Review proposed Cannabis Ordinances

Discussion/Direction

The state legislature legalized cannabis in 2023. According to the legislation, the state is primarily responsible for regulation, while the city's authority to regulate cannabis is limited. The city has authority to:
 
(1) register retail businesses
(2) set zoning regulations within state limitations
(3) regulate the use of cannabis in public spaces
 
Ordinances have been drafted addressing these subjects. The zoning ordinance must be referred to the planning commission for consideration before consideration by the City Council. We are proposing the following schedule for consideration:
 

October 28	Work Session Review of Ordinances
November 12	Call for Public Hearing re Ordinance Consideration on November 25
November 20	Planning Commission Consideration of Zoning Ordinance
November 25	Council Holds Public Hearing re Ordinance

Following adoption of the ordinance, in accordance with our Charter, the city will publish the ordinance which shall become effective at the expiration of 30 days after adoption.
 
There are three ordinances for consideration. For the zoning ordinance, we are summarizing the proposed changes vs. reviewing the entire code.
 
Special Events
Attached is a draft code that regulates cannabis events. We are required by law to allow events, but are allowed to regulate the time, place, and manner of the events. Staff is recommending:
 

• A prohibition of cannabis events on public property and within 1,000 feet of a school or within 500 feet of a daycare, residential treatment facility, or an attraction within a public park that is used by minors
• That no consumption of cannabis may take place during the event

 
The City may consider language that limits the time of day for the events.
 
Registration
Because cities are required to complete an annual inspection of cannabis retailers and lower potency hemp edible retailers, staff is recommending that the City register all the individuals we are required to inspect. The draft ordinance provides for the following:

• Cannabis retail businesses must register with the City and be compliant with our zoning laws.
• Cannabis retail businesses may operate within the hours between 10 a.m. and 9 p.m.
• No registration is required for medical cannabis businesses.
• No lower-potency hemp edible retailers may operate a moveable place of business.

 
Zoning
In the legislation legalizing cannabis, the City of Mankato is required to determine which zoning districts cannabis related businesses are allowed to operate. The legislation prohibits cities from excluding cannabis-related businesses from the City. The cannabis related activities include:

• Retail
• Transportation and delivery service for cannabis items
• The cultivation/growing of cannabis
• Manufacturing, processing, testing, and wholesale
• On-site consumption of edible cannabis products and lower-potency hemp edibles

Sales and accessory sales of Low Potency Edibles is listed as a permitted use in each commercial zoning district (CBD-C, CBD-F, B-1, B-2, and B-3). 

The proposed ordinance allows cannabis retail businesses and delivery service providers as permitted uses in B-3, Highway Business zoning district. This area is least impacted by the distance/buffering regulations (listed below). 
 
Businesses engaged in wholesale would be permitted in the B-2, General Business District, PI, Planned Industrial District, M-1, Light Industrial, and M-2, Heavy Industrial Districts.
 
Cultivation of cannabis will be allowed in the PI, Planned Industrial District, M-1, Light Industrial, and M-2, Heavy Industrial Districts (uses allowed in the PI and M-1 Districts are listed as permitted uses in the M-2).
 
Manufacturing, processing, testing, and transportation would be allowed uses in the M-1, Light Industrial, and M-2, Heavy Industrial Districts.
 
Cities are allowed to buffer cannabis-related businesses from schools, daycares, residential treatment facilities, and public parks used by minors, including a playground or athletic field. The proposed ordinance includes buffers of 1,000 feet from a school or 500 feet from a daycare, residential treatment facility, or public park that is used by minors. The zoning ordinance refers to the distances that are included in Chapter 5.
 
Cannabis related businesses shall comply with all other requirements of the zoning ordinance including for signage, parking, setbacks and height, floor area ratio, building design, and performance standards (lighting, noise, etc.).