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HomeMy WebLinkAbout11.18.24 Work Session Packet AGENDA Council Work Session Meeting 5:30 PM - Monday, November 18, 2024 Farmington City Hall Page 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS Cannabis Legislation and Regulations Review the attached information and provide direction regarding the proposed draft ordinance language. Agenda Item: Cannabis Legislation and Regulations - Pdf 2 - 8 4. CITY COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN Page 1 of 8 COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Tony Wippler, Planning Manager Department: Community Development Subject: Cannabis Legislation and Regulations Meeting: Joint Planning Commission and City Council Work Session - Nov 18 2024 INTRODUCTION: The intent of the joint work session is to continue to discuss draft code language as it relates to the new cannabis legislation and regulations. DISCUSSION: Attached, for Council's and Planning Commission's information and review, is a memorandum from HKGi that outlines the draft cannabis code language and provisions being proposed. The proposed language is based on feedback that was provided by the Planning Commission and City Council at the various meetings and work sessions that were previously held regarding this topic. As the City Council and Planning Commission are aware, on July 1st of this year, the City enacted a moratorium prohibiting the operation of cannabis businesses within Farmington. This moratorium is set to expire on January 1, 2025. It is the intent of staff to have updated ordinance language in place that regulates cannabis business by the end of this year. BUDGET IMPACT: Not applicable ACTION REQUESTED: Review the attached information and provide direction regarding the proposed draft ordinance language. ATTACHMENTS: 20241118_meeting memo Page 2 of 8 HKGi 800 Washington Ave N Suite 103, Minneapolis, Minnesota 55401 (612) 338-0800 | www.hkgi.com WORKSESSION MEMO TO:City of Farmington Planning Commission and City Council FROM:Rita Trapp and Beth Richmond, Consulting Planners DATE:November 14, 2024 SUBJECT:Cannabis Legislation and Regulations MEETING DATE:November 18, 2024 OVERVIEW In 2023, the Minnesota Legislature approved a new law to expand the legalization of THC and certain types of cannabis products, as well as to permit different types of cannabis businesses. Cities have discretion in creating zoning standards and may set “reasonable restrictions” on the time, place, and manner of each type of cannabis use. Cities will need to examine their zoning regulations and make amendments to the existing city code in order to accommodate these uses, possibly creating new definitions, standards, and interpretations. The City of Farmington has hired HKGi to assist with developing the City’s cannabis regulations. Cannabis regulations were discussed at worksessions with the Planning Commission and City Council in October and November. Discussion at previous worksessions was focused on how and where to allow each type of cannabis use and on the types of use standards that should be required, including buffering and hours of operation. HKGi has incorporated the direction from the joint worksession into the draft Code language below. Comments from the Planning Commission’s November worksession discussion are also incorporated below. DRAFT REGULATIONS Based on the direction received at the October worksessions, the following draft cannabis regulations are proposed. Definitions Draft definitions to be added to Section 10-2-1 of the zoning code include: CANNABIS CULTIVATION. A use involving the licensed growing and harvesting of cannabis. CANNABIS OR HEMP MANUFACTURING. An establishment or use of land which involves the compounding, processing, packaging, wholesaling, testing, treatment, transportation, or delivery of cannabis or hemp products. CANNABIS RETAIL. A licensed establishment where cannabis flowers, immature cannabis plants and seedlings, and related products as allowed by law are sold to individual consumers who are at least 21 years of age. LOWER POTENCY HEMP EDIBLE RETAIL. A licensed establishment where lower-potency hemp edible products are sold to individual consumers who are at least 21 years of age. Page 3 of 8 Worksession Memo – Cannabis Legislation and Regulations – November 18, 2024 2 Uses and Districts Cannabis uses licensed by the state can be separated into different categories, including indoor and outdoor cultivation, manufacturing, cannabis retail, and lower potency hemp edible retail. Each cannabis use must be allowed somewhere in the City. The proposed table reflects the discussion at the joint worksession. The Planning Commission has reviewed and is comfortable with where uses are proposed. Proposed Cannabis Uses A-1 B-1 B-2 B-3 SSMU MUCI MUCR I P/OS Cannabis cultivation, outdoor C Cannabis cultivation, indoor C C C Manufacturing (cannabis and hemp) *includes wholesale, transportation, and delivery C C Cannabis retail C C C C C Lower potency hemp edible retail C C C C C During the November worksession, Commissioners noted an