HomeMy WebLinkAboutX-C-02 Special Use Permit - Cannabis - Steve Benowitz (2103 Vermillion St)City Council Memorandum
To:Mayor Fasbender and City Council
From:John Hinzman, Community Development Director
Date:May 5, 2025
Item:Resolution: Special Use Permit –Cannabis Retail Sales –Steve Benowitz –2103
Vermillion Street
Council Action Requested:
Consider adoption of the attached resolution granting a Special Use Permit (SUP) for cannabis
retail sales to Steve Benowitz on property located at 2103 Vermillion Street. Approval of an
SUP requires six of seven council members.
Advisory Commission Review:
The Planning Commission voted 5-0 to recommend approval of the request as presented at the
April 28, 2025 meeting.During the public hearing, Steve Benowitz, applicant, spoke about his
years of operation in Hastings and his commitment to carefully managing the operation. Joshua
Bruns had questions about the setback distance for the operation. Commissioners discussed the
setback of park activities.
Special Use Permit (SUP) Determination
Certain activities within zoning districts are identified as “Special Uses” requiring issuance of a
Special Use Permit (SUP) prior to operation. The Planning Commission must hold a public
hearing and provide a recommendation to the City Council on the issuance of a SUP. SUP’s
may be approved subject to the establishment of conditions and safeguards as appropriate under
the zoning code. SUP’s may be denied when the use is determined not be in harmony with the
purpose and intent of the Zoning Code. Specific written reasons for the denial must be adopted
to support the denial. Written reasons for denial must relate to the inability to establish
conditions to ensure protection of public health, safety or general welfare.
Issuance of SUP Does Not Guarantee Right to Operate
The following actions are necessary prior to operating a retail cannabis business:
•Special Use Permit from the City –Necessary to demonstrate compatibility with the
City’s Zoning Code on the general licensing application through the Minnesota Office of
Cannabis Management (OCM).
•License from OCM –Includes submittal of application and completion of background
check.
•Registration with the City –Chapter 117 of the City Code regulates registration through
the City Clerk’s office. The Ordinance only allows one retail cannabis business within
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the City. Determination of registration in cases of multiple licenses from OCM will be
determined by the City Council at a later date.
Attachments:
•Resolution –SUP
•Planning Commission Staff Report –April 28, 2025
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HASTINGS CITY COUNCIL
RESOLUTION NO._________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS GRANTING
A SPECIAL USE PERMIT FOR THE RETAIL SALE OF CANNABIS AT 2103
VERMILLION STREET FOR STEVE BENOWITZ
WHEREAS, Steve Benowitz has applied for a Special Use Permit for the retail sales of
cannabis at 2103 Vermillion Street, PID 19-81700-01-010. The property is legally described on
Attachment A; and
WHEREAS, on April 28, 2025 the Hastings Planning Commission held a public hearing
and recommended approval of the action as presented; and
WHEREAS, the City Council reviewed the request and concurs with the recommendation
of the Planning Commission.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF HASTINGS AS FOLLOWS:
The City Council hereby approves the action as presented subject to the following conditions:
1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis
Management (OCM).
2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office.
3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter
155.07, Subd. J –Cannabis Businesses.
4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only.
5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances.
6)The cannabis use shall have no more than two signs
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7)Blinking, moving, and flashing signs that are visible from the exterior of the building are
prohibited.
8)No interior sign shall be visible from the exterior of the building.
9)Approval shall not be implied as preference of or granting permission to operate a retail
cannabis facility in conjunction with OCM licensing and City registration.
10)Approval of the Security Plan by the Hastings Chief of Police.
11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards
implementation of the proposed use within one year of City Council approval, the approval
is null and void.
12)Approval shall exclude that portion of the building currently addressed as 2101 Vermillion
Street and operated as The Bar Drafthouse.
Adopted by the Hastings City Council on May 5, 2025.
ATTEST:__________________________
Mary Fasbender, Mayor
________________________________
Kelly Murtaugh,
City Clerk
(City Seal)
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I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and
adopted by the City of Hastings, County of Dakota, Minnesota, on the 5th day of May, 2025, as
disclosed by the records of the City of Hastings on file and of record in the office.
________________________________
Kelly Murtaugh, City Clerk
This instrument drafted by:
City of Hastings (JH)
101 4th St. E.
