7.4 SR 01-16-2024Request for Action
To Item Number
Ma Tor and CinT Council 7.4
Agenda Section Meeting Date Prepared by
Public Hearings JanuaryT 16, 2024 Zack Carlton, Community Development Director
Item Description Reviewed by
Ordinance Amendment Cannabis Cultivation Chris Leeseber , Senior Planner
Reviewed by
Cal Pormer, Ci r Administrator
Action Requested
Adopt, byT motion, an ordinance defining and permitting cannabis cultivation.
Background/Discussion
Staff, the city attorne�T, and the Planning Commission reviewed the state standards for permitting cannabis
cultivators and recommend adoption of the attached ordinance.
The attached ordinance defines the use, allo`vs commercial cannabis cultivation and processing in the I-1 (Light
Industrial, and I-2 (Medium Industrial) districts as a conditional use, and clearlyr notes that the applicant and the
and use must meet all state requirements. The limited language in the defu�ition and use aYe indicative of the lead
the state will take in defining the parameters that these businesses may operate — securityr for example.
Planning Commission
The Planniug Commission held t�vo public hearings, first on November 28, 2023, and second on DecembeY 19,
2023, to solicit public feedback. No one spoke during either of the public hearings and no comments for or against
the Yequest have been Yeceived.
The commission had questions Yegarding the retail sale of cannabis. Staff noted that the topic will be discussed at a
later date and this approval will onl�r permit the commercial cultivation and processing of cannabis. Retail sales are
not defined nor permitted under the proposed ordinance. The Commission unanimously- recommended approval
of the attached ordinance.
Financial Impact
None
Mission/Policy/Goal
Support the growth and development of the business community
Attachments
Planning Commission Packet dated DecembeY 19, 2023
Ordinance Amendment
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
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Update�l• January 2023
Request for Action
To Item Number
Plannin Commission 5.2
Agenda Section Meeting Date Prepared by
Public Hearin s DecembeY 19, 2023 Zack Carlton, Communittr Develo ment DirectoY
Item Description Reviewed by
City- of Elk River Chris Leeseber , Senior Planner
■ Ordinance Amendment Regulating Cannabis Reviewed by
Growing, Processing, and Manufacturing.
Case No. OA 23-06 � continued ro�n >9-28-2023
Action Requested
Hold the public hearing, receive testimony, and discuss the draft ordinance. The Commission mayT recommend
moving the current draft forward to the CityT Council or directing staff to make additional changes and return with
an update on JanuaryT 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 hyTbrid 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 conrinuing the conversation with the city attorney to understand any overlaps bet�veen the recently
approved state legislation and the draft ordinance.
The public hearing remained open after the November 28, 2023, meering 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. AlternarivelyT, 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 gro�vth and development of the business communityT
The Elk River Vision
A �a�elco�ning colnlnunity 2arith Tevolutiona�y and spi�zted Tesourcefulness, excptional
se�vice, and co�n�nunity engagelnent that encou�ages and in��i�espzo��e�zty.
P o w E R E 0 e r
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Updated.• January 2023
Attachments
■ Planning Commission Packet dated November 28, 2023
■ Draft Cannabis Ordinance
Defnitions
"Adult-Use Cannabis" means Cannabis and Cannabis PYoducts intended foY consumption by adults
21 and over, and that is not Medicinal Cannabis.
"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, dryTing,
processing, and packing of whole flo`ver cannabis products.
"Outdoor commercial cultivation" means commercial cultivation of cannabis that meets both of the
follo�ving criteria:
(a) The cannabis is cultivated without the use of anyT light deprivation, anyT artificial lighting, or
any supplemental low-intensityT lighting.
(b) The cannabis is cultivated outdoors, and it is not cultivated �vithin a building, structure,
greenhouse, or hoop house.
"Commercial cannabis activityT" means anyT of the follo`ving: 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 authoriry.
(a) The purpose of this chapter is to Yegulate the personal culrivation of cannabis, and the
commercial cultivation, distribution, transportation, storage, manufacturing, processing, and
sale of inedical 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 an�T other applicable requirements of this
code and all applicable state laws and regulations.
30-xx Prohibited activities.
(a) Commercial cannabis activiries not expressly authorized by this chapter are prohibited in all
zoning districts.
(b) Outdoor Commercial Culrivation
30-xx Exemptions from permitting requirements.
(a� Personal Cultivation.
(1) A peYmit undeY this chapteY is not Yequired foY a peYson twent�r-one �reaYs of age oY o1deY
to cultivate six or fewer cannabis plants at a private residence, or inside a full�T-enclosed
and secured accessoryT 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 accessoryT structure, and all lighting, plumbing, and electrical
components used for cultivation, must complyT 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
propertyT, right-of-way, street, sidewalk, or other place accessible to the public.
