HomeMy WebLinkAbout3 - Ordinance Amendment - Cannabis
To: Planning Commissioners
From: Kori Land, City Attorney
John Hinzman, Community Development Director
Date: October 28, 2024
Item: Public Hearing - Amend City Code Chapter – 155 – Zoning Code Cannabis Uses
Planning Commission Action Requested
Hold a public hearing and recommend action to the City Council on an amendment to City Code
Chapter 155 – Zoning Code pertaining to Cannabis uses.
Background
The City’s ordinances related to the sale and zoning of cannabis will soon be obsolete. The City’s
licensing ordinance will be unenforceable as of January 1, 2025, because the Minnesota Office of
Cannabis (“OCM”) will be taking over the licensing of all cannabis businesses.1 In addition, the only
type of cannabis the City regulates contains less than .3% THC. (now called “lower-potency hemp
edibles”) Since adult-use cannabis has been legalized in Minnesota, the City will need to enact a
registration process for cannabis businesses and incorporate all the new types of cannabis uses into
the Zoning Code. With the enactment of the State cannabis laws in 2023 and amendments in 2024,
there are 13 cannabis uses legally recognized by the state of Minnesota, all of which need to be
appropriately placed in the City’s Zoning Code.
Joint City Council and Planning Commission Workshop
The City Council and Planning Commission met in a joint workshop on October 7, 2024 to discuss
cannabis regulations. The proposed ordinance incorporates direction from the meeting.
State Cannabis Law
Pursuant to Minnesota’s new laws, a “Cannabis Business” means any of the following:
1. Cannabis microbusiness (commonly known as “seed to sale”)
This includes cultivation (if indoor in a greenhouse or hoop house, up to 5,000 sq. ft.
of floor area devoted to plant canopy or if outdoor, limited to ½ acre – 1 acre of
1 It is unclear when the State will be issuing licenses. It was originally anticipated that all licenses would be
issued beginning January 1, 2025, but recently OCM indicated it might be 2nd quarter 2025.
Planning Commission Memorandum
mature plants at one time), manufacturing, retail and on-site consumption, which
can be at one location or at multiple locations but issued to one license-holder
2. Cannabis mezzobusiness (larger scale than microbusiness)
This includes cultivation (if indoor, up to 15,000 sq. ft. or if outdoor, 1-3 acres),
manufacturing, retail at up to 3 locations and on-site consumption, issued to one
license-holder
3. Cannabis cultivator
a. Indoor, up to 30,000 sq. ft.
b. Outdoor, up to 2-4 acres
4. Cannabis manufacturer
5. Cannabis retailer
6. Cannabis wholesaler
7. Cannabis transporter
8. Cannabis testing facility
9. Cannabis event organizer
10. Cannabis delivery service
11. Lower-potency hemp edible manufacturing
12. Lower-potency hemp edible retailer
13. Medical cannabis combination business.
The anticipated license approval process from OCM is as follows:
For zoning regulations, it is important to know that the City is only allowed to regulate the Time,
Place and Manner of cannabis uses in order to protect the public health, safety and general welfare.
Cannabis Business applies to OCM
OCM vets the application and grants preliminary
approval
OCM sends zoning confirmation request to City
City responds within 30 days or it is deemed compliant
•If non-compliant, applicant must correct deficiencies
If compliant, OCM issues license and Cannabis
Business must register with the City
• Time = Hours of Operation
• Place = Zoning Districts and distances from other uses
• Manner = Performance Standards
Distance Restrictions:
State law allows cities to restrict the distance from cannabis businesses and places where minors
tend to congregate such as schools, day cares and public park attractions. In addition, the City has
added a 1,000-foot restriction between all cannabis uses so they are not clustered in the same area.
The retail cannabis business will be measured from its storefront, not the property line. Most of the
rest of the uses are measured from their respective property lines (other cannabis uses, residential,
school), with the exception of parks, which is measured from the park attraction where minors
congregate.