Hastings, MN 55033
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ATTACHMENT A
LEGAL DESCRIPTION –2103 VERMILLION STREET
PID 19-81700-01-010
That part of Lot 1, Block 1, TOWN OF VERMILLION, Dakota County, Minnesota beginning
at the southwest corner of said lot thence northwesterly on the west line of said lot a distance of
90 feet; thence northeasterly and parallel to the south line of said lot a distance of 193 feet;
thence northwesterly and parallel to the west line of said lot to the north line of said lot; thence
easterly on the north line of said lot to the point of intersection with the line drawn parallel with
and 205 feet east of the west line; thence southeasterly on said line to the south line of said lot;
thence southwesterly on the south line of said lot to the point of beginning.
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Planning Commission Memorandum
To:Planning Commission
From:John Hinzman, Community Development Director
Date:April 28, 2025
Item:Public Hearing –Special Use Permit (SUP) –Cannabis Retail Sales –Steve Benowitz -
2103 Vermillion Street
REQUEST
The Planning Commission is asked to take the following actions related to the Special Use
Permit (SUP) application of Steve Benowitz to conduct cannabis retail sales at 2103 Vermillion
Street:
1)Hold a public hearing.
2)Review the SUP application and provide a recommendation to the City Council.
BACKGROUND INFORMATION
Cannabis Retail vs. Lower Potency Hemp Edible
On December 2, 2024 the City Council adopted an ordinance amendment for cannabis and
lower-potency hemp edible uses. The ordinance established parameters for retail sales,
manufacturing, and wholesaling of cannabis products. Regulations for lower-potency hemp
edible uses (which were established by the Council in November 2023) were further clarified.
“Cannabis Businesses” in the 2023 code are now classified as lower-potency hemp edible
uses and subject to potency limits. Special Use Permits issued for cannabis retail
businesses in 2024 are now classified as “lower-potency hemp edible” businesses.
Issuance of SUP Does Not Guarantee Right to Operate
The following actions are necessary prior to operating a retail cannabis business:
•Special Use Permit from the City –Necessary to demonstrate compatibility with the
City’s Zoning Code on the general licensing application through the Minnesota Office of
Cannabis Management (OCM).
•License from OCM –Includes submittal of application and completion of background
check.
•Registration with the City –Chapter 117 of the City Code regulates registration through
the City Clerk’s office. The Ordinance only allows one retail cannabis business within
the City. The City Council will need to determine the method for registration in cases of
multiple licenses from OCM.
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Notification and Public Hearing
Notification of the request was mailed to all property owners within 350 feet. The notice included
an invitation to the Planning Commission public hearing. Staff have not received any comments
at this time.
Comprehensive Plan Classification
The 2040 Comprehensive Plan designates the property as Commercial. The proposed use is
consistent with the plan.
Zoning Classification
The property is C-3 –Community Regional Commerce. The C-3 District allows for cannabis
retailers as a special use.
Adjacent Zoning and Land Use
Direction Property Use Zoning Comp Plan
North O’Reilly Auto Parts C-3 Commercial
East Century Link C-3 Commercial
South Rivertown Event Center C-3 Commercial
West Vermillion Street
Las Margaritas Restaurant C-3 Commercial
Existing Condition
Cannabis sales would occur within an existing vacant building attached to The Bar (with both
spaces being owned by the same entity). The Bar has been in business for many years and the
proposed space for cannabis sales was last used as a liquor store.
SPECIAL USE PERMIT REVIEW
Background
Hastings City Code Chapter 155.30, Subd. C.10 –allows cannabis retailers as a “special use”
within the C-3 Zoning District, subject to the requirements of 155.07, Subd. J.5 as follows:
5.Performance Standards. All cannabis businesses must comply with the following:
a.Retail sales of cannabis and lower-potency hemp edible products are permitted from 10:00
a.m. to 9:00 p.m., seven days a week. Retail sales of lower-potency beverages associated
with an on-sale or off-sale liquor license are permitted during the hours of operation of the
associated liquor license.
b.No cannabis use shall be allowed as part of any Adult Use Establishment business, as
defined in City Code Section 114.21.
c.Cannabis uses cannot violate City Code Chapter 95 regarding public nuisances.
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d.Distance Restrictions. Distances from a cannabis use or lower-potency hemp edible use are
measured from the storefront of a retail use and from the property line of all other cannabis
uses and shall comply as provided below.
(1) There must be at least one thousand feet (1,000’) between each cannabis use.
