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5.3. PCSR 02-27-2024Request for Action To Item Number Planning Commission 5.3 Agenda Section Meeting Date Prepared by Public Hearings February 27, 2024 Zack Carlton, Community Development Director Item Description Reviewed by th Vireo Health – Mark Doherty, 10700 165 Ave NW Chris Leeseberg, Senior Planner  Conditional Use Permit to Allow a Commercial Reviewed by Cannabis Cultivation Facility, Case No. CU 24-03 Action Requested Recommend, by motion, approval of the Conditional Use Permit with the following conditions to satisfy the standards set forth in Section 30- 654: 1. The facility must comply with all licensing and operating procedures required under Minnesota Statutes Chapter 342. 2. The Conditional Use Permit may be issued prior to the applicant having received all necessary state permits and licenses, but the applicant shall submit proof of obtaining all state permits prior beginning cultivation operations. 3. Issuance of this CUP does not exempt the applicant from all standards outlined in state statute. 4. The operation/building must connect to city sewer and water and pay the required SAC/WAC fees in accordance with city codes. 5. Construction activities will require signed plans prepared by a qualified professional. Background/Discussion The property is zoned I1 (Light Industrial) where Commercial Cannabis Cultivation facilities require a Conditional Use Permit (CUP). This use was added to the city ordinances earlier this year and during the ordinance review, the city has generally considered the use to be similar to a light manufacturing operation. th Vireo Health will utilize approximately 75,800 SF of the former GRE facility at 10700 165 Ave NW. The site has largely been operated as a storage facility since GRE ceased operations on the property. The equipment used by GRE has been removed and the building is mostly vacant. The applicant will occupy a majority of the building, which will require additional renovation and modifications. The entire site will also have onsite security and 24/7 surveillance. The proposal includes 8,000 SF of office space, 10,000 SF of storage and processing space, and 58,000 SF of sealed cultivation rooms. Each cultivation room will have a positive pressure HVAC system to minimize cannabis 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 odor. The cultivation rooms are also within the existing building, providing an additional barrier for potential odor concerns. Expected hours of operation are between 5:00 a.m. and 12:00 a.m. with 80 employees at full buildout. Vireo will operate multiple shifts, spreading out the parking needs of the site. Site Plan The applicant is not proposing any modifications to the site. The existing paved surfaces provide enough parking th and circulation to support the use. Access to the site will continue from the existing driveway on 165 Ave NW. The entire property is surrounded by a fence and proposed signage consists of a small navigational sign to direct traffic to the correct side of the building. Exterior modifications will add ingress/egress points as required by state building codes and reduce the size of the existing overhead doors. Public Utilities The building is not currently connected to city sewer and water, but utility stubs were provided on the east side of th the building when the city installed Polk Street and the extension of 169 Ave. The building will be required to connect to city utilities and pay the required connection fees. Additionally, the operation will be a large electric user. The applicant has been working closely with Elk River Municipal Utilities (ERMU) to address the electrical needs for the site. Applicable Regulations In approving a Conditional Use Permit, the council may impose such specific conditions with regard to the development or operation of the proposed use as it considers necessary to satisfy the seven standards set forth in Section 30-654 and the requirements contained in this article and to promote compatibility with and minimize any potentially adverse effects upon adjacent properties, the neighborhood or the city. The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location: 1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the city. The property previously operated as a sorting facility for trash/garbage prior to being transferred to the incinerator. The facility had traditionally produced high levels of vehicle traffic and odors from the trash. Surrounding properties include light manufacturing operations, recycling centers, a semi-truck dealership, agricultural research, and vacant/developable parcels. The proposed use will not generate concerns in excess to what the area has experienced with previous uses and will not detrimentally affect the use and enjoyment of other properties in the immediate vicinity. The use will also be subject to additional standards from the state which may address related concerns for the operation. Staff does not see a need to impose specific conditions to satisfy this standard. 