HomeMy WebLinkAbout2024-11-14 Packet Enclosure oc oak Park14 end_ T
Date: November 14, 2024
Planning Commission
TO: Chair Van Denburgh and Planning Commission Members
FROM: Jacob Rife, City Administrator
AGENDA ITEM: Review and Consider Zoning Ordinance Amendments Related to Cannabis
and Hemp Businesses
BACKGROUND:
At the end of the 2023 legislative session,the State legalized adult-use cannabis. Given that this use is
new to Minnesota,the law allowed cities to adopt moratoriums on cannabis business to allow cities time
to study the issue and adopt regulations. Ultimately,the City adopted interim ordinances to temporarily
prohibit cannabis businesses as we developed regulations for these businesses.
In order to implement new cannabis regulations, an amendment to the zoning ordinance is necessary.
The proposed amendment seeks to define where and how cannabis and hemp businesses may operate
within city limits while addressing public health and safety, economic, and land-use considerations.
The proposed amendment would revise the City's Zoning Ordinance to:
1. Define Cannabis and Hemp-Related Uses: Provide clear definitions for cannabis
dispensaries, hemp uses, cultivation facilities, processing facilities, and other related uses.
2. Establish Zoning Districts:Allow cannabis and hemp businesses to operate within specified
zoning districts.
3. Buffer Zones: Implement a minimum distance requirement from sensitive uses such as
schools, parks,child-care centers, and park attractions.
4. Operating Conditions: Outline operating hours and odor control measures to minimize
potential impacts on nearby properties and public spaces.
The City Council discussed cannabis and hemp regulations at a workshop on August 27 and provided
general policy direction for the zoning ordinance amendments. The Planning Commission is being
asked to review the proposed ordinance and make a recommendation to the City Council.
City Attorney, Christina Benson,will be present at the Planning Commission meeting to review various
decision points. Upon a recommendation from the Planning Commission,this item will be considered
by the City Council at their November 26 Council meeting.
ACTION REQUESTED:
Discuss the draft ordinance and make a recommendation to the City Council.
EXHIBITS:
• City Attorney Memo to City Council
• Cannabis& Hemp Quick Reference Sheet
• Cannabis&Hemp Slides
• Draft Ordinance
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www.eckberglammers.com mers.com
pry-AF- ETJANLMERS CitI�IJ ECKBERG LAMMERS
ATTORNEYS AT LAW MEMO
To: City of Oak Park Heights City Council
From: Christina Benson, Assistant City Attorney
Date: August 21, 2024
Re: Cannabis and Hemp Business Regulation
The Minnesota Legislature added Minnesota Statute Chapter 342 Cannabis in 2023 and amended it in
2024. Of the 110 pages of new law, only about 3 pages provide options for local government regulation
and most of the 3 pages restrict the options for local government regulation(see attached). On July 31,
2024,the Office of Cannabis Management published the first draft of proposed rules for Minnesota's
cannabis industry.
The purpose of this memo is to provide the Oak Park Heights City Council additional regulatory
background related to cannabis businesses and hemp businesses in the City of Oak Park Heights.
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.
While regulations for the cannabis retailer, manufacturer, wholesaler, transporter,testing facility, and
delivery service operations are tailored to the new cannabis and hemp industries, the uses are similar to
existing retail, manufacturing, wholesale, transport, test, and delivery operations. Cannabis
microbusiness, mezzobusiness, cultivator, and event organizer uses are not. These uses and operations
are provided in Minnesota Statute Chapter 342 and will be provided in the new rules:
Business Type Activities Size/Outdoor Regulations
Microbusiness • grow cannabis plants and harvest • A cannabis microbusiness that
• make concentrate cultivates cannabis at an indoor
• manufacture artificially derived cannabinoids; facility may cultivate up to
• manufacture adult-use cannabis products, 5,000 square feet of plant
lower-potency hemp edibles, and hemp-derived canopy.
