4.4. PCSR 11-28-2023Request for Action
To Item Number
Planning Commission 4.4
Agenda Section Meeting Date Prepared by
Public Hearings November 28, 2023 Zack Carlton, Community Development Director
Item Description Reviewed by
City of Elk River Chris Leeseberg, Senior Planner
Ordinance Amendment Regulating Cannabis
Reviewed by
Growing, Processing, and Manufacturing,
Case No. OA 23-06
Action Requested
Open the public hearing, receive testimony, and continue the public hearing to December 19, 2023.
Background/Discussion
During the 2023 legislative session the state approved adult use recreational cannabis. The legislation requires the
state to establish an office of cannabis management, which will provide guidance for implementation of the new
legislation. This office is not expected to begin licensing cannabis operations until early 2025, but the city should
begin discussions on how to regulate the new industry.
Staff have begun receiving inquiries regarding cannabis manufacturing and sales. Having a framework in place well
in advance of the state’s capacity to issue licenses allows staff to better answer future inquiries.
The first component of the industry that the city will address is the growing, processing, and manufacturing of
cannabis and cannabis products. The use, while agricultural in nature, may be more closely related to light
manufacturing uses than agricultural and could be regulated as such.
Staff recommends permitting the growing and manufacturing of cannabis as a conditional use in all of the city’s
industrial districts. Staff also recommends requiring all commercial scale growing operations to take place within a
greenhouse or other structure.
State statute included the following definitions for cannabis growing/cultivating and manufacturing:
Cannabis cultivator. A cannabis cultivator can grow cannabis plants within the approved amount of space from seed to
immature plant to mature plant, harvest cannabis flower, package and label immature cannabis plants and seedlings and cannabis
flower, and transport cannabis flower to cannabis manufacturers.
Cannabis manufacturer. A cannabis manufacturer may purchase cannabis flower, cannabis products hemp plant parts,
hemp concentrate, and artificially derived cannabinoids from a cannabis business, purchase hemp plants and hemp concentrates,
make cannabis hemp concentrate, manufacture artificially derived cannabinoids, manufacture adult-use cannabis products, lower-
potency hemp edibles, and hemp derived consumer products, and sell cannabis concentrate, hemp concentrate, artificially derived
cannabinoids, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to other cannabis businesses.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
The city may want to consider combining these uses into one coherent definition for city ordinance purposes. The
definition could allow these uses together, consolidating the growing and manufacturing operation, or separately.
The state will still need to license the uses according to state law.
The primary consideration for these uses, in addition to the standard industrial operation considerations of traffic,
access, noise, etc., would be odor. Cannabis has a distinct odor and venting the growing and processing operation
outdoors may create compatibility concerns with nearby uses. The Planning Commission should discuss possible
setback and location standards to buffer the use from residential areas.
As this use is a new industry for the city, and to a large degree the state, staff recommends holding the public
hearing to receive feedback from the public, discussing the amendment in an open meeting, and continuing the
discussion to the December 19, 2023, regular meeting. Staff will take the Commission’s feedback and return with
an ordinance for further discussion and adoption.
Financial Impact
None
Mission/Policy/Goal
Support the growth and development of the business community
Attachments
None