2024-11-26 Planning Commission Agenda Packet
CITY OF MENDOTA HEIGHTS
PLANNING COMMISSION REGULAR MEETING AGENDA
November 26, 2024 at 7:00 PM
Mendota Heights City Hall, 1101 Victoria Curve, Mendota Heights
1. Call to Order
2. Roll Call
3. Approval of Minutes
a. Approve Minutes from the September 24, 2024 Planning Commission Meeting
4. Public Hearings
a. CASE No. 2024-21 Lot Split Request Application of Lakes LLC for a Lot Split of the
property located at 1912 South Lane
b. CASE No. 2024-23 Zoning Text Amendment Application of the City of Mendota
Heights for a Zoning Text Amendment of Title 12: Zoning, Chapter 3: Allowed Uses,
relating to incorporating cannabis business use types into the Table of Uses
5. New and Unfinished Business
6. Updates/Staff Comments
7. Adjourn
Auxiliary aids for persons with disabilities are available upon request at least 120 hours in
advance. If a notice of less than 120 hours is received, the City of Mendota Heights will make
every attempt to provide the aid. However, this may not be possible on short notice. Please
contact City Hall at 651.452.1850 with requests.
Page 1 of 89
September 24, 2024 Mendota Heights Planning Commission Meeting Page 1 of 5
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
DRAFT PLANNING COMMISSION MINUTES
September 24, 2024
The regular meeting of the Mendota Heights Planning Commission was held on Tuesday,
September 24, 2024 in the Council Chambers at City Hall, 1101 Victoria Curve at 7:00 P.M.
The following Commissioners were present: Chair Litton Field, Commissioners Patrick Corbett,
Cindy Johnson, Brian Petschel, Brian Udell, and Andrew Katz. Those absent: Commissioner Jason
Stone.
Approval of Agenda
The agenda was approved as submitted.
Approval of August 27, 2024 Minutes
COMMISSIONER KATZ MOVED, SECONDED BY COMMISSIONER CORBETT TO
APPROVE THE MINUTES OF AUGUST 27, 2024.
AYES: 6
NAYS: 0
Hearings
A) PLANNING CASE 2024-17
XCEL ENERGY, 800 SIBLEY MEMORIAL HIGHWAY – MRCCA PERMIT AND
AMENDED CUP
Community Development Manager Sarah Madden explained that Xcel Energy is seeking approval
of a Mississippi River Corridor Critical Area (MRCCA) Permit and Conditional Use Permit
(CUP), in order to implement a number of improvements to the Sibley Propane Plant facility,
located at 800 Sibley Memorial Highway.
Hearing notices were published and mailed to all properties within 350-ft. of the site; no comments
or objections to this request were received.
Community Development Manager Sarah Madden provided a planning staff report and a
presentation on this planning item to the Commission (which is available for viewing through the
City’s website).
Staff recommended approval of this application based on the findings and with conditions.
Page 2 of 89
3a.
September 24, 2024 Mendota Heights Planning Commission Meeting Page 2 of 5
Commissioner Corbett asked for details on the height of the retaining wall as the presentation
mentioned six feet, but the plans show eight feet. He noted that it does appear that a fence is being
installed on top of the retaining wall for safety.
Community Development Manager Sarah Madden stated that the applicant may be able to provide
clarification on that as there may be a different measurement from the base of the retaining wall.
Commissioner Katz referenced the statement that the applicants would likely need an NPDES
permit and asked if that would be required.
Community Development Manager Sarah Madden replied that generally with this level of
disturbance that permit would be required.
Chair Field opened the public hearing.
Brian Sullivan, Xcel Energy, explained that they are attempting to bring the current facility up to
code to make sure it is safe and reliable. He stated that after they attempted to implement the
updated fire suppression system that was mentioned in the last permit request, they determined
that there is a better system they would like to use that is much more reliable. He stated that from
the ground elevation up, the retaining wall would be six feet, with safety railings. He stated that
there is foundation work that would be under the ground level, which is perhaps what was causing
confusion on the plans. He stated that a storm shelter has also been added to the site and they have
been busy cleaning and painting the tanks.
Commissioner Petschel asked how maintenance is done long-term if the tanks are buried, or
whether that would prohibit the need for maintenance.
Corey Tellers, Project Manager, commented that they are doing extensive checks on the tank and
completing welds where needed for reinforcement. He stated that they will then have a set
schedule to empty the tanks and go inside to do wall thickness checks.
Tom Muck, 1396 Farmdale, referenced the public hearing that occurred two years ago where there
was controversy about the water line that was going to be installed. He stated that the trees that
are in place are critical for the homeowners because of the screening that those provide. He stated
that the City Council approved the trenchless boring for the installation of the waterline and noted
that an alternate method would require a new MRCCA permit. He wanted to ensure that was still
the plan because the trees are very important to the residents.
George Sonnen, 1387 Farmdale, asked if a permit has been obtained for the road to the south
because there was work on that last week. He stated that the applicant wants to put a new road in
off 13 between the current eastern fence and the tree line and asked if that is 25 feet wide.
Commissioner Corbett was unsure if that was part of this request as he is confused by the questions.
He stated that in the southeast corner the road already exists and they are bumping a fence out.
Page 3 of 89
September 24, 2024 Mendota Heights Planning Commission Meeting Page 3 of 5
Mr. Sonnen stated that he noticed gravel being put down. He stated that he was concerned that if
firetrucks could be brought in, other trucks could come in there as well.
Commissioner Petschel stated that Xcel does bring tanker trucks into the site as well.
Mr. Sonnen replied that those trucks use the access from 13 and clarified that he is speaking of the
dirt road that connects to Farmdale. He stated that he supports the safety and control improvements
but has a question of how much traffic would be using that access.
Mr. Sullivan commented that he has not told anyone to bring dirt into the south fire road.
Commissioner Corbett commented that it looks like an overgrown walking path on the satellite
imaging and was unsure it would be used for tanker trucks.
Mr. Sonnen commented that he would like some trees to be installed so that he does not have to
look at the activity on the site and would like a better review of the road plans.
Commissioner Corbett commented that he did not believe the fire road is part of the scope of
discussion tonight.
Chair Field confirmed that the item is not included on the application but noted that the comments
of the resident have been received and are a part of the record. It was confirmed that the purpose
of that road is only for fire access.
Mr. Sullivan commented that there is a fire road that is supposed to be maintained for emergency
access, with an almost trail condition going to Farmdale. He confirmed that the only purpose of
that road/trail is for emergency access.
Another representative from Xcel confirmed that will only be used for fire access and the only
work that would be done on that would be if federal regulation required it to be clearer. He stated
that he would never allow someone to drive back there, other than the maintenance crew. He
identified the small portion of the fence that would be moved. He stated that if any trees were
required to be removed, they would be replaced.
Seeing no one further coming forward wishing to speak, Chair Field asked for a motion to close
the public hearing.
COMMISSIONER PETSCHEL MOVED, SECONDED BY COMMISSIONER UDELL, TO
CLOSE THE PUBLIC HEARING.
AYES: 6
NAYS: 0
COMMISSIONER KATZ MOVED, SECONDED BY COMMISSIONER CORBETT, TO
RECOMMEND APPROVAL OF THE PROPOSED MRCCA PERMIT AND AMENDED
CONDITIONAL USE PERMIT REQUEST FROM XCEL ENERGY AND FOR THE
Page 4 of 89
September 24, 2024 Mendota Heights Planning Commission Meeting Page 4 of 5
PROPERTY LOCATED AT 800 SIBLEY MEMORIAL HIGHWAY, WITH THE FOLLOWING
CONDITIONS:
1. THE NEW IMPROVEMENTS AND WORK DESCRIBED, ILLUSTRATED AND
DETAILED ON THE “SIBLEY PROPANE PLANT” PLANS, DATED 5/24/2024, AND
ANY OTHER PLANS RELATED TO THIS PROJECT, SHALL BE THE ONLY WORK
OR IMPROVEMENTS ALLOWED AND APPROVED UNDER THIS NEW MRCCA
PERMIT.
2. THE ENTIRE WATER/FIRE SUPPRESSION SYSTEM, BOTH ABOVE AND BELOW
GROUND MUST BE SUBMITTED TO THE STATE FIRE MARSHALL FOR A FIRE
SUPPRESSION PERMIT, AND COPIES PROVIDED TO THE MENDOTA HEIGHTS
FIRE DEPARTMENT FOR REVIEW AND RECORD KEEPIN.
3. FULL EROSION AND SEDIMENTATION MEASURES WILL BE PUT IN PLACE
PRIOR TO AND DURING GRADING AND CONSTRUCTION WORK ACTIVITIES.
4. ALL GRADING AND CONSTRUCTION ACTIVITY WILL BE IN COMPLIANCE
WITH APPLICABLE FEDERAL, STATE, AND LOCAL REGULATIONS AND
CODES, AS WELL AS IN COMPLIANCE WITH THE CITY’S LAND DISTURBANCE
GUIDANCE DOCUMENT. THE APPLICANTS MUST SUBMIT AND RECEIVE A
SWPPP PERMIT AND NPDES PERMIT (IF NECESSARY) PRIOR TO START OF
ANY NEW CONSTRUCTION WORK.
5. ALL WORK ON SITE WILL ONLY BE PERFORMED BETWEEN THE HOURS OF
7:00 A.M. AND 8:00 P.M. MONDAY THROUGH FRIDAY; 9:00 A.M. TO 5:00 P.M.
WEEKENDS.
6. BEST EFFORTS WILL BE MADE BY THE CONTRACTOR(S) TO “COME CLEAN,
LEAVE CLEAN” DURING THE COURSE OF CONSTRUCTION ON THE SUBJECT
PROPERTY, AND ENSURE NEW GROUND MULCH OR PLANT MATERIALS ARE
FREE OF ANY INVASIVE SPECIES.
AYES: 6
NAYS: 0
Chair Field advised the City Council would consider this application at its October 1, 2024
meeting.
Staff Announcements / Updates
Community Development Manager Sarah Madden provided an update on recent City Council
actions on prior Planning Cases and other items of interest, such as the Short Term Rental
ordinance which is continuing to be considered by the City Council.
Chair Field thanked staff and the planning consultant for all their work on the Zoning Code update.
Madden noted that the next regular Planning Commission meeting is scheduled for October 22nd,
and that currently they had not received any Planning applications. Staff will update the
commission as the meeting date gets closer.
Page 5 of 89
September 24, 2024 Mendota Heights Planning Commission Meeting Page 5 of 5
Adjournment
COMMISSIONER CORBETT MOVED, SECONDED BY COMMISSIONER JOHNSON, TO
ADJOURN THE MEETING AT 7:51 P.M.
AYES: 6
NAYS: 0
Page 6 of 89
PLANNING STAFF REPORT
DATE:November 26, 2024
TO:Planning Commission
FROM:Sarah Madden, Community Development Manager
SUBJECT:Planning Case No. 2024-21
Lot Split Request
APPLICANT:Lakes LLC (Sean Doyle)
PROPERTY ADDRESS:1912 South Lane
ZONING/GUIDED:R-1 One-Family Residential/SF Residential
ACTION DEADLINE:12/20/2024 (60-day Review Period)
INTRODUCTION
Sean Doyle of SD Custom Homes/Lakes LLC is requesting consideration of a simple lot split on a parcel
of land located at 1912 South Lane.
A public hearing notice for this planning item was published in the Pioneer Press and notice letters were
mailed to all properties within 350-feet of the subject property. As of the date of this report, the City has
not received any e-mail or phone inquiries or public comments relating to this application request.
DESCRIPTION OF THE REQUEST
This 1912 South Lane site is an existing lot of
record legally described as Lot 1, Block 2,
Jefferson Heights (excluding the west 60-ft). The
subdivision was originally platted in 1949, and
later South Lane was extended resulting in the 60-
ft exclusion. The lot is currently 1.38 acres in size
(60,309 square feet).
The property is currently owned by Louis and
Alison Hawkins and contains a single-family
home and accessory swimming pool. The
applicant is requesting authorization of a lot split
of the parcel, with the intention to demolish the
existing home and later build two new single-
family dwellings on the proposed two parcels.
The applicant is seeking to subdivide the 1.38
acre parcel by a horizontal split, to create two
parcels: “Parcel 1” to consist of 28,220-sq.ft or
.65 acres of land; and “Parcel 2” to consists of 31,518-sq. ft, or 0.72 acres of land. Parcel 1 is proposed to
be 100.01-ft in width at the property line, and Parcel 2 is proposed to be 110.3-ft wide at the property lane,
Page 7 of 89
4a.
Planning Report: Case #2024-21 Page 2
fronting on South Lane. The parcels will later be developed with single family homes, which will be
required to be reviewed by the City through the administrative building permit process.
ANALYSIS
Title 11-1-5.C of the City Code (Subdivision Ordinance) allows lot split requests to take place, provided
the following standards are met:
Lot split request to divide a lot which is a part of a recorded plat where the division is to create two
(2) lots and the newly created property line will not cause the other remaining portion of the lot to
be in violation with this title or the zoning ordinance.
This request to split the property into two new parcels meets this City Code section, as the existing single-
family home is to be demolished, and the proposed lots meet the required minimum lot size and lot with
requirements of the R-1 zoning district. The dividing line for this lot split request does not cause the parcels
to be in violation of the zoning ordinance.
No new or separate single-family development can occur or would be allowed on these parcels without the
demolition of the existing home, which will be scheduled once the property has transferred in ownership
after the City’s approval of the lot split request. City Staff is suggesting that the demolition of the home be
a condition of approval of this lot split request prior to any work or development on the property.
