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At the October 27, 2025, work session meeting, the City Council reviewed a concept plan for Portal to operate a cannabis warehouse operation in addition to the existing flexible warehouse and office suites offered in the building. The legalization of adult use cannabis by the State Legislature offers a new market for warehousing pre -packaged cannabis products for wholesale distribution. The Applicant seeks to offer similar flexible warehouse spaces to cannabis wholesalers and Portal will continue to coordinate operations at the site. The discussion at the Council work session revolved around the operations of the building, the number of jobs, and vehicle circulation. 2. Existing Site Conditions 4440 Round Lake Rd. is zoned GB, Gateway Business District. In addition, the parcel abuts Round Lake which is subject to applicable shoreland regulations as a riparian lot. Under the 2040 Comprehensive Plan, the property is guided as Light Industrial and Office use. Light Industrial and Office uses are areas designated for a broad range of light industrial uses such as warehousing with manufacturing and related offices. According to the 2040 Comprehensive Plan, the expected share of uses within this area are 50 percent to 100 percent Light Industrial or up to 100 percent Office. Over the years, the property has been used continuously for office and warehouse uses. The previous occupant was Deluxe Corporation. The historical uses of the property are allowed to continue as legal nonconforming uses so long as there is no intensification or expansion of said use. In 2004, it was documented that the distribution of uses within the building to be supported by the current parking supply would be no greater than 10% office (11,356 sq. ft.) and 90% warehouse (102,209 sq. ft.). 3. Site Data 2040 Future Land Use Plan: I Light industrial/office use Existing Land Use: Light industrial/office use Zoning: GB Gateway Business District Lot Size: 358,036 square feet (8.2 acres) 4. Proposed Use The Applicant submitted an application for a CUP to allow a cannabis warehouse use on the Subject Property for the storage and distribution of adult recreational use cannabis products. The company's business activities are related to receipt, storage, and business -to -business distribution of adult -use cannabis products. The Applicant states that the intent is to approve the building for that use (with conditions) so individual businesses can occupy suites under the CUP rather than filing separate land use requests each time a new user leases space. The Applicant and Operator confirm that each business will be required to obtain and provide proof of a state license. The Applicant confirms that products will be transported and sold only to businesses and there will be no retail, no walk-in sales, no on -site consumption, no exterior storage, and all operations will occur indoors at typical warehouse/logistics intensity. The Applicant also confirms that the building will be renovated as needed to ensure sufficient odor containment and security controls Page 2 of 10