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1599 County Road E East – Cannabis Microbusiness CUP Request Gem Lake City Council Meeting 11/10/2025 November 3, 2025 Page 3 EVALUTION OF THE REQUEST The applicant “proposes to operate a state-licensed adult-use marijuana dispensary.” They state that the “use will fully comply with Minnesota State Statue Chapter 342, applicable rules adopted by the Office Cannabis Management, and all local ordinances and licensing requirements established by the City and State.” Cannabis Microbusiness is defined as, “A business licensed to operate as a ‘cannabis microbusiness’ by the Minnesota Office of Cannabis Management, pursuant to Minnesota Statutes, Chapter 342.28. “Cannabis Microbusiness” includes up to 13 different more specific uses as defined in state statute. The applicant states that they will be receiving retail endorsement only. There will be no growing, harvesting, processing, or packaging of cannabis or hemp products on site. Additionally, they will not be receiving an onsite consumption endorsement; therefore, any on site use of cannabis or hemp products is prohibited. Ordinance 147. Cannabis Business Adopted by City Council on January 21st, 2025, the purpose of Ordinance 147 “is to implement the provisions of Minnesota Statutes, Chapter 342, which authorizes the City of Gem Lake to protect the public health, safety, welfare of Gem Lake residents by regulating cannabis businesses within the legal boundaries of the City of Gem Lake.” The application appears to be consistent with all regulations set forth in Ordinance 147. x Section 3.1 requires all cannabis businesses to register with the City of Gem Lake. The business owner applied for registration on July 16th, 2025, and was issued registration on August 1st, 2025. This registration is invalid due to the lack of proper zoning approval as required by Section 3.2 of Ordinance 147. a compliance check in section. If the CUP is approved, the registration will be placed into effect. Staff should issue new registration, signed and dated accordingly. If the CUP is denied, the registration will be officially revoked. Staff should issue a formal letter stating the situation and status of the registration. x Section 4.1 outlines the minimum buffer requirements for a cannabis business. The proposed location is not located within any of the prohibited buffer areas. x Section 4.3 restricts retail sale to hours of operation Monday – Sunday, 10:00 am – 9:00 pm. The applicants indicate a desire to be open Monday – Sunday and have open hours “in accordance with City Ordinances.” The applicant would be required to adhere to these hours if granted a CUP. x Section 4.4 permits up to two fixed signs on the exterior of the building or property of the business. The applicant is currently in compliance with this requirement. x Section 8 states that “No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place or a place of public accommodation unless the premises is an establishment, or an event licensed to permit on-site consumption of adult-use.” The applicant is not applying for an onsite consumption endorsement. This activity would be prohibited if granted a CUP for retail only. Ordinance 131. Consolidated Land Use Ordinance Section 17.5 regulates Conditional and Interim Use Permit processes. When reviewing a request eight (8) criteria should be reviewed by the Council. Below are the criteria in italics, followed by information from the application and staff review. All eight (8) criteria are met. 1. Adjacent Uses; and The use is permitted by Ordinance 147 in this location (Gateway, Neighborhood Center). The business is not located within any restricted buffer areas. 2. Air and Water Quality; and