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At your June 201h and July 17th work sessions, the City Council discussed options for how the City <br />may move forward with regulating the sales of lower -potency hemp edibles when the moratorium <br />expires. The general consensus of the City Council was to establish a new land use classification <br />specific to the sale of lower -potency hemp edibles in our commercial zoning districts mainly along <br />Lexington Avenue at the initial onset with a separation of land use from schools, day cares, parks, <br />etc. as allowed by State Statute. Staff worked with the City Attorney's Office to prepare a draft <br />ordinance reflective of their comments. <br />The City Council reviewed the first draft ordinance at the July meeting. During that discussion, <br />the Council considered other types of land uses in addition to Retail Sales and Service that might <br />have the potential of selling lower -potency hemp products such as a gas station or a restaurant. <br />Staff confirmed that the draft ordinance as written would not include these types of businesses <br />since they are a separate land use type. However, a liquor store may qualify as a retail land use. <br />Staff provided an overview of existing retail businesses along Lexington Avenue within the B-3, <br />General Business District as well as the area along County Road E between Lexington Avenue <br />and Snelling Avenue that falls under the B-2, General Business Zoning District. Under the city <br />code, Retail Sales and Service is a permitted use in the following zoning districts: B-2 - General <br />Business, B-3 - Service Business, and B-4 - Retail Center. For the City Council, staff has included <br />with this report several maps identifying the parcels located within each of these zoning districts <br />(Attachment Q. The new State law and any future ordinance change would apply to both existing <br />and new businesses in Arden Hills. <br />The main topics of discussion during the work session were the delineation of where lower - <br />potency hemp sales would be allowed (ex. B-2 and/or B-3 zoning districts) and regulating solely <br />as an accessory use to a retail business. The City Council directed staff to bring forward the <br />proposed ordinance to the Planning Commission for the first review and to hold a public hearing <br />in order to solicit your recommendation on this language. Following the public hearing, the draft <br />ordinance language with the recommendation of the Planning Commission would be brought to <br />the City Council for subsequent discussion and adoption. It was noted to the Planning Commission <br />that at the subsequent regular City Council meeting, a Councilmember commented that the <br />upcoming lower -potency hemp discussions should also consider allowing the ability to sell as an <br />accessory use for Service Stations and potentially within the Gateway Business District. <br />Overview of Ordinance Amendments <br />Staff has prepared a draft ordinance identifying language to be added for the City Council's review <br />(Attachment A). The proposed ordinance would add a new land use type for the sale of lower - <br />potency hemp edibles. As drafted based on the Planning Commission amendments, the City would <br />allow as a conditional accessory use only to businesses with a principal Retail Sales and Service, <br />Restaurant or Service Station land use in the B-2, B-3, B-4, and GB Zoning Districts. This means <br />there could not be a standalone shop (i.e. principal use) exclusively selling lower -potency hemp <br />products and any business interested in selling lower -potency products would need to come before <br />the Planning Commission and City Council for a Conditional Use Permit. <br />The draft language includes a requirement for a distance separation of a lower -potency sales <br />operation to schools, day cares, residential treatment facilities, and public parks as allowed by <br />State Statute. With the staff report, staff has prepared maps by zoning district that show the <br />Page 3 of 6 <br />