2. Will be consistent with the comprehensive plan. The subject site and surrounding properties are guided as Business Park which allow light manufacturing uses. The proposed use is consistent with the long-term vision for the area. Staff does not see a need to impose specific conditions to satisfy this standard. 3. Will not impede the normal and orderly development and improvement of surrounding vacant property. The city owns a vacant developable lot and much of the surrounding agricultural research land has the potential to be developed in the future. The proposed use will not impede the normal and orderly development of surrounding vacant parcels. Staff does not see a need to impose specific conditions to satisfy this standard. 4. Will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares. Vireo’s operation will require a significant amount of electricity at full build-out. They have been working closely with ERMU to find a solution to their power needs. The building is required to connect to city utilities and the public infrastructure has the capacity to provide the noted water and sewer needs. Anticipated traffic is equal to or less than previous uses on the site and existing roadway infrastructure has the capacity to handle the traffic. The use will also be subject to additional standards from the state which may address related concerns for the operation. Staff included a condition requiring the building to connect to city sewer and water and pay all required connection fees. 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations. Cannabis manufacturing (growing) and processing has the potential to generate excessive odors. The applicant is proposing to operate their grow operation within individual cultivation rooms that utilizes a positive-pressure system to minimize off-site odors. These rooms are also within the larger building (a room within a room) providing additional odor mitigation opportunities. There are no existing residential uses in the vicinity of the site, and prevailing winds would generally blow odors over the agricultural fields south and east of the subject site. The use will also be subject to additional standards from the state which may address related concerns for the operation. Staff does not see a need to impose specific conditions to satisfy this standard. 6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. The site is fully built-out and there are no proposed changes to the site. Staff does not see a need to impose specific conditions to satisfy this standard. 7. Will fully comply with all other requirements of this Code, including any applicable requirements and standards for the issuance of a license or permit to establish and operate the proposed use in the city. Commercial Cannabis Manufacturing is tightly regulated by Minnesota Statutes Chapter 342. Prior to beginning growing operations on site, the applicant must receive all required approvals and licenses from the state. The applicant will be required to provide proof of these approvals to the city. Outside of state requirements, which will be reviewed separately by the state’s Office of Cannabis Management, the use will fully comply with city requirements. Staff included conditions noting the requirement to receive all necessary approvals from the state prior to beginning commercial cannabis operations. If denial of such a permit should occur, it shall accompany recommendations or determinations by findings or a report stating how the proposed use does not comply with the standards set forth in Section 30-654. Financial Impact None Mission/Policy/Goal  Meet changing needs - Agile  Support the growth and development of the business community Attachments  Location Map  Applicant’s Narrative  Site Survey  Site Plans Vireo Health Conditional Use Permit – Project Narrative 10700 165th Ave. NW, Elk River, Minnesota Submitted: 1/29/2023 This Conditional Use Permit request seeks to develop a cannabis cultivation facility within a leased portion of an industrial building located east of Highway 10 at 10700 165th Ave. NW, Elk River, Minnesota. Vireo Health will remodel and refurbish approximately 75,800 SF of the 116,330-square- foot structure for cannabis cultivation, processing, and distribution. The proposed development site is a former waste transfer station operated primarily as a storage facility by the owner, DM Enterprises. The improvements and use as proposed for this portion of the building supports The City of Elk River’s Comprehensive Plan regarding industrial and business park development: Bolster Elk River’s economy through the retention, attraction, and expansion of a diverse mix of office and industrial businesses. Vireo Health will develop a highly secured, state-of-the-art, energy-efficient cultivation facility to provide products to the Minnesota cannabis market. The ~8,000 SF, existing office building, will consist of secured entry, security, IT, locker rooms, and office space similar to the current layout. The ~10,000 SF interior portion of the structure will contain plant processing rooms, vault storage space, and secured shipping and receiving bays. The interior of the ~58,000 SF adjoining structure will