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ARDEN HILLS CITY COUNCIL — NOVEMBER 25, 2024 5 Management (OCM) is currently drafting rules and standards for licensing and use of facilities that will deal with cannabis. The first draft of the rules was made available on July 30, 2024, and A Guide for Local Governments on Adult Use Cannabis (Local Guide) was published this year with the most recent version being updated in August. The OCM recently closed the application period for Social Equity Applicants and received over 1,800 applications. Licenses are anticipated to be issued shortly after the rules from OCM are finalized in 2025. Consultant Planner Hofer reported a considerable number of changes to the City Code will be required to address the registration of cannabis businesses and the use of cannabis; however, the zoning ordinance is specifically used to control for the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Notably, if the City wishes to limit the amount of cannabis retail businesses within the City, this should not be done in the zoning ordinance, but in the section that establishes standards for registration. Nonretail businesses cannot be limited by number but can be zoned for specific areas of the City. Consultant Planner Hofer described the various cannabis businesses and discussed the registration/licensing process. It was noted 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 13- 3 and GB zoning districts and "Retail, Cannabis Sales" as a conditional use in the B-3 district and a conditional accessory use in the GB district. Sales within the GB district was determined to fit as a conditional accessory use to be consistent with the existing standards within the GB district regarding retail (1320.13 Subd. 3 C.). Consultant Planner Hofer explained the proposed ordinance includes amendments to Section 1325 to create 1325.047 Cannabis Business Conditional Use Permit Criteria. These include application requirements and design and performance standards for cannabis businesses. The ordinance standards may need to change based on future changes to OCM rules. The standards include: • A 1,000 ft. setback from schools as allowed by Minnesota State Statue • A prohibition on outdoor operations • Standards regarding odor control and design standards • Screening and outdoor storage standards • Lighting standards and requirements • Water and wastewater requirements • Sign standard references to the City Code and OCM • Restrictions on business hours Consultant Planner Hofer reported changes within the proposed language from the November 6, 2024, Planning Commission meeting include language that exempts areas located north of Highway 694, east of Interstate 35W, and west of State Highway 10 in the Gateway Business zoning district from the 1,000 ft. buffer from schools, an amendment to the hours of the sale of cannabinoids for consumption to be consistent with state statute, and minor grammatical changes.