The property is immediately adjacent to a pond in the northeast corner of the site. The applicant is not
requesting the building or development plans at this time, and so a Wetlands Permit is not required.
Beginning January 1st, 2025, the City will no longer require Wetlands Permits as a Planning Application;
however, the Wetlands Conservation Act procedures will continue to apply. The applicant has begun the
process of coordinating with the City’s Natural Resources staff to evaluate the Wetland boundary on the
site.
This lot split request will have minimal or no impact upon the neighboring properties, and it will not impede
the normal use, enjoyment and purpose of the South Lane area neighborhood.
ALTERNATIVES
1. Recommend approval of the lot split request, based on the attached findings-of-fact and based on
certain conditions; or
2. Recommend denial of the lot split request, based on the revised findings-of-fact that the proposed
adjustment is not consistent with the City Code or Comprehensive Plan and may have a negative
impact on the surrounding neighborhood and/or properties; or
3. Table the request; and request more information from the Applicant or city staff to be presented
back to the Planning Commission at the next regular meeting. Staff will extend the application
review period.
STAFF RECOMMENDATION
Staff recommends approval of the lot split request based on the attached findings of fact supporting the
request, with conditions noted as follows:
1) The applicant must record the Lot Split (minor subdivision) at Dakota County indicating the
newly created Parcel 1 and Parcel 2.
2) The Resolution must be recorded at Dakota County and must be of record on both created
parcels.
3) All transfer or deed documents which convey the portion of lands under the lot split process shall
be recorded with Dakota County.
Page 8 of 89
Planning Report: Case #2024-21 Page 3
4) No single-family development will be allowed or approved on the proposed parcels until the
existing single-family home and all accessory structures have been demolished.
5) The Applicant/Developer must provide a Best Management Practices (Stormwater Management)
Agreement to the City as part of the building permit submittal and review process.
6) Any grading and/or construction activity related to the development of this lot shall comply with
all applicable federal, state, and local regulations and codes, as well as in compliance with the
City’s Land Disturbance Guidance Document.
7) Any new or existing sanitary or water service lines will have to be reviewed by the Public Works
Director and/or St. Paul Regional Water Services prior to issuance of any building permit.
8) A building permit must be approved prior to the commencement of any construction work on the
new residential dwelling. Construction work shall occur only between the hours of 7:00 am and
8:00 pm weekdays; and 9:00 am to 5:00 pm weekends.
Attachments:
1. Site Location Map
2. Applicant Letter of Intent
3. Parcel Split Exhibit
4. City Base Map – Utilities – 10/23/24
Page 9 of 89
Planning Report: Case #2024-21 Page 4
FINDINGS OF FACT FOR APPROVAL
Lot Split Request
1912 South Lane
The following Findings of Fact are made in support of approval of the proposed requests:
1. The proposed Lot Split (minor subdivision) creates two lots, where Proposed Parcel 1 is 28,220
square feet and Parcel 2 is 31,518 square feet.
2. The resulting lots, Parcel 1 and 2, meet all dimensional standards as established in the R-1 zoning
district provided the existing structure and improvements are removed and/or demolished.
3. The proposed Lot Split is consistent with the Low Density Residential (LDR) density requirements,
and the proposed use of the Lots for single-family residential uses is consistent with the intent and
purpose of the LDR designation.
4. The removal of the existing home and improvements will result in two new buildable lots that have
adequate area outside of all setback areas to construct a new residential structure.
5. Approval of the lot split to allow for future development of the lots with single-family residential
uses will not adversely impact the character of the neighborhood which is developed with low
density residential uses.
6. Provided the conditions of approval are met, the resulting lots and any future development will
comply with the R-1 base zoning district requirements.
Page 10 of 89
4a1.
6666666666666666
666666
66³
"
³
!*
"
"
"
"
³
"
*66 6
6666666666666666!!2!!2
!!2
!!2
!!2!!2
!!2
!!21912
1926
1925
1940
1892
652 646
655
650
1862
1937
1902
656
1872
1872
645
1882
1911 1910
1891
19021901
1919
1892
1929
1937 1948
651657
1920
1934
1901
1883
1911
1901
1947
1862
1882
1875
1912
660
641651
1883
659
1871
SOUTH LNKNOB RDLINDEN ST
WESLEY LN
Nearmap US Inc, Dakota County, MN
Site Location/Aerial Map1912 South Lane
Date: 11/22/2024
City ofMendotaHeights0125
SCALE IN FEET
GIS Map Disclaimer:This data is for informational purposes only and should not be substituted for a true title search, property appraisal, plat,survey, or for zoning verification. The City of Mendota Heights assumes no legal responsibility for the information containedin this data. The City of Mendota Heights, or any other entity from which data was obtained, assumes no liability for any errorsor omissions herein. If discrepancies are found, please contact the City of Mendota Heights.
Contact "Gopher State One Call" at 651-454-0002 for utility locations, 48 hours prior to any excavation.
Page 11 of 89
4a2.
Page 12 of 894a3.
Page 13 of 894a4.
???(G!.
G!.6666
6666"
"
"
666 6 6
666666!!2
!!2
1912
1926
1925
1902 19021901
1911
1937
1919
18921892
1912 1911
1929
1891
397
447
279216215 1549987115146144
204
100
25034
333029
28
1
4
9821
1351817 23
1
331
1
0
1
4
14100
135SOUTH LNLINDEN ST
Nearmap US Inc
2024 City Base MapUtilities
Date: 10/23/2024
City ofMendotaHeights060
SCALE IN FEET
GIS Map Disclaimer:This data is for informational purposes only and should not be substituted for a true title search, property appraisal, plat,survey, or for zoning verification. The City of Mendota Heights assumes no legal responsibility for the information containedin this data. The City of Mendota Heights, or any other entity from which data was obtained, assumes no liability for any errorsor omissions herein. If discrepancies are found, please contact the City of Mendota Heights.
Contact "Gopher State One Call" at 651-454-0002 for utility locations, 48 hours prior to any excavation.
Page 14 of 89
4a5.
PLANNING STAFF REPORT
DATE:November 26, 2024
TO:Planning Commission
FROM:Sarah Madden, Community Development Manager
SUBJECT:Planning Case 2024-23
ZONING CODE TEXT AMENDMENT – to add Cannabis
Business Use Types within the Title 12: Zoning, Table of Uses
APPLICANT:City of Mendota Heights
120-DAY ACTION DEADLINE:n/a
INTRODUCTION
The Minnesota Legislature enacted new State Law at the end of the 2023 legislative session, amended in
2024, that legalizes the possession, use, manufacturing, and sale of certain cannabis products within the
State. The Law also establishes the Office of Cannabis Management (OCM) to oversee the implementation
and regulation of the adult-use cannabis market, the medical cannabis market, and the consumer hemp
industry. The statute limited the regulations a city can place on the use, sale and production of cannabis and
cannabis products. The OCM released a “A Guide for Local Governments on Adult-Use Cannabis” in June
of this year, and the formal rulemaking process for the Office’s administrative rules is anticipated to begin
shortly. One the administrative rules are in effect, anticipated mid-2025, licensing of cannabis businesses
will commence. All licensing of cannabis businesses will be conducted by the OCM. Under State Law,
local governments may register cannabis businesses and enforce certain zoning regulations within their
jurisdiction, but they may not require additional licensing of cannabis businesses.
The City Council is continuing discussions over the business registration portion of the local control, which
will be housed in Title 3 of the City Code, Business and Licensing Regulations. The zoning code component
of the City’s ordinances will exclusively relate to amendments in the table of uses, with performance
standards referencing back to the Title 3 Chapter. The City Attorney has advised staff that the Zoning Code
regulations should be put in place by January 1, 2025 as that was the original planned licensing date for
cannabis businesses by the OCM.
This item relates to amendments to the Zoning Use Table within Title 12, as established following the
Zoning Code Update project. The Table and the full ordinance go into effect on January 1st. The proposed
amendments will be scheduled to also go into effect on January 1st with the full ordinance update.
A duly noticed public hearing was published in the Pioneer Press. No public comments have been received,
as of the date of this report.
Page 15 of 89
4b.
Planning Case 2024-23 Zoning Code Text Amendment –Adult-Use Cannabis Page 2 of 3
DISCUSSION & BACKGROUND
The City Council was provided a copy of the OCM’s guide for local governments as part of the October
15th City Council work session agenda packet, and the Council held a discussion over the topic and model
ordinance standards at the October 30th City Council regular meeting. A continued discussion on the draft
registration ordinance was held at the November 19th City Council work session. The City Council has
directed staff to move forward with the zoning text amendment to the Table of Uses as part of this item.
The Cannabis Business Registration ordinance and associated performance standards will be located within
Title 3 of the City Code, which is not within the Planning Commission’s area of review. A copy of the
current draft of the ordinance has been included in the attachments of this report to provide context for the
Commission’s discussion. This ordinance will house the definitions, buffer requirements, and other
performance standards. The OCM’s local government guide has also been enclosed.
The state law creates license types which will be issued by the OCM. The City’s zoning ordinance is
proposed to be updated to incorporate the land uses into our current zoning districts to accommodate the
language of the state law. Under the state law, the City may not prohibit the establishment or operation of
a licensed cannabis business, however the City may adopt reasonable restrictions on the time, place, and
manner of the operation of a cannabis business. One method of this restriction is the establishment of
which zoning districts a cannabis business may operate within.
There will be 13 license types issued by the OCM, however they can generally be categorized into
standard categories, such as retail or manufacturing. The City is obligated to determine which zones
cannabis and hemp businesses will be allowed to operate within. This topic was discussed at the October
30th City Council meeting and the November 19th City Council work session meeting. The staff
recommendation was to allow cannabis-based retail businesses to be allowed in similar zoning categories
as those of tobacco sales or liquor stores, and for manufacturing or industrial-type businesses to be
permissible in the I-Industrial zoning district. The initial draft of the proposed ordinance slated for a
Cannabis Retail business to be listed as a Conditional Use in the B-1 General Business, B-2
Neighborhood Business, and MU-Mixed Use districts. The City Council discussed the option of allowing
cannabis retailers to be a listed use in business and commercial zoning districts, but to omit the use within
the Mixed Use zoning district at the November 19th work session. The current draft (attached to this
report) removed a cannabis retailer from being listed within the MU-Mixed Use district.
In the City’s I-Industrial zoning district, general warehouse or manufacturing uses are proposed to also be
listed as a Conditional use. The proposal of amendments to the Table of Uses is summarized in the chart
below.
Use Type Cannabis Business Type Proposed Zoning District
Warehouse or Manufacturing
•Cannabis microbusiness
•Cannabis mezzobusiness
•Cannabis cultivator
•Cannabis manufacturer
•Cannabis wholesaler
•Cannabis testing facility
•Lower-Potency Hemp
Edible Manufacturer
•Medical Cannabis
Combination Business
•I – Industrial as a
Conditional Use
Page 16 of 89
Planning Case 2024-23 Zoning Code Text Amendment –Adult-Use Cannabis Page 3 of 3
Retail
•Cannabis retailer
•Lower-potency hemp
edible retailer
•B-1 General Business,
B-2 Neighborhood
Business; as a
Conditional Use
•B-1 General business, B-
2 Neighborhood
Business, MU-Mixed
Use; as Permitted Use
No other changes to the code are proposed. The proposed addition in reflected in the attached draft
Ordinance Number 596.
ALTERNATIVES for ACTION
The proposed ordinance amendment is to Title 12-Zoning, which requires the Planning Commission to
provide a review under a public hearing process and provide a recommendation to the City Council. The
Planning Commission may consider one of the three following actions:
1. Recommend approval of the draft Ordinance No. 596 which amends certain sections of Zoning
Code Title 12 – Zoning, Table of Uses, as presented herein or with added/revised language and
standards deemed necessary by the commission; or
2. Recommend denial of the requested zoning code amendments and make no changes to Title 12 –
Zoning, with findings to support such a recommendation; or
3. Table the amendment request, and direct city staff to provide additional information for further
consideration by the Planning Commission and present this information at the next scheduled
Planning Commission meeting.
STAFF RECOMMENDATION
Recommend approval of the draft Ordinance No. 596 as presented herein, or as may be modified through
Planning Commission discussion.
Please note that the proposed ordinance amendment does not approve a specific project, business, or
property. Issuance of Cannabis Business Licenses by the OCM is expected to occur in mid-2025, however
the State Law which authorized Adult-Use Cannabis noted that the administration process would be in
effect by January 1, 2025. The City Attorney has recommended that any amendments to the City of Mendota
Heights Zoning Ordinance be in place in accordance with the state law by January 1st. The City Council
will continue their discussion of the Adult-Use Cannabis Ordinance and Cannabis Business Registration
processes at their December 17, 2024 meeting.
Attachments
1) Local Government Guide to Adult-Use Cannabis
2) Draft Ordinance No. 596
3) October 30, 2024 City Council Meeting Staff Report and Minutes
4) November 19, 2024 City Council Work Session Staff Report
5) Cannabis License Types Information
6) Nearby City Proposed Regulations
Page 17 of 89
A Guide for Local Governments
on Adult-Use Cannabis
Version 1.4
Updated August 2024Page 18 of 89
4b1.
Table of Contents
Introduction ............................................................... 3
About OCM ............................................................... 4
Cannabis License Types ............................................. 5
Adult-Use Cannabis Law ........................................... 7
Cannabis Licensing Process........................................ 8
General Authorities .................................................. 10
Zoning and Land Use ................................................ 12
Local Approval Process ............................................. 15
Inspections and Compliance Checks ........................ 18
Municipal Cannabis Stores ...................................... 19
Creating Your Local Ordinance ............................... 20
Additional Resources ................................................ 21
Page 19 of 89
Introduction
This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and
how local governments can expect to be involved. The guide also provides important
information about Minnesota’s new Office of Cannabis Management (OCM), and the
office’s structure, roles, and responsibilities. While medical cannabis continues to play an
important role in the state’s cannabis environment, this guide is primarily focused on the
adult-use cannabis law and marketplace.
