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3550 Hoffman Road – Cannabis Microbusiness CUP Request Gem Lake City Council Meeting 1/20/2026 January 12, 2026 Page 5 • 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 State Statute requires cannabis businesses to “maintain a ventilation and filtration system sufficient to meet the requirements for odor control.” 3. Traffic Generations; and The applicant states that existing on-site parking for the floral business will be utilized and that traffic patterns will not change significantly with the addition of transportation of raw materials or inputs and harvested product from the site. The applicant states the only shipment will be from this site to their processing facility in Blaine, MN which is expected to happen quarterly based on the growing schedule, and be transported in a secure van. 4. Public Safety and Health; and The applicant address safety in their narrative. A summary is provided following this section. 5. Area Aesthetics; and There are no proposed exterior modifications or additions at this time. 6. Economic Impact on the Entire Area; and A new business in the area would be expected to impact the local economy in a neutral or positive manner. 7. Consistency with the Comprehensive Municipal Plan; and