5.2. PCSR 12-19-2023Request for Action
To Item Number
Planning Commission 5.2
Agenda Section Meeting Date Prepared by
Public Hearings December 19, 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 23-04 ~ continued from 11-28-2023
Action Requested
Hold the public hearing, receive testimony, and discuss the draft ordinance. The Commission may recommend
moving the current draft forward to the City Council or direct staff to make additional changes and return with an
update on January 23, 2024.
Background/Discussion
Staff have continued their research into an ordinance regarding the regulations for cannabis cultivators and
manufacturers. The Commission’s consensus and guidance is described below:
Indoor manufacturing/growing only.
Light and Medium Industrial (I1 & I2) only – perimeter of site must be 1,000 from homes/schools.
Full warehouse or hybrid greenhouse operation.
CUP process can address noise, sound, light, odor mitigation, and other concerns.
Closed setting (no public).
Compliance reports/inspections/police reports not required.
Manufacturing separate from retail sales.
The attached ordinance describes the regulated uses, permitted zoning districts, and the application process. Staff
are also continuing the conversation with the city attorney to understand any overlaps between the recently
approved state legislation and the draft ordinance.
The public hearing remained open after the November 28, 2023, meeting and the Commission should again
receive public feedback. If the commission is comfortable making a recommendation on the current ordinance,
the Commission should close the hearing prior to making that recommendation. Alternatively, if the Commission
would like to see additional updates to the current ordinance, staff recommend leaving the hearing open to
continue to receive public feedback on the draft ordinance.
Financial Impact
None
Mission/Policy/Goal
Support the growth and development of the business community
Attachments
Planning Commission Packet dated November 28, 2023
Draft Cannabis Ordinance
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and
community engagement that encourages and inspires prosperity.
Request 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 toDecember 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 toregulate the new industry.
Staff have begun receiving inquiries regarding cannabis manufacturing and sales. Having a framework in place well
in advance of the state’scapacity 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 aconditional 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 beodor. 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 tobuffer the use from residential areas.
As this use is a new industry for the city, and to alarge degree the state, staff recommends holding the public
hearing to receive feedback from the public, discussing the amendment inan open meeting, and continuing the
discussion to the December 19, 2023, regular meeting. Staff will take the Commission’sfeedback 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
Definitions
"Adult-Use Cannabis" means Cannabis and Cannabis Products intended for consumption by adults
21 and over, and that is not Medicinal Cannabis.
"Indoor commercial cultivation" includes, but is not limited to, commercial cultivation of cannabis
within a building, structure, greenhouse, or hoop house. Cultivation shall include the growing,
drying, processing, and packing of whole flower cannabis products.
"Outdoor commercial cultivation" means commercial cultivation of cannabis that meets both of the
following criteria:
(a) The cannabis is cultivated without the use of any light deprivation, any artificial lighting, or
any supplemental low-intensity lighting.
(b) The cannabis is cultivated outdoors, and it is not cultivated within a building, structure,
greenhouse, or hoop house.
"Commercial cannabis activity" means any of the following: the retail sale of cannabis or cannabis
products, the commercial cultivation of cannabis, the manufacturing of cannabis or cannabis
products, cannabis testing, and the distribution of cannabis or cannabis products.
"State license" or "license" means a license issued by the Minnesota Office of Cannabis
Management.
30-xx Purpose and authority.
(a) The purpose of this chapter is to regulate the personal cultivation of cannabis, and the
commercial cultivation, distribution, transportation, storage, manufacturing, processing, and
sale of medical cannabis and medical cannabis products, and of adult-use cannabis and adult-
use cannabis products.
(b) This chapter regulates the location of commercial cannabis activities and regulates the business
operations of commercial cannabis activities.
(c) The requirements of this chapter are in addition to any other applicable requirements of this
code and all applicable state laws and regulations.
30-xx Prohibited activities.
(a) Commercial cannabis activities not expressly authorized by this chapter are prohibited in all
zoning districts.
(b) Outdoor Commercial Cultivation
30-xx Exemptions from permitting requirements.
(a) Personal Cultivation.
(1) A permit under this chapter is not required for a person twenty-one years of age or older
to cultivate six or fewer cannabis plants at a private residence, or inside a fully-enclosed
and secured accessory structure to a private residence located on the grounds of the
private residence, if all of the following conditions are met.