consumer products for public consumption; • A cannabis microbusiness that
• package and label adult-use cannabis flower, cultivates cannabis at an
adult-use cannabis products, lower-potency outdoor location may cultivate
up to one-half acre of mature,
I OU7 IVUr UIWCS LCI Ti KVCriue '4J1J JULUrU JLrOCL
Stillwater, MN 55082 Hudson,WI 54016
Phone:651-439-2878 Phone: 715-386-3733
Fax: 651-439-2923 Fax: 715-386-6456
hemp edibles, and hemp-derived consumer flowering plants unless the
products for sale to customers; office increases that limit.The
• sell immature cannabis plants and seedlings, office may increase the limit to
adult-use cannabis flower, adult-use cannabis no more than one acre.
products, lower-potency hemp edibles, hemp- • A cannabis microbusiness with
derived consumer products, and other products the appropriate endorsement
authorized by law to other cannabis businesses may operate one retail
and to customers; location.
• operate an establishment that permits on-site
consumption of edible cannabis products and
lower-potency hemp edibles; and
• perform other actions approved by the office.
Mezzobusiness • grow cannabis plants and harvest • A cannabis mezzobusiness that
• make concentrate cultivates cannabis at an indoor
• manufacture artificially derived cannabinoids; facility may cultivate up to
• manufacture adult-use cannabis products, 15,000 square feet of plant
lower-potency hemp edibles, and hemp-derived canopy.The office may adjust
consumer products for public consumption; plant canopy limits upward.
• process medical cannabinoid products; • A cannabis mezzobusiness that
• package and label adult-use cannabis flower, cultivates cannabis at an
adult-use cannabis products, lower-potency outdoor location may cultivate
hemp edibles, and hemp-derived consumer up to one acre of mature,
products for sale to customers; flowering plants unless the
• sell immature cannabis plants and seedlings, office increases that limit.The
adult-use cannabis flower, adult-use cannabis office may increase the limit to
products, lower-potency hemp edibles, hemp- no more than three acres.
derived consumer products, and other products • A cannabis mezzobusiness with
authorized by law to other cannabis businesses the appropriate endorsement
and to customers; and may operate up to three retail
• perform other actions approved by the office. locations.
Cultivator • grow cannabis plants and harvest cannabis • A cannabis cultivator that
flower from a mature plant, cultivates cannabis at an indoor
• package and label immature cannabis plants facility may cultivate up to
and seedlings and cannabis flower for sale 30,000 square feet of plant
• transport cannabis flower to a cannabis canopy. The office may adjust
manufacturer located on the same premises; plant canopy limits upward.
and • A cannabis cultivator that
• perform other actions approved by the office. cultivates cannabis at an
outdoor location may cultivate
up to two acres of mature,
flowering plants unless the
office increases that limit.The
office may increase the limit to
no more than four acres.
Event • organize a temporary cannabis event lasting no • Items sold in a secured area
Organizer more than four days; and • Limited access consumption
• perform other actions approved by the office. area with commercial grade
fencing
2
A microbusiness appears alike to a microbrewery; a mezzobusiness alike to a microbrewery with a
commercial nursery and no on-sale permitted.
The proposed rules provide regulations on various internal controls and security requirements for all
cannabis businesses, including cannabis retailers. Among the various security protocols, two have
exterior implications. A cannabis business must provide a security alarm system with an audible alarm
capable of being heard within a 100-foot radius from entrances and exists of the premises and lighting
allowing observers to see activity within a radius of at least 20 feet around all entrances and exits. These
are not security requirements for hemp businesses.
Cities are limited in their ability to regulate cannabis businesses and hemp businesses.
•
Registration Waste Disposal
Zoning Record Keeping
Distance from: Licensing
- Schools - Eligibility
- Day cares - Renewal
- Residential treatment facilities - Revocation/Suspension
- Playgrounds/baseball fields in Operations
parks Testing
Hours of Operation Security
Permitted/Conditional Uses in Districts
Performance Standards
Cities 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 342.11
up to $500 initially and $1000 annually), compliance with the requirements of Minn. Stat. Ch. 342, and
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.
Oak Park Heights may limit the number of licensed cannabis retailers, cannabis mezzobusinesses and
cannabis microbusinesses to 1 or more licenses.
Oak Park Heights also may make decisions on which zoning districts to permit cannabis and hemp
businesses, how they may post signs for the business, hours of operations, whether to permit the uses
through a conditional use permit, and other performance standards, so long as the effect of those
regulations do not prohibit cannabis and hemp businesses.