The following pages outline the variety of cannabis business licenses that will be issued,
provide a broad summary of important aspects of the adult-use cannabis law, and cover a
wide range of expectations and authorities that relate to local governments. This guide also
provides best practices and important requirements for developing a local cannabis
ordinance.
Chapter 342 of Minnesota law
was established by the State
Legislature in 2023 and was
updated in 2024. Mentions of
“adult-use cannabis law” or “the
law” throughout this guide refer
to Chapter 342 and the changes
made to it.
As of this guide’s date of
publication, state regulations
governing the adult-use
cannabis market have not yet
been published—this document
will be updated when such
regulations become effective.
This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and
municipal officials seeking legal advice should consult an attorney.
Page 3 Page 20 of 89
About OCM
Minnesota’s Office of Cannabis Management is the state regulatory office created to
oversee the implementation and regulation of the adult-use cannabis market, the medical
cannabis market, and the consumer hemp industry. Housed within OCM are the Division
of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis
program, and the Division of Social Equity, which promotes development, stability, and
safety in communities that have experienced a disproportionate, negative impact from
cannabis prohibition and usage.
OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its
regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated
to:
Promote public health and welfare.
Protect public safety.
Eliminate the illicit market for cannabis flower and cannabis products.
Meet the market demand for cannabis flower and cannabis products.
Promote a craft industry for cannabis flower and cannabis products.
Prioritize growth and recovery in communities that have experienced a
disproportionate, negative impact from cannabis prohibition.
OCM governs the application and licensing process for cannabis and hemp businesses,
specific requirements for each type of license and their respective business activities, and
conducts enforcement and inspection activities across the Minnesota cannabis and hemp
industries.
Page 4 Page 21 of 89
License Types
Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role
in the cannabis and hemp supply chain. In addition to license types below, OCM will also
issue endorsements to license holders to engage in specific activities, including producing,
manufacturing, and sale of medical cannabis for patients.
Microbusiness
Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Microbusiness may also operate a single retail location.
Mezzobusiness
Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Mezzobusiness may also operate up to three retail locations.
Cultivator
Cultivators may cultivate cannabis and package such cannabis for sale to another licensed
cannabis business.
Manufacturer
Manufacturers may manufacture cannabis products and hemp products, and package such
products for sale to a licensed cannabis retailer.
Retailer
Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products,
hemp products, and other products authorized by law to customers and patients.
Wholesaler
Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from another licensed cannabis business.
Wholesalers may also import hemp-derived consumer products and lower-potency hemp
edibles.
Page 5 Page 22 of 89
License Types (continued)
Transporter
Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis
products, and hemp products to licensed cannabis businesses.
Testing Facility
Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from licensed cannabis businesses.
Event Organizer
Event organizers may organize a temporary cannabis event lasting no more than four days.
Delivery Service
Delivery services may purchase cannabis, cannabis products, and hemp products from
retailers or cannabis business with retail endorsements for transport and delivery to
customers.
Medical Cannabis Combination Business
Medical cannabis combination businesses may cultivate cannabis and manufacture
cannabis and hemp products, and package such products for sale to customers, patients,
or another licensed cannabis business. Medical cannabis combination businesses may
operate up to one retail location in each congressional district.
Lower-Potency Hemp Edible Manufacturer
Lower-potency hemp edible manufacturers may manufacture and package lower-potency
hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp
edibles to other cannabis and hemp businesses.
Lower-Potency Hemp Edible Retailer
Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers.
Each license is subject to further restrictions on allowable activities. Maximum cultivation
area and manufacturing allowances vary by license type. Allowable product purchase,
transfer, and sale between licensees are subject to restrictions in the law.
Page 6 Page 23 of 89
The Adult-Use Cannabis Law
Minnesota’s new adult-use cannabis law permits the personal use, possession, and
transportation of cannabis by those 21 years of age and older, and allows licensed
businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis
and cannabis products.
For Individuals
Possession limits:
Flower - 2 oz. in public, 2 lbs. in private residence
Concentrate - 8 g
Edibles (including lower-potency hemp) - 800 mg THC
Consumption only allowed on private property or at licensed businesses with on-site
consumption endorsements. Consumption not allowed in public.
Gifting cannabis to another individual over 21 years old is allowed, subject to
possession limits.
Home cultivation is limited to four mature and four immature plants (eight total) in a
single residence. Plants must be in an enclosed and locked space.
Home extraction using volatile substances (e.g., butane, ethanol) is not allowed.
Unlicensed sales are not allowed.
For Businesses
Advertising:
May not include or appeal to those under 21 years old.
Must include proper warning statements.
May not include misleading claims or false statements.
Billboards are not allowed.
The flow of all products through the supply chain must be
tracked by the state-authorized tracking system.
All products sold to consumers and patients must be
tested for contaminants.
Home delivery is allowed by licensed businesses.
Page 7 Page 24 of 89
The Cannabis Licensing Process
An applicant will take the following steps to proceed from application to active licensure.
As described, processes vary depending on social equity status and/or whether the type of
license being sought is capped or uncapped in the general licensing process.
License Preapproval: Early Mover Process for Social
Equity Applicants
The license preapproval process is a one-time application process available for verified social
equity applicants. State law requires OCM to open the application window on July 24,
2024, and close the window on August 12, 2024. The preapproval process is available for
the following license types, and all are capped in this process: microbusiness, mezzobusiness,
cultivator, retailer, wholesaler, transporter, testing facility, and delivery service.
Applicant’s social equity applicant (SEA) status verified.
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues license preapproval.
Applicant with license preapproval* submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
When regulations are adopted, license becomes active, operations may commence.
*For social equity applicants with license preapproval for microbusiness, mezzobusiness, or
a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if
OCM receives approval from local governments in a form and manner determined by the
office. This is only applicable to cultivation and does not authorize retail sales or other
endorsed activities of the licenses prior to the adoption of rules.
Preapproval steps:
Page 8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Page 25 of 89
The Cannabis Licensing Process (cont.)
The general licensing process will align with the adoption of rules and OCM will share more
information about the timing of general licensing process. The general licensing process
includes social equity applicants and non-social equity applicants.
General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues preliminary approval.
Applicant with preliminary approval submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
License becomes active, operations may commence.*
General Licensing: Microbusiness, Wholesaler, Transporter, Testing
Facility, Event Organizer
Complete application and submit application fees.1.
Application vetted for minimum requirements by OCM.2.
For qualified applicants, OCM completes background check of vetted applicant and
issues preliminary approval.
3.
Selected applicant submits business location and amends application accordingly.4.
OCM forwards completed application to local government.5.
Local government completes certification of zoning compliance.6.
OCM conducts site inspection.7.
License becomes active, operations may commence.*8.
1.
2.
3.
4.
5.
6.
7.
8.
9.
*For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer),
a valid local retail registration is required prior to the business commencing any retail sales.
See Page 16 for information on the local retail registration process.
Page 9 Page 26 of 89
General Authorities
Local governments in Minnesota have various means of oversight over the cannabis market,
as provided by the adult-use cannabis law. Local governments may not issue outright bans on
cannabis business, or limit operations in a manner beyond what is provided by state law.
Cannabis Retail Restrictions (342.13)
Local governments may limit the number of retailers and microbusiness/mezzobusinesses
with retail endorsements allowed within their locality, as long as there is at least one retail
location per 12,500 residents. Local units of government are not obligated to seek out a
business to register as cannabis business if they have not been approached by any potential
applicants, but cannot prohibit the establishment of a business if this population
requirement is not met. Local units of government may also issue more than the minimum
number of registrations. Per statutory direction, a municipal cannabis store (Page 19)
cannot be included in the minimum number of registrations required. For population
counts, the state demographer estimates will likely be utilized.
Tribal Governments (342.13)
OCM is prohibited from and will not issue state licenses to businesses in Indian Country
without consent from a tribal nation. Tribal nations hold the authority to license tribal
cannabis businesses on tribal lands – this process is separate than OCM’s licensing
process and authority. Subject to compacting, Tribal nations may operate cannabis
businesses off tribal lands. There will be more information available once the compacting
processes are complete.
Taxes (295.81; 295.82)
Retail sales of taxable cannabis products are subject to the state and local sales and use tax
and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows:
20% to the local government cannabis aid account and 80% to the state general fund.
Local taxes imposed solely on sale of cannabis products are prohibited.
Cannabis retailers will be subject to the same real property tax classification as all other
retail businesses. Real property used for raising, cultivating, processing, or storing cannabis
plants, cannabis flower, or cannabis products for sale will be classified as commercial and
industrial property.
Page 10 Page 27 of 89
General Authorities (cont.)
Retail Timing Restrictions (342.13)
Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and
10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day.
Operating Multiple Locations with One License
Certain cannabis licenses allow for multiple retail locations to be operated under a single
license, with the following limitations:
Retailers: up to five retail locations.
Mezzobusinesses: up to three retail locations.
Microbusinesses: up to one retail location.
Medical cannabis combination businesses: one retail location per congressional
district. Additionally, medical cannabis combination businesses may cultivate at more
than one location within other limitations on cultivation.
For all other license types, one license permits the operation of one location. Each retail
location requires local certification and/or registration.
Page 11 Page 28 of 89
Zoning and Land Use
Buffer Guidelines (342.13)
State law does not restrict how a local government conducts its zoning designations for
cannabis businesses, except that they may prohibit the operation of a cannabis business
within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or
an attraction within a public park that is regularly used by minors, including playgrounds
and athletic fields.
Zoning Guidelines
While each locality conducts its zoning differently, a few themes have emerged across the
country. For example, cannabis manufacturing facilities are often placed in industrial
zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis
retail facilities align with general retail establishments and are prohibited from allowing
consumption or use onsite, and are also required to have plans to prevent the visibility of
cannabis and hemp-derived products to individuals outside the retail location. Industrial
hemp is an agricultural product, and should be zoned as such.
Cannabis businesses should be zoned under existing zoning ordinances in accordance with
the license type or endorsed activities held by the cannabis business. Note that certain
types of licenses may be able to perform multiple activities which may have different
zoning analogues. In the same way municipalities may zone a microbrewery that
predominately sells directly to onsite consumers differently than a microbrewery that sells
packaged beer to retailers and restaurants, so too might a municipality wish to zone two
microbusinesses based on the actual activities that each business is undertaking. Table 1,
included on Pages 13 and 14, explains the types of activities that cannabis businesses might
undertake, as well as, some recommended existing zoning categories.
Page 12 Page 29 of 89
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of Activity Comparable
Districts
Municipal
Considerations
Cultivation
Cultivator
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
"Cultivation" means any
activity involving the planting,
growing, harvesting, drying,
curing, grading, or trimming
of cannabis plants, cannabis
flower, hemp plants, or hemp
plant parts.
Indoor:
Industrial,
Commercial,
Production
Outdoor:
Agricultural
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Cannabis
Manufacturing,
Processing,
Extraction
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This group of endorsed
activities turn raw, dried
cannabis and cannabis parts
into other types of cannabis
products, e.g. edibles or
topicals.
Industrial,
Commercial,
Production
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Hemp
Manufacturing
Lower-Potency
Hemp Edible
(LPHE)
Manufacturing
These business convert hemp
into LPHE edible prodcuts.
Industrial,
Commercial,
Production
Odor
Waste, water, and
energy
Wholesale
Wholesale
Cultivator
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This activity and license type
allows a business to purchase
from a business growing or
manufacturing cannabis or
cannabis products and sell to
a cannabis business engaged
in retail.
Industrial,
Commercial,
Production
Need for
transportation from
facility
Security
Page 13
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities
Page 30 of 89
Page 14
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of
Activity
Comparable
Districts
Municipal
Considerations
Cannabis Retail
Retailer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This endorsed
activity and license
types allow a business
to sell cannabis and
cannabis products
directly to
consumers.
Retail,
Neighborhood
Shopping Districts,
Light Industrial,
Existing districts
where off-sale liquor
or tobacco sales are
allowed.
Micros may offer
onsite consumption,
similar to breweries.
Micros and Mezzos
may include multiple
activities: cultivation,
manufacture, and/or
retail.
Transportation Cannabis
Transporter
This license type
allows a company to
transport products
from one license
type to another.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Delivery Cannabis Delivery
This license type
allows for
transportation to the
end consumer.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Events Event Organizer
This license entitles
license holder to
organizer a
temporary event
lasting no more than
four days.
Anywhere that the
city permits events
to occur, subject to
other restrictions
related to cannabis
use.
On site
consumption.
Retail sales by a
licensed or endorsed
retail business
possible.
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities (continued)
Page 31 of 89
Local Approval Process
Local governments play a critical role in the licensing
process, serving as a near-final approval check on
cannabis businesses nearing the awarding of a state
license for operations. Once an applicant has been
vetted by OCM and is selected for proceeding in the
verification process, they are then required to receive
the local government’s certification of zoning
compliance and/or local retail registration before
operations may commence.
Local Certification of Zoning Compliance (342.13;
342.14)
Following OCM’s vetting process, local governments must certify that the applicant with
preliminary approval has achieved compliance with local zoning ordinances prior to the
licensee receiving final approval from OCM to commence operations.
During the application and licensing process for cannabis businesses, OCM will notify a
local government when an applicant intends to operate within their jurisdiction and request
a certification as to whether a proposed cannabis business complies with local zoning
ordinances, and if applicable, whether the proposed business complies with state fire code
and building code.
