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HEMPEL <br />REAL ESTATE <br />Conditional Use Permit Application Narrative <br />Date: November 3, 2025 <br />800 LaSalle Avenue, Suite 1250 <br />Minneapolis, MN 55402 <br />Property: Arden Hills Business Center -4440 Round Lake Road W, Arden Hills, MN <br />Applicant: HRE Arden Hills LLC <br />Proposed Use: Licensed THC Wholesale/Distribution Tenants <br />Brief Description of Request <br />Hempel, as landlord, seeks a property -level Conditional Use Permit authorizing up to 57,000 SF <br />(,z�50% of building area) to be leased to licensed THC wholesale/distribution tenants. If granted, the <br />CUP would let us lease any or all of the site's current ;z:52,000 SF vacancy and also allow our <br />anchor tenant, Portal, to sublease space within its ;z�61,000 SF footprint for the same use. Based on <br />recent inquiries, we expect 5-15 small businesses interested in warehousing prepackaged THC <br />product only. Because this use requires a CUP in the GB District, this application is intended to <br />pre -approve the building for that use (with conditions) so individual businesses can occupy suites <br />under the CUP rather than filing separate land -use requests —while still maintaining all state <br />licensure requirements. This is business -to -business distribution only: no retail, no walk-in sales, <br />no on -site consumption, no exterior storage, and all operations occur indoors at typical <br />warehouse/logistics intensity. <br />To ensure compatibility and protect public welfare, the Applicant proactively offers CUP <br />conditions, including: <br />• Wholesale distribution only; no retail or public access. <br />• Valid Minnesota licensure for each tenant, with automatic suspension of operations upon <br />any lapse or revocation, and annual license -status reporting to City staff. <br />• A security plan (controlled access, cameras/alarms, secure loading/unloading). <br />• Odor containment (sealed product handling and HVAC filtration as needed). <br />• Truck and parking management consistent with historical/approved levels and standard <br />business -hour operations. <br />• No exterior signage that references cannabis/THC. <br />This CUP advances GB District goals by supporting employment and stabilizing a key tax -producing <br />asset without exterior changes. The requested approval formalizes a controlled, professional, non- <br />