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11/7/2024
ECKBERG
LAMMERS
ATTORNEYS AT LAW
Cannabis and Hemp Overview
Attorney Christina Benson
1
Questions to Resolve
Adopt Registration ordinance for Cannabis and Hemp businesses
Limiting the number of cannabis retailers, cannabis
mezzobusinesses and cannabis microbusinesses.
Distance requirements from youth oriented facilities and
residential treatment facilities for cannabis businesses.
Establish performance standards for cannabis business.
Distance requirements for hemp businesses
ECKBERG LAMMERS
2
1
11/7/2024
Cannabis
All parts of the plant of the genus Cannabis that is growing or
has not been harvested including but not limited to a mother
plant; a mature, flowering plant; an immature plant; or a
seedling. Cannabis plant does not include a hemp plant.
cannabis Product
Cannabis concentrate; a product infused with cannabinoids,
whether artificially derived, or extracted or derived from
cannabis plants or cannabis flower, including but not limited
to tetrahydrocannabinol; or any other product that contains
cannabis concentrate.
Cannabis Business
Retail, cultivation, manufacture, transport, testing facility,
event, and delivery service.
tie E oKBERG LAMMERS
3
Edible Cannabinoid Products
Any product that is intended to be eaten or consumed as a beverage by
humans, contains a cannabinoid in combination with food ingredients,
and is not a drug. Must not contain more than 0.3 percent of any
tetrahydrocannabinol and an edible cannabinoid product must not
contain an amount of any tetrahydrocannabinol that exceeds 50 mg or
any artificially derived cannabinoid.
Hemp Business
Lower-potency hemp edible manufacturer or lower-potency
hemp edible retailer. Does not include a person or entity
license by MN Dept. of Agriculture to grow or process
industrial hemp.
Hemp
Plant with less than 0.3 percent delta
9 tetrahydrocannabinol (THC) concentration.
EGKBERG LAMMERS
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11/7/2024
Lower Potency Hemp Edible
any product that:(1)is intended to be eaten or consumed as a beverage by humans;(2)contains hemp
concentrate or an artificially derived cannabinoid,in combination with food ingredients;(3)is not a drug;
(4)does not contain a cannabinoid derived from cannabis plants or cannabis flower;(5)is a type of
product approved for sale by the office or is substantially similar to a product approved by the office,
including but not limited to products that resemble nonalcoholic beverages,candy,and baked goods;
and meets the following requirements:
consists of servings that contain no more than five milligrams of delta-9 THC;no more than 25
milligrams of cannabidiol, cannabigerol, cannabinol, or
cannabichromene; any other cannabinoid authorized by the office;
or any combination of those cannabinoids that does not exceed the
identified amounts;(ii)does not contain more than a combined total of 0.5 milligrams of all
other cannabinoids per serving;and does not contain an artificially derived cannabinoid other than
delta-9 THC,except that a product may include artificially derived cannabinoids created during the
process of creating the delta-9 THC that is added to the product,if no artificially derived cannabinoid is
added to the ingredient containing delta-9 THC and the ratio of delta-9 THC to all other artificially
derived cannabinoids is no less than 20 to one;OR
is a product that:contains hemp concentrate processed or refined without increasing the percentage of
targeted cannabinoids or altering the ratio of cannabinoids in the extracts or resins of a hemp plant or
hemp plant parts beyond the variability:generally recognized for the method used for processing or
refining or by an amount needed to reduce the total THC in the hemp concentrate;and consists of
servings that contain no more than five milligrams of total THC.
ECKBERG LANLMERS
5
2024
Number of Licenses Statewide
Social Equity All Other
(1)cannabis cultivator licenses,25: (1)cannabis cultivator licenses.25:
t 2)cannabis manufacturer licenses.12: (2)cannabis manufacturer licenses.12:
)3)cannabis retailer licenses.75:and (3)cannabis retailer licenses.75:and
4)cannabis mezzobusiness licenses.50. (4)cannabis rnezzobusiness licenses.50.