According to Minnesota’s cannabis law, a local unit of government has 30 days to respond
to this request for certification of compliance. If a local government does not respond to
OCM’s request for certification of compliance within the 30 days, the cannabis law allows
OCM to issue a license. OCM may not issue the final approval for a license if the local
government has indicated they are not in compliance.
OCM will work with local governments to access the licensing software system to
complete this zoning certification process.
Page 15 Page 32 of 89
Local Approval Process (cont.)
Local Retail Registration Process (342.22)
Once the licensing process begins, local government registration applies to cannabis
retailers or other cannabis/hemp businesses seeking a retail endorsement. Local
governments must issue a retail registration after verifying that:
The business has a valid license or license preapproval issued by OCM.
The business has paid a registration fee or renewal fee to the local government;
Initial registration fees collected by a local government may be $500 or half the
amount of the applicable initial license fee, whichever is less, and renewal
registration fees may be $1,000 or half the amount of the applicable renewal
license fee, whichever is less.
The business is found to be in compliance with Chapter 342 and local ordinances.
If applicable, the business is current on all property taxes and assessments for the
proposed retail location.
Local registrations may also be issued by counties if the respective local government
transfers such authorities to the county.
Determining a Process for Limiting Retail Registrations
If a local government wishes to place a limitation on the number of retailers and
microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as
long as there is at least one retail location per 12,500 residents, see Page 10), state law
does not define the process for a local government’s selection if there are more applicants
than registrations available. A few options for this process include the use of a lottery, a
first-come/first-serve model, a rolling basis, and others. Local governments should work
with an attorney to determine their specific process for selection if they wish to limit the
number of licensed cannabis retailers per 342.13. Local governments are not required to
limit the number of licensed cannabis retailers.
Page 16 Page 33 of 89
Local Approval Process (cont.)
Local governments are permitted specific authorities for registration refusal and
registration suspension, in addition to—and not in conflict with—OCM authorities.
Registration and Renewal Refusals
Local governments may refuse the registration
and/or certification of a license renewal if the
license is associated with an individual or business
who no longer holds a valid license, has failed to pay
the local registration or renewal fee, or has been
found in noncompliance in connection with a
preliminary or renewal compliance check.
Local Registration Suspension (342.22)
Local governments may suspend the local retail registration of a cannabis business or
hemp business if the business is determined to not be operating in compliance with a
local ordinance authorized by 342.13 or if the operation of the business poses an
immediate threat to the health and safety of the public. The local government must
immediately notify OCM of the suspension if it occurs. OCM will review the
suspension and may reinstate the registration or take enforcement action.
Expedited Complaint Process (342.13)
Per state law, OCM will establish an expedited complaint process during the rulemaking
process to receive, review, read, and respond to complaints made by a local unit of
government about a cannabis business. Upon promulgation of rules, OCM will publish
the complaint process.
At a minimum, the expedited complaint process shall require the office to provide an
initial response to the complaint within seven days and perform any necessary
inspections within 30 days. Within this process, if a local government notifies OCM
that a cannabis business poses an immediate threat to the health or safety of the public,
the office must respond within one business day.
Page 17 Page 34 of 89
Inspections & Compliance Checks
Local governments are permitted specific business inspection and compliance check
authorities, in addition to—and not in conflict with—OCM authorities.
Inspections and Compliance Checks (342.22)
Local governments must conduct compliance
checks for cannabis and hemp businesses
holding retail registration at least once per
calendar year. These compliance checks must
verify compliance with age verification
procedures and compliance with any applicable
local ordinance established pursuant to 342.13.
OCM maintains inspection authorities for all
cannabis licenses to verify compliance with
operation requirements, product limits, and
other applicable requirements of Chapter 342.
Page 18 Page 35 of 89
Municipal Cannabis Stores
State law requires OCM issue a license to a
city or county seeking to operate a single
municipal cannabis store if the city or
county:
As authorized in Chapter 342.32, local
governments are permitted to apply for
a cannabis retail license to establish and
operate a municipal cannabis store.
Submits required application information to OCM,
Meets minimum requirements for licensure, and
Pays applicable application and license fee.
A municipal cannabis store will not be included in the total count of retail licenses issued by
the state under Chapter 342.
A municipal cannabis store cannot be counted as retail registration for purposes of
determining whether a municipality’s cap on retail registrations imposed by ordinance.
Page 19 Page 36 of 89
Creating Your Local Ordinance
Local governments may not prohibit the possession,
transportation, or use of cannabis, or the establishment
or operation of a cannabis business licensed under state
law.
Local governments may adopt reasonable restrictions on
the time, place, and manner of cannabis business
operations (see Page 11).
Local governments may adopt interim ordinances to
protect public safety and welfare, as any studies and/or
further considerations on local cannabis activities are
being conducted, until January 1, 2025. A public hearing
must be held prior to adoption of an interim ordinance.
If your local government wishes to operate a municipal
cannabis store, the establishment and operation of such
a facility must be considered in a local ordinance.
As authorized in 342.13, a local government may adopt a local ordinance regarding
cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in
a timely manner is critical for the ability for local cities or towns to establish local control as
described in the law, and is necessary for the success of the statewide industry and the
ability of local governments to protect public health and safety. The cannabis market’s
potential to create jobs, generate revenue, and contribute to economic development at
the local and state level is supported through local ordinance work. The issuance of local
certifications and registrations to prospective cannabis businesses is also dependent on
local ordinances.
Model Ordinance
For additional guidance regarding the creation of a cannabis related ordinance, please
reference the addendum in this packet.
Page 20 Page 37 of 89
Additional Resources
OCM Toolkit for Local Partners
Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information,
including a toolkit of resources developed specifically for local government partners. The
webpage will be updated as additional information becomes available and as state
regulations are adopted.
These resources are also included in the addendum of this packet.
Toolkit resources include:
Appendix A: Model Ordinance
Appendix B: Retail Registration Form and Checklist
Appendix C: Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Appendix D: Enforcement Notice from the Office of Cannabis Management
Appendix E: Notice to Unlawful Cannabis Sellers
Local Organizations
There are several organizations who also have developed resources to support local
governments regarding the cannabis industry. Please feel free to contact the
following for additional resources:
League of Minnesota Cities
Association of Minnesota Counties
Minnesota Public Health Law Center
Page 21 Page 38 of 89
Appendix A: Model Ordinance
Page 39 of 89
Cannabis Model Ordinance
The following model ordinance is meant to be used as a resource for cities, counties, and townships within
Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering
using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction.
Certain items are not required to be included in the adopted ordinance: ‘OR’ and (optional) are placed
throughout for areas where a jurisdiction may want to consider one or more choices on language.
Section 1 Administration
Section 2 Registration of Cannabis Business
Section 3 Requirements for a Cannabis Business (Time, Place, Manner)
Section 4 Temporary Cannabis Events
Section 5 Lower Potency Hemp Edibles
Section 6 Local Government as a Retailer
Section 7 Use of Cannabis in Public
AN ORDINANCE OF THE (CITY/COUNTY OF ______) TO REGULATE CANNABIS
BUSINESSES
The (city council/town board/county board) of (city/town/county) hereby ordains:
Section 1. Administration
1.1 Findings and Purpose
(insert local authority) makes the following legislative findings:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes,
chapter 342, which authorizes (insert local authority) to protect the public health, safety,
welfare of (insert local here) residents by regulating cannabis businesses within the legal
boundaries of (insert local here).
(insert local authority) finds and concludes that the proposed provisions are appropriate
and lawful land use regulations for (insert local here), that the proposed amendments will
promote the community's interest in reasonable stability in zoning for now and in the
future, and that the proposed provisions are in the public interest and for the public good.
1.2 Authority & Jurisdiction
A county can adopt an ordinance that applies to unincorporated areas and cities that have
delegated authority to impose local zoning controls.
(insert local authority) has the authority to adopt this ordinance pursuant to:
a)Minn. Stat. 342.13(c), regarding the authority of a local unit of government to
adopt reasonable restrictions of the time, place, and manner of the operation of
Page 40 of 89
a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.
b)Minn. Stat. 342.22, regarding the local registration and enforcement
requirements of state-licensed cannabis retail businesses and lower-potency
hemp edible retail businesses.
c)Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places.
d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning
ordinances.
Ordinance shall be applicable to the legal boundaries of (insert local here).
(Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here).
However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has
not adopted conflicting provisions.
1.3 Severability
If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional
or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not
be affected thereby.
1.4 Enforcement
The elected body of a jurisdiction can choose to designate an official to administer and
enforce this ordinance.
The (insert name of local government or designated official) is responsible for the
administration and enforcement of this ordinance. Any violation of the provisions of this
ordinance or failure to comply with any of its requirements constitutes a misdemeanor
and is punishable as defined by law. Violations of this ordinance can occur regardless of
whether or not a permit is required for a regulated activity listed in this ordinance.
1.5 Definitions
1.Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01
and the rules promulgated pursuant to any of these acts, shall have the same meanings in
this ordinance.
2.Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the
approved amount of space from seed or immature plant to mature plant. harvest
cannabis flower from mature plant, package and label immature plants and seedlings
and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a
cannabis manufacturer located on the same premises, and perform other actions
approved by the office.
3.Cannabis Retail Businesses: A 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,
(and/excluding) lower-potency hemp edible retailers.
Page 41 of 89
4.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.
5.Daycare: A location licensed with the Minnesota Department of Human Services to
provide the care of a child in a residence outside the child's own home for gain or
otherwise, on a regular basis, for any part of a 24-hour day.
6.Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50.
7.Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to
as “OCM” in this ordinance.
8.Place of Public Accommodation: A business, accommodation, refreshment,
entertainment, recreation, or transportation facility of any kind, whether licensed or not,
whose goods, services, facilities, privileges, advantages or accommodations are extended,
offered, sold, or otherwise made available to the public.
9.Preliminary License Approval: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
10.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.
11.Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23.
12.Retail Registration: An approved registration issued by the (insert local here) to a state-
licensed cannabis retail business.
13.School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that
must meet the reporting requirements under Minn. Stat. 120A.24.
14.State License: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
Section 2. Registration of Cannabis Businesses
A city or town can delegate authority for registration to the County. A city or town can still adopt specific
requirement regarding zoning, buffers, and use in public places, provided said requirements are not in
conflict with an ordinance adopted under the delegated authority granted to the County.
2.1 Consent to registering of Cannabis Businesses
No individual or entity may operate a state-licensed cannabis retail business within (insert
local here ) without first registering with (insert local here).
Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
Page 42 of 89
2.2 Compliance Checks Prior to Retail Registration
A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of
retail registration.
Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall
not) conduct a preliminary compliance check to ensure compliance with local ordinances.
Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license
application from OCM, (insert local here) shall certify on a form provided by OCM whether
a proposed cannabis retail business complies with local zoning ordinances and, if
applicable, whether the proposed business complies with the state fire code and building
code.
2.3 Registration & Application Procedure
2.3.1 Fees.
(insert local here) shall not charge an application fee.
A registration fee, as established in (insert local here )’s fee schedule, shall be charged to
applicants depending on the type of retail business license applied for.
An initial retail registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall
include the initial retail registration fee and the first annual renewal fee.
Any renewal retail registration fee imposed by (insert local here) shall be charged at the
time of the second renewal and each subsequent renewal thereafter.
A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal
state license fee under Minn. Stat. 342.11, whichever is less.
A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration fee,
defined under this section, of the adult-use retail business.
2.3.2 Application Submittal.
The (insert local here) shall issue a retail registration to a state-licensed cannabis retail
business that adheres to the requirements of Minn. Stat. 342.22.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. The address and parcel ID for the property which the retail registration is
sought;
iv. Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
v. (Insert additional standards here)
(B) The applicant shall include with the form:
Page 43 of 89
i.the registration fee as required in [Section 2.3.1];
ii.a copy of a valid state license or written notice of OCM
license preapproval;
iii.(Insert additional standards here)
(C)Once an application is considered complete, the (insert local government
designee) shall inform the applicant as such, process the application fees, and
forward the application to the (insert staff/department, or elected body that will
approve or deny the request) for approval or denial.
(D)The application fee shall be non-refundable once processed.
2.3.3 Application Approval
(A)(Optional) A state-licensed cannabis retail business application shall not be
approved if the cannabis retail business would exceed the maximum number of
registered cannabis retail businesses permitted under Section 2.6.
(B)A state-licensed cannabis retail business application shall not be approved or
renewed if the applicant is unable to meet the requirements of this ordinance.
(C)A state-licensed cannabis retail business application that meets the requirements
of this ordinance shall be approved.
2.3.4 Annual Compliance Checks.
The (insert local here) shall complete at minimum one compliance check per calendar
year of every cannabis business to assess if the business meets age verification
requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24]
and this/these [chapter/section/ordinances].
The (insert local here ) shall conduct at minimum one unannounced age verification
compliance check at least once per calendar year.
Age verification compliance checks shall involve persons at least 17 years of age but under
the age of 21 who, with the prior written consent of a parent or guardian if the person is
under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products under the
direct supervision of a law enforcement officer or an employee of the local unit of
government.
Any failures under this section must be reported to the Office of Cannabis Management.
2.3.5 Location Change
A jurisdiction may decide to treat location changes as a new registration, or alternatively
treat a location change as allowable subject to compliance with the rest of the registration
process.
A state-licensed cannabis retail business shall be required to submit a new application for
registration under Section 2.3.2 if it seeks to move to a new location still within the legal
boundaries of (insert local here).
Page 44 of 89
or
If a state-licensed cannabis retail business seeks to move to a new location still within the
legal boundaries of (insert local here), it shall notify (insert local here) of the proposed
location change, and submit necessary information to meet all the criteria in this
paragraph.