Buffer zones – cannabis businesses:
• 1,000’ between cannabis businesses
• 500’ from a school
• 1,000’ from a day care in a commercial zoning district
• 500’ from residential treatment facilities
• 1,000’ from an attraction within a park used by minors (500’ for testing, manufacturing,
microbusiness, mezzobusiness, transporter, wholesale, and medical cannabis)
Buffer zones – lower potency hemp edible retail businesses:
• 500’ between lower potency hemp edible retail businesses and other cannabis businesses
• No other distance requirements
Buffer zones – on and off sale liquor establishments selling lower potency hemp beverages:
• No distance requirements
Existing THC Licenses (Lower Potency Retail Sales):
Map 1 shows the C-1, C-2, C-3, C-4, DC, and I-1 Zoning Districts and the locations of existing lower
potency retailers. Lower-potency retail is proposed to be allowed anywhere in the districts upon
issuance of a Conditional Use Permit (CUP) and with a 500’ distance requirement between lower
potency and cannabis businesses.
Adult Use Retail Sales (Cannabis Retail Sales)
Map 2 shows the C-3, C-4, and DC Zoning Districts in which Cannabis, Adult Use Retail is proposed
to take place upon issuance of a CUP. The map also depicts various buffer restrictions that would
limit the operation of adult use retail facilities.
Lower-Potency Cannabis Beverages (Current On-Sale and Off-Sale Liquor) :
Map 3 shows the locations of current on-sale and off sale liquor locations along with the zoning
districts in which liquor sales are allowed. The proposed ordinance would allow the sale of lower
potency hemp beverages within on and off sale liquor locations.
Cultivator, Micro, Mezzo, Manufacturing – Industrial Zoning
Map 4 shows the I-1 and I-2 districts in which cultivator, micro, mezzo, and manufacturing of
cannabis is proposed to take place upon issuance of a CUP. Location would be subject to the
depicted buffers from schools, park attractions, and residential.
Cultivator Industrial and Agricultural Zoning
Map 5 depicts the locations of the A, I-1, and I-2 zoning districts in which cannabis cultivation is
proposed to be allowed. Outdoor cultivation would be allowed only on properties of at least 20
acres.
Zoning Districts for Cannabis Uses Recommendation:
Type of Cannabis Business C1 C2 C3 DC C4 I1 I2 Ag
Lower potency edible retail
beverages (with on-sale or off-
sale liquor)
P P P P P P
Lower potency edible retail
(that do not have on-sale or
off-sale liquor)
CUP CUP CUP
Adult Use retail (not inc.
micro, mezzo, medical combo)
CUP CUP CUP
Micro, Mezzo, Transporter,
Testing, Medical Combo,
Wholesale (with products)
CUP CUP
Manufacturer, Cannabis
(brewery, distillery)
CUP CUP CUP
Wholesale (no products)
CUP CUP
Cultivator only (not micro or
mezzo) (indoor or outdoor)
CUP CUP CUP
Conditional Use Permit (CUP)
All cannabis uses, except for sale of beverages at off-sale liquor stores, breweries and distilleries,
will be required to obtain a conditional use permit. There are many reasons for this requirement:
First, it allows the City Council to analyze each proposed cannabis use in its location on a case-by-
case basis, adding reasonable conditions if necessary. Second, it requires a public hearing, allowing
the adjacent property owners to provide input on the use from the lens of determining the
compatibility with neighboring properties. Third, from an enforcement standpoint, the City can
address violations of a conditional use permit on a local level.
Performance Standards:
Outdoor Cultivation
• Minimum of 20 contiguous acres available for crop
• Crops must be setback at least 300’ from property lines
• Fencing of 6’ (state law) + landscaped buffer on outside of fence
• Crops cannot be visible from the ROW
Indoor Cultivation (greenhouse and hoop houses only):
• Lighting shall be set forth in the CUP
Testing, Manufacturing, Micro, Mezzo, Transporter, Wholesaler (with products), Medical Cannabis
Combo:
• Buildings setback 500’ from residential district or use
• No exterior storage
• All mechanical, odor suppression, and trash enclosures shall be screened.
ACTION REQUESTED:
Discuss and provide recommendation to the Council regarding the ordinance amendments for
cannabis uses.
