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Microbusinesses and mezzobusinesses are the two unique use names within cannabis. These uses can be compared to something like a small winery or brewery; however, on -site consumption is only allowed for microbusinesses that have approval from the OCM. Microbusinesses and mezzobusinesses are allowed to cultivate, manufacture/process, package, and sell with their license. Businesses licensed as microbusinesses or mezzobusinesses can operate multiple locations and the cultivation and manufacturing part of the license can be located separately from the retail location. As such, the uses may have multiple parts of a singular building that make up a single structure such as a warehouse facility, a greenhouse, and a retail store, or may be split up amongst multiple parcels. 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. Local Control 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 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 adopted standards work with the final rules from OCM. The City Council reviewed the draft ordinance included within the Local Guide from the OCM at their September 23, 2024, meeting and a first draft of the zoning standards at their October 14, 2024, meeting and gave direction for the standards. Changes from the work session include a new use for cannabis testing facilities, limiting cannabis retail uses to the B-4 zoning district, limiting cultivation, manufacturing, and wholesaling to the GB zoning district, and limiting hours of sale of cannabinoids. Overview of Ordinance Amendments The proposed ordinance includes amendments to 1305 Rules, Scope, Interpretation, & Definitions, subsection 1325.04 Definitions. Many of the definitions reference Minnesota Statute in order to make sure that definitions in the code remain current if statute changes. The proposed ordinance includes amendments to Section 1320 — District Provisions, subsection 1320.05 Land Use Chart. Allowed districts were amended by the Planning Commission to include mezzobusiness and microbusiness, as a conditional use in the B-3 and GB zoning districts and "Retail, Cannabis Sales" as a conditional use in the B-3 district and a conditional Page 3 of 6