2.4 Renewal of Registration
The (insert local here) shall renew an annual registration of a state-licensed cannabis retail
business at the same time OCM renews the cannabis retail business’ license.
A state-licensed cannabis retail business shall apply to renew registration on a form
established by (insert local here).
A cannabis retail registration issued under this ordinance shall not be transferred.
2.4.1 Renewal Fees.
The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
2.4.2 Renewal Application.
The application for renewal of a retail registration shall include, but is not limited to:
• Items required under Section 2.3.2 of this Ordinance.
• Insert additional items here
2.5 Suspension of Registration
2.5.1 When Suspension is Warranted.
The (insert local here) may suspend a cannabis retail business’s registration if it violates
the ordinance of (insert local here) or poses an immediate threat to the health or safety
of the public. The (insert local here) shall immediately notify the cannabis retail business
in writing the grounds for the suspension.
2.5.2 Notification to OCM.
The (insert local here) shall immediately notify the OCM in writing the grounds for the
suspension. OCM will provide (insert local here) and cannabis business retailer a response
to the complaint within seven calendar days and perform any necessary inspections within
30 calendar days.
2.5.3 Length of Suspension.
A jurisdiction can wait for a determination from the OCM before reinstating a registration.
The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
Page 45 of 89
The (insert local here ) may reinstate a registration if it determines that the violations have
been resolved.
The (insert local here) shall reinstate a registration if OCM determines that the violation(s)
have been resolved.
2.5.4 Civil Penalties.
Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty,
as specified in the (insert local here)’s Fee Schedule, for registration violations, not to
exceed $2,000.
2.6 Limiting of Registrations
A jurisdiction may choose to set a limit on the number of retail registrations within its
boundaries. The jurisdiction may not however, limit the number of registrations to fewer
than one per 12,500 residents.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
no fewer than one registration for every 12,500 residents within (insert local legal
boundaries here).
(Optional) If (insert county here) has one active cannabis retail businesses registration for
every 12,500 residents, the (insert local here) shall not be required to register additional
state-licensed cannabis retail businesses.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
(insert number <= minimum required).
Section 3. Requirements for Cannabis Businesses
State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner
of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a
buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis
to adopt such restrictions.
3.1 Minimum Buffer Requirements
A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis
business within a certain distance of schools, daycares, residential treatment facilities, or
from an attraction within a public park that is regularly used by minors, including a
playground or athletic field. Buffer requirements are optional. A jurisdiction cannot
adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction
should use a measuring system consistent with the rest of its ordinances, e.g. from lot
line or center point of lot.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-1,000] feet of a school.
Page 46 of 89
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a day care.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a residential treatment facility.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of an attraction within a public park that is regularly used by minors, including
a playground or athletic field.
(Optional) The (insert local here) shall prohibit the operation of a cannabis retail business
within [X] feet of another cannabis retail business.
Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3.1 shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation
at the same site if a (school/daycare/residential treatment facility/attraction within a
public park that is regularly used by minors) moves within the minimum buffer zone.
3.2 Zoning and Land Use
For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses
can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also
determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot
outright prohibit a cannabis business. A jurisdiction should amend their Zoning
Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they
are permitted, conditional, or interim uses. While each locality conducts its zoning
differently, a few themes have emerged across the country. For example, cannabis
manufacturing facilities are often placed in industrial zones, while cannabis retailers are
typically found in commercial/retail zones. Cannabis retail facilities align with general
retail establishments and are prohibited from allowing consumption or use onsite and
are also required to have plans to prevent the visibility of cannabis and hemp-derived
products to individuals outside the retail location. Cannabis businesses should be zoned
under existing zoning ordinances in accordance with the license type or endorsed
activities held by the cannabis business.
3.2.1. Cultivation.
Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use)
in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Manufacturer.
Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a
(type of use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
Page 47 of 89
3.2.1. Hemp Manufacturer.
Businesses licensed or endorsed for low-potency hemp edible manufacturers permitted
as a (type of use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Wholesale.
Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use)
in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Retail.
Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of
use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Transportation.
Cannabis businesses licensed or endorsed for transportation are permitted as a (type of
use) in the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.2.1. Cannabis Delivery.
Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in
the following zoning districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
3.3 Hours of Operation
State law limits the retail sale of cannabis flower, cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products to the hours of:
•Monday-Saturday: 8 a.m.-2 a.m. the following day
•Sunday: 10 a.m.-2 a.m.
A local jurisdiction may adopt an ordinance prohibiting sales for any period between the
hours of 8 a.m.-10 a.m. and between 9 p.m.-2 a.m. the following day, seven days a week.
(Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
between the hours of (insert time here) and (insert time here).
Page 48 of 89
3.4 (Optional) Advertising
Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the
building or property of the business, unless otherwise limited by (insert local here)’s sign
ordinances.
Section 4. Temporary Cannabis Events
Any individual or business seeking to obtain a cannabis event license must provide OCM information
about the time, location, layout, number of business participants, and hours of operation. A cannabis
event organizer must receive local approval, including obtaining any necessary permits or licenses issued
by a local unit of government before holding a cannabis event.
4.1 License or Permit Required for Temporary Cannabis Events
4.1.1 License Required.
A cannabis event organizer license entitles the license holder to organize a temporary
cannabis event lasting no more than four days. A jurisdiction should determine what type
of approval is consistent with their existing ordinances for events.
A license or permit is required to be issued and approved by (insert local here) prior to
holding a Temporary Cannabis Event.
4.1.2 Registration & Application Procedure
A registration fee, as established in (insert local here)’s fee schedule, shall be charged to
applicants for Temporary Cannabis Events.
4.1.3 Application Submittal & Review.
The (insert local here) shall require an application for Temporary Cannabis Events.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. (Insert additional standards here)
(B) The applicant shall include with the form:
i. the application fee as required in (Section 4.1.2);
ii. a copy of the OCM cannabis event license application, submitted pursuant
to 342.39 subd. 2.
The application shall be submitted to the (insert local authority), or other designee for
review. If the designee determines that a submitted application is incomplete, they shall
return the application to the applicant with the notice of deficiencies.
(C) Once an application is considered complete, the designee shall inform the
applicant as such, process the application fees, and forward the application to the
(insert staff/department, or elected body that will approve or deny the request) for
approval or denial.
Page 49 of 89
(D)The application fee shall be non-refundable once processed.
(E)The application for a license for a Temporary Cannabis Event shall meet the
following standards:
A jurisdiction may establish standards for Temporary cannabis events which the event
organizer must meet, including restricting or prohibiting any on-site consumption. If
there are public health, safety, or welfare concerns associated with a proposed cannabis
event, a jurisdiction would presumably be authorized to deny approval of that event.
•Insert standards here
(G)A request for a Temporary Cannabis Event that meets the requirements of this
Section shall be approved.
(H)A request for a Temporary Cannabis Event that does not meet the requirements
of this Section shall be denied. The (insert city/town/county) shall notify the
applicant of the standards not met and basis for denial.
(Optional) Temporary cannabis events shall only be held at (insert local place).
(Optional) Temporary cannabis events shall only be held between the hours of (insert start
time) and (insert stop time).
Section 5. (Optional) Lower-Potency Hemp Edibles
A jurisdiction can establish different standards or requirements regarding Low-Potency Edibles. A
jurisdiction can consider including the following section and subsections in their cannabis ordinance.
5.1 Sale of Low-Potency Hemp Edibles
The sale of Low-Potency Edibles is permitted, subject to the conditions within this
Section.
5.2 Zoning Districts
If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low-Potency
Edibles can take place in. A jurisdiction can also determine if such activity requires a
Conditional or Interim Use permit.
Low-Potency Edibles businesses are permitted as a (type of use) in the following zoning
districts:
•(Insert zoning districts use is permitted in here)
•(Insert zoning districts use is permitted in here)
5.3 (Optional) Additional Standards
5.3.1 Sales within Municipal Liquor Store.
A jurisdiction that already operates a Municipal Liquor Store may sell Low-Potency
Edibles within the same store.
Page 50 of 89
The sale of Low-Potency Edibles is permitted in a Municipal Liquor Store.
5.3.2 Age Requirements.
A jurisdiction is able to restrict the sale of Low-Potency Edibles to locations such as bars.
The sale of Low-Potency Edibles is permitted only in places that admit persons 21 years
of age or older.
5.3.3 Beverages.
The sale of Low-Potency Hemp Beverages is permitted in places that meet requirements
of this Section.
5.3.4 Storage of Product.
A jurisdiction is able to set requirements on storage and sales of Low-Potency Edibles.
Low-Potency Edibles shall be sold behind a counter, and stored in a locked case.
Section 6. (Optional) Local Government as a Cannabis Retailer
(insert local here) may establish, own, and operate one municipal cannabis retail business
subject to the restrictions in this chapter.
The municipal cannabis retail store shall not be included in any limitation of the number
of registered cannabis retail businesses under Section 2.6.
(insert local here) shall be subject to all same rental license requirements and procedures
applicable to all other applicants.
Section 7. Use in Public Places
No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in a public place or a place of public accommodation unless the premises is an
establishment or an event licensed to permit on-site consumption of adult-use.
Page 51 of 89
Appendix B: Retail Registration Form
and Checklist
Page 52 of 89
Retail Registration Form and Checklist
Local Unit of Government:
Business Name:
Business Address:
Minnesota Cannabis Business License Number:
Registration Period
Initial Renewal
Cannabis Microbusiness ($0.00) Cannabis Microbusiness ($1000.00)
Cannabis Mezzobusiness ($500.00) Cannabis Mezzobusiness ($1000.00)
Cannabis Retailer ($500.00) Cannabis Retailer ($1000.00)
Is Applicant Current on All Property Tax and Assessments at Retail Location:
NoYes
Preliminary Local Ordinance Compliance: Pass Fail
Notes:
The above named applicant having paid the appropriate fees, being current on all
applicable tax obligations, and having passed a preliminary compliance review, is
authorized to engage in retail cannabis sales in the above named jurisdiction.
Approved By:
Title:
Date:
Page 53 of 89
Appendix C: Hemp Flower and Hemp-
Derived Cannabinoid Product Checklist
Page 54 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 1
Office of Cannabis Management
Department of Health
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Minnesota Statute 18K.02, Definitions
Minnesota Statute 152.01, Subdivision 9
Minnesota Statute 151.72, Sale of Certain Cannabinoid Products
Minnesota Statute 152.0264, Cannabis Sale Crimes
Minnesota Statute 342.09, Personal Adult Use of Cannabis
Question Yes No Comments Additional Information
Business License and Registration Compliance
Is the business registered with
the Minnesota Department of
Health?
All businesses selling hemp-derived cannabinoid products must
be registered. See Hemp-Derived Cannabinoid Products
(www.health.state.mn.us/people/cannabis/edibles/index.html)
If the business offers on-site
consumption, do they have a
liquor license?
Local authorities issue on-site consumption licenses. These are
required for all businesses permitting on-site consumption of
THC.
Product Compliance – All Products
Does the business ensure that all
sales are made to persons 21
years old or older?
Only persons 21 years of age or older may purchase hemp-
derived cannabinoid products, with the exception of topicals.
These products may be sold to anyone.
Does the business have all edible
cannabinoid products, except
beverages, behind the counter or
in a locked cabinet?
Businesses must ensure all edible cannabinoid products are
secure and inaccessible to customers.
Page 55 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 2
Question Yes No Comments Additional Information
Only delta-8 and delta-9 are
allowed for human consumption.
Does the business sell edibles or
beverages with any other
intoxicating cannabinoids?
MDH has identified products containing many different
intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC,
delta-10, delta-11, delta-8p, delta-9p, etc. The product must
contain only delta-8 and/or delta-9.
Does the business sell any edible
products that are similar to a
product marketed to or
consumed by children?
Edible products that appear similar to candy or snacks
marketed toward or consumed by children are not allowed.
Does the label on the edible or
beverage state “Keep out of
reach of children”?
All products must include the warning label “Keep out of reach
of children.”
Is the manufacturer’s name,
address, website, and contact
phone number included on the
label or provided through a QR
code?
If not, the product is not in compliance.
Does the QR code on the product
bring the user to a Certificate of
Analysis on the website, which
includes the name of the
independent testing laboratory,
cannabinoid profile, and product
batch number?
All products must be tested by batch in an independent,
accredited laboratory. The results must include the
cannabinoid profile.
Does the label on the product
indicate the cannabinoids by
serving and in total?
The label must indicate the potency by individual serving as
well as in total.
Page 56 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 3
Question Yes No Comments Additional Information
Does the label on the product
make any claim the product
offers any kind of health benefit?
Health claims are not permitted on hemp or cannabis products
unless approved by the FDA. At this time, there is not an
approved statement.
Does the label on the product
state that the product does not
claim to diagnose, treat, cure or
prevent any disease?
The manufacturer cannot claim the product will provide any
health benefit unless the product has been formally approved
by the FDA.
Does the business sell CBD (or
other forms of cannabidiol) in
the form of a softgel, tablet, or
tincture?
Non-intoxicating cannabinoids may only be sold in the form of
an edible, beverage, or topical. Therefore, softgels and tablets
cannot be sold. Tinctures must be labeled as either an edible or
beverage and comply with the edible or beverage
requirements.
Product Compliance – Edibles
Does the edible product contain
more than 5 mg delta-8 and/or
delta-9 per serving?
Edibles may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the edible product
package/container contain more
than 50 mg total THC (delta-8
and/or delta-9)?
Edibles may not exceed 50 mg total delta-8 or delta-9 per
package. The edible cannot contain any other form of THC or
intoxicating cannabinoid.
Are all the edible product’s
servings clearly marked,
wrapped, or scored on the
product?