(2)The location of the use must be located:
(a)More than five hundred feet (500’) from a school as measured from property line
of the school to the use;
(b)More than five hundred feet (500’) from a residential treatment facility, as
measured from the property line of the facility to the use;
(c)More than five hundred feet (500’) 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
use. However, such distance restrictions shall not extend across Highway 61 or
Highway 55 but shall terminate if it intersects with such highways.
(d)All buildings used for manufacturing, production, testing, processing, or
warehousing of cannabis must be setback a minimum of five hundred feet (500’)
from a residential zoning district or residential use as measured from the property
line of the cannabis use to the property line of the nearest residential zoning district
or residential use.
(3)Exceptions to distance restrictions:
(a)Lower-potency hemp edible retail uses shall be five hundred feet (500’) from other
lower-potency hemp edible retail uses and five hundred feet (500’) from all other
cannabis uses but otherwise shall be exempt from the distance requirements in
City Code 155.07.J.5.e.(2).
(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 shall
be exempt from the distance requirements in City Code 155.07.J.5.e.(1) and
155.07.J.5.(2) and they do not count against other uses for purposes of City Code
155.07.J.5.e.(1).
(c)Cannabis retail uses located east of Vermillion Street and north of 4th Street and
west of Bailey Street in the DC Downtown Core or C-3 Community Regional
Commerce zoning districts shall be exempt from the distance requirements of City
Code 155.07.J.5.e.(2)(c).
(d)Cannabis cultivation uses shall comply with the distance requirements in City
Code 155.07.J.5.e.(1) but shall be exempt from the distance requirements in City
Code 155.07.J.5.e.(2).
e.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 use shall have more than two (2) signs;
(2)Blinking, moving, and flashing signs that are visible from the exterior of the building
are prohibited;
(3)No lower-potency hemp edible use shall advertise the lower-potency hemp edible
products on more than one (1) exterior sign;
(4)No interior sign shall be visible from the exterior of the building.
f.Cannabis uses 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
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combination of uses at the same location, the use that requires the largest number of spaces
must be met.
g.A security plan must be submitted to and approved by the Chief of Police to address
security issues in order to protect the public health, safety, and general 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.
Analysis
•The site meets the 1,000-foot minimum distance requirement between cannabis uses.
•The site is more than 500 feet from a school, and residential treatment facility.
•The site is more than 500 feet from a playground, athletic field, athletic court, picnic area
or restrooms, pavilion or park building, or disc golf.
•The site meets the minimum parking requirements.
•A security plan has been reviewed by the Chief of Police.
Special Use Permit Requirements
Special Use Permit review is outlined in Chapter 30.02, Subd. E.2.b.5 of the City Code and
subject to adherence to the following (staff analysis appears in red)
1.Ingress and egress to property and proposed structures thereon with particular reference to
automotive and pedestrian safety and convenient traffic flow and control, and access in
case of fire or catastrophe;Ingress and egress to the property will be unchanged and is
served by a shared private parking lot entrance to Vermillion Street. The sale of cannabis
products on site will not require changes to ingress and egress.
2.Off-street parking and loading areas where required, with particular attention to division
(E)(2)(b)5.a. above, and the economic, noise, glare, or odor effects of the special use on
adjoining properties and properties generally in the district;Parking and loading is
adequate,and the proposed use will not require changes. The property is surrounded by
other commercial uses.
3.Refuse and service areas, with particular reference to items divisions (E)(2)(b)5.a. and
(E)(2)(b)5.b. above;The sale of cannabis products will not increase the need for refuse
areas.
4.Utilities, with reference to locations, availability, and compatibility;Utility service is
adequate and will not change with cannabis sales.
5.Screening and buffering with reference to type, dimensions, and character;Screening and
buffering is adequate and will not change with cannabis sales.
6.Signs, if any, and proposed exterior lighting with reference to glare, traffic safety,
economic effect, and compatibility and harmony with properties in the district;No
cannabis use shall have more than two signs, blinking and flashing signs are prohibited,
and interior signs may not be visible from the exterior of the building.
7.Required yards and other open space; Yards and open space are unchanged.
8.General compatibility with adjacent properties and other properties in the district.Property
concerns commercially zoned property on all sides.
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Recommendation
Approval of the Special Use Permit is recommended subject to the following requirements:
1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis
Management (OCM)
2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office.
