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HomeMy WebLinkAbout4D Cannabis Ord. Amendment PC Report 4646 Dakota Street SE Prior Lake, MN 55372 PLANNING COMMISSION AGENDA REPORT MEETING DATE: December 9, 2024 AGENDA #: 4D PREPARED BY: Casey McCabe, Community Development Director PRESENTED BY: Casey McCabe AGENDA ITEM: Consider amendments to Prior Lake City Code Chapter 10 (Zoning) related to Cannabis Businesses, Hemp Businesses and Cannabis Events DISCUSSION: Introduction The purpose of this agenda item is to hold a public hearing and consider a rec- ommendation to the City Council related to an ordinance amending Prior Lake City Code Chapter 10, Zoning, related to Cannabis Businesses, Hemp Businesses and Cannabis Events. Background A new law enacted by the State at the end of the 2023 legislative session and amended during the 2024 legislative session legalized the possession, use, manufacturing, and sale of certain cannabis products in Minnesota and established a regulatory framework over the cannabis industry. As a result, the City of Prior Lake must create and amend ordinances to recognize the new types of businesses that will cultivate, manufacture, test, store, and sell adult use cannabis products. Staff received direction from the City Council and Planning Commission related to the areas where there is local discretion on regulatory controls of adult use cannabis businesses, including an October 8, 2024 city council work session and a joint city council and planning commission work session on November 26, 2024. Current Circumstances Staff presented draft ordinances amending Chapter 4, Businesses, and Chapter 10, Zoning, during the joint City Council / Planning Commission work session on November 26th. Staff has made additional revisions to the attached ordinances in response to comments and questions received during the work session. A comment was received related to a cannabis delivery business and cannabis event organizer as an accessory home occupation. Following the work session a condition was added that states, no storage or possession of cannabis flower, cannabis products, or hemp products in excess of the amounts allowable in Min- nesota Statute 342.09 for Personal Adult Use of Cannabis shall be permitted on the premises. A comment was received related to the properties within the Prior Lake Spring Lake orderly annexation area, which are currently identified on the City’s Com- prehensive Land Use Plan map, but not on the zoning map. Following the work session, Sec. 10-165, Designation of Annexed Property, was amended to state, 2 Orderly Annexation Area. The Joint Resolution Providing for the Orderly Annexation of Certain Areas within Spring Lake Township to the City of Prior Lake delegates plan- ning and land use authority within the orderly annexation area to the City of Prior Lake. Parcels within the Orderly Annexation Area, as identified in the Joint Resolution Providing for Orderly Annexation, will not be assigned to a zoning district until such time as they are annexed from Spring Lake Township to the City of Prior Lake. For the purposes of this Chapter, parcels within the Orderly Annexation Area shall comply with regulations of the zoning district most closely related to the parcel’s Future Land Use Category as identified on the Comprehensive Land Use Plan Map as determined by the Zoning Administrator. There was a question related to whether retail registrations within the orderly annexation area apply to the minimum retail registration requirement for the City of Prior Lake. A change was made to the retail registrations section to state, retail registrations within the Orderly Annexation Area, as identified in the Joint Resolution Providing for the Orderly Annexation of Certain Areas within Spring Lake Township to the City of Prior Lake, shall be considered retail registrations within the City of Prior Lake. There was discussion about the storage of cannabis flower and cannabis products at another location away from a licensed cannabis business location and related con- cern about neighborhood safety. Following the work session, the Security subsection that identifies security measures for all cannabis businesses was amended to state, all cultivation, manufacturing, or storage of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products shall occur within the licensed premises of the cannabis business. Policy for Amendments City Code Subsection 1153.209, Policy for Amendments, states, recommenda- tions of the Planning Commission and final determinations of the City Council shall be supported by findings addressing the relationship of the proposed amendment to the following policies: In the case of amendments to the text of the Zoning Code: ➢ There is a public need for the amendment, or ➢ The amendment will accomplish one or more of the purposes of the Zon- ing Code, the Comprehensive Plan or other adopted plans or policies of the City, or ➢ The adoption of the amendment is consistent with State and/or federal requirements. The proposed amendments will address a public need and are consistent with State requirements. Issues The City Council will be considering approval of a recodification of the entire City Code on Tuesday, December 10th. This process includes the renumbering of the entire City Code with the intent to make the code easier to understand and nav- igate. The chapter and section numbering in the attached ordinances correlates with the new numbering system. 