ATTACHMENTS:
• Ordinance Amendment
• Map 1 – Existing THC Licenses
• Map 2 – Adult Use Retail Sales
• Map 3 – Current On-Sale or Off-Sale Liquor
• Map 4 – Cultivator, Micro, Mezzo, Manufacturing – Industrial Zoning
• Map 5 – Cultivator – Industrial and Agricultural Zoning
Planning Commission Review – October 28, 2024
CITY OF HASTINGS, MINNESOTA
ORDINANCE NO. 2024-___
An Ordinance of the City of Hastings Amending City Code Chapter 155: Zoning Code Regarding
Cannabis Uses
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS:
SECTION 1. HASTINGS CITY CODE SECTION 155.07.J. IS REPEALED AND REPLACED AS FOLLOWS:
155.07 Special Provisions
J. Cannabis Businesses.
All cannabis businesses must comply with the requirements of this section.
1. Definitions. Unless otherwise noted in this section, words, terms, and phrases found in
the definitions of Minnesota Statutes Section 342.01, or as amended, apply unless
otherwise noted or except where the context clearly indicates a different meaning. In
addition, the following definitions apply:
CANNABIS BUSINESS. Means any of the following businesses:
a. Cannabis microbusiness;
b. Cannabis mezzobusiness;
c. Cannabis cultivator;
d. Cannabis manufacturer;
e. Cannabis retailer;
f. Cannabis wholesaler;
g. Cannabis transporter;
h. Cannabis testing facility;
i. Cannabis event organizer;
j. Cannabis delivery service;
k. Lower-potency hemp edible manufacturing;
l. Lower-potency hemp edible retailer; or
m. Medical cannabis combination business.
DAY CARE. Means 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.
OFFICE OF CANNABIS MANAGEMENT or OCM. Means Minnesota Office of Cannabis
Management.
RESIDENTIAL TREATMENT FACILITY. Means a 24-hour-a-day program under the
treatment supervision of a mental health professional, in a community residential
setting other than an acute care hospital or regional treatment program for adults with
mental illness under chapter 245I, Minnesota Rules, parts 9520.0500 to 9520.0670, or
other rules adopted by the commissioner.
SCHOOL. Means a public school as defined in Minnesota Statutes Section 120A.05 or
nonpublic school that meets the reporting requirements under Minnesota Statutes
Section 120A.24.
STATE LICENSE. Means an approved license issued by the Minnesota Office of Cannabis
Management to a cannabis retail business.
2. Outdoor Cultivation. Any cannabis business that includes outdoor cultivation, such as
cannabis cultivator, microbusiness, or mezzobusiness must comply with the following:
a. A minimum of twenty (20) contiguous acres is required for the portion of the
property that will be dedicated to cultivation.
b. The cannabis plants must be setback a minimum of three hundred feet (300’) from
the property lines.
c. There must be fencing of six feet (6’) around the perimeter and a landscaped or
screened buffer is required to be placed outside of the fence but within the setback
area, which may consist of a berm, trees, or combination thereof.
d. The cannabis plant cannot be visible from any public right of way.
e. No retail sales shall be allowed at the same location as any business with an outdoor
cultivation business license.
3. Indoor Cultivation (greenhouses, hoop houses). Lighting within the greenhouses or hoop
houses shall be set forth in the conditional use permit.
4. Testing, Manufacturing, Microbusiness, Mezzobusiness, Transporter, Wholesale (if
products stored on-site), Medical Cannabis Combination. Must comply with the
following performance standards:
a. All buildings must be setback a minimum of five hundred feet (500’) from a
residential zoning district or residential use as measured from the cannabis business
property line to the property line of the nearest residential zoning district or
residential use.
b. No exterior storage is allowed, including storage of products in semis or trailers that
are praked outside of an enclosed building.
c. All mechanical, odor suppression equipment and trash enclosures must be screened
and approved as part of a site plan approval.