3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter
155.07, Subd. J –Cannabis Businesses.
4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only.
5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances.
6)The cannabis use shall have no more than two signs
7)Blinking, moving, and flashing signs that are visible from the exterior of the building are
prohibited.
8)No interior sign shall be visible from the exterior of the building.
9)Approval shall not be implied as preference of or granting permission to operate a retail
cannabis facility in conjunction with OCM licensing and City registration.
10)Approval of the Security Plan by the Hastings Chief of Police.
11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards
construction of the proposal within one year of City Council approval, the approval is null
and void.
Attachments
•Location Map
•Floor Plan
•Security Plan
•Application
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2103 Vermillion St.
Hastings MN 55033
Security Plan :
Green to Go, LLC is committed to ensuring the highest standards of security to protect
assets, employees, and customers, and prevent the diversion of cannabis. Security
monitoring procedures and training will be in place to outline the strategies and
protocols for effectively monitoring the security systems, ensuring continuous protection
and compliance with state regulations. The alarm and surveillance systems will be
monitored continuously by a dedicated security team and a contracted security
company. Any attempted breach will sound an alarm and notify personnel and the
monitoring company, ensuring a prompt response to any and all intrusion events.
Authorized personnel and local law enforcement will receive immediate alerts for
unauthorized access, hazardous conditions, and alarm system failures, enabling them
to take swift action. The alarm and surveillance system will operate 24/7. To enhance
the effectiveness of security monitoring, procedures will be implemented for reviewing
surveillance footage. The security team will conduct regular reviews of recorded
footage, focusing on high-risk periods and areas to help identify potential security gaps,
and ensure that any patterns of suspicious behavior are detected early. Additionally, the
footage will be stored securely for a minimum of 90 days, with provisions to retain it
longer if required for investigations or legal proceedings. Green to Go, LLC will manage
and monitor access control systems, including electronic locks and keypads. A detailed
log of all entries and exits for controlled areas will be maintained, regularly reviewing
this data to identify any irregularities. Employees will be required to use their
identification badges for access, and the security team will ensure that badges are
always visible and used correctly. Any access attempts by unauthorized individuals will
be flagged for immediate investigation. The security team will track all transport vehicles
using GPS systems, ensuring real-time monitoring of their locations. They will maintain
open communication channels with transport personnel, providing support and
responding to any security concerns during transit. Additionally, transport routes and
schedules will be reviewed periodically to assess potential risks and implement
necessary adjustments. All transport vehicles will be secured and limit access. Green to
Go, LLC will establish a protocol for periodic testing of all alarm and surveillance
systems, conducting inspections at least every 90 days. Any issues identified during
these tests will be addressed promptly, with repairs completed within 72 hours to
maintain continuous security. Detailed records of all testing and maintenance activities
will be kept for a minimum of 3 years, providing a clear audit trail and ensuring
compliance with regulatory requirements. To prevent theft and diversion, the security
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team will implement and monitor comprehensive measures across all aspects of the
business. This includes continuous surveillance of critical areas, strict access controls,
and regular audits of inventory and transport operations. Any discrepancies or signs of
theft or diversion will be investigated thoroughly, with corrective actions taken to prevent
future occurrences. The security team will also maintain detailed compliance records,
demonstrating our commitment to security and regulatory adherence.
Green to Go, LLC will employ the use of various security equipment to ensure the safety
and compliance of the cannabis business. The security system will include an intrusion
detection alarm system, video surveillance, lighting, access controls, and other essential
security measures to prevent the diversion of cannabis and protect business assets,
workers, visitors, and the community. Green to Go, LLC will install and maintain a
commercial-grade security alarm system that operates 24/7. The system will be
monitored by a contracted security company or authorized personnel and provide
immediate alerts for unauthorized breaches, hazardous conditions, and alarm system
failures. A backup alarm system will be available to activate automatically upon loss of
electricity, and it will alert authorized personnel of the power outage. The system will
also include an audible alarm that can be heard within a 100-foot radius of entrances
and exits, with authorized personnel able to remotely disable the audio alarm. There will
be a backup power system capable of providing power to the security system for at
least 8 hours. In case of an alarm system failure expected to last longer than 8 hours,
local law enforcement and the office will be notified, and alternative security measures
will be provided during the outage. Green to Go, LLC will install a visual surveillance
system to monitor all entry and exit points of the premises to identify individuals entering
and exiting. Surveillance will also extend to limited access areas and restricted access
areas, as well as specific areas such as cultivation, storage, packaging, labeling, point-
of-sale, sample collection, and waste destruction. Cameras will operate 24/7, recording
at a minimum of 15 frames per second with a resolution of 720p. All recordings will have
synchronized date-and-time stamps that do not obscure the picture. Video files will be
stored securely for at least 90 days and be available for viewing by the office upon
request. Recordings will be retained longer if notified of pending investigations or legal
proceedings. Cameras will also be able to record for an additional 8 hours during power
outages. Lighting will be maintained to deter nuisance and criminal activity, ensuring
clear observation and recording of activities within a 20-foot radius of all entrances and
exits. Any deficient or inoperable lighting will be repaired within 48 hours of detection.