Edible product servings must be clearly distinguished on the
product. Bulk products that require the consumer to measure
are not allowed.
Page 57 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 4
Question Yes No Comments Additional Information
Does the business sell any edible
products in the shape of bears,
worms, fruits, rings, ribbons?
Edibles in shapes that appeal to children are not allowed.
Is the edible product in a child-
proof, tamper-evident, opaque
container?
All edibles must be in a container that is child-resistant and
tamper evident. If the container is clear, the business must
place the edible into an opaque bag at the point of sale. Clear
bags are not allowed.
Product Compliance - Beverages
Does the beverage product
contain more than 5 mg delta-8
or delta-9 per serving?
Beverages may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the beverage product
contain more than 2 servings?
Beverages cannot exceed two servings, regardless of the THC
potency.
Is the beverage product in an
opaque container?
If the beverage is in a clear container, the business must place
the beverage in an opaque bag at the point of sale.
Product Compliance – Smokables (non-flower)
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain more
than 0.3% THC?
A product’s certificate of analysis will show the concentration
of THC the product contains. The certificate typically is found
through the QR code on the product package. In MDH’s
experience, most vapes contain 50% - 90%+ THC.
Pre-rolls may consist of raw hemp flower. These products are
not regulated by 151.72. However, if a pre-roll is labeled as
“infused” or “coated” have additional cannabinoids applied to
the material, of which the product typically exceeds the 0.3%
THC limit.
Page 58 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 5
Question Yes No Comments Additional Information
Does the business sell vapes, pre-
rolls, dabs, or other smokeable
products that contain other
intoxicating cannabinoids, such
as HHC?
MN Statutes do not allow any cannabinoid, other than delta-8
or delta-9, to be sold if the cannabinoid is intended to alter the
structure or function of the body. HHC is a cannabinoid known
to have potency greater than THC.
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain CBD?
Non-intoxicating cannabinoids cannot be smoked, vaped, or
inhaled.
Product Compliance – Flower
Does the business sell raw hemp
flower?
Raw hemp flower must contain 0.3% or less of delta-9 on a dry
weight basis. Products exceeding 0.3% delta-9 dry weight are
marijuana, and are illegal for sale.
THC-A is the non psychoactive precursor to delta-9. Once
heated THC-A converts to delta-9. In that process some
amount of THC-A is lost.
To determine whether, once heated, the hemp flower will
exceed the allowable 0.3% of delta-9, one can use a
decarboxylation formula which takes into account the
conversion of THC-A into delta-9.
That formula is as follows:
Total THC = (0.877 X THC-A) + d-9 THC)
Raw flower must include a certificate of analysis to show
testing below 0.3% delta-9.
•A lack of a certificate of analysis would constitute an
illegal sale.
Page 59 of 89
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 6
Question Yes No Comments Additional Information
• A certificate of analysis showing that under the
decarboxylation formula that delta-9 would exceed
the 0.3% threshold would also indicate the flower is
cannabis and not hemp and therefore being sold
illegally.
Product Compliance – On-Site Consumption
If the business offers on-site
consumption, do they serve the
edible or beverage in its original
packaging?
The business may not pour out or remove an edible from its
original packaging.
If the business offers on-site
consumption, do they mix a
cannabis-infused beverage with
alcohol?
The business may not mix cannabis-infused products with
alcohol.
If the business offers on-site
consumption, do they permit
customers to remove from the
premises products which have
been removed from their original
packaging?
Products which have been removed from their original
packaging cannot be removed from the premises by the
customer.
NOTE: If a person suspects that a hemp-derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint
form at Submitting Hemp-Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html).
Page 60 of 89
Appendix D: Enforcement Notice from
the Office of Cannabis Management
Page 61 of 89
Enforcement Notice 1
Enforcement Notice from the Office of Cannabis
Management
Dear Registered Hemp Derived Cannabinoid Business:
The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing
the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota
Statutes Chapter 342.
When Minnesota legalized the sale of adult-use of cannabis flower, cannabis products, and lower-potency hemp
edibles/ hemp-derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota
Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of
Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or
retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal.
The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label
of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM,
inspectors from MDH will begin to examine any flower products being sold during their regular inspections to
determine whether they are indeed hemp flower or cannabis flower.
In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related
to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the
process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw
flower products will include reviewing the certificate of analysis for compliance in several areas, including:
Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA).
Products for sale without a COA will constitute an illegal sale.
A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3%
Delta-9 dry weight are considered marijuana and are therefore illegal to sell.
A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed
0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent
test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will
be considered illegal.
Minnesota Statutes, Chapter 342 governs Minnesota’s cannabis market, and empowers OCM to ensure
regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis
flower and cannabis products “without a license issued under this chapter that authorizes the sale.”
Page 62 of 89
Enforcement Notice 2
To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are
expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware
that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for
violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any
product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules
adopted under this chapter[.]” Furthermore, violations of law may be considered in future licensing decisions
made by OCM.
As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they
fall within the thresholds outlined above. If you have any questions related to the products you are selling,
please send an email to cannabis.info@state.mn.us.
Thank you for your attention to this matter.
Charlene Briner
Interim Director
Office of Cannabis Management
Page 63 of 89
Appendix E: Notice to Unlawful
Cannabis Sellers
Page 64 of 89
Notice to Unlawful Cannabis Sellers
This notice is to inform you that your current course of action may run afoul of Minnesota law, and
continuing this course of action may result in civil actions and potential criminal prosecution. To avoid
such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of
cannabis and cannabis products.
Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s
cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter
342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale
of cannabis flower and cannabis products “without a license issued under this chapter that authorizes
the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis
licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation
of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6
(www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a
$1,000,000 for violations of this law.
Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM
is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in
violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted
to be sold at your retail location might be distributed in violation of the law, and would therefore be
subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2
(www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the
cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency
hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this
chapter have been complied with or the item is found not to be in violation of this chapter or rules
adopted under this chapter.”
While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency
hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions,
Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the
unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation,
manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of
the limits in 152.0264 is illegal.
If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that
the sale of those products is consistent with Minnesota Statutes, chapter 151.72
(www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your
business be registered with the Commissioner of Health, and that all products are in compliance with the
relevant statutes.
Finally, in addition to the state laws outlined above, please be aware that any retail location must be in
compliance with local government ordinances and zoning requirements.
OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to
ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to
open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased.
Page 65 of 89
DRAFTCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 596
AMENDING TITLE 12: ZONING, CHAPTER 3: ALLOWED USES TO ESTABLISH CANNABIS
BUSINESS TYPES WITHIN THE TABLE OF USES
The City Council of the City of Mendota Heights does ordain:
Section 1. City Code Title 12 – ZONING is hereby amended to modify Chapter 3: ALLOWED
USES , Table 12-3B-1.1 Table of Uses as follows:
COMMERCIAL/BUSINESS USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis Retailer CUP CUP 3-8-1
Lower-potency hemp
edible retailer
P P P 3-8-1
INDUSTRIAL, TRANSPORTATION & UTILITY USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis microbusiness,
cannabis mezzobusiness,
cannabis cultivator,
cannabis manufacturer,
cannabis wholesaler,
cannabis testing facility,
lower-potency hemp
edible manufacturer,
medical cannabis
combination business
CUP 3-8-1
Section 2. Effective date.
This ordinance shall be effective January 1, 2025, following adoption and publication according
to law.
ADOPTED this 17th day of December, 2024 by the City Council for the City of Mendota
Heights.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
___________________________________
Page 66 of 89
DRAFTStephanie B. Levine, Mayor
ATTEST:
___________________________
Nancy Bauer, City Clerk
Page 67 of 89
7.a
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: October 30, 2024
AGENDA ITEM: Cannabis Ordinance
ITEM TYPE: New and Unfinished Business
DEPARTMENT: Community Development CONTACT: Sarah Madden, Community
Development Manager
ACTION REQUEST:
Provide direction on drafting an ordinance regulating Cannabis Business operations within the
City, in compliance with Minnesota Statutes, Chapter 342
BACKGROUND:
In 2023, the Minnesota Legislature passed a bill legalizing adult use of cannabis and cannabis
businesses. Part of this bill also created The Office of Cannabis Management (OCM), which was
created to regulate and oversee the cannabis industry in Minnesota. State statute limited the
type regulations a city can place on the use, sale and production of cannabis and cannabis
products. The law identified cannabis cannot be sold until the OCM was established and able
to issue licenses. That timeline is expected to be accomplished by January 1, 2025. In mid-June
2024, the OCM released “A Guide for Local Governments on Adult-Use Cannabis”, which
includes a model ordinance. This document is attached for the Council to reference while
discussing the proposed regulations.
Community Development, Administration, the City Clerk's office and the Police Department
will be coordinating during the creation of the City's Cannabis regulations and implementation
of the ordinance in 2025. The OCM is the licensing and general enforcement body for
cannabis-based businesses, but local governments will be responsible for compliance checks
for age-verified sales and can inspect for compliance with city-specific regulations. Under the
statute, local governments cannot prohibit the possession, transportation, or use of cannabis,
or the establishment of a state-licensed cannabis business. Local governments also may not
require additional licensing of cannabis businesses. However, the City is permitted to adopt
some reasonable restrictions and performance standards. For these regulations, cities have the
authority to adopt a registration ordinance requiring a cannabis microbusiness, cannabis
mezzobusiness, cannabis retailer, medical cannabis combination business, or lower-potency
Attachment 3. Oct 30 Staff Report and Minutes
Page 68 of 89
hemp edible retailer with a license from OCM to initially and annually register with the city. To
obtain a registration from the city, the ordinance may require: payment of a fee, compliance
with the requirements of Minn. Stat. Ch. 342, and to be current on all property taxes and
assessments. If a city adopts a registration ordinance, the city may limit the number of licensed
cannabis retailers, cannabis mezzobusinesses and cannabis microbusinesses to no fewer than
one registration for every 12,500 residents. This is based on the Minnesota State Demographer
numbers.
The City also has the ability to decide which zoning districts cannabis and hemp businesses
will be allowed to operate within. Many cities are likely to view both uses similar to liquor
stores or tobacco shops from a zoning perspective. Mendota Heights' Alcoholic Beverages
ordinance notes that off sale liquor licenses may only be issued in the MU-PUD Zoning
District. However, the Zoning Ordinance identifies liquor stores as a similar use to a bowling
alley, billiard room, skating rink, fraternal organization, or other similar assembly uses and
notes the use as a Conditional Use in the MU-Mixed Use, B-1-General Business, and B-2-
Neighborhood Business districts (as identified in the updated Zoning Ordinance, going into
effect January 1, 1025). Tobacco Shops are listed as a CUP in those same zoning districts. No
buffer performance standards are imposed on either use. The City Council may take a more
restrictive approach with cannabis and hemp businesses, as recommended later in this report,
by defining the uses within the Zoning Ordinance and establishing allowed zoning districts as
well as buffer requirements and appropriate performance standards via a Zoning Ordinance
revision. If Council wishes to be less restrictive, they could treat cannabis uses like current
tobacco and alcohol licensing requirements which do not impose buffer requirements.
Minnesota Statutes define cannabis business and hemp businesses:
Cannabis Business means any of the following licensed under this chapter: (1) cannabis microbusiness; (2) cannabis
mezzobusiness; (3) cannabis cultivator; (4) cannabis manufacturer; (5) cannabis retailer; (6) cannabis wholesaler; (7)
cannabis transporter; (8) cannabis testing facility; (9) cannabis event organizer; (10) cannabis delivery service; and (11)
medical cannabis combination business.
Hemp Business means either of the following licensed under this chapter: (1) lower-potency hemp edible manufacturer; or
(2) lower-potency hemp edible retailer. Hemp business does not include a person or entity licensed under chapter 18K to
grow industrial hemp for commercial or research purposes or to process industrial hemp for commercial purposes.
The definitions and regulations for the cannabis retailer, manufacturer, wholesaler, transporter,
testing facility, and delivery service operations are tailored to the new cannabis and hemp
industries, but the functionality of the uses are similar to existing retail, manufacturing,
wholesale, transport, testing, and delivery operations for non-cannabis industries. The defined
cannabis microbusiness, mezzobusiness, cultivators, and event organizer uses are not
comparable to existing uses. These uses and operations are provided in Minnesota Statute
Chapter 342 and will be included in the new rules, as outlined in the attached OCM guide.
The statute gives the City of Mendota Heights the authority to adopt reasonable restrictions
on the time, place, and manner of the operation of a cannabis business, provided that such
restrictions do not prohibit the establishment or operation of cannabis businesses.
Attachment 3. Oct 30 Staff Report and Minutes
Page 69 of 89
Based on the actions local governments are permitted to take relating to cannabis businesses,
staff recommends the following ordinance updates to City Code to comply with the OCM
guidelines as well as preserve the City of Mendota Height's interest in local control:
1.Create a registration of cannabis retailers, cannabis mezzobusinesses and cannabis
microbusinesses.
2.Require cannabis businesses (cannabis retailers, cannabis mezzobusinesses, cannabis
microbusinesses, etc.) to be located at least 500-ft away from principal school buildings,
principal day care buildings, principal residential treatment facility buildings, and
attractions in parks (like playgrounds and sports fields). Optional: The City may prohibit
the operation of a cannabis business within 1000-ft of a school as an increased buffer, but
only for that specific use.
3.Update the Zoning Ordinance use chart to allow Cannabis Retail to be permitted in the
same zoning as off-sale liquor or tobacco: MU-Mixed Use, B-1-General Business, B-2-
Neighborhood Business. Update the use chart to allow Cannabis
cultivation/research/manufacturing/distribution in I-Industrial as similar allowed uses.