5. Performance Standards. All cannabis businesses must comply with the following:
a. Retail hours of operation are permitted from 10:00 a.m. to 9:00 p.m., seven days a
week, unless it is lower-potency beverages associated with an on-sale or off-sale
liquor license.
b. No cannabis business shall be allowed as part of any Adult Use Establishment
business, as defined in City Code Section 114.21.
c. No retail sales are allowed in the Ag zoning district.
d. Cannabis businesses cannot violate City Code Section 95.20 regarding nuisances. The
City may require odor mitigation as a condition of the conditional use permit.
e. Distance Restrictions. Distances from a cannabis business are measured from the
storefront of a retail cannabis business and from the property line of all other
cannabis businesses and uses, except as provided below.
(1) There must be at least one thousand feet (1,000’) between each cannabis
business.
(2) The location of the cannabis business must be located:
(a) More than five hundred feet (500’) from a school as measured from
property line of the school to the cannabis business;
(b) More than one thousand feet (1,000’) from a day care in a commercial
zoning district, as measured from property line of the day care to the
cannabis business;
(c) More than five hundred feet (500’) from a residential treatment facility, as
measured from the property line of the facility to the cannabis business;
(d) More than one thousand feet (1,000’) from an attraction within a public park
that is regularly used by minors, such as, but not limited to a playground,
athletic field, athletic court, picnic area or restrooms, pavilion or park
building, disc golf features, as each is measured from the location of the
public park attraction to the cannabis business.
(3) Exceptions to distance restrictions:
(a) Lower-potency hemp edible retail businesses shall be five hundred feet
(500’) from other lower-potency businesses and five hundred feet (500’)
from all other cannabis businesses and there are no distance restrictions
from schools, day cares, residential treatment facilities, or public park
attractions.
(b) On-sale and off-sale liquor establishments selling lower-potency beverages
and that have a lower-potency hemp edible City registration and State
License have no distance restrictions from other cannabis businesses or from
schools, day cares, residential treatment facilities, or public park attractions
and they do not count against other cannabis businesses for purposes of City
Code 155.07.J.5.e.1.
(c) Testing, Manufacturing, Microbusiness, Mezzobusiness, Transporter,
Wholesale (if products stored on-site), Medical Cannabis Combination, have
a reduced distance restriction of five hundred feet (500’) from a public park
attraction.
f. Signs must comply with the standards in City Code 155.08 for the relevant zoning
district in which the business is located, except for the following:
(1) No cannabis business shall have more than two (2) signs; and
(2) Blinking, moving, and flashing signs that are visible from the exterior of the
building are prohibited.
g. Cannabis businesses must meet the minimum parking requirements for each type of
use as stated in City Code for that use, for example, retail must meet the retail
requirements, manufacturing must meet the manufacturing parking requirements. If
there is a combination of cannabis uses at the same location, the use that requires
the largest number of spaces must be met.
h. A security plan must be submitted to and approved by the Chief of Police addressing
how the business will protect the public health, safety, and welfare. The security
plan must include, but is not limited to, addressing issues surrounding parking,
traffic, securing of monetary transactions, building security and alarm systems both
internal and external, screening, lighting, window and door placement, landscaping,
and hours of operation.
SECTION 2. HASTINGS CITY CODE SECTION 155.21 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.21 A Agriculture
D. Uses By Special Permit.
5. Cannabis, medical cannabis, and hemp growing, cultivating or farming operations
pursuant to the following conditions: Cannabis cultivation businesses, indoor or
outdoor, are subject to the following conditions:
a. A minimum of twenty (20) 100 contiguous acres under single ownership is
required for the operation.
b. The operator must be licensed by the State of Minnesota.
c. The sale of cannabis products is not permitted on the same property as the
operation.
SECTION 3. HASTINGS CITY CODE IS AMENDED by adding Cannabis, Lower-potency edible
beverages sold as part of an on-sale or off-sale liquor license as Permitted Uses to Sections
155.29.B., 155.30.B., 155.31.B., and 155.34.B, subject to the provisions of Section 155.07.J.
SECTION 4. HASTINGS CITY CODE SECTION 155.30 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.30 C-3 Community Regional Commerce
C. Uses by Special Permit.
10. Cannabis retailer, edible retailer, medical retailer, and edical cannabis distribution
facility that comply with the requirements in City Code Section 155.07.J. Lower-potency
edible retail not associated with on-sale or off-sale liquor license that comply with the
requirements in City Code Section 155.07.J.
