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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — OCTOBER 14, 2024 10 <br />Councilmember Fabel asked if Mike Wilhelmi is familiar with the draft ordinance presented in <br />the agenda packet. <br />Mike Wilhelmi confirmed. It is Xcel's draft ordinance. <br />Councilmember Fabel said the draft ordinance outlines Xcel will have authority over location <br />facilities, field locations, street opening, and restoration. He wondered if they have that authority <br />now. <br />Mike Wilhelmi confirmed. They have statutory authority and there is a franchise agreement in <br />place. This would be an update to that agreement. <br />Councilmember Fabel stated that there isn't anything new here. <br />Mike Wilhelmi said that because there are no existing franchise fees, they pay permit fees. <br />Typically in cities where there are franchise fees, they ask to be excluded from permit fees and <br />that is in there. <br />Councilmember Fabel said the ordinance might suggest to residents that for the privilege of <br />collecting a tax on behalf of the City, Xcel is getting this authority, is not true. <br />Mike Wilhelmi confirmed. There is no additional authority granted with this ordinance. <br />Interim City Administrator Jagoe said that with this council item on the 28th, there will be an <br />update of the agreements, as well as, the renewal of the gas franchise agreement. The memo will <br />outline what agreements exists today and what the changes will be. <br />B. Adult Use Cannabis Zoning Discussion <br />Interim City Administrator Jagoe highlighted the main points of the draft ordinance, included <br />in the agenda packet. Cannabis business is defined in state statute. There are a variety of different <br />cannabis businesses that corelate to the types of businesses that the Office of Cannabis <br />Management (OCM) will facilitate. The license types and types of uses are provided. <br />The Micro- and Mezzo- businesses are unique within the cannabis use list because they are similar <br />to wineries and breweries. The City Attorney verified the Micro -Business allows for on -site <br />consumption. The Micro- and Mezzo- businesses can operate multiple locations and they can also <br />have multiple types of uses, to include retail, manufacturing, etc. all in the same facility. <br />The City will register businesses and the OCM will license them. Previous council direction was <br />to limit this to one single registration. State statute says the City can limit for retailers, the Micro - <br />businesses and Mezzo -businesses. That only applies to the retail component. The City is not <br />allowed to limit the registrations for the other non -retail uses. <br />Councilmember Monson asked for clarification that a Micro -business or a Mezzo -business one <br />of those would meet our retail requirement. <br />