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3550 Hoffman Road – Cannabis Microbusiness CUP Request Gem Lake Planning Commission Meeting 1/06/2026 December 30, 2025 Page 4 existing garage for secure storage”.” 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 governing cannabis microbusinesses, environmental controls, public safety 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 has received Preliminary Approval from the State of Minnesota’s Office of Cannabis Management for a Microbusiness Cannabis License (MICRO-A25-001329) for cultivation and growing of cannabis and is not seeking a retail endorsement as they do not have any plans to open a retail location in the future. 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 will be consistent with all regulations set forth in Ordinance 147 with conditions. • Section 3.1 requires all cannabis businesses to register with the City of Gem Lake. The applicant shall register with the City of Gem Lake as a condition of approval. 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 and staff should issue a formal letter stating the situation and status of the registration. • 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. • Section 4.3 restricts retail sale to hours of operation Monday – Sunday, 10:00 am – 9:00 pm. The applicants is not proposing retail sale of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products “in accordance with City Ordinances.” The applicant would require a retail endorsement and this restriction would apply if there was an interest in retail sales. • Section 4.4 permits up to two fixed signs on the exterior of the building or property of the business. The applicant will be required to apply for sign permits for any desired signage and comply with this requirement. • 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 the microbusiness. 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