(C) The private residence must be lawfully occupied byT the person twenty--one yTears 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, �vritten
permission from the owner of the private residence must be obtained before
cannabis plants mayT be cultivated.
(D) Notwithstanding anyTthing to the contraryT cannabis plants cultivated under this
subsecrion (a)(1) mayr be cultivated outdooYs on the gYounds of a private Yesidence, if
all of the following condirions are met.
(i) The edge of each cannabis plant canopy must be at least ten feet away from
pYopeYtyr lines of the lot on which the private Yesidence is located.
(ii) No cannabis plant may exceed a height of five feet above ground level.
(iii) No cannabis plant mayT be visible from a right-of-wayT, street, sidewalk, or other
place accessible to the public.
(iv) All cannabis plants cultivated outdoors must be enclosed byT fencing, and all gates
and other points of entr�r 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 follo`ving information in the permit
application:
(1) The t�rpe of State license that the applicant will obtain.
(2) Proof of o`vnership of the propert�T where the business `vill be located. If the applicant is
not the owner of the propert�T where the business �vill be located, written authorization
from each owneY of the propertyr that is the subject of the application consenting to the
application and the operation of the proposed commercial cannabis activityT on the subject
propertyT.
(3) The address and PID of the propertyT or properties `vhere the business will be located.
(4) The name and address of the person or entityT responsible for the operation of the
commercial cannabis activit�r.
(5) Site plans, floor plans, conceptual improvement plans, and a general description of the
nature, size, and tyTpe of commercial cannabis activities being proposed.
(6) An operating plan that includes all of the follo`ving information:
(A) Proposed hours of operation.
(B) Waste disposal information.
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(C) A record keeping policyT that ensures records will be kept in accordance `vith State
laws and regulations.
(D) Sustainability measures that `vill be utilized at the business, including water efficiency
measures, energyT generation and efficiencyT measures, and high efficiencyT mechanical
s�Tstems.
(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 securit�T plan that establishes how all securit�T requirements in State laws and
regulations will be satisfied.
(H) Details regarding ho`v 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 Yequirements in Section 30-xx will be satisfied, and the following additional
information:
(1) A flooY plan oY site plan identifying the location, dimensions, and boundaries of all
proposed canop�T areas, taking into account space needed for ongoing care of plants, and a
description of the proposed method of phyTsically delineating those boundaries at the site.
(2) The application must include proof of `vater service availabilityT 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 sarisfied, and the follo`ving 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 applyT to commercial cultivation
businesses.
(a) Location Requirements. Commercial cultivation ma�r be located onlyT in the following
zoning districts I-1 (Light Industrial) and I-2 (Medium Industrial).
(b) Indoor Commercial Culrivation. All indoor commercial cultivation must be conducted
��ithin a building, structure, greenhouse, or hoop house. No indoor commercial
cultivation mayT be conducted indoors `vithin a residenrial building or zoning district.
(c) SecurinT. A commercial cultivarion business must include securityT 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 mayT be
visible from outside of the indoor commercial cultivation areas.
(2) Access to the pYemises must be limited to authorized personnel.
(3) The premises must include an alarm sy-stem and securityT cameras to monitor all
cultivation areas and all entrywayTs. The alarm syTstem and securityT cameras must be
monitored twent�T-four hours per da�T byT a licensed alarm compan�T operator.
(d) Water.
(1) To the ma�mum extent feasible, wateY conservation measuYes, wateY recapture
syTstems, drip irrigation, raised beds, or greyT `vater syTstems must be incorporated in
cannabis cultivation operations in order to minimize use of water.
(2) Water service for a commeYcial culrivation business must be provided byr Elk RiveY
Municipal Utilities.
(3) A commercial cultivation business mayT satisfyT its water demand byT pumping
groundwater from a`vell if all the follo`ving criteria are met:
(A) Elk River Municipal Utilities does not provide water service.
(B) The use of groundwater by the business `vill not substantiallyT deplete
ground�vater supplies, and will not substantiall�T interfere with groundwater
recharge, such that there would be a net deficit in aquifeY volume or a lowering
of the groundwater table level.
(C) The business uses ground`vater in accordance `vith anyT applicable groundwater
sustainabilityT plan adopted byT a ground`vater sustainabilinT agencyT �vithin �vhich
the business is located.
(� Size Limits.
(1) Indoor Commercial Cultivation.
(A) The total canopy size foY indooY commeYcial cultivation may not exceed the lesseY o£
(i) 50,000 squaYe feet, or
(ii) The ma�mum size authorized byT the State license for the business.