3 ALTERNATIVES: Attached to this report are proposed ordinances amending City Code Chapter 10, Zoning and Chapter 4, Businesses. The Planning Commission is only re- quired to conduct a public hearing related to the proposed amendments to Chap- ter 10, Zoning. Chapter 4 and Chapter 10 are closely related, so both are at- tached for Planning Commission review and comment. The formal action only includes a recommendation related to Chapter 10; however, the Planning Com- mission may also provide comments and recommendations related to Chapter 4 if they wish. 1. Motion and second to recommend the City Council approve the ordinance amending Prior Lake City Code Chapter 10, Zoning as presented. 2. Motion and second to recommend the City Council approve the ordinance amending Prior Lake City Code Chapter 10, Zoning, subject to additional revisions as proposed by the Planning Commission. RECOMMENDED MOTION: Alternative #1 ATTACHMENTS: 1. Ordinance – Proposed Amendments to Chapter 10, Zoning 2. Ordinance – Proposed Amendments to Chapter 4, Businesses 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 124-XX AN ORDINANCE AMENDING CHAPTER 10, ZONING OF PRIOR LAKE CITY CODE REGULATING CANNABIS BUSINESSES, HEMP BUSINESSES, AND CANNABIS EVENTS The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. DIVISION 3. LAND USE GENERALLY, Sec. 10-185. Land Use Table, is hereby amended to include the following: Section 2. DIVISION 2. DEFINITIONS, Sec. 10-50 is hereby amended to insert the following words and terms in alphabetical order: Cannabis Cultivation and Cultivate Cannabis means growing cannabis plants from seed or immature plant to mature plant, harvesting cannabis flower from mature plant, packaging and labeling immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transporting cannabis flower to a cannabis manufacturer located on the same premises, and performing other actions approved by the Office of Cannabis Management. Cannabis Event, Temporary means an event lasting no more than 4 days at which cannabis products, cannabis flower, lower-potency hemp edibles, and hemp-derived consumer products may be sold and consumed and for which the organizer has a cannabis event organizer license issued by the Office of Cannabis Management. Land Use Description A R-S R-1 R-2 R-3 TC TC-T C-1 C-2 C-3 I-1 Cannabis Cultivator (Indoor)P P Cannabis Cultivator (Outdoor)P Cannabis Delivery Service AC AC AC AC AC AC P P P P Cannabis Event Organizer AC AC AC AC AC AC P P P P Cannabis Manufacturer P P Cannabis Mezzobusiness P P P Cannabis Microbusiness P P P Cannabis Retailer P P P P Cannabis Testing Facility P P Cannabis Transporter P P Cannabis Wholesaler P P Lower-Potency Hemp Edible Manufacturer P P Lower-Potency Hemp Edible Retailer P P P P P Medical Cannabis Combination Business P P Zoning Use District Page 2 of 7 Cannabis Retail Business means a business that is licensed or required to be licensed by the State of Minnesota as a cannabis retailer, cannabis mezzobusiness with retail operations endorsement, cannabis microbusiness with retail operations endorsement, or medical cannabis combination business operating a retail location. Cannabis Business includes the following cannabis businesses as further defined in Section 3. DIVISION 4. LAND USE DEFINITIONS AND CONDITIONS: Cannabis Cultivator; Cannabis Delivery Service; Cannabis Event Organizer; Cannabis Manufacturer; Cannabis Mezzobusiness; Cannabis Microbusiness; Cannabis Retailer; Cannabis Testing Facility; Cannabis Transporter; Cannabis Wholesaler; Lower-Potency Hemp Edible Manufacturer; Lower-Potency Hemp Edible Retailer; and Medical Cannabis Combination Business. Section 3. DIVISION 4. LAND USE DEFINITIONS AND CONDITIONS is hereby amended to include the following definitions and conditions for land uses in alphabetical order: Cannabis Cultivator. (a) Definition. The term “cannabis cultivator” means a business that cultivates cannabis and packages cannabis for sale to another cannabis business. (b) Zoning districts and conditions. Cannabis cultivators (Indoor) are permitted in C-3 and I- 1. Cannabis cultivators (Outdoor) are permitted in A. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Delivery Service. (a) Definition. The term “cannabis delivery service” means a business that purchases cannabis flower, cannabis products, and hemp products from cannabis retailers or cannabis businesses with a retail endorsement for the purpose of transport and delivery to customers. (b) Zoning districts and conditions. Cannabis delivery services are permitted in C-1, C-2, C- 3 and I-1. Cannabis delivery services are permitted as an accessory Home Occupation use in A, R-S, R-1, R-2, R-3, and TC-T provided i) all conditions of a Home Occupation are met; ii) no deliveries of cannabis flower, cannabis products, and hemp products shall be sent to or received on the premises from a cannabis businesses nor by a residential express mail company (USPS, USP, FedEx, etc.); iii) no delivery of cannabis flower, cannabis products, and hemp products to customers shall occur on the premises; and iv) no storage or possession of cannabis flower, cannabis products, or hemp products in excess of the amounts allowable in Minnesota Statute 342.09 for Personal Adult Use of Cannabis shall be permitted on the premises. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Event Organizer. (a) Definition. The term “cannabis event organizer” means a person or entity who organizes or operates temporary cannabis events. (b) Zoning districts and conditions. Cannabis event organizers are permitted in C-1, C-2, C- 3 and I-1. Cannabis event organizers are permitted as an accessory Home Occupation use in A, R-S, R-1, R-2, R-3, and TC-T provided i) all conditions of a Home Occupation are met; ii) no deliveries of cannabis flower, cannabis products, and hemp products shall be sent to or received on the premises from a cannabis businesses nor by a residential express mail company (USPS, USP, FedEx, etc.) and iii) no storage or possession of Page 3 of 7 cannabis flower, cannabis products, or hemp products in excess of the amounts allowable in Minnesota Statute 342.09 for Personal Adult Use of Cannabis shall be permitted on the premises. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Manufacturer. (a) Definition. The term “cannabis manufacturer” means a business that manufactures and/or packages cannabis products and hemp products for sale to a cannabis retailer. (b) Zoning districts and conditions. Cannabis manufacturers are permitted in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Mezzobusiness. (a) Definition. The term “cannabis mezzobusiness” means a business that may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed business, and that may operate up to three retail locations with a retail operations endorsement. (b) Zoning districts and conditions. Cannabis mezzobusinesses are permitted in C-2, C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Microbusiness. (a) Definition. The term “cannabis microbusiness” means a business that may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed business, and that may operate a single retail location with a retail operations endorsement. (b) Zoning districts and conditions. Cannabis microbusinesses are permitted in C-2, C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Retailer. (a) Definition. The term “cannabis retailer” means a business that sells immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp products, and other products authorized by law to customers and patients, including a cannabis microbusiness with a retail operations endorsement, cannabis mezzobusiness with a retail operations endorsement, and medical cannabis combination business to the extent it is engaged in retail sales exclusively at a location off-site of its cultivation or manufacturing operations, selling only its cultivated cannabis or manufactured cannabis products. (b) Zoning districts and conditions. Cannabis retailers are permitted in C-1, C-2, C-3 and I- 1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Testing Facility. (a) Definition. The term “cannabis testing facility” means a business that obtains and tests Page 4 of 7 immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products. (b) Zoning districts and conditions. Cannabis testing facilities are permitted in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Transporter. (a) Definition. The term “cannabis transporter” means a business that transports immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products to licensed cannabis businesses. (b) Zoning districts and conditions. Cannabis delivery services are permitted in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Cannabis Wholesaler. (a) Definition. The term “cannabis wholesaler” means a business that purchases and/or sells immature cannabis plants and seedlings, cannabis flower, cannabis products, and hemp products from another licensed cannabis business, and/or imports hemp-derived consumer products and lower-potency hemp edibles. (b) Zoning districts and conditions. Cannabis wholesalers are permitted in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Lower-Potency Hemp Edible Manufacturer. (a) Definition. The term “lower-potency hemp edible manufacturer” means a business that manufacturers and packages lower-potency help edibles for consumer sale, and/or sells hemp concentrate and lower-potency hemp edibles to other cannabis businesses and hemp businesses. (b) Zoning districts and conditions. Lower-potency hemp edible manufacturers are permitted in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Lower-Potency Hemp Edible Retailer. (a) Definition. The term “lower-potency hemp edible retailer” means a business that sells lower-potency hemp edibles to customers. (b) Zoning districts and conditions. Lower-potency hemp edible retailers are permitted in TC, C-1, C-2, C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Medical Cannabis Combination Business. (a) Definition. The term “medical cannabis combination business” means a business that cultivates cannabis and manufactures cannabis and hemp products, and packages such products for sale to customers, patients, or other licensed cannabis businesses, and may operate one retail location per congressional district. (b) Zoning districts and conditions. Medical cannabis combination businesses are permitted Page 5 of 7 in C-3 and I-1. All Cannabis Businesses shall comply