consist of sealed cultivation rooms. The use of positive-pressure HVAC systems will ensure that cannabis odor will be undetectable outside of the structure. As a power and water-conscious development, this proposal supports the City of Elk River’s Comprehensive Plan by preserving and maintaining the environment. Vireo Health’s focus on safe and secure cannabis cultivation facilities supports the City of Elk River’s Comprehensive Plan by keeping Elk River a “safe” place. The entire facility will have onsite security during operating hours and 24/7 surveillance, with employees operating the facility between 5 am and 12 am. This new business will require approximately 80 employees. The 56 parking stalls are sufficient, given that the Vireo employees will operate over two shifts. However, additional stalls could be added in the areas designated in the image provided, with parking space north and south of the structure and east of the connected office building. This facility will have no outdoor storage relative to the Vireo leased space. The only exterior modifications in this proposal are to add egress points to the exterior walls and reduce the size of existing overhead doors. All egress and overhead doors will conform to applicable design standards. It is anticipated that one metal sign of approximately 18” x 24” will be located on a metal pole at the intersection of the driveway and interior crossway nearest the southwest corner of the eastern portion of the structure, indicating a right turn is required for Vireo Health receiving a second sign of similar size and makeup will be affixed to the building adjacent to the receiving overhead door to indicate this area of the building. The City of Elk River has approved cannabis cultivation in I1 and I2 zones. This property is designated as an I1 zone. The existing industrial site conforms to the screening recommendations in the City of Elk River’s Comprehensive Plan. Vireo Health's project is the interior buildout of the existing structures. No modifications to the pervious and/or impervious areas of the site will be made in conjunction with this project. Any exterior equipment will be located in areas where impervious surfaces currently exist. Anticipated modifications to existing utility services to the site will be coordinated with ERMU. The developed portion of the building will be connected to ERMU electrical service, water, and sanitary lines. The required electrical service is 480V/7000 AMP divided into (1) 4,000 AMP and (1) 3,000 AMP service. The maximum daily water requirement is 9000 gallons. Any required modifications to utility services will not impact stormwater runoff nor areas of pervious and/or impervious areas. There are no wetlands present or impacted by this proposal. This proposal does not meet the threshold requirements for EAW/EIS. Submitted by: Mark E. Doherty, VP of Facilities and Performance Vireo Health 165TH AVE NW PROPOSED LOCATIONS FOR ADDITIONAL PARKING PROPOSED LOCATION FOR ADDITIONAL PARKING SCOPE OF WORK EXISTING PARKING 4 ACCESSABLE 52 STANDARD TOTAL = 56 Project No.: Date: Drawn by: Checked by: Revisions: NOT FOR CONSTRUCTION PRINTED:FILE PATH:IMPORTANT NOTICE: This document is confidential. Do not reproduce this document in any way other than what is needed to perform within the scope of your work. Return this document to 2WR + Partners upon completion of your work or destroy. Delete electronic copies from your system once work is completed. This document, and any affiliated design, construction, security, and planning documents ("Affiliated Documents") are confidential and contain proprietary data and information of the owner and 2WR + Partners. This document, and any affiliated documents, shall only be viewed/used by individuals and entities that have been explicitly authorized in writing by the owner and 2WR + Partners' nondisclosure agreement, and shall be viewed/used soley for the purpose stated in such authorization. Any copying, reproducing, modifying, distributing, displaying, or communcating the contents of these documents, by any means, is strictly prohibited. 7430 E. Caley Ave, Suite 280E Centennial, CO 80111 P. (720) 258-4780 1/26/2024 1:42:26 PMAutodesk Docs://24-01818 Vireo Health - Cultivation/24-01818 Vireo Health_Arch_R24.rvtSP1.1 SITE PLANVIREO HEALTH0700 165TH AVE NW, ELK RIVER, MNVIREO HEALTH - CULTIVATIONSG 01/26/2024 24-01818CONCEPT BH No.Date Description N.T.S SITE PLAN 793 SF SHIPPING 181889 SF TRIM 183 1253 SF PACKAGING 185 316 SF FINISH VAULT 186 640 SF ELEC 187 187 SF SECURITY OFFICE 189 279 SF ENTRY 190 316 SF FULFILLMENT VAULT 199 2897 SF HARVEST CORRIDOR 208 420 SF CURE 1 211 420 SF CURE 2 212 675 SF QA LAB 213 75'-7"8'-4"75'-3"87'-8"44'-0"8'-4"18'-0"24'-7"44'-0"44'-0"44'-0"44'-0"2923 SF FLOWER 12 161 2923 SF FLOWER 14 162 2923 SF FLOWER 3 163 2923 SF FLOWER 1 164 1624 SF VEG 1 165 723 SF MOTHER 2 166 453 SF CLONE 1 167 2923 SF FLOWER 10 168 2923 SF FLOWER 6 169 2923 SF FLOWER 4 170 2923 SF FLOWER 2 171 1624 SF VEG 2 172 453 SF CLONE 2 173 723 SF MOTHER 2 174 2923 SF FLOWER 5 219 2923 SF FLOWER 7 220 2923 SF FLOWER 8 221 2923 SF FLOWER 9 222 2923 