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ARDEN HILLS CITY COUNCIL — NOVEMBER 25, 2024 6 The Council should discuss the hours of the sale of cannabinoids for consumption. State statute allows for the sale between the hours of 8:00 a.m. and 2:00 a.m. of the next day, Monday through Saturday, and between the hours of 10:00 a.m. and 2:00 a.m. of the next day on Sundays. The Planning Commission discussed the hours of operation regarding this and was consistent in recommending that sales should cease at 9 p.m., but there was discussion about whether the beginning of sales should mirror State statute or be set at 10 a.m. every day. Local governments are allowed to limit this to 10:00 a.m. to 9:00 p.m. every day. The draft ordinance included in Council packets states hours of operation would be allowed from 8:00 a.m. to 9:00 p.m. Monday through Saturday, and between the hours of 10:00 a.m. and 9:00 p.m. on Sundays. Staff commented further on the proposed cannabis ordinance and requested the City Council hold a public hearing. Councilmember Fabel discussed how the proposed amendments would expand retail sales to the B-3 and GB zoning districts. Consultant Planner Hofer reported the proposed expansion would allow mezzobusinesses and microbusinesses to have retail sales within these districts. Mayor Grant commented mezzobusinesses and microbusinesses were not previously recommended by the City Council, rather the Council had only considered retail sales. He asked how mezzobusinesses and microbusinesses ended up in the recommendation. Consultant Planner Hofer stated mezzobusinesses and microbusinesses are specific license types and have specific uses related to them. He indicated because their uses were very particular and could include retail sales, they were included in the use table. Mayor Grant was of the opinion the mezzobusinesses and microbusinesses was a Planning Commission add and noted this was not discussed or considered by the City Council. Councilmember Rousseau asked what the tax revenue would be for these uses. Consultant Planner Hofer stated he could not speak to this. Finance Director Yang reported when looking at the revenue streams from the Department of Revenue, what happens is 10% of gross receipts are taxed and pulled into a special revenue fund and 50% is given to counties and 50% will be given to cities. She explained if Arden Hills had one retail business, the City would receive approximately $1,000 in tax revenues. Mayor Grant indicated the Council wanted to limit the number of businesses to one and asked if the proposed Ordinance would lead to more than one retail cannabis business. City Attorney Bjerkness advised under State Statute 342.13 local governments were given the ability to regulate the number of particular license types, which include cannabis retailers, mezzobusinesses with retail endorsements, and microbusinesses with retail endorsements. She indicated the City could limit these to no more than one. She reported medical use licenses were outside this cap. Councilmember Fabel questioned if the microbusiness and mezzobusiness licenses could be issued without the retail endorsement.