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H E M PE L 800 LaSalle Avenue, Suite 1250 REAL ESTATE Minneapolis, MN55402 CUP Criteria & Mitigation Commitments The Applicant proactively proposes conditions to address potential city concerns: 1. Security 0 24/7 surveillance cameras and alarm systems. o Limited -access entry points. o Secure loading/unloading procedures. 2. Operations o No retail or walk-in sales. o Distribution only to licensed retailers. o Normal business hours. 3. Environmental Controls o Odor containment measures (sealed packaging, HVAC filtration). o Strict compliance with Minnesota Dept. of Health/Office of Cannabis Mgmt. regulations. 4. Traffic & Parking o Operations generate limited daily traffic, consistent with industrial use. o Parking demand well below historical 10% office allocation. Precedent & Community Benefit • The City has previously approved innovative industrial tenants at this site, including Saltbox and Portal Warehousing. • Market data shows strong industrial demand and low vacancy (3.9% metro, 2.9% northeast submarket)—flexibility is key to keeping the site occupied and contributing to tax revenue. • Without tenant flexibility, the property risks prolonged vacancy, undermining both city goals and district vitality. Conclusion The Applicant respectfully requests CUP approval for up to 50% of the Arden Hills Business Center's rentable area to be leased or subleased to licensed THC distributors. This CUP formalizes a controlled, professional, non -retail industrial use that is consistent with the District's business/employment character while incorporating clear safeguards to address security, traffic, parking, and neighborhood compatibility. This use: • Meets the intent of the GB District by supporting economic vitality with controlled, professional operations. • It imposes no greater impact than existing warehousing tenants. • Provides regulatory, security, and operational assurances to protect city interests.