with the regulations and performance standards as identified in Chapter 4, Article XV, CANNABIS and Chapter 4, Article XVI, CANNABIS BUSINESS USES. Section 4. DIVISION 4. LAND USE DEFINITIONS AND CONDITIONS is hereby amended to include the following within the definition of Home Occupations. (13) The following activities shall not be allowed as home occupations: l. Cannabis Businesses not specifically permitted as an accessory use in Section 3. DIVISION 4. LAND USE DEFINITIONS AND CONDITIONS l. m. Any use which violates any applicable law. m. n. Other uses as determined by the zoning administrator to have an adverse impact upon neighboring properties. Section 5. DIVISION 2. DISTRICTS AND MAPS, Sec. 10-165. Designation of annexed property, is hereby amended to include the following: (c) Orderly Annexation Area. The Joint Resolution Providing for the Orderly Annexation of Certain Areas within Spring Lake Township to the City of Prior Lake delegates planning and land use authority within the orderly annexation area to the City of Prior Lake. Parcels within the Orderly Annexation Area, as identified in the Joint Resolution Providing for Orderly Annexation, will not be assigned to a zoning district until such time as they are annexed from Spring Lake Township to the City of Prior Lake. For the purposes of this Chapter, parcels within the Orderly Annexation Area shall comply with regulations of the zoning district most closely related to the parcel’s Future Land Use Category as identified on the Comprehensive Land Use Plan Map as determined by the Zoning Administrator. Section 6. Findings. The Prior Lake City Council finds there is a public need for the amendments and the adoption of the amendments is consistent with State requirements. Section 7. Summary approved. The City Council hereby determines that the text of the summary marked "Official Summary of Ordinance No. 124-XX” a copy of which is attached hereto clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 8. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall be available for inspection by any person during regular office hours. Section 9. Publication. The City Clerk shall publish the title of this ordinance and the official summary in the official newspaper of the City with notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the Office of the City Clerk. Section 10. Effective date. This ordinance shall take effect on January 1, 2025 following its passage and the publication of its title and the official summary. Page 6 of 7 Passed by the City Council of the City of Prior Lake this 10th day of December 2024. ATTEST: _________________________ __________________________ Jason Wedel, City Manager Kirt Briggs, Mayor A summary of this ordinance was published in the Minnesota Star Tribune on the XX day of December, 2024. Page 7 of 7 Official Summary of Ordinance No. 124-XX The following is the official summary of Ordinance No. 124-xx passed by the City Council of Prior Lake on December 10, 2024: Section 1122 of the City Code is amended by adding definitions and regulations which establish zoning and performance standards for cannabis businesses, hemp businesses, and temporary cannabis events. A printed copy of the ordinance is available for inspection by any person during regular office hours at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372. 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 124-XX AN ORDINANCE AMENDING CHAPTER 4 OF PRIOR LAKE CITY CODE TO ADD SECTION VX- CANNABIS AND SECTION XVI- CANNABIS BUSINESS USES The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. Chapter 4 is hereby amended to include the following: CHAPTER 4 ARTICLE XV CANNABIS Sec. 4-480. FINDINGS AND PURPOSE: AUTHORITY AND JURISDICTION 1. Findings and Purpose. The city makes the following legislative findings: a. The purpose of this chapter is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes the city to protect the public health, safety, welfare of residents by regulating cannabis businesses within the city. b. The city finds that the proposed provisions are appropriate and lawful land use regulations for the city, that the proposed regulations will promote the interests of the community for now and in the future, and that the proposed provisions are in the public interest and for the public good. 2. Authority. The city has the authority to adopt this chapter pursuant to: a. Minnesota Statutes, section 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. b. Minnesota Statutes, section 342.22, regarding the local registration and enforcement requirements of state licensed cannabis retail businesses and lower potency hemp edible retail businesses. c. Minnesota Statutes, section 52.0263, Subd. 5, regarding the use of cannabis in public places. d. Minnesota Statutes, section 412.221, Subd. 32, regarding the authority of a municipality to provide for the promotion of health, safety, order, convenience, and general welfare. Sec. 4-481. DEFINITIONS Unless otherwise noted in this chapter, words and phrases contained in Minnesota Statutes, section Page 2 of 11 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this chapter: ADULT USE CANNABIS PRODUCT: As defined under Minnesota Statutes, section 342.01, subd. 4. CANNABIS BUSINESS. Includes the following cannabis businesses