(el The office may issue as many licenses as the office deems necessary of a license type that is not listed in this
subdivision.If the office limits the number of license types not listed in this subdivision available in any licensing.period.
the office must identify the number of licenses available to social equity applicants and the number of licenses available to
all applicants.The number of licenses available to social equity applicants must be equal to or greater than the number of
licenses available to all applicants.The office is not required to issue a license for a license type that is not listed in this
subdivision.
-� E ATTORNEYS LAMMERS
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11/7/2024
Cannabis Retailer
• sell to consumers:
• cannabis plants. flower, and products.
• lower-potency hemp edibles. and other products authorized
by law
• proper ventilation and filtration for odor
control pursuant to state and local
requirements
• may not sell 2:00 a.m. and 8:00 a.m./10:00
a.m.
�� ECKP>ERG LAMMERS
.� ATTORNEYS AT LAW
7
Cannabis Microbusiness
• grow cannabis plants and harvest:
• up to 3.000 pounds
• 5.000 square feet plant canopy indoors
• Half acre plant canopy outdoor
• make concentrate
• manufacture
• package and label
• sell to consumers and other cannabis businesses.
• cannabis plants,flower, and products,
• lower-potency hemp edibles, and other products authorized by law
• permit on-site consumption of edibles
• (cannot permit smoking or a vaporized delivery method)
7 i1 ECKBERG LAMMERS
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4
11/7/2024
Cannabis Mezzobusiness
• grow cannabis plants and harvest:
• up to 10,000 pounds
• 15.000 square feet plant canopy indoor
• One acre plant canopy outdoor
• make concentrate
• manufacture
• package and label
• sell to consumers and other cannabis businesses
• cannabis plants,flower, and products
• lower-potency hemp edibles, and other products authorized by law
ECKERG LAMMERS
9
Cannabis Event Organizer Operations
• Local approval
• Event access is at least 21 years of age
• Designated retail area
• On-site Consumption - If approved by the local unit of
government
or i ECKBERG LAMMERS
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11/7/2024
Cannabis Business Requirements — Security
(proposed rules from OCM)
• Alarm System audible within 100 foot radius from
entrances and exits
• Video Surveilance 24 hours a day
• Lighting within a 20 foot radius of all entrances and
exits
• Motion Sensors
• Locks
• Fencing only required for outdoor cultivation (6 ft
commercial grade)
Note: Cannabis and hemp businesses cannot occur in dwelling.
ECKBERG LAMMERS
11
Cannabis Business Requirements —
Environmental
(proposed rules from OCM)
• Water standard requirements as administered by the Pollution Control
Agency:
• Solid waste requirements as administered by the Pollution Control
Agency:
• Hazardous waste requirements as administered by the Pollution Control
Agency:
• Energy standard requirements established in statute under the authority
of the Department of Commerce:and
• Odor standard requirements as established in ordinance by a local unit
of government or by Minnesota Statutes
• Pesticide controls and requirements under Minnesota Statutes
Note: These are enforced b OCM
�E ECKBERG LAMMERS
�l ATTORNEYS AT 4iW
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11/7/2024
Lower Potency Hemp Retailer
• Sell lower-potency hemp edibles
• On-site consumption of lower-potency
hemp edibles on a portion of its premises if it has
an on-site consumption endorsement.
• The office shall issue an on-site consumption
endorsement to any lower-potency hemp edible retailer
that also holds an on-sale liquor license
*1 ECKRERG LAMMERS
13
Local Control cont'd
CITIES STATE
Registration Waste Disposal
Zoning Record Keeping
Distance from: Licensing
- Schools - Eligibility
- Day cares - Renewal
- Residential treatment facilities - Revocation/Suspension
- Playgrounds/baseball fields in parks Operations
Hours of Operation Testing
Permitted/Conditional Uses in Districts Security
Performance Standards
L
14
7
11/7/2024
Questions to Resolve
Adopt Registration ordinance for Cannabis and Hemp businesses
Limiting the number of cannabis retailers, cannabis
mezzobusinesses and cannabis microbusinesses.
Distance requirements from youth oriented facilities and
residential treatment facilities for cannabis businesses.
Establish performance standards for cannabis business.
