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AGENDA ITEM - 3B <br />'It <br />EN HILLS <br />MEMORANDUM <br />DATE: October 14, 2024 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, Interim City Administrator <br />FROM: T.J. Hofer, Consultant Planner <br />SUBJECT: Zoning Code Amendments —Chapter 13, Section 1305, 1320, 1325 Cannabis <br />Zoning Standards Discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />The City Council should discuss and provide direction on the draft zoning standards for cannabis <br />uses. <br />Zoning Code Text Amendments <br />In 2023, cannabis was legalized for recreational use and the sale, possession, use, and growth of <br />cannabis was decriminalized. The Office of Cannabis Management (OCM) is currently drafting <br />rules and standards for licensing and use of facilities that will deal with cannabis. The OCM <br />recently closed the application period of Social Equity Applicants and received over 1,800 <br />applications. Licenses are anticipated to be issued shortly after the rules from OCM are finalized <br />in 2025. <br />A considerable amount of changes to the City Code will be required to address the registration of <br />cannabis businesses and the use of cannabis, however, the zoning ordinance is specifically used to <br />control for the time, place, and manner of the operations of a cannabis business provided that such <br />restrictions do not prohibit the establishment or operation of cannabis businesses. Notably, if the <br />City wishes to limit the amount of registrations for cannabis retail businesses within the City, this <br />should not be done in the zoning ordinance, but in the section that establishes standards for <br />registration. <br />Cannabis Businesses and Uses <br />Minnesota State Statute sets a definition for the term "cannabis business." The use of this term <br />means the following uses: <br />Page 1 of 6 <br />