11. Cannabis, Adult use retail, not associated with microbusinesses, mezzobusinesses, or
medical cannabis combination businesses and that comply with the requirements of City
Code Section 155.07.J.;
SECTION 5. HASTINGS CITY CODE SECTION 155.31 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.31 DC Downtown Core
C. Uses by Special Permit.
9. Lower-potency edible retail not associated with on-sale or off-sale liquor license that
comply with the requirements in City Code Section 155.07.J.
10. Cannabis, Adult use retail, not associated with microbusinesses, mezzobusinesses, or
medical cannabis combination businesses and that comply with the requirements of City
Code Section 155.07.J.;
SECTION 56. HASTINGS CITY CODE SECTION 155.32 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.32 C-4 Regional Shopping Center
C. Uses By Special Permit.
6. Cannabis retailer, edible retailer, medical retailer, and medical cannabis distribution
facility that comply with the requirements of City Code Chapter 155.07.J. Lower-potency
edible retail businesses not associated with on-sale or off-sale liquor license and that
comply with the requirements of City Code Section 155.07.J.;
7. Cannabis, Adult use retail, not associated with microbusinesses, mezzobusinesses, or
medical cannabis combination businesses and that comply with the requirements of City
Code Section 155.07.J.;
SECTION 67. HASTINGS CITY CODE SECTION 155.34 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.34 I-1 Industrial Park
C. Uses By Special Permit.
4. Cannabis, medical cannabis or hemp manufacturer, testing facility, wholesaler and
processor. Cannabis microbusiness, mezzobusiness, transporter, testing and medical
combination businesses;
5. Cannabis wholesale without products;
6. Cannabis, indoor or outdoor cultivation businesses.
SECTION 8. HASTINGS CITY CODE SECTION 155.35 IS AMENDED AS FOLLOWS (new language is
underlined, strikethrough language is deleted):
155.35 I-1 Industrial Park Storage/Service
D. Uses By Special Permit.
6. Cannabis microbusiness, mezzobusiness, transporter, testing and medical combination
business;
7. Cannabis wholesale without products;
8. Cannabis, indoor or outdoor cultivation businesses.
SECTION 79. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case
of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available
without cost at the office of the City Clerk, the following summary is approved by the City Council and
shall be published in lieu of publishing the entire ordinance.
The text amendment adopted by the Hastings City Council on _______________, 2024
enacts cannabis business performance standards in the Zoning Code; and amends uses with special
permits to include cannabis businesses in accordance with Minnesota State Statutes Sections 342
and 151.72.
This Ordinance shall be effective upon seven (7) days after its passage and publication.
Adopted by the Hastings City Council on this ___ day of __________, 2024 by the following vote:
CITY OF HASTINGS
_____________________________________
Mary Fasbender, Mayor
ATTEST:
_________________________________
Kelly Murtaugh
City Clerk
I hereby certify that the above is a true and correct copy of the Ordinance presented to and
adopted by the City of Hastings, County of Dakota, Minnesota, on the ___ day of
________________, as disclosed by the records of the City of Hastings on file and of record in the
office.