Distance requirements for hemp businesses
y� ECKBERG LAMMERS
..� ATTORNEYS AT LAW
15
Questions to Resolve
Adopt Registration ordinance for Cannabis and Hemp
businesses
A local unit of government may impose an initial retail registration fee of$500 or up to
half the amount of the applicable initial license fee under section 342._'_,whichever is
less and a renewal fee of$1,000 or up to half the amount of the applicable renewal
license fee under section whichever is less.
(b)The.A local unit of government must conduct unannounced age verification compliance checks QL1ery cannabis
business and hemp business at least once each calendar year.Age verification compliance checks must 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.
�tiB ECKBERG LAMMERS
ATTORNEYS
16
8
11/7/2024
Questions to Resolve
Limiting the number of cannabis retailers, cannabis
mezzobusinesses and cannabis microbusinesses.
(h).A local government unit that issues a cannabis retailer registration under section
342.2 may,by ordinance, limit the number of licensed cannabis retailers,cannabis
mezzo businesses with a retail operations endorsement,and cannabis
microbusinesses with a retail operations endorsement to no fewer than one
registration for every 12,500 residents.
Oak Park Heights-1
ECKBERG LAMMERS
ATTORNEYS AT LAW
17
Questions to Resolve
Distance requirements from youth oriented facilities and
residential treatment facilities for cannabis businesses.
Maximum Statutory Options Oak Park Heights
1000 ft from schools Stillwater High School
500 ft from day cares 1. 5595 Memorial Ave N
2. 13575 58ths St N
3. 5643 Obrien Ave N
4. 5574 Obrien Ave N
500 ft from residential treatment facilities No known
500 ft from attractions in parks 1. Autumn Hills Park-Playground
2. Valley View Park-Playground
3. Brekke Park Playground and Fields
4. Oak Park Crossing-Playground
5. Swager Park—Playground and Courts
6. Cover Park—Playground and Courts
ECKBERG LAMMERS
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9
11/7/2024
Questions to Resolve
Establish performance standards for cannabis business.
1.Signs
2.Hours of Operations
3.Odor
4.Noise
5.Fencing
ECKBERG LAMMERS
19
Questions to Resolve
Distance requirements from youth oriented facilities and
residential treatment facilities for hemp businesses.
No Maximum Statutory Options Oak Park Heights
Stillwater High School
1. 5595 Memorial Ave N
2. 13575 58ths St N
3. 5643 Obrien Ave N
4. 5574 Obrien Ave N
No known
1. Autumn Hills Park-Playground
2. Valley View Park-Playground
3. Brekke Park Playground and Fields
4. Oak Park Crossing-Playground
5. Swager Park—Playground and Courts
6. Cover Park—Playground and Courts
ETT�PNEYS AT UWCKBERG LAMMERS
20
10
11/7/2024
Questions to Resolve
Adopt Registration ordinance for Cannabis and Hemp businesses
Limiting the number of cannabis retailers, cannabis
mezzobusinesses and cannabis microbusinesses.
Distance requirements from youth oriented facilities and
residential treatment facilities for cannabis businesses.
Establish performance standards for cannabis business.
Distance requirements for hemp businesses
ECKBS AETRGLA LAMMERS
ATTORNEYW
21
11
ORDINANCE NO. ####
AN ORDINANCE OF THE CITY OF OAK PARK HEIGHTS,WASHINGTON COUNTY,
MINNESOTA AMENDING CHAPTER 400 ZONING AND LAND SUBDIVISION FOR CANNABIS
AND HEMP BUSINESSES AND AMENDING CHAPTER 1400 PROVIDING FOR THE
REGISTRATION OF CANNABIS AND HEMP BUSINESSES IN THE CITY
THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS DOES HEREBY ORDAIN:
Section 1. Chapter 400 Zoning and Land Subdivision, Section 401.01.B is hereby amended to add the
following:
Cannabis Business: A business licensed by the Office of Cannabis Management(OCM)as Minnesota
Statute 342.01 Subd. 14.
Cannabis Cultivator: A cannabis business that grows cannabis plants from seed or immature plant to
mature plant,harvests the cannabis flower from a mature plant,and packages and labels immature cannabis
plants and seedlings and cannabis flower for sale pursuant to Minnesota Statute Section 342.30.
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 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 Retailer: A cannabis business that 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 customers pursuant to Minnesota Statute Chapter 342 and
Minnesota Rule 9810.0200.
