underlying Commercial Use)
Dispensary Restricted Area
Cannabis Dispensary Restrictions
¯0 1 20.5 Miles
(500 ft from schools)
P:\Projects\Community Development\Cannabis Dispensary Location Restrictions\Cannabis Dispensary Location Restrictions.aprx