Note: See pgs. 12-14 of the OCM Guide
4.Incorporate standards within Title 12 to regulate hours of operation, signage, and other
best practices as Zoning Ordinance performance standards.
Policy questions for the City Council to consider:
1.Should cannabis retail be permitted in the same zoning as off-sale liquor or tobacco?
2.Should cannabis cultivation/research/manufacturing/distribution be permitted in I-
Industrial as similar allowed uses?
3.What performance standards should be considered? Odor mitigation, signage, hours of
operation, lighting, etc.
4.Should a buffer be implemented from schools, daycare, residential treatment facilities,
or from attractions within public parks? Should the City impose the maximum allowed
buffer, or a different dimension?
5.Should the City limit the number of cannabis retail businesses? Note: the City cannot
limit fewer than 1 per 12,500 residents. Should the City prohibit the operation of a
cannabis retail business within a distance of another cannabis retail business?
6.The City does not currently license or impose additional performance standards for
lower-potency edible cannabinoid products (THC products). The OCM will begin issuing
lower-potency hemp edible retailer licenses with their other licensing duties. Should
lower-potency hemp manufacturers and retailers also be subject to a registration
process and be identified within the zoning ordinance use chart? Note: locations where
such products are currently sold may include grocery stores, tobacco shops, and in some
cases restaurants, bars, or breweries. A liquor store is also authorized to sell edible
cannabinoid products under state law.
FISCAL AND RESOURCE IMPACT:
Attachment 3. Oct 30 Staff Report and Minutes
Page 70 of 89
1. There will be new revenue for the City from the 10% state tax on some cannabis
products. Under the new law, 20% of the gross receipts tax revenue from cannabis
products is dedicated to local governments, to be shared equally between cities and
counties (the remaining 80% flows to the state general fund). Local taxes imposed
solely on sale of cannabis products are prohibited.
2. An initial registration fee may be established by the City that cannot exceed $500 or
half the amount of an initial state license fee under the statute. A renewal registration
fee may be imposed annually but cannot exceed $1,000 or half the amount of a renewal
state license fee under the statute.
ATTACHMENTS:
1. A Guide for Local Governments on Adult-Use Cannabis
CITY COUNCIL PRIORITY:
Inclusive and Responsive Government
Attachment 3. Oct 30 Staff Report and Minutes
Page 71 of 89
Attachment 3. Oct 30 Staff Report and MinutesPage 72 of 89
Attachment 3. Oct 30 Staff Report and MinutesPage 73 of 89
Attachment 3. Oct 30 Staff Report and MinutesPage 74 of 89
Attachment 3. Oct 30 Staff Report and MinutesPage 75 of 89
_____________________________________________________ City Council Work Session Memo
MEETING DATE: November 19, 2024
TO: Mayor, City Council and City Administrator
FROM: Sarah Madden, Community Development Manager
SUBJECT: Continued Cannabis Ordinance Discussion
ACTION REQUEST:
No formal action is required. Staff is seeking further direction from the City Council on the Cannabis
Ordinance.
BACKGROUND:
The Minnesota Legislature enacted new State Law at the end of the 2023 legislative session, amended in 2024,
that legalizes the possession, use, manufacturing, and sale of certain cannabis products within the State. The
Law also establishes the Office of Cannabis Management (OCM) to oversee the implementation and regulation
of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. The statute
limited the regulations a city can place on the use, sale and production of cannabis and cannabis products. In
mid-June, the OCM released “A Guide for Local Governments on Adult-Use Cannabis”, which includes a model
ordinance used as a basis for the proposed draft of Mendota Heights’ Cannabis Business Ordinance.
The new law limits a City’s ability to regulate cannabis and hemp businesses. In the areas of the statute where
local governments are permitted to incorporate regulations of cannabis businesses, the scope of that
regulation is restrictive and highly specific.
The City Council was provided a copy of the OCM’s guide for local governments as part of the October 15th
City Council work session agenda packet, and the Council held a discussion over the topic and model
ordinance standards at the October 30th City Council regular meeting.
Title 3: Business and License Regulations – Registration Ordinance and Regulatory Standards
As the City Council is aware, local governments have the authority to adopt a registration ordinance requiring a
cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, medical cannabis combination business, or
lower-potency hemp edible retailer with a license from OCM to initially and annually register with the city. To
obtain a registration from the city, the ordinance may require: payment of a fee (half of the license fee
established by Statute 342.11 up to $500 initially and $1000 annually), compliance with the requirements of
Minn. Stat. Ch. 342, and to be current on all property taxes and assessments. If a city adopts a registration
ordinance, the city may limit the number of licensed cannabis retailers, cannabis mezzobusinesses and cannabis
Attachment 4. Nov. 19 City Council Work Session Staff Report
Page 76 of 89
microbusinesses to no fewer than one registration for every 12,500 residents. This is based on the Minnesota
State Demographer numbers. Staff had recommended that the City Council adopt a registration ordinance in
line with the OCM’s model ordinance. This registration is not a licensing function of the City. Licensing of
cannabis businesses will be conducted by the OCM. Once the administrative rules are in effect, currently
anticipated mid-2025, licensing of cannabis businesses will commence.
A draft ordinance has been prepared which is consistent with the OCM model ordinance which was discussed
at the October 30th meeting. It is included as an attachment to this report. In this draft ordinance, the
registration, administration, buffer standards, and public event regulations have all been placed into Title 3:
Business and License Regulations. As currently proposed, the only amendments to the Zoning Title (Title 12)
will be updates to the use chart.
The State Law allows Mendota Heights to prohibit a cannabis business within 1,000 feet of a school or 500 feet
of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors,
including playgrounds and athletic fields. The City may also impose a prohibition on a cannabis business within
500 feet of another cannabis business. These are the maximum specified buffers, a lessor or no buffer is also
allowed. Based on the discussion on October 30th, the proposed draft imposes the maximum buffers.
The City will need to decide what registration fee, if any, it will charge. Staff recommends imposing the
maximum fee amount given the uncertainty of staff work associated with the registration. Fees can be adjusted
in the future once there is more familiarity with the process. The table below shows the maximum amount for
an initial registration fee and renewal registration fee for retail businesses and includes the amount the state
charges for a license, for reference.
Business Initial Renewal
Cannabis Retailer City (optional) - $500; State - $2,500 City (Optional) - $1,000; State - $5,000
Lower Potency Hemp Retailer City (Optional) $125; State - $250 City (Optional) - $125; State - $250
Medical Cannabis Combination Business City (Optional) - $500; State - $20,000 City (Optional) - $1,000; State - $70,000
Cannabis Mezzobusiness City (Optional) - $500; State - $5,000 City (Optional) - $1,000; State - $10,000
Cannabis Microbusiness City (Optional) - $0; State - $0 City (Optional) - $1,000; State - $2,000
One performance standard discussed at the October 30th meeting is the hours of operation for cannabis
retailers. The State Law establishes that retail sales are prohibited between 2:00 a.m. and 8:00 a.m. Monday
through Saturday and between 2:00 a.m. and 10:00 a.m. on Sunday. The City may prohibit retail sales of
cannabis between 9:00 p.m. and 2:00 a.m. the following day and/or between 8:00 a.m. and 10:00 a.m. Monday
Attachment 4. Nov. 19 City Council Work Session Staff Report
Page 77 of 89
through Saturday. In other words, the most restrictive hours of sales could be 10:00 a.m. to 9:00 p.m. Monday
through Sunday. For comparison, Off-sale Liquor sales are allowed on Sundays, between 11:00 a.m. and 6:00
p.m.; Monday-Saturday, from 8:00 a.m. to 10:00 p.m.; and not on Thanksgiving or Christmas Day; and only
between 8:00 a.m. and 8:00 p.m. on Christmas Eve. The City should decide the allowable hours of cannabis
retail sales. It was directed at the October 30th meeting that the hours of operation be consistent with liquor or
tobacco sales. This has been reflected in the draft ordinance.
One area where the City may institute regulations for cannabis businesses is in the context of a temporary
cannabis event. A temporary cannabis event is a gathering organized by a licensed cannabis event organizer
that may last for no more than four days. The process for these event should generally follow the normal
process for handling similar events, but the City could choose to require additional standards for temporary
cannabis events, such as prohibiting on-site consumption, limiting the hours or the events, etc. In general, the
City only conducts a permitting process for special events when they are conducted within parks. Consumption
of cannabis is prohibited within parks, in addition to all forms of smoking. This ordinance is already in effect.
The model ordinance provisions for temporary cannabis events have been included in the proposed draft, with
some performance standards imposed, such as a setback from Residentially zoned property and a prohibition
on on-site consumption. If the City follows this model ordinance, an additional event permit application will
need to be created.
Title 12: Zoning Ordinance – Use Chart
The state law creates license types which will be issued by the OCM. The City should incorporate the land uses
into their current zoning to accommodate the language of the state law. The City may not prohibit the
establishment or operation of a licensed cannabis business. There will be 13 license types, however they can be
generalized into the following categories:
• Retail Sales – Sales of cannabis and cannabis products directly to consumers.
• Cultivation – The planting, growing, harvesting, drying, curing, grading, or trimming of cannabis plants,
cannabis flower, hemp plants, or hemp plant parts.
• Wholesale – Purchases from a business growing or manufacturing cannabis or cannabis products and sells to
a cannabis business engaged in retail.
• Manufacturing – Turns raw, dried cannabis and cannabis parts into other types of cannabis products, e.g.
edibles or topicals.
• Testing - Obtains and tests immature cannabis plants and seedlings, cannabis, cannabis products, and hemp
products.
• Transportation – Transports products from one license type to another.
• Delivery – Transports products to the end consumer.
• Events – A business that organizes temporary events (lasting no longer than four days).
Note: Certain license types enable multiple activity types, for example, Micro and Mezzo businesses may include
cultivation, manufacturing, and/or retail sales.
The City must decide which zones cannabis and hemp businesses will be allowed to operate in. This was
discussed at the October 30th meeting. The staff recommendation is to allow cannabis-based retail businesses
to be allowed in similar zoning categories as those of tobacco sales or liquor stores. The City Council discussed
Attachment 4. Nov. 19 City Council Work Session Staff Report
Page 78 of 89
the option of allowing cannabis retailers to be a listed use in business and commercial zoning districts, but to
omit the use within the Mixed Use zoning district. This is an option available to the City and can be revised if
the Council would like to make that determination. As currently drafted, the proposed ordinance would allow
retail-based cannabis businesses within all commercial zoning districts, including Mixed Use, as a Conditional
Use.
Use Type Cannabis Business Type Proposed Zoning District
Warehouse or Manufacturing •Cannabis microbusiness
•Cannabis mezzobusiness
•Cannabis cultivator
•Cannabis manufacturer
•Cannabis wholesaler
•Cannabis testing facility
•Lower-Potency HempEdible Manufacturer
•I – Industrial as aConditional Use
Retail •Cannabis retailer
•Lower-potency hemp
edible retailer
•B-1 General Business, B-2Neighborhood Business,MU-Mixed Use; as a
Conditional Use
•B-1 General business, B-2Neighborhood Business,
MU-Mixed Use; as
Permitted Use
The City Council will hear a brief presentation on the proposed ordinance at the November 19th Work Session.
Staff is seeking direction on any suggested revisions to the ordinance as presented. The Planning Commission
will hold a public hearing at their November 26th regular meeting on the zoning use chart portion of the
drafted ordinance. Following the public hearing, the City Council will be presented the ordinance again at their
December 3rd regular meeting.
ATTACHMENTS:
1.Proposed Cannabis Ordinance, dated 11/14/24
Attachment 4. Nov. 19 City Council Work Session Staff Report
Page 79 of 89
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 596
AMENDING TITLE 3: BUSINESS AND LICENSE REGULATIONS AND TITLE 12: ZONING
TO REGULATE CANNABIS BUSINESSES
The City Council of the City of Mendota Heights does ordain:
Section 1. City Code Title 3 – BUSINESS AND LICENSE REGULATIONS is hereby amended to add
Chapter 8: CANNABIS REGISTRATION as follows:
3-8-1: PURPOSE AND SCOPE:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes, Chapter 342, which
authorizes the City of Mendota Heights to protect the public health, safety, and welfare of Mendota
Heights residents by regulating cannabis businesses within the legal boundaries of Mendota Heights.
3-8-2: DEFINTIONS
Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules
promulgated pursuant to any of these acts, shall have the same meanings in this ordinance.
CANNABIS BUSINESS: A business licensed by the Office of Cannabis Management (OCM) as defined
by Minnesota Statute 342.01 Subd. 14.
CANNABIS CULTIVATION or CULTIVATE CANNABIS: Growing cannabis plants from seed or
immature plant to mature plant, harvest cannabis flower from mature plant, package and label immature
plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower
to a cannabis manufacturer located on the same premises, and perform other actions approved by the
OCM.
CANNABIS CULTIVATOR: A cannabis business licensed to cultivate cannabis and packages cannabis
for sale to another cannabis business.
CANNABIS EVENT: A temporary cannabis event lasting no more than four days operating pursuant to
Minnesota Statute 342.39.
CANNABIS MANUFACTURER: A cannabis business that makes cannabis and/or hemp concentrate,
manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency hemp edibles,
and/or hemp-derived consumer products, and sells cannabis concentrate, hemp concentrate, artificially
derived cannabinoids, cannabis products, lower-potency hemp edibles, hemp-derived consumer products
to other cannabis businesses pursuant to Minnesota Statute Section 342.31.