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(A) The private residence or accessory structure, and all lighting, plumbing, and electrical
components used for cultivation, must comply with all applicable zoning, building,
electrical, and plumbing codes and permitting requirements.
(B) All living cannabis plants cultivated indoors may not be visible from an adjacent
property, right-of-way, street, sidewalk, or other place accessible to the public.
(C) The private residence must be lawfully occupied by the person twenty-one years of
age or older who cultivates the cannabis plants within the private residence or within
the accessory structure. If the private residence is not owner-occupied, written
permission from the owner of the private residence must be obtained before
cannabis plants may be cultivated.
(D) Notwithstanding anything to the contrary cannabis plants cultivated under this
subsection (a)(1) may be cultivated outdoors on the grounds of a private residence, if
all of the following conditions are met.
(i) The edge of each cannabis plant canopy must be at least ten feet away from
property lines of the lot on which the private residence is located.
(ii) No cannabis plant may exceed a height of five feet above ground level.
(iii) No cannabis plant may be visible from a right-of-way, street, sidewalk, or other
place accessible to the public.
(iv) All cannabis plants cultivated outdoors must be enclosed by fencing, and all gates
and other points of entry to the outdoor growing area must be locked at all
times.
30-xx Permit application requirements.
(a) Requirements for All Applications. Each person applying for a permit authorizing commercial
cannabis activities under this chapter shall include the following information in the permit
application:
(1) The type of State license that the applicant will obtain.
(2) Proof of ownership of the property where the business will be located. If the applicant is
not the owner of the property where the business will be located, written authorization
from each owner of the property that is the subject of the application consenting to the
application and the operation of the proposed commercial cannabis activity on the subject
property.
(3) The address and PID of the property or properties where the business will be located.
(4) The name and address of the person or entity responsible for the operation of the
commercial cannabis activity.
(5) Site plans, floor plans, conceptual improvement plans, and a general description of the
nature, size, and type of commercial cannabis activities being proposed.
(6) An operating plan that includes all of the following information:
(A) Proposed hours of operation.
(B) Waste disposal information.
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(C) A record keeping policy that ensures records will be kept in accordance with State
laws and regulations.
(D) Sustainability measures that will be utilized at the business, including water efficiency
measures, energy generation and efficiency measures, and high efficiency mechanical
systems.
(E) An odor control plan that describes how the business will prevent odors from
impacting neighboring parcels or creating a public nuisance.
(F) A parking plan that establishes how all off-street parking requirements will be met.
(G) A security plan that establishes how all security requirements in State laws and
regulations will be satisfied.
(H) Details regarding how cannabis and cannabis products will be received, stored,
handled, transported, and secured to prevent theft and trespass.
(b) Commercial Cultivation. In addition to the information required in subsection (a), an
application for a commercial cultivation permit must include in its operating plan information
describing how the requirements in Section 30-xx will be satisfied, and the following additional
information:
(1) A floor plan or site plan identifying the location, dimensions, and boundaries of all
proposed canopy areas, taking into account space needed for ongoing care of plants, and a
description of the proposed method of physically delineating those boundaries at the site.
(2) The application must include proof of water service availability from Elk River Municipal
Utilities or approvals documenting permitted well access.
(c) Cannabis Manufacturing. In addition to the information required in subsection (a), an
application for a cannabis manufacturing permit must include in its operating plan information
describing how the requirements in Section 30-xx will be satisfied, and the following additional
information:
(1) Information on products used in the manufacturing process, including the liquids,
solvents, and agents, used in the manufacturing process.
(2) Protocol for storing products used in the manufacturing process and a hazard response
plan.
30-xx Standards applicable to commercial cultivation.
The standards in this section and the standards in Section 30-xx apply to commercial cultivation
businesses.
(a) Location Requirements. Commercial cultivation may be located only in the following
zoning districts I-1 (Light Industrial) and I-2 (Medium Industrial).
(b) Indoor Commercial Cultivation. All indoor commercial cultivation must be conducted
within a building, structure, greenhouse, or hoop house. No indoor commercial
cultivation may be conducted indoors within a residential building or zoning district.