as further defined in Section 3. DIVISION 4. LAND USE DEFINITIONS AND CONDITIONS: Cannabis Cultivator; Cannabis Delivery Service; Cannabis Event Organizer; Cannabis Manufacturer; Cannabis Mezzobusiness; Cannabis Microbusiness; Cannabis Retailer; Cannabis Testing Facility; Cannabis Transporter; Cannabis Wholesaler; Lower-Potency Hemp Edible Manufacturer; Lower-Potency Hemp Edible Retailer; and Medical Cannabis Combination Business. CANNABIS RETAIL BUSINESS: A state licensed adult use or medical cannabis retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, and lower potency hemp edible retailers. CANNABIS RETAILER: Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. LOWER POTENCY HEMP EDIBLE: As defined under Minnesota Statutes, section 342.01, subd. 50. OFFICE OF CANNABIS MANAGEMENT (“OCM”): State of Minnesota Office of Cannabis Management. PLACE OF PUBLIC ACCOMMODATION: A business, accommodation, refreshment, entertainment, recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodation are extended, offered, sold, or otherwise made available to the public. PRELIMINARY LICENSE APPROVAL: Office of Cannabis Management pre-approval for a cannabis business license for applicants who qualify under Minnesota Statutes, section 342.17. PUBLIC PLACE: Property owned, leased, or controlled by a governmental unit and private property that is regularly and frequently open to or made available for use by the public in sufficient numbers to give clear notice of the property’s current dedication to public use but does not include: a person’s dwelling house or premises, including the person’s curtilage or yard; private property not generally accessible by the public, unless the person is explicitly prohibited from consuming cannabis flower, cannabis products, lower-potency hemp edibles, or hemp derived consumer products on the property by the owner of the property; or the premises of an establishment or event licensed to permit on-site consumption. RETAIL REGISTRATION: An approved registration issued by the city to a cannabis retail business. SCHOOL: A public school as defined under Minnesota Statutes, section 20A.05 or a nonpublic school that complies with the reporting requirements under Minnesota Statute, section 120A.24. Page 3 of 11 STATE LICENSE: An approved license issued by the Office of Cannabis Management to a cannabis retail business. Sec. 4-482. STATE LICENSE REQUIRED Operation of any cannabis business within the city shall require a state license in accordance with Minnesota Statues, 342.10. Sec. 4-483. RETAIL REGISTRATION 1) Consent to Registering Cannabis Businesses a. No individual or entity may operate a state-licensed cannabis retail business within Prior Lake without first registering with the City. b. Any state-licensed cannabis retail business that sells to a customer or patient without a valid retail registration shall incur a civil penalty of up to $2,000.00 per violation. 2) Compliance Checks Prior to Retail Registration a. Prior to issuance of a cannabis retail business registration, the City shall conduct a preliminary compliance check to ensure compliance with local ordinances. b. Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application from OCM, the city shall certify on a form provided by OCM whether a proposed cannabis retail business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the city's zoning ordinance and state fire and building codes. 3) Registrations Limited a. The number of retail registrations within the city issued to a cannabis retailer, cannabis microbusiness with retail endorsement, or cannabis mezzobusiness with retail endorsement shall be limited to a maximum of three (3) registrations. 1. Retail registrations within the Orderly Annexation Area, as identified in the Joint Resolution Providing for the Orderly Annexation of Certain Areas within Spring Lake Township to the City of Prior Lake, shall be considered retail registrations within the City of Prior Lake. b. The number of retail registrations within the city issued to a cannabis retailer, cannabis microbusiness with retail endorsement, or cannabis mezzobusiness with retail endorsement shall be limited to a maximum of one (1) registration for every 12,500 Scott County residents. If Scott County has one (1) active registration for every 12,500 residents, the City shall not register any additional cannabis businesses. c. Available registrations shall be issued in order as of the date the city has received a complete application. 4) Registration Fees 1. Applicants issued a registration or renewal registration shall be required to pay the registration and renewal fees as established by the City's fee schedule depending upon the type of retail business license applied for and in accordance with the following: Page 4 of 11 a. An initial retail registration fee shall not exceed $500.00 or one-half the amount of an initial state license fee established by Minnesota Statutes, section 342.11, whichever is less. b. A renewal retail registration fee shall not exceed $1,000.00 or one-half the amount of a renewal state license fee established by Minnesota Statues, section 342.11, whichever is less c. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee; a renewal retail registration fee shall be charged at the time of the second renewal and each subsequent renewal thereafter. d. A medical combination business operating an adult-use retail location shall only be charged a single registration fee, not to exceed the lesser of a single retail registration fee, defined by this section, for the adult-use retail business. 2. The registration fee shall not be refunded once processed. 5) Application Submittal 1. The city shall issue a retail registration to a state-licensed cannabis retail business that adheres to the requirements of Minnesota Statutes, section 342.22 and is in compliance with this chapter. a. An applicant for a retail registration shall fill out an application form, as provided by the City. The application 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. Statutes, section 342.13. b. The applicant shall include with the form: i. the registration fee as required in Section 4-483 of this chapter; ii. a copy of a valid state license or written notice of OCM license preapproval. c. 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 Community Development Director for approval or denial. 6) Application Approval 1. A state-licensed cannabis retail business application shall not be approved if the cannabis retail business would exceed the maximum number of registered cannabis retail businesses permitted under Section 4-483 of this chapter. 2. A state-licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this ordinance. 3. A state-licensed cannabis retail business application that meets the requirements of this Page 5 of 11 ordinance shall be approved. 7) Annual Compliance Checks 1. The city shall complete a minimum of one unannounced compliance check per calendar year of every cannabis business to assess if the business meets age verification requirements as required under Minnesota Statutes, section 342.22, Subd. 4(b), and Minnesota Statutes, section 342.24, and this chapter. 2. Age verification compliance checks under the direct supervision of a law enforcement officer or an employee of the local unit of government shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products. 3. Any failures under this section must be reported to OCM and may be subject to a suspension of the retail registration or other penalties as allowed by law. 8) Location Change 1. A registered cannabis retail business shall be required to submit a new application for registration under section 4-483 of this chapter if it seeks to move to a new location still within the city. 2. An application for a change in location shall be considered a renewal of the retail registration. 3. A previously registered cannabis retail business that seeks to change locations within the city shall be subject to the location requirements established in Chapter 4, Article XVI, Cannabis Business Uses. 9) Renewal of Registration 1. The City shall renew an annual registration of a state-licensed cannabis retail business at the same time OCM renews the cannabis retail business’ license. 2. A state-licensed cannabis retail business shall apply to renew registration on a form established by the City. 3. A cannabis retail registration issued under this ordinance shall not be transferred. 4. An applicant for a renewal registration shall pay the renewal registration fee required under section 4-483 of this Code. 5. The application for renewal of a retail registration shall include but is not limited to items required under section 4-483 of this Code. 10) Suspension of Registration 1. The city may suspend a cannabis retail business's retail registration if it violates the provisions of this chapter or poses an immediate threat to the health or safety of the public. The city shall Page 6 of 11 immediately notify the cannabis retail business in writing the grounds for the suspension. 2. Notification to OCM. The city shall immediately notify the OCM in writing the grounds for the suspension. 3. Length of Suspension. The suspension of a cannabis retail business registration may be 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. The City Manager or designee shall determine the appropriate length of suspension. For the first violation, the presumptive suspension shall be seven (7) days. For a second violation found within an eighteen (18) month period, the presumptive suspension shall be fourteen (14) days. For a third and all subsequent violations within an eighteen (18) month period, the presumptive suspension shall be thirty (30) days. Nothing in this section shall prevent the City Administrator or designee from deviating from the presumptive suspension length based on the specific circumstances of a given violation, including but not limited to the severity of the violation, whether the violation was knowing or intentional, and the degree of risk to the public health caused by the violation. 4. Registration reinstatement. a. The retail registration shall be reinstated upon completion of the length of the suspension, and any further penalties assessed by OCM. b. The City may immediately reinstate a registration if it determines that the violations have been resolved. c. The City shall reinstate a registration if OCM determines the violation(s) have been resolved. 