(h) Distribution. A commercial culrivarion business that includes both cultivation and
distribution mayT 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 standaYds in Section 30-xx apply to cannabis manufacturing
businesses.
(a) Location. A cannabis manufacturing business may be located on1yT �vithin the follo�ving
zoning districts, I-1 (Light Industrial) and I-2 (Medium Industrial).
(c) SecurinT. A cannabis manufacturing business shall implement and maintain sufficient
securityT measures to both deter and prevent unauthorized entrance into areas containing
cannabis or cannabis products, including an alarm syTstem and securinT cameras that
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moiutor all manufacturing areas and entry�vayTs and that are monitored t�ventyT-four-hours
per dayT byT a licensed alarm companyT operator.
(d) Products. A cannabis manufacturing business shall ensure that all manufactured cannabis
products are cultivated, transported, distributed, and tested byT 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 qualit�r control measures to ensure cannabis and cannabis products
manufactured at the site meet applicable requirements of State la�vs and regulations.
(g) Distribution. A commercial cannabis activittT that includes both manufacturing and
distribution ma�T 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 PeYmit issued undeY Sec. 30-xx, Yeasonable
conditions of approval related to the impacts of the commercial cannabis activityT.
(b) All of the findings in Section 30-xx and all of the follo�ving findings must be made before a
permit is issued under this chapter:
(1) The application for commercial cannabis activities has been revie�ved pursuant to all
appropriate environmental laws and regulations, including the iVlinnesota 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 peYmit includes conditions to fully mitigate the effects of a commeYcial
cannabis activit�T 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 an�T of
those threats cannot be full�r mitigated, a permit under this chapter will not be issued for
the commercial cannabis activit�T giving rise to that threat.
(6) The applicant has entered into an indemninT agreement with the cityT.
30-xx Modifcation, 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-�.
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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cE1k�
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Ordinance 24 -
An Ordinance Amending Chapter, 30, Sections 30- I Definitions, and 30- I 292, I- I
Light Industrial District, of the City of Elk River, Minnesota, City Code
The City Council of the City of Elk River does herebyT ordain as follo�vs:
SECTION 1. That � 30-1, Definitions of the CityT of Elk River Code of Ordinances shall be
amended to add the following definition:
Co�n�ne�cial Cannal�is Cultivation means the cultivation of cannabis within a building, structure,
greenhouse, hoop house, or outdoors for commercial sale and distribution in accordance will all
state standards and licensing requirements. Cultivation shall include the growing, dryTing, processing,
and packing of whole flo`ver cannabis products.
SECTION 2. That § 30-1292 (d), I-1light industrial district — Conditional uses of the CityT of
Elk River Code of Ordinances shall be amended to read as follo�vs:
(d) Conditional uses. Conditional uses in the I-1 district are as follows:
(1) BreweY tapYooms.
(2) Bus storage. Not to exceed ten buses, unless the propertyT has direct access to an arterial or
collector street.
(3) Commercial Cannabis Culrivation
(�4) Commercial recreational faciliries.
(��) Dryr cleaning establishments.
(§6) Government facilities.
({�7) Landscaping contractor yards.
(?8) Microbreweries.
(�9) Motor vehicle, trailer, and/or equipment sales.
(�310) Outdoor stoYage (accessoryr to principal use).
(�811) Recycling processing centers.
(�1 �) Residential, single-family accessoryT to principal uses, provided that:
a. The nature of the principal use of the property makes it necessaryT or highly desirable
from both the properttT owner's and the cittT's perspecrive to have a 24-hour-a-dayT
caretaker or securit�T person reside on the propert�T.
b. The proposed dwelling unit is designed for and will be used exclusivel�T b�T caretakers
or securityT personnel responsible for the securit�T of the propertyT and the principal
use thereof.
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c. The proposed building unit will be occupied byT no more than two persons, neither
of whom may be under 18 years of age.
d. There `vill be on1yT one d`velling unit per lot or, if one principal use is located on
several adjoining lots, per principal use.
e. The proposed dwelling unit will not exceed 800 squaYe feet in size and will be located
within a building serving the principal use of the propertyT which is no less than
10,000 square feet in size.
