HomeMy WebLinkAbout4 - SUP - lower-potency hemp edible mfg - Spiral Brewery
Planning Commission Memorandum
To: Planning Commission
From: John Hinzman, Community Development Director
Date: November 10, 2025
Item: Special Use Permit (SUP) – Lower-Potency Hemp Edible Manufacturing – Spiral
Brewery – 111 2nd Street E
REQUEST
Hold a public hearing and recommend action on the Special Use Permit (SUP) application of
Spiral Brewery to conduct lower-potency hemp edible manufacturing on property owned by
Helix Holdings located at 111 2nd Street E.
BACKGROUND INFORMATION
Lower-Potency Hemp Edible Ordinance Amendment
Action on the request requires amending the City Code. Action on the City Code amendment
immediately precedes consideration of the SUP request.
Retail Sales of Lower-Potency Hemp Edibles
Spiral plans to conduct retail sales of lower-potency hemp edibles. Retail sales are permitted under
their on-sale liquor license and action is not part of the special use permit request.
Notification and Public Hearing
Notification of the request was mailed to all property owners within 350 feet. Staff have not
received any comments at this time.
Comprehensive Plan Classification
The 2040 Comprehensive Plan designates the property as mixed use. The proposed use is
consistent with the plan.
Zoning Classification
The property is zoned C-3 Community Regional Commerce. Lower-potency hemp edible retail
is a “use permitted” (upon amendment of the City Code). Lower-potency hemp edible
manufacturing if part of a brewpub is identified as “use by special permit” (requiring a special
use permit).
Adjacent Zoning and Land Use
Direction Property Use Zoning Comp Plan
North Xcel Energy Substation C-3 Mixed Use
East Commercial - Beloved Boutique C-3 Mixed Use
South 2nd Street
Commercial – Vue Beauty Studio
C-3 Mixed Use
West Commercial – Creative Hair Design C-3 Mixed Use
Existing Condition
The site operates as Spiral Brewery under a Special Use Permit for a brewery\tap room issued in
2017.
SPECIAL USE PERMIT REVIEW
Background
Hastings City Code Chapter 155.30, Subd. C.12 – allows lower-potency hemp edible
manufacturing if part of a brewpub as a “use by special permit” 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.
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) Use of cannabis concentrate in the manufacturing of lower-potency hemp edibles.
Use of cannabis plants to produce cannabis concentrate shall not be exempt from
distance requirements. Proposed Ordinance Amendment
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
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 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 minimum setback requirement from other cannabis and low-potency
hemp entities.
• Spiral would utilize cannabis concentrate (tincture), produced elsewhere to manufacture
low-potency edibles including beverages. This activity would be exempt from the 500
foot setback from residential uses as proposed under the code amendment.
• A security plan is required and will be reviewed by the Hastings Police Department.
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 2nd Street. The manufacture of lower-potency hemp edibles 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; Proposed parking and loading
is adequate. Street parking is available on 2nd Street and loading through the back alley.
Customers have access to other shared parking throughout the downtown.
3. Refuse and service areas, with particular reference to items divisions (E)(2)(b)5.a. and
(E)(2)(b)5.b. above; The manufacture of lower-potency hemp edibles 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 the manufacture of lower-potency hemp edibles.
5. Screening and buffering with reference to type, dimensions, and character; Screening and
buffering is adequate and will not change with the manufacture of lower-potency hemp
edibles.
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; Site is located downtown with no required yards or
open space.
8. General compatibility with adjacent properties and other properties in the district. Property
is surrounded by commercially zoned properties.
Recommendation
Approval of the Special Use Permit for manufacture of lower-potency hemp edible is
recommended subject to the following conditions:
1) Obtaining a license for manufacturing of lower-potency hemp edibles through the
Minnesota Office of Cannabis Management (OCM).
2) Registering the license for manufacturing lower-potency hemp edibles with Hastings City
Clerk’s Office.
3) Adherence to Hastings City Code Chapter 117 – Cannabis and Lower-Potency Hemp
Edible Business Registration Businesses and Chapter 155.07, Subd. J – Cannabis Uses
and Lower-Potency Hemp Edible Uses.
4) Cannabis use cannot violate City Code Chapter 95 regarding public nuisances.
5) The cannabis use shall have no more than two signs
6) Blinking, moving, and flashing signs that are visible from the exterior of the building are
prohibited.
7) No interior sign shall be visible from the exterior of the building.
8) 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.
9) Approval of the Security Plan by the Hastings Chief of Police.
10) 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.
Attachments
• Location Map
• Application
LOCATION MAP
City of Hastings
Community Development Department
Land Use Application
Address or PID of Property: ___________________________________________________________
Applicant Name: _______________________ Property Owner: ________________________
Address: ______________________________ Address: _______________________________
_______________________________________ ________________________________________
Phone: ________________________________ Phone: _________________________________
Fax: __________________________________ Fax: ____________________________________
Email: ________________________________ Email: __________________________________
Description of Request: ________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
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 ___ Minor Subdivision $500
___ Final Plat $600
___ Variance $300
___ Vacation $500
___ Special Use Permit
___ Comp Plan Amend.
___ Lot Split/Lot Line Adj.
___ House Move $500 ___ Annexation
___ Prelim Plat $500 + $5,000 escrow ___ EAW
___ Site Plan $500 + $5,000 escrow ___ Interim Use Permit
$500
$500
$75
$500 +$5,000 escrow
$500 + $5,000 escrow
$500
Total Amount Due: $ _____________ Make checks payable to City of Hastings.
Please ensure that all copies of required documents are attached.
_______________________________________ _____________________________________
Applicant Signature Date Owner Signature Date
_______________________________________ _____________________________________
Applicant Name and Title – Please Print Owner Name – Please Print
OFFICIAL USE ONLY
File # ____________________ Rec’d By: ____________________ Date Rec’d: __________________
Fee Paid: _________________ Receipt # ____________________ App. Complete _______________
Most credit cards accepted, excluding escrow payments.
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 information I have submitted are true and correct to the 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 temporary sign indicating the application proposed.
Signature of applicant Date
Name of applicant Phone
(Please Print)
Name and address of Contact (if other than applicant)
Phone Number Date