11) Civil Penalties. Subject to Minnesota Statutes, section 342.22, Subd. 5(e), the city may impose a civil penalty, as specified in the city's fee schedule, for registration violations, not to exceed $2,000. Sec. 4-485.TEMPORARY CANNIBIS EVENTS Temporary Cannabis Event Permit Required: A temporary cannabis event permit is required to be issued and approved by the city prior to holding a Temporary Cannabis Event Fee: A registration fee, as established in city's fee schedule, shall be charged to applicants for a temporary cannabis event permit. The application fee shall be non-refundable. 1. Application Submittal and Review: An applicant for a temporary cannabis event permit shall fill out an application form, as provided by the city. The application shall be submitted to the City Clerk. If the designee determines that a submitted application is incomplete, they shall return the application to the applicant with the notice of deficiencies. The application shall include, but is not limited to: • Full name of the property owner and applicant; • Address, email address, and telephone number of the applicant; • Site plan of event space, including location and number of access points; • Proposed capacity of event space; Page 7 of 11 • Other information as required by the city. • A copy of the OCM cannabis event license application, submitted pursuant to Minn. Stat. 342.39 subd. 2. 2. Application fee. Once an application is considered complete, the City Clerk shall inform the applicant as such, process the application fees, and approval the event permit. 3. Standards. The application for a temporary cannabis event permit shall meet the following standards: a. Minimum Buffer Zone Required: A temporary cannabis event shall provide a minimum buffer zone from the following uses: i. Five hundred feet (500’) from a school. ii. Temporary cannabis events shall only occur between the hours of ten o'clock (10:00) A.M. and ten o'clock (10:00) P.M, unless extended by the city council with approval of a special event permit. iii. Adequate security for the event is in place to ensure compliance with the requirements of state law and city code. 4. On Site Consumption. Consumption or use of cannabis at or on the property of a temporary cannabis event is prohibited. 5. Denial. A request for a temporary cannabis event permit that does not meet the requirements of this section shall be denied. The City shall notify the applicant of the standards not met and basis for denial. Sec. 4-486. USE IN PUBLIC PLACES No person shall use cannabis flower, cannabis products, lower potency hemp edibles, or hemp-derived consumer products in a public place or a place of public accommodation unless the premises is an establishment, or an event licensed to permit on-site consumption of cannabis products. Sec. 4-487. SEVERABILITY If any provision of this chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this chapter. Sec. 4-488 - 4-499 Reserved. CHAPTER 4 ARTICLE XVI CANNABIS BUSINESS USES Sec. 4-500. PURPOSE The purpose of this chapter is to regulate the time, place, and manner of the operation of cannabis businesses, hemp businesses, and temporary cannabis events as authorized by Minnesota Statutes, Page 8 of 11 Chapter 342. The regulations set forth in this section further promote the city’s interests relative to its purposes for zoning regulations and to ensure compatibility of surrounding land uses. Sec. 4-501. General Performance Standards The definitions of words and phrases contained in Minn. Stat. § 342.01 and the Rules promulgated by the Office of Cannabis Management shall apply to this section unless defined differently herein. Operation of a cannabis business of the types established by Minnesota Statues, section 342.10 within the city shall comply with the provisions of this chapter and the following: 1. A cannabis retail business must be registered with the city in accordance with Chapter 4, Article XV of the City Code. 2. A cannabis business must provide evidence of a state license under Minnesota Statues, section 342.14 and all applicable state laws and regulations. It is unlawful for any person or legal entity to operate or permit the operation of a cannabis business or hemp business without first obtaining, and having in effect, a license from the Office of Cannabis Management for the cannabis business or hemp business operated. Notwithstanding the foregoing, a cannabis business with license preapproval from the Office of Cannabis Management may cultivate cannabis in accordance with the preapproval and state law. 3. All cannabis businesses must be in compliance with the provisions of Chapter 4, Article XV, of the City Code and all applicable state laws and regulations related to the operation of the cannabis business. 4. Hours of Operation for a cannabis retail business shall be limited to ten o'clock (10:00) AM to nine o'clock (9:00) PM Monday through Sunday. 5. Building Code. The cannabis business shall comply with the provisions of Chapter 3 of this code. 6. Zoning Ordinance. The cannabis business shall comply with the provisions of Chapter 10 of this code. 7. Public Nuisances. Sufficient measures and means of preventing any gas, vapors, odors, noise, smoke, debris, dust, fluids or other substances from exiting a cannabis business shall be provide for at all times. i. Cannabis cultivations shall not be perceptible from the exterior of the building in which cultivation occurs. ii. No outdoor amplified music, public address system, or outdoor sound systems are permitted. 