(c) Security. A commercial cultivation business must include security measures to both deter
and prevent unauthorized entrance into areas of the business used for cultivation,
including the following measures.
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(1) Indoor commercial cultivation areas must be locked, and no cannabis plants may be
visible from outside of the indoor commercial cultivation areas.
(2) Access to the premises must be limited to authorized personnel.
(3) The premises must include an alarm system and security cameras to monitor all
cultivation areas and all entryways. The alarm system and security cameras must be
monitored twenty-four hours per day by a licensed alarm company operator.
(d) Water.
(1) To the maximum extent feasible, water conservation measures, water recapture
systems, drip irrigation, raised beds, or grey water systems must be incorporated in
cannabis cultivation operations in order to minimize use of water.
(2) Water service for a commercial cultivation business must be provided by Elk River
Municipal Utilities.
(3) A commercial cultivation business may satisfy its water demand by pumping
groundwater from a well if all the following criteria are met:
(A) Elk River Municipal Utilities does not provide water service.
(B) The use of groundwater by the business will not substantially deplete
groundwater supplies, and will not substantially interfere with groundwater
recharge, such that there would be a net deficit in aquifer volume or a lowering
of the groundwater table level.
(C) The business uses groundwater in accordance with any applicable groundwater
sustainability plan adopted by a groundwater sustainability agency within which
the business is located.
(f) Size Limits.
(1) Indoor Commercial Cultivation.
(A) The total canopy size for indoor commercial cultivation may not exceed the lesser of:
(i) 50,000 square feet, or
(ii) The maximum size authorized by the State license for the business.
(h) Distribution. A commercial cultivation business that includes both cultivation and
distribution may transport its cultivated cannabis from its cultivation site to another
permitted and licensed business.
30-xx Standards applicable to cannabis manufacturing.
The standards in this section and the standards in Section 30-xx apply to cannabis manufacturing
businesses.
(a) Location. A cannabis manufacturing business may be located only within the following
zoning districts, I-1 (Light Industrial) and I-2 (Medium Industrial).
(c) Security. A cannabis manufacturing business shall implement and maintain sufficient
security measures to both deter and prevent unauthorized entrance into areas containing
cannabis or cannabis products, including an alarm system and security cameras that
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monitor all manufacturing areas and entryways and that are monitored twenty-four-hours
per day by a licensed alarm company operator.
(d) Products. A cannabis manufacturing business shall ensure that all manufactured cannabis
products are cultivated, transported, distributed, and tested by licensed and permitted
facilities that maintain operations in full conformance with State laws and regulations and
the applicable requirements of this chapter. A cannabis manufacturing business shall
maintain adequate quality control measures to ensure cannabis and cannabis products
manufactured at the site meet applicable requirements of State laws and regulations.
(g) Distribution. A commercial cannabis activity that includes both manufacturing and
distribution may transport its manufactured cannabis products from its manufacturing
business to another permitted and licensed business.
30-xx Permit conditions and issuance.
(a) The city may include, in a Conditional Use Permit issued under Sec. 30-xx, reasonable
conditions of approval related to the impacts of the commercial cannabis activity.
(b) All of the findings in Section 30-xx and all of the following findings must be made before a
permit is issued under this chapter:
(1) The application for commercial cannabis activities has been reviewed pursuant to all
appropriate environmental laws and regulations, including the Minnesota Office of
Cannabis Management.
(4) A finding that the permit includes conditions to avoid adverse impacts to surrounding
communities, neighborhoods, and sensitive receptors, including, but not limited to,
libraries and parks.
(5) A finding that the permit includes conditions to fully mitigate the effects of a commercial
cannabis activity that may pose a significant threat to the public or to neighboring uses
from explosion, or from the release of harmful gases, liquids, or substances. If any of
those threats cannot be fully mitigated, a permit under this chapter will not be issued for
the commercial cannabis activity giving rise to that threat.
(6) The applicant has entered into an indemnity agreement with the city.
30-xx Modification, suspension, and revocation.
A permit issued under this chapter may be modified, suspended, or revoked in the same manner as
other conditional use permits under Sec. 30-xx.
30-xx Enforcement.
The city may enforce this chapter by any remedy allowed under this code and any other remedy
allowed by law.
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