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ARDEN HILLS SPECIAL PLANNING COMMISSION – December 10, 2025 2 <br /> <br />operator of the building in 2024 and has been operating under the same flexible warehousing <br />business model operated by Saltbox. Portal handles the on-demand logistical services for receipt <br />and delivery of packages and/or products and provides order fulfillment assistance to small <br />business owners. Products arrive at the loading dock(s) and the on-site logistics staff ensure <br />items are delivered to individual suites or to secure warehouse space. Approximately one half of <br />the warehouse is unoccupied. The Applicant purchased the property early in 2025. <br /> <br />Community Development Director Reilly explained at the October 27, 2025, work session <br />meeting, the City Council reviewed a concept plan for Portal to operate a cannabis warehouse <br />operation in addition to the existing flexible warehouse and office suites offered in the building. <br />The legalization of adult use cannabis by the State Legislature offers a new market for <br />warehousing pre-packaged cannabis products for wholesale distribution. The Applicant seeks to <br />offer similar flexible warehouse spaces to cannabis wholesalers and Portal will continue to <br />coordinate operations at the site. The discussion at the Council work session revolved around the <br />operations of the building, the number of jobs, and vehicle circulation. <br /> <br />Community Development Director Reilly reviewed the Site Data, the Plan Evaluation and <br />provided the Findings of Fact for review: <br /> <br />1. The subject property located at 4440 Round Lake Road is zoned GB, Gateway Business <br />Zoning District and is designated for office and industrial use in the 2040 Comprehensive <br />Plan. <br />2. Cannabis, wholesale is a conditional use in the GB Gateway Business Zoning District. <br />3. A state license is required for each wholesaler. <br />4. The Applicant, Hempel Real Estate, dba HRE Arden Hills, LLC is the sole owner of the <br />property and applied for a conditional use permit for cannabis wholesale operations at the <br />site. <br />5. The Applicant’s site plan shows sufficient parking for 10% office and 90% warehouse <br />use, a use that continues an existing legal nonconforming use. <br />6. The Applicant’s narrative notes the specifics of the proposed business, including the <br />sourcing of products and customer and employee education, and indicates odor <br />suppression, security, and licensing as required by state law will be followed. <br />7. The materials submitted show adequate circulation on site to prevent adverse effects to <br />the surrounding neighborhood or the community as a whole. <br />8. Standards and conditions in Section 1325.047 Cannabis Business Conditional Use Permit <br />are met. <br />9. Standards and conditions in Section 1320.06 District Requirements Chart (GB Gateway <br />Business District) are met. <br />10. Standards and conditions in Section 1325.06 - General Regulations, Off-Street Parking <br />Requirements are met, given the existing nonconforming nature of the site. <br />11. A public hearing for a Conditional Use Permit request is required before the request can <br />be brought before the City Council. The required public hearing was held on December <br />10, 2025. <br /> <br />Community Development Director Reilly stated suggested conditions of approval for Planning <br />Case 25-015 for a Conditional Use Permit to allow cannabis, wholesale at 4440 Round Lake <br />Road: <br /> <br />1. All existing and any future refuse/recycling containers on site must be enclosed prior to <br />issuance of the Conditional Use Permit.