08-09-23 PC Agenda - Laserfiche WebLink

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Page 3 of 6 At their June 20th and July 17th work sessions, the City Council discussed options for how the City may move forward with regulating the sales of lower-potency hemp edibles when the moratorium expires. The general consensus of the City Council was to establish a new land use classification specific to the sale of lower-potency hemp edibles in our commercial zoning districts mainly along Lexington Avenue at the initial onset with a separation of land use from schools, day cares, parks, etc. as allowed by State Statute. Staff worked with the City Attorney’s Office to prepare a draft ordinance reflective of their comments. The City Council reviewed the first draft ordinance at their July meeting. During that discussion, the Council considered other types of land uses in addition to Retail Sales and Service that might have the potential of selling lower-potency hemp products such as a gas station or a restaurant. Staff confirmed that the draft ordinance as written would not include these types of businesses since they are a separate land use type. However, a liquor store may qualify as a retail land use. Staff provided an overview of existing retail businesses along Lexington Avenue within the B-3, General Business District as well as the area along County Road E between Lexington Avenue and Snelling Avenue that falls under the B-2, General Business Zoning District. Under the city code, Retail Sales and Service is a permitted use in the following zoning districts: B-2 - General Business, B-3 - Service Business, and B-4 - Retail Center. For the Planning Commission, staff has included with this report several maps identifying the parcels located within each of these zoning districts (Attachment C). The new State law and any future ordinance change would apply to both existing and new businesses in Arden Hills. The main topics of discussion during the work session were the delineation of where lower- potency hemp sales would be allowed (ex. B-2 and/or B-3 zoning districts) and regulating solely as an accessory use to a retail business. The City Council directed staff to bring forward the proposed ordinance to the Planning Commission for the first review and to hold a public hearing in order to solicit your recommendation on this language. Following the public hearing, the draft ordinance language with the recommendation of the Planning Commission would be brought to the City Council for subsequent discussion and adoption. If the Commission has any suggested change(s) to the draft language that should be brought forward as part of the motion language. It should be noted that at the subsequent regular City Council meeting, a Councilmember commented that the upcoming lower-potency hemp discussions should also consider allowing the ability to sell as an accessory use for Service Stations and potentially within the Gateway Business District. Overview of Ordinance Amendments Staff has prepared a draft ordinance identifying language to be added for the Planning Commission’s review (Attachment A). The proposed ordinance would add a new land use type for the sale of lower-potency hemp edibles. As drafted, the City would allow as a conditional accessory use only to businesses with a principal Retail Sales and Service land use in the B-3 Zoning District. This means there could not be a standalone shop exclusively selling lower- potency hemp products and any business interested in selling lower-potency products would need