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.
Hemp Business: A business licensed by the Office of Cannabis Management(OCM)as defined by
Minnesota Statute 342.01 Subd. 34.
Lower-Potency Hemp Edible Manufacturer: A hemp business that makes hemp concentrate,
manufactures artificially derived cannabinoids lower-potency hemp edibles, and/or hemp-derived consumer
products,and sells hemp concentrate,artificially derived cannabinoids, lower-potency hemp edibles, hemp-
derived consumer products to other cannabis businesses and hemp businesses pursuant to Minnesota Statute
Section 342.45.
Lower-Potency Hemp Edible Retailer: A hemp business that sells lower-potency hemp edibles to
customers, including on-site consumption, pursuant to Minnesota Statute Section 342.46
Office of Cannabis Management(OCM): The state agency with the powers and duties of making rules,
establishing policy, and exercising its regulatory authority over the cannabis industry and hemp consumer
industry.
Section 2. Chapter 400 Section 401.21 0,Open Space Conservation, Section E. Conditional Uses is
hereby amended to add the following:
3.Cannabis Cultivator
Section 3. Chapter 400 Section 401.29. B-1,Neighborhood Business District, Section D.Accessory
Uses is hereby amended to add the following:
6. Lower-Potency Hemp Edible Retailer for a business with a valid liquor license issued under City Code
Chapter 1200.
Section 4. Chapter 400 Section 401.30. B-2, General Business District, Section B.Permitted Uses is
hereby amended to add the following:
17. Cannabis Event
Section 5. Chapter 400 Section 401.30. B-2, General Business District, Section D. Accessory Uses is
hereby amended to add the following:
5. Lower-Potency Hemp Edible Retailer for a business with a valid liquor license issued under City Code
Chapter 1200.
Section 6. Chapter 400 Section 401.30. B-2, General Business District, Section E. Conditional Uses is
hereby amended to add the following:
12. Cannabis Retailer
13. Lower-Potency Hemp Edible Retailer
Section 7. Chapter 400 Section 401.300. B-3, Highway Business and Warehousing District, Section B
Permitted Uses is hereby amended to add the following:
17. Cannabis Event
Section 8. Chapter 400 Section 401.300. B-3, Highway Business and Warehousing District, Section D
Accessory Uses is hereby amended to add the following:
8. Lower-Potency Hemp Edible Retailer for a business with a valid liquor license issued under City Code
Chapter 1200.
Section 9. Chapter 400 Section 401.300. B-3, Highway Business and Warehousing District, Section E
Conditional Uses is hereby amended to add the following:
19. Cannabis Microbusiness
20. Cannabis Retailer
21. Cannabis Testing Facility
22. Cannabis Wholesaler
23. Lower-Potency Hemp Edible Retailer
Section 10. Chapter 400 Section 401.301 B-4,Limited Business District, Section B Permitted Uses is
hereby amended to add the following:
22. Cannabis Event
Section 11. Chapter 400 Section 401.301 B-4, Limited Business District, Section D Accessory Uses is
hereby amended to add the following:
5. Lower-Potency Hemp Edible Retailer for a business with a valid liquor license issued under City Code
Chapter 1200.
Section 12. Chapter 400 Section 401.301 B-4, Limited Business District, Section E Conditional Uses is
hereby amended to add the following:
11. Cannabis Microbusiness
12. Cannabis Retailer
13. Lower-Potency Hemp Edible Retailer
Section 13. Chapter 400 Section 401.31 B-W, Business/Warehousing District, Section B Permitted Uses is
hereby amended to add the following:
10. Cannabis Event
Section 14. Chapter 400 Section 401.31 B-W, Business/Warehousing District, Section E Conditional Uses
is hereby amended to add the following:
4. Cannabis Cultivator
5. Cannabis Manufacturing
6. Cannabis Mezzobusiness
7.Cannabis Microbusiness
8. Cannabis Testing Facility
9. Cannabis Wholesaler
10. Lower-Potency Hemp Edible Manufacturer
Section 15. Chapter 400 Section 401.32 I, Industrial District, Section E. Conditional Uses
4. Cannabis Cultivator
5. Cannabis Manufacturer
6. Cannabis Mezzobusiness
7.Cannabis Microbusiness
8. Cannabis Testing Facility
9. Cannabis Wholesaler
10. Lower-Potency Hemp Edible Manufacturer
Section 16. Chapter 400 Section 401.18 is hereby amended to add the following:
401.18 Cannabis Business and Hemp Business Operations
401.18.A. Minimum Buffer Requirements
1. The operation of a cannabis business is prohibited within:
a. 1,000 feet of a school property line;
b. 500 feet of a day care principal building;
c. 500 feet of a residential treatment facility; and
d. 500 feet of an attraction within a public park that is regularly used by minors. including a
playground or athletic field.