£ The principal use of the propertyr is not of such a nature that it would be dangeYous
or hazardous to residents of the proposed d`velling unit.
g. The proposed dwelling unit meets all other requiYements of this Code and Minnesota
Uniform Building Code for occupancy as a dwelling unit by a single familyT. The cityT
council may, if it finds it necessary to do so for the protection of the health, safettT
and welfare of persons who mayT occupy the proposed dwelling unit, impose
additional reasonable requirements or conditions on the construcrion and use of the
d�velling unit.
h. The conditional use allo�ving such a d�velling unit in an industrial zone is deemed to
be unique to the principal use of the pYopeYt�r and the ownership of the pYopeYtyr and
the principal use. Any conditional use permits gYanted under this section shall
therefore automaticallyT expire if the principal use of the property changes or the
ownership of either the propertyT or the principal use of the propertyT changes.
SECTION 4. That this ordinance shall take effect upon adoption and be published as provided b�T
la`v.
Passed and adopted byr the City Council of the City of Elk River this 16th day of Januaryr, 2024.
John J. Dietz, Mayor
ATTE
Tina Allard, Cit�T Clerk
Last LJpdated]anuai}r 2023
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Ordinance 24 -
An Ordinance Amending Chapter 30, Sections 30- I, Definitions, and 30- I 292 I- I
Light Industrial District, of the City of Elk River, Minnesota, City Code
The City Council of the City of Elk River does hereb�T ordain as follows:
SECTION 1. That � 30-1, Definitions of the CityT of Elk River Code of Ordinances shall be
amended to add the following definition:
Conanae�•cial Cc�fafac�bi�� Culti7�c�tiofa means the o�eration of al�� business licensed as a cannabis cultivator
or medical cannabis cultivator under iVlinnesota Statutes Cha�ter 342.
SECTION 2. That § 30-1292 (d), I-1light industrial district — Conditional uses of the CityT of
Elk River Code of Ordinances shall be amended to read as follows:
(d) Conditional uses. Conditional uses in the I-1 district are as follows:
(1) BYewer tapYooms.
(2) Bus storage. Not to exceed ten buses, unless the propernT has direct access to an arterial or
collector street.
(3) Commercial Cannabis Cultivation�rovided that:
a. The �ro�osed cultivation facilit�r has all �ermits rec�uired for o�eration, including all
t�ermits rec�uired b�r the State of Minnesota undeY Minnesota Statutes Cha�ter 342, as
it ma�r be amended from time to time. A conditional use �ermit under this section
ma�� issue before the grantee has obtained all necessar�,�ermits; however, the grantee
shall submit �roof of obtainin� the necessar�,�ermits to the Cittr of Elk River before
an�� cultivation o�erations be�in.
(34) Commercial recreational facilities.
(��) DryT cleaning establishments.
(�6) Government facilities.
(f�?) Landscaping contractor yTards.
(�8) Microbreweries.
(�9) Motor vehicle, trailer, and/or equipment sales.
(�310) OutdooY storage (accessoryr to principal use).
(�11) Rec�rcling pYocessing centeYs.
(�12) Residential, single-family accessory to principal uses, provided that:
a. The nature of the principal use of the propert�T makes it necessaryT or highl�T desirable
from both the propert�T o`vner's and the cit�T's perspective to have a 24-hour-a-dayT
caretaker or securinT person reside on the propertyT.
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b. The proposed dwelling unit is designed for and will be used exclusivelyT byT caretakers
or security personnel responsible for the securityT of the property and the principal
use thereof.
c. The proposed building unit `vill be occupied byT no more than two persons, neither
of whom may be under 18 yrears of age.
d. There `vill be on1yT one d`velling unit per lot or, if one principal use is located on
several adjoining lots, per principal use.
e. The pYoposed dwelling unit will not exceed 800 square feet in size and will be located
`vithin a building serving the principal use of the propertyT `vhich is no less than
10,000 square feet in size.
£ The principal use of the propert�r is not of such a nature that it would be dangerous
or hazardous to residents of the proposed d`velling unit.
g. The proposed dwelling unit meets all other requirements of this Code and iVlinnesota
Uniform Building Code for occupancy as a dwelling unit b�r a single family-. The cityT
council may, if it finds it necessary to do so for the protection of the health, safetyT
and welfare of persons `vho mayT occupyT the proposed d`velling unit, impose
additional reasonable requirements or conditions on the construction and use of the
d�velling unit.
h. The conditional use allowing such a dwelling unit in an industrial zone is deemed to
be unique to the principal use of the property and the ownership of the propertyT and
the principal use. AnyT conditional use permits granted under this section shall
therefore automaticallyT expire if the principal use of the propertyT changes or the
ownership of either the propertyT or the principal use of the propert�T changes.
SECTION 3. That this ordinance shall take effect upon adoption and be published as provided byT
law.
Passed and adopted b�T the CityT Council of the CittT of Elk River this 16th dayT of JanuaryT, 2024.
John J. Dietz, MayTor
ATTEST:
Tina Allard, Cit�T Clerk
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