All perimeter entrances and windows will be equipped with commercial-grade locks,
including electronic locks and keypads. Interior doors, windows, gates, and fences will
also have commercial-grade locks as required. All cannabis workers will be issued ID
badges indicating the activities they may perform and the areas they may access.
Signage will be posted at all points of access to restricted areas, stating “Do Not Enter –
Access Limited to Authorized Employees Only” with lettering no smaller than one inch in
height. Transport vehicles will be equipped with compliant storage compartments, GPS
devices for real-time tracking, functioning heating and air conditioning for proper storage
temperatures, and appropriate insurance as required by regulatory bodies. Workers will
possess valid ID cards and driver’s licenses and have a means of secure
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communication, such as mobile phones, during transportation. Cannabis products will
not be left unattended in vehicles or overnight.
Police Chief
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X-C-02
City of Hastings
Community Development Department
Land Use Application
Address or PID of Property:2-\0^Vf/WYl I UIOVy 5s^.
Phone:
Fax:
Email:
„t._as it u >w „toij a^a.Ql.
Description of Request:Wf Irtt Y+UVCsH+V^~tT>S'C\1WW'\VW^d ^w:WpfOpcvt
Property Owner:A W \t~gr
Address:|l-OCU.Sr HUK 1?^।
PhoneP IP I?^0-17.'^
Fax:Mh
Email:J (Or
Applicant Name:
Address:SAMP U-C
If requesting site plan review of multi-family units (three or more attached),are the units intended to be
for sale or rental units?
Check Applicable Line(s)Please Note:All Fees and Escrows are due at time of application.[Rezone $500 OI Minor Subdivision $500[Final Plat $600 gI Special Use Permit $500[Variance $300 I Comp Plan Amend.$500o[Vacation $500 O[Lot Split/Lot Line Adj.$75[House Move $500 1 Annexation $500 +$5,000 escrow
Prelim Plat $500 +$5,000 escrow 1 1j EAW $500 +$5,000 escrow[Site Plan $500 +$5,000 escrow ||I Interim Use Permit $500
Total Amount Due:$SI)0 Make checks payable to City of Hastings.
Most credit cards accepted,excluding escrow payments.
Applicant Name and Title -Please Print
OFFICIAL USE ONLY —~~
File #0 5 Rec'd By:,/o
Fee Paid:ZA~IQ Receipt#
Owner Name -Please Print
Date Rec'd:3/W
App.Complete
X-C-02
ACKNOWLEDGEMENT OF RESPONSIBILITY
This is to certify that I am making application for the described action by the city and that I am
responsible for complying with all city requirements with regard to this request.This application
should be processed in my name and I am the party whom the city should contact regarding any
matter pertaining to this application.
I have read and understand the instructions supplied for processing this application.The
documents and/or informationIhave submitted are true andcorrect tothe best of my knowledge.
I will keep myself informed of the deadlines for submission of material and of the progress of this
application.
I understand that this application may be reviewed by city staff and consultants.I further
understand that additional information,including,but not limited to,traffic analysis and expert
testimony may be required for review of this application.I agree to pay to the city upon demand,
expenses,determined by the city,that the city incurs in reviewing this application and shall
provide an escrow deposit to the city in an amount to be determined by the city.Said expenses
shall include,but are not limited to,staff time,engineering,legal expenses and other consultant
expenses.
I agree to allow access by city personnel to the property for purposed of review of my application
and to erect a temporar^&tgrTTndlcatmg the application proposed.
Signature of applicant —Date-———
Name of applicant t-T<-Phone
(Please Print)
Name and address of Contact (if other than applicant)
Phone Number Date