As measured in a straight line from the closest part of the building or actual leased space of the
Cannabis Business use-principal to the property line of the school,the closet part of the principal
day care building, residential treatment facility and/or attraction within a public park.
2. The operation of a cannabis retail business is prohibited within 1,000 feet of another cannabis retail
business.
3. A Cannabis Event is exempt from 401.18.A restrictions.
401.18.B. Noise
There shall be no noise carrying beyond a lot upon which a business is located,except for normal car and
pedestrian activity.
401.18.C. Odor
Cannabis Businesses and Hemp Businesses shall be ventilated so that all odors cannot be detected by a
person with a normal sense of smell at the exterior of the facility or at any adjoining use or property;they
shall not produce noxious or dangerous gases or odors or otherwise create a danger to any person or entity in
or near the facilities.
401.18.D. Hours of Operation
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 10 a.m. and 9 p.m., seven days a
week.
Lower-Potency Hemp Edible Retailers are prohibited from conducting the retail sale of lower-potency hemp
edibles,or hemp-derived consumer products for off-site consumption between the hours of:
a. On Sundays; except between the hours of 11:00 a.m. and 6:00 p.m.
b. before 8:00 a.m. on Monday through Saturday;
c. after 10:00 p.m.on Monday through Saturday at an establishment located in the City;
d. on Thanksgiving Day;
e. on Christmas Day, December 25;
f. or after 8:00 p.m. on Christmas Eve, December 24.
Lower-Potency Hemp Edible Retailers are prohibited from conducting the retail sale of lower-potency hemp
edibles, or hemp-derived consumer products for on-site consumption between the hours of:
a. between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday;
b. after 1:00 a.m. on Sundays except a restaurant, club,bowling center or hotel with a seating capacity
for at least thirty(30)persons and which holds an on-sale intoxicating liquor license
c. between 8:00 p.m. on December 24 and 8:00 a.m. on December 25,
401.18.E. Signs
Cannabis Business and Hemp Businesses are subject to Section 410.15.G.8.d.1 regulation of Freestanding
Signs and are permitted one wall sign subject to the maximum size and heights of Section 410.15.G.8.d.2.d
and all other signs are prohibited. Signs shall only contain words and shall not contain depict a cannabis
flower, cannabis product,hemp edibles,hemp derived edible consumer product or any other logo, picture,
image,or symbol intended to denote or suggest cannabis,hemp, or related paraphernalia. Additionally,a
business logo containing the above depictions shall not be displayed as part of any exterior signage. No
products, interior signage, advertisements, or like attention getting items shall be placed or displayed that
may be visible from the exterior of the Cannabis Business or Hemp Business.
401.18.F. Lighting
All lighting shall be shielded and angled in such a way as to prevent light from spilling outside of the
boundaries of the parcel(s)or premises or directly focusing on any surrounding uses.
Section 17. Chapter 1400 Section 1413 is hereby amended to add the following as follows:
1413.04. Registration of Cannabis Businesses and Hemp Businesses
No individual or entity may operate a cannabis retailer business or lower-potency hemp edible
retailer business without first registering with the City.
Any cannabis retailer business or lower-potency hemp edible retailer 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.
1413.05. Compliance Checks Prior to Retail Registration
Prior to issuance of a registration,the City shall conduct a preliminary compliance check to ensure
compliance with local ordinances.
1413.06. Registration&Application Procedure
A. Fees.
a. A registration fee, as established in the city's fee schedule shall be charged to
applicants depending on the type of business license applied for.
b. The renewal registration fee shall be charged at the time of the second renewal and
each subsequent renewal thereafter.