interest in exploring the potential establishment of standards for consumption of cannabis in public spaces like parks, sidewalks, etc. The City does not currently have standards or restrictions on smoking in public spaces today. If desired, this language would not be incorporated into the Zoning Code. Councilmembers and Commissioners should provide direction if this is something that should be added to the City Code as part of the cannabis-related updates that are in progress. Standards Cannabis uses are proposed to be conditional uses in Farmington. This means that each use would be required to meet the standards for conditional uses found in Section 10-3-5 of the Zoning Code. These standards are attached to this memo for reference. Commissioners should note that if a use meets the standards listed in the Code, then the City is obligated to approve the CUP request. The City may create additional standards related to the time, place, and manner of certain cannabis uses if desired. The following standards were discussed at the joint worksession and are proposed for cannabis uses: •After discussion, the general consensus was to not require buffers from schools, daycares, parks, or residential treatment facilities for any cannabis uses. The Planning Commission is comfortable moving forward with this course of action. •The direction seems to continue to be that the City should follow the retail limit standard as outlined in state statues, which is “The City shall limit the number of cannabis retail businesses in the City to no more than one business per 12,500 residents.” This amounts to a maximum of two businesses based on the City’s current population. Councilmembers and Commissioners are advised that this would be in additional to a municipal retail operation if one is established. The Planning Commission concurred with including this limit. •The proposed hours of operation would be: o Hours of operation for cannabis retail uses shall be between 8:00am and 10:00pm Monday to Saturday and between 10:00am and 9:00 pm on Sundays. o Lower potency hemp edible retail uses shall be prohibited between the hours of 2:00am and 8:00am Monday to Saturday and between 2:00am and 10:00am on Sundays. Page 4 of 8 Worksession Memo – Cannabis Legislation and Regulations – November 18, 2024 3 These hours were designed to match as closely as possible to the hours for off-sale and on-sale liquor in the City, respectively, while still adhering to the state’s requirements for hours of operation for cannabis businesses. The hours proposed for lower potency hemp match the state’s hours requirements exactly. The Planning Commission concurred with including this limit. •In addition to the standards listed above, the City may choose to create additional standards for certain cannabis uses. o Site security Commissioners expressed interest in further exploring a standard around security. As part of the licensing process by OCM, applicants will need to provide a security plan. The first draft of the proposed OCM cannabis rules indicate that safety measures must consist of an alarm system, video surveillance, lighting, locks, and an immediate response protocol that meet specific requirements. The rules also reference the need for policies around worker access and unauthorized access, and additional requirements for outdoor cultivation and transportation. To assist Councilmembers and Commissioners in determining the desired standard, the following are examples from other communities: ▪Site, ventilation, and building security plans must be submitted to the City for review and must be compliant with applicable state rules. ▪Security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products shall be implemented and maintained as shown on a City-approved security plan. ▪Security: •Burglary alarm systems with audible and police notification components that are professionally monitored and maintained in good working condition shall be installed on all doors, windows, and access points. •Surveillance cameras shall be installed and operate twenty-four (24) hours a day, seven (7) days a week, with thirty (30) day video storage, to monitor all entrances and trash receptacles, along with the interior and exterior of the premises shall be required. •Exterior lighting shall be required sufficient for observers to see and for cameras to record, that is either constantly on or activated by motion detectors, subject to the requirements of section 11-16-17 of this title •Deadbolt locks shall be installed and utilized on all exterior doors and locks shall be installed on all other windows or access points. •Further security requirements above and beyond the minimum-security requirements imposed by State regulations based on the unique circumstances associated with a particular cannabis business, as imposed by the City Council. o Outdoor storage Precedents from other communities indicate that some cities are prohibiting outdoor storage. The following are examples of regulations that have been used: ▪Outdoor storage shall be prohibited on site. ▪All uses and activity shall be conducted indoors, with