_____________________________
Kelly Murtaugh
City Clerk
^_
^_
^_
^_
^_
^_
^_
HWY 55
15TH ST W
P I N E S T
316
V ER MI LL I ON S T
160TH ST E
GENERAL S I E B E N D R
VERMILLION RD
2ND ST W
18TH ST E
10TH ST E
RAVENNA TRL
LEDUC DR
PLEASANT DR
J O R G E N A V E
H W Y 6 1
NININGER RD
R
EDWING BLVD
150TH ST E
HWY 55
G E N E R A L S I E B E N D R
PLEASANT D R
RED
WING BLVD
Lake Isabel
Mississippi River
£¤55
£¤316
Existing THC Licenses
Zoning to allow lower potency retail sales
C-1 General Commerce
C-2 Highway Auto-Specialized Commerce
C-3 Community Regional Commerce
C-4 Regional Shopping Center
DC Downtown Core
I-1 Industrial Park (any retail as principal use requires SUP)
City Limits
Current License Holders
^_Ace Liquor
^_Caring Hands Massage and Spa
^_Coborn's Liquor Store
^_H Tobacco
^_Jake's Discount Liquor
^_Smokey's Tobacco - Pending
^_Westview Smokes
500ft Buffer - Lower-potency retail businesses
Proposed zoning to allow for lower potency retail sales
with 500ft Buffers
HWY 55
15TH ST W
P I N E S T
316
RAVENNA TRL
H
W
Y
6
1
NININGER RD
G L E N D A L E R D
V E R M I L L I O N S T
160TH ST E
G E N E R A L S I E B E N D R
V E R M I L L I O N R D
2ND ST W
18TH ST E
10TH ST E
P L E A S A N T D R
LEDUC DR
J O R G E N A V E
R
E
D
W
IN
G B
LV
D
HWY 55
P L E A S A N T D R
Proposed zoning to allow for lower potency retail sales
Existing THC LicensesAdult use Retail Sales Not including micro, mezzo, medical combo
£¤61
£¤55
$+47Adult use Retail Sales
500ft Buffer - Residential Treatment Facility
500ft Buffer - School
500ft & 1,000ft buffer - childcare in Commercial
500ft & 1,000ft Buffer - Park Attractions
City LimitsZoning to allow Adult use Retail SalesDCC-4 Regional Shopping CenterC-3
!!!!!!
!
!
!
!
!
!!!
!
!
!
!!
!
k kk
k
k
k
k
k
k k
k
HWY 55
15TH ST W
P I N E S T
316
V E R M I L L I O N S T
160TH ST E
V E R M I L L I O N R D
2ND ST W
RAVENNA TRL
18TH ST E
10TH ST E
P L E A S A N T D R
NININGER RD
L E D UC D R
G E N E R A L S I E B E N D R
J O R G E N A V E
R
E
D
W
IN
G B
LV
D
HWY 55
G E N E R A L S I E B E N D R
P L E A S A N T D R
Lake Isabel
Lake Rebecca
Mississippi
River
£¤61
£¤61
£¤55
$+46
£¤316Current On-Sale or Off-Sale Liquor
HastingsPublic House
Hastings HawksAmateur Baseball
Zoning Currently Allowing on/off sale liquor and brew/tapC-1 General CommerceC-2 Highway Auto-Specialized Commerce
DC Downtown CoreI-1 Industrial Park (retail as principal use requires SUP)
Retail Locations
k Taproom On-Sale and Brewer Off-Sale
!Beverage On-Sale
k Beverage Off-Sale
C-4 Regional Shopping CenterC-3 Community Regional Commerce
City Limits
P I N E S T
V E R M I L L I O N S T
RAVENNA TRL
G
L
E
N
D
A
L
E
R
D
15TH ST W
2ND ST W
18TH ST E
10TH ST E
V E R M I L L I O N R D
LEDUC DR
HWY 55
R
E
D
WIN
G B
L
V
D
V E R M I L L I O N S T
HWY 55
Cultivator, Micro, Mezzo, Manufacturing
1,000ft Buffer - School
500ft Buffer - Park Attractions
500ft Buffer - ResidentialZoning to allow the usesI-1 Industrial ParkI-2 Industrial Park Storage/ Service
City Limits
Cultivator, Micro, Mezzo,Manufacturing Industrial Zoning
HWY 55
15TH ST W
H
W
Y
6
1
NININGER RD
P I N E S T
160TH ST E
316
G L E N D A L E R D
RAVENNA TRLVERMILLION S T
V E R M I L L I O N R D
2ND ST W
18TH ST E
10TH ST E
P L E A S A N T D R
150TH ST E
REDWING BLVD
J O R G E N A V E
L E D U C D R
G E N E R A L S I E B E N D R
P L E A S A N T D R
R
E
D
WIN
G B
LV
D
£¤61$+47
Cultivator
Zoning to allow the usesA AgriculturalI-1 Industrial ParkI-2 Industrial Park Storage/ Service
City Limits
CultivatorIndustrial and Agricultural Zoning
£¤55
$+42
$+46
£¤61
$+54
$+91