B. Application Submittal.
a. A registration shall be issued to a cannabis retailer business or lower-potency hemp
edible retailer business that adheres to the requirements of Minn. Stat. 342.22.
b. An applicant for a registration shall fill out an application form. The application for a
license under this subsection shall be made on a form supplied by the city clerk, 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. Such other information as the city shall require.
c. The applicant shall include with the form:
i. the application fee as required in Section 1413.06.A;
ii. a copy of a valid state license or written notice of OCM license
preapproval;
iii. Such other information as the city shall require.
d. Once an application is considered complete, the City Clerk shall inform the
applicant as such, process the application fees, and forward the application to the
City Council for approval or denial.
e. The registration fee shall be non-refundable once processed.
C. Application Approval
a. An application shall not be approved or renewed if the applicant is unable to meet
the requirements of this ordinance.
b. An application that meets the requirements of this ordinance shall be approved.
D. Annual Compliance Checks.
a. The police department shall complete compliance checks pursuant to Minn. Stat.
342.22 Subd. 4(b) and Minn. Stat. 342.24.
E. Location Change. A cannabis retailer business or lower-potency hemp edible retailer
business shall be required to submit a new application for registration under Section
1413.06.B if it seeks to move to a new location still within the legal boundaries of the city.
F. Renewal of Registration
a. An annual registration of a cannabis retailer business or lower-potency hemp edible
retailer business shall be renewed at the same time OCM renews the cannabis
retailer business or lower-potency hemp edible retailer business' license.
b. A cannabis retailer business or lower-potency hemp edible retailer business shall
apply to renew registration on a form supplied by the city clerk.
c. A registration issued under this ordinance shall not be transferred.
G. Renewal Fees.
a. A renewal fee, as established in the city's fee schedule shall be charged to applicants
depending on the type of business license applied for starting at the second at the
second renewal.
H. Renewal Application.
a. The application for renewal of a registration shall include,but is not limited to:
i. Items required under 1413.06.B of this Ordinance.
ii. Such other information the city requires.
I. Suspension of Registration
a. When Suspension is Warranted. A registration may be suspended if it violates the
City Code or poses an immediate threat to the health or safety of the public. The city
will notify the cannabis retailer business or lower-potency hemp edible retailer
business in writing the grounds for the suspension.
J. Length of Suspension. The suspension of a 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. A registration may be reinstated if it determines
that the violations have been resolved.
1413.06 Civil Penalties.
A civil penalty, as established in the city's fee schedule shall be charged for registration violations,
up to $2,000 for each violation.
1413.07 Limiting of Registrations
A. The city shall limit the number of cannabis retailer businesses to no fewer than one
registration for every 12,500 residents within the city.
1413.08 Temporary Cannabis Event Permit.
A. A permit is required to be issued and approved by the city prior to holding a Temporary
Cannabis Event.
B. Registration&Application Procedure
a. A registration fee, as established in the city's fee schedule shall be charged to applicants
for Temporary Cannabis Events.
b. Application Submittal&Review.
(a) An applicant for a License or Permit shall fill out an application form. The
application for a License or Permit under this subsection shall be made on a form
supplied by the city clerk, 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. Such other information the city shall require.
(b) The applicant shall include with the form:
i. the application fee as required in 1413.08.B.a;
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 Clerk, 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.
(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
City Council for approval or denial.
(e) The application fee shall be non-refundable once processed.
c. A request for a Temporary Cannabis Event that meets the requirements of this Section
shall be approved. A request for a Temporary Cannabis Event that does not meet the
requirements of this Section shall be denied. The City Clerk shall notify the applicant of
the standards not met and basis for denial.
C. On-site consumption. On-site consumption of adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, hemp-derived consumer products, or any combination
of those items is prohibited/permitted.
D. Hours of operation. Temporary cannabis events shall only be held between the hours of 10
a.m. and 9 p.m.
E. Location. Temporary cannabis events shall only be held indoors.
Section 18. This ordinance shall be in full force and effect from and after its passage and publication
according to law. Passed by the Oak Park Heights City Council this day of ,2024.
ATTEST:
, City Administrator ++++, Mayor
t