no storage or outdoor activity allowed. o Licensing Page 5 of 8 Worksession Memo – Cannabis Legislation and Regulations – November 18, 2024 4 An option discussed by Staff after the last Planning Commission meeting was the inclusion of a broader statement that requires a business to meet or comply with their license requirements. This language would reinforce the City’s expectation that license requirements are followed in order for a conditional use permit. ▪A cannabis business must provide evidence of a state license under Minnesota Statues, section 342.14 and all applicable state laws and regulations. ▪All cannabis businesses must be in compliance with the provisions of the Zoning Code, of the City Code, and all applicable state laws and regulations related to the operation of the cannabis business. Attachments - City Code Section 10-3-5 CUP Criteria Page 6 of 8 Worksession Memo – Cannabis Legislation and Regulations – November 18, 2024 5 City Code 10-3-5 Conditional Uses (C) A conditional use shall be approved if it is found to meet the following criteria: 1. The proposed use conforms to the district permitted and conditional use provisions and all general regulations of this title. 2. The proposed use shall not involve any element or cause any conditions that may be dangerous, injurious or noxious to any other property or persons and shall comply with the performance standards listed below. 3. The proposed use shall be constructed, designed, sited, oriented and landscaped to produce harmonious relationship of buildings and grounds to adjacent buildings and properties. 4. The proposed use shall produce a total visual impression and environment which is consistent with the environment of the neighborhood. 5. The proposed use shall organize vehicular access and parking to minimize traffic congestion in the neighborhood. 6. The proposed use shall preserve the objectives of this title and shall be consistent with the comprehensive plan. (D) All conditional uses shall comply with the requirements of this section. In order to determine whether a proposed use will conform to the requirements of this title, the board of adjustment may obtain a qualified consultant to testify. Said consultant service fees shall be borne by the applicant. 1. Fire prevention and fighting equipment acceptable to the board of fire underwriters shall be readily available when any activity involving the handling or storage of flammable or explosive material is carried on. 2. No activity shall cause electrical disturbance adversely affecting radio or other equipment in the vicinity. 3. Noise which is determined to be objectionable because of volume, frequency, or beat shall be muffled or otherwise controlled, except for fire sirens and related apparatus used solely for public purpose shall be exempt from this requirement. 4. Vibrations detectable without instruments on neighboring property in any district shall be prohibited. 5. No malodorous gas or matter shall be permitted which is discernible on any adjoining lot or property. 6. No pollution of air by fly ash, dust, smoke, vapors or other substance shall be permitted which is harmful to health, animals, vegetation or other property. 7. Lighting devices which produce objectionable direct lighting or reflect glare on adjoining properties or thoroughfares shall not be permitted. 8. No erosion by wind or water shall be permitted which will carry objectionable substances onto neighboring properties. 9. Water pollution shall be subject to the standards established by the Minnesota pollution control agency. 10. Applications for conditional uses in the floodplain districts shall be accompanied by reports from the city engineer on the following material as supplied by the applicant: Page 7 of 8 Worksession Memo – Cannabis Legislation and Regulations – November 18, 2024 6 (a) Site plans indicating existing and proposed structures, fill, material storage, floodproofing measures and their relationship to the stream channels. (b) Typical valley cross sections through the site, indicating the elevation of land areas adjoining each side of the channel, landform changes proposed on the site together with high water information. (c) Soils maps, topographic maps at a two foot (2') contour interval, vegetative cover plus the location and elevation of streets, water supply and sanitary facilities. (d) Profile showing the slope of the bottom of the stream channel. (e) Specifications for building construction and materials, floodproofing, filling, dredging, grading channel improvement, material storage, water supply and sanitary facilities. (f) Plans showing the floor protection measures to be taken in accordance with this section. (g) An analysis of the above information by a registered professional engineer which includes the following: (1) An estimate of the peak discharge of the regional flood. (2) The water surface profile of the regional flood based upon a hydraulic analysis of the stream channel and over bank areas. (3) The effect of the proposed encroachment on the stage and velocity during the regional flood event. Page 8 of 8