CANNABIS MEZZOBUSINESS: A cannabis business that grows cannabis plants from seed or immature
plant to mature plant, harvests the cannabis flower from a mature plant, makes cannabis and/or hemp
concentrate, manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency
hemp edibles, and/or hemp-derived consumer products, and sells immature cannabis plants and seedlings,
adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 80 of 89
consumer products, and other products authorized by law to other cannabis businesses and to consumers
pursuant to Minnesota Statute Section 342.29.
CANNABIS MICROBUSINESS: A cannabis business that grows cannabis plants from seed or immature
plant to mature plant, harvests the cannabis flower from a mature plant, makes cannabis and/or hemp
concentrate, manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency
hemp edibles, and/or hemp-derived consumer products, and sells immature cannabis plants and seedlings,
adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived
consumer products, and other products authorized by law to other cannabis businesses and to consumers,
including on-site consumption, pursuant to Minnesota Statute Section 342.28.
CANNABIS RETAIL BUSINESSES: A 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, and lower-potency hemp edible retailers.
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.
CANNABIS TESTING FACILITY: A cannabis business that obtains and tests 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, and industrial hemp growers pursuant to
Minnesota Statute Section 342.37.
CANNABIS WHOLESALER: A cannabis business that sells immature cannabis plants and seedlings,
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to
cannabis microbusinesses, cannabis mezzobusinesses, cannabis manufacturers, and cannabis retailers
pursuant to Minnesota Statute Section 342.33.
DAYCARE: A location licensed with the Minnesota Department of Human Services to provide the care of
a child in a residence outside the child's own home for gain or otherwise, on a regular basis, for any part
of a 24-hour day.
LOWER-POTENCY HEMP EDIBLE MANUFACTURER: A business that manufactures and packages
lower-potency hemp edibles for consumer sale, and/or sells hemp concentrate and lower-potency hemp
edibles to other cannabis businesses and hemp businesses.
LOWER-POTENCY HEMP EDIBLE RETAILER: A business that sells lower-potency hemp edibles to
customers.
OFFICE OF CANNABIS MANAGEMENT: Minnesota Office of Cannabis Management, referred to as
“OCM” in this ordinance.
PLACE OF PUBLIC ACCOMMODATION: A business, accommodation, refreshment, entertainment,
recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities,
privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the
public.
PRELIMINARY LICENSE APPROVAL: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 81 of 89
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.
RESIDENTIAL TREATMENT FACILITY: As defined under Minn. Stat. 245.462 subd. 23.
RETAIL REGISTRATION: An approved registration issued by the (insert local here) to a state licensed
cannabis retail business.
SCHOOL: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet
the reporting requirements under Minn. Stat. 120A.24.
STATE LICENSE: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
3-8-3: ADMINISTRATION
The City Administrator or their designee is responsible for the administration and enforcement of this
ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its
requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this ordinance
can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance.
3-8-4: REGISTRATION OF A CANNABIS BUSINESS
A.Consent to registering of Cannabis Businesses
1. No individual or entity may operate a state-licensed cannabis retail business within Mendota
Heights without first registering with the City of Mendota Heights.
2. Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
3. Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
B.Compliance Checks Prior to Retail Registration
1.Prior to issuance of a cannabis retail business registration, Mendota Heights (shall/shall not)
conduct a preliminary compliance check to ensure compliance with local ordinances.
2. Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application
from OCM, the City of Mendota Heights shall certify on a form provided by OCM whether a
proposed cannabis retail business complies with local zoning ordinances and, if applicable,
whether the proposed business complies with the state fire code and building code.
C.Registration and Application Procedure
1.Fees
a) The City of Mendota Heights shall not charge an application fee.
b)A registration fee, as established in the City of Mendota Height’s fee schedule, shall
be charged to applicants depending on the type of retail business license applied for.
c)An initial registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee
shall include the initial retail registration fee and the first annual renewal fee.
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 82 of 89
d)Any renewal retail registration fee imposed by the City shall be charged at the time of
the second renewal and each subsequent renewal thereafter.
e)A renewal retail registration fee shall not exceed $1,000 or half the amount of a
renewal state license fee under Minn. Stat. 342.11, whichever is less.
f)A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration
fee, defined under this section, of the adult-use retail business.
2. Application Submittal
The City shall issue a retail registration to a state-licensed cannabis retail business that
adheres to the requirements of Minn. Stat. 342.22
a)An applicant for a retail registration shall fill out an application form, as provided by
the City. Said form shall include, but is not limited to:
i.Full name of the property owner and applicant;
ii.Address, email address, and telephone number of the applicant;
iii.The address and parcel ID for the property which the retail registration is
sought;
iv.Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
b)The applicant shall include with the form:
i.the registration fee as required in [Section 2.3.1];
ii.a copy of a valid state license or written notice of OCM license preapproval;
c)Once an application is considered complete, the City Administrator or their designee
shall inform the applicant as such, process the application fees, and forward the
application to the City Clerk for approval or denial.
d) The application fee shall be non-refundable once processed.
3.Application Approval
a)A state-licensed cannabis retail business application shall not be approved if the
cannabis retail business would exceed the maximum number of registered cannabis
retail businesses permitted under Section 3-8-4(F)1 of this ordinance.
b)A state-licensed cannabis retail business application shall not be approved or renewed
if the applicant is unable to meet the requirements of this ordinance.
c)A state-licensed cannabis retail business application that meets the requirements of
this ordinance shall be approved.
4.Annual Compliance Checks
a)The City shall complete at minimum one compliance check per calendar year of
every cannabis business to assess if the business meets age verification requirements,
as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24] and this
ordinance.
b)The City shall conduct at minimum one unannounced age verification compliance
check at least once per calendar year.
c)Age verification compliance checks shall involve persons at least 17 years of age but
under the age of 21 who, with the prior written consent of a parent or guardian if the
person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-
use cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products under the direct supervision of a law enforcement officer or an employee of
the local unit of government.
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 83 of 89
d) Any failures under this section must be reported to the Office of Cannabis
Management.
5. Location Change
A state-licensed cannabis retail business shall be required to submit a new application for registration
under Section 2.3.2 if it seeks to move to a new location still within the legal boundaries of the City of
Mendota Heights.
Or;
If a state-licensed cannabis retail business seeks to move to a new location still within the legal
boundaries of Mendota Heights, it shall notify the City of the proposed location change, and submit
necessary information to meet all the criteria in this paragraph.
D.Renewal of Registration
1.Renewal Process
a)The City shall renew an annual registration of a state-licensed cannabis retail business at
the same time OCM renews the cannabis retail business’ license.
b)A state-licensed cannabis retail business shall apply to renew registration on a form
established by the City.
c) A cannabis retail registration issued under this ordinance shall not be transferred.
2.Renewal Fees
a) The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
3.Renewal Application
a)The application for renewal of a retail registration shall include, but is not limited to
i.Items required under Section 3-8-4(C)2 of this Ordinance.
E.Suspension of Registration
1.When Suspension is Warranted
a)The City of Mendota Heights may suspend a cannabis retail business’s registration if it
violates the ordinance of the City or poses an immediate threat to the health or safety of
the public. The City shall immediately notify the cannabis retail business in writing the
grounds for the suspension.
2.Notification to OCM
a)The City shall immediately notify the OCM in writing the grounds for the suspension.
OCM will provide the City and cannabis business retailer a response to the complaint
within seven calendar days and perform any necessary inspections within 30 calendar
days.
3.Length of Suspension
a)The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
4.Civil Penalties
a)Subject to Minn. Stat. 342.22, subd. 5(e) the City may impose a civil penalty, as specified
in the City of Mendota Heights’s Fee Schedule, for registration violations, not to exceed
$2,000.
F.Limiting of Registrations
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 84 of 89
1. The City shall limit the number of cannabis retail businesses to no fewer than one registration
for every 12,500 residents within the City of Mendota Heights. The City shall limit the
number of cannabis retail businesses to one (1).
3-8-5: REQUIREMENTS FOR A CANNABIS BUSINESS
A.Minimum Buffer Requirements
1. No cannabis business shall be located or operated within 500 feet of an existing lawful
cannabis business.
2. No cannabis business shall be located or operated within 500 feet of an existing daycare,
residential treatment facility, or an attraction within a public park that is regularly used by
minors, including a playground or athletic field.
3. No cannabis business shall be located or operated within 1000 feet of a school.
4. Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3-8-5(A) shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation at the
same site if a daycare, residential treatment facility, attraction within a public park that is
regularly used by minors, or school moves within the minimum buffer zone.
B.Zoning and Land Use
1.A cannabis business licensed or endorsed by the OCM may be permitted as a use on a
property within the City of Mendota Heights in accordance with Title 12: Zoning, Chapter 3:
Allowed Uses, Table 12-3B-1.1 Table of Uses
C.Hours of Operation
1.Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products between the hours of 8:00
a.m. and 10:00 p.m. on Monday-Saturday; and between the hours of 10:00 a.m. and 9:00 p.m.
on Sundays.
3-8-6 TEMPORARY CANNABIS EVENTS
A.License or Permit Required for Temporary Cannabis Events
1.License Required: A license or permit is required to be issued and approved by the City prior
to holding a Temporary Cannabis Event.
2. Registration and Application Procedure: A registration fee, as established in the City’s fee
schedule, shall be charged to applicants for Temporary Cannabis Events.
3. Application Submittal and Review: The City shall require an application for Temporary
Cannabis Events.
a)An applicant for a retail registration shall fill out an application form, as provided by the
City. Said form shall include, but is not limited to:
i.Full name of the property owner and applicant;
ii.Address, email address, and telephone number of the applicant;
b)The applicant shall include with the form:
i.The application fee as required in Section 3-8-6(A)2;
ii.A copy of the OCM cannabis event license application, submitted pursuant to
342.39 subd. 2.
c) The application shall be submitted to the City Administrator or their designee for review.
If the designee determines that a submitted application is incomplete, they shall return the
application to the applicant with the notice of deficiencies.
d)Once an application is considered complete, the designee shall inform the applicant as
such, process the application fees, and forward the application to the (insert
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 85 of 89
staff/department, or elected body that will approve or deny the request) for approval or
denial.
e)The application fee shall be non-refundable once processed.
f)The application for a license for a Temporary Cannabis Event shall meet the following
standards:
i.Outdoor consumption or use of cannabis at or on the property of a temporary
cannabis event is prohibited.
ii.The setback from any property line of any residential use or residential zoned
property shall be no less than 350 feet.
iii.The event may last no longer than four (4) days (96 hours)
iv. The event shall operate in accordance with all applicable requirements for
temporary cannabis events under Minn. Stat., Chapter 342.
g)A request for a Temporary Cannabis Event that meets the requirements of this Section
shall be approved.
h) A request for a Temporary Cannabis Event that does not meet the requirements of this
Section shall be denied. The City shall notify the applicant of the standards not met and
basis for denial
3-8-7: SEVERABILITY
In the event that a court of competent jurisdiction adjudges any part of this chapter to be invalid, such
judgement shall not affect any other provision of this chapter not specifically included within the
judgement.
Section 2. City Code Title 3 – ZONING is hereby amended to modify Chapter 3: ALLOWED USES ,
Table 12-3B-1.1 Table of Uses as follows:
COMMERCIAL/BUSINESS USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis Retailer CUP CUP CUP 3-8-1
Lower-potency hemp
edible retailer
P P P 3-8-1
INDUSTRIAL, TRANSPORTATION & UTILITY USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis microbusiness,
cannabis mezzobusiness,
cannabis cultivator,
cannabis manufacturer,
cannabis wholesaler,
cannabis testing facility,
lower-potency hemp
edible manufacturer
CUP 3-8-1
Attachment 4. Nov. 19 City Council Work Session Staff Report
DRAFTPage 86 of 89
Cannabis License Types
Microbusiness
Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed
cannabis business. Microbusiness may also operate a single retail location. On-site
consumption of edible cannabis products and lower-potency hemp edibles are
permitted.
Mezzobusiness
Mezzobusinesses may cultivate cannabis and manufacture cannabis products and
hemp products, and package such products for sale to customers or another licensed
cannabis business. Mezzobusiness may also operate up to three retail locations.
Cultivator
Cultivators may cultivate cannabis and package such cannabis for sale to another
licensed cannabis business.
Manufacturer
Manufacturers may manufacture cannabis products and hemp products, and package
such products for sale to a licensed cannabis retailer.
Retailer
Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis
products, hemp products, and other products authorized by law to customers and
patients.
Wholesaler
Wholesalers may purchase and/or sell immature cannabis plants and seedlings,
cannabis, cannabis products, and hemp products from another licensed cannabis
business. Wholesalers may also import hemp-derived consumer products and lower-
potency hemp edibles.
Transporter
Transporters may transport immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products to licensed cannabis businesses.
Testing Facility
Testing facilities may obtain and test immature cannabis plants and seedlings,
cannabis, cannabis products, and hemp products from licensed cannabis businesses.
Page 87 of 89
Event Organizer
Event organizers may organize a temporary cannabis event lasting no more than four
days.
Delivery Service
Delivery services may purchase cannabis, cannabis products, and hemp products from
retailers or cannabis business with retail endorsements for transport and delivery to
customers.
Medical Cannabis Combination Business
Medical cannabis combination businesses may cultivate cannabis and manufacture
cannabis and hemp products, and package such products for sale to customers,
patients, or another licensed cannabis business. Medical cannabis combination
businesses may operate up to one retail location in each congressional district.
Lower-Potency Hemp Edible Manufacturer
Lower-potency hemp edible manufacturers may manufacture and package lower-
potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency
hemp edibles to other cannabis and hemp businesses.
Lower-Potency Hemp Edible Retailer
Lower-potency hemp edible retailers may sell lower-potency hemp edibles to
customers.
Page 88 of 89
Page 89 of 89