8. Age Limitation. No person under twenty-one (21) years of age shall be within the cannabis business premises. 9. Public View. i. All activities of a cannabis business, including, without limitation, cultivating, growing, processing, displaying, manufacturing, selling, and storage, shall be conducted entirely within a principal structure and all outdoor storage is prohibited. ii. No cannabis or paraphernalia shall be displayed or kept in a business so as to be visible Page 9 of 11 from outside the licensed premises. iii. All waste and recycling containers shall be kept within a principle or accessory building. 10. Buffer Requirement. Cannabis Businesses shall not be located within: i. 1,000 feet of a family or commercial daycare, elementary or secondary school; or ii. 500 feet of a state licensed day care center, including preschool programs, state licensed residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. For the purpose of this subsection, distance shall be measured from the closest point of the cannabis business structure and a school, daycare, or treatment facility structure, or the closest attraction within a public park regularly used by minors. The setback buffers set forth in clauses (a) and (b) do not apply to an existing licensed and registered cannabis retailer in operation if one of the setback special uses subsequently commences operation within the setback buffer area. Nothing in this section shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a school moves within the minimum buffer zone. iii. If the building housing the use is located less than 100 feet from any property line in a residential Zoning District, all customer entrances to the building shall be through a vestibule area with an inside and outside door. 11. Security. The following security measures shall be implemented: i. Burglary alarm systems with audible and police notification components that are professionally monitored and maintained in good working condition shall be installed on all doors, windows, and access points. ii. Surveillance cameras shall be installed and operate twenty-four (24) hours a day, seven (7) days a week, with thirty (30) day video storage, to monitor all entrances, the interior and exterior of the premises. iii. Exterior lighting shall be required sufficient for observers to see and for cameras to record, that is either constantly on or activated by motion detection. iv. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall be installed on all other windows or access points. v. All cultivation, manufacturing, or storage of cannabis flower, cannabis products, lower- potency hemp edibles, or hemp-derived consumer products shall occur within the licensed premises of the cannabis business. 12. On-Site Consumption. Consumption or use of cannabis at or on the property of a cannabis business is prohibited except as follows: i. a cannabis microbusiness with an on-site consumption endorsement may permit on-site consumption of edible cannabis products and lower-potency hemp edibles in compliance with state law; and ii. A cannabis business may permit on-site consumption of cannabis and hemp products by an employee in compliance with state law. 13. Signage. Cannabis businesses and hemp businesses may have up to two outdoor signs fixed to the exterior of the building or upon the property of the business. The signage shall comply Page 10 of 11 with the sign permit and regulations set forth in City Code. The signage shall not contain imagery as prohibited by, and shall be in accordance with, state statute. Section 2. Findings. The Prior Lake City Council finds there is a public need for the amendments and the adoption of the amendments is consistent with State requirements. Section 3. Summary approved. The City Council hereby determines that the text of the summary marked "Official Summary of Ordinance No. 124-XX” a copy of which is attached hereto clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 4. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall be available for inspection by any person during regular office hours. Section 5. Publication. The City Clerk shall publish the title of this ordinance and the official summary in the official newspaper of the City with notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the Office of the City Clerk. Section 6. Effective date. This ordinance shall take effect on January 1, 2025 following its passage and the publication of its title and the official summary. Passed by the City Council of the City of Prior Lake this 10th day of December 2024. ATTEST: _________________________ __________________________ Jason Wedel, City Manager Kirt Briggs, Mayor A summary of this ordinance was published in the Minnesota Star Tribune on the 21st day of December, 2024. Page 11 of 11 Official Summary of Ordinance No. 124-XX The following is the official summary of Ordinance No. 124-xx passed by the City Council of Prior Lake on December 10, 2024: Chapter 4 of the City Code is amended by adding Section VX- Cannabis and Section IVX- Cannabis Businesses Uses A printed copy of the ordinance is available for inspection by any person during regular office hours at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372.