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storage and processing and a greenhouse for cultivation, but these all serve the principal use of microbusiness or mezzobusiness. Registration v. Licensing The OCM will issue and manage licenses for cannabis businesses. Retail operations for cannabis must register with local units of government before making retail sales to customers or patients. Currently, local government units are required to allow for one registration for every 12,500 residents. The statute specifies these registrants as cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement. This minimum of one applies only to cannabis retailer registration. It is currently unclear if the City will be able to limit non -retailer uses to any capacity, however, staff believes uses that are not required to register cannot be prohibited. Draft Zoning Standards The first draft of rules from the OCM addresses many of the operational challenges related to cannabis such as security, testing, and tracking product through the commercial businesses. There are gaps left by the OCM's first draft that need to be addressed by local municipalities such as setbacks, odor control, screening, and nuisances. The OCM is still in the process of developing the final rules, so the below zoning standards are presented as a draft of what zoning regulations regarding cannabis uses may look like. Staff will continue to monitor the activity of OCM to ensure that the standards presented to the Council reflect and work with the final rules from OCM. The proposed standards have been drafted based on the first draft of rules that the OCM published on July 30, 2024 and the City Council comments from the September 23, 2024, work session. The future ordinance amendment may change based on the future changes to the rule that the OCM has proposed. The standards include: • Restrictions for cannabis uses, based on business type, based on zoning district • A 1,000 ft. setback from schools as allowed by Minnesota State Statue • Use specific standards for indoor cultivation of cannabis -related to character area standards, odors, screening, lighting, and water management. • Use specific standards for cannabis microbusiness including consumption standards and references to other sections. • Use specific standards for cannabis mezzobusiness including references to other sections. • Use specific standards for light manufacturing, cannabis -related to character area standards, warehousing, odors, screening, waste storage, lighting, and water management. In reviewing these standards, the Council should consider various questions such as: • Do the permitted districts reflect the vision of the City? • Should the 1,000 ft. setback apply to cannabis uses solely, or cannabis and hemp business? • Does the City want to require odor control measures that limit the odor to the property line or the exterior of the facility? • Are there hours of operations the City wants to impose on cannabis related businesses? • Does the City want to regulate cannabis testing facilities separately from other "Research and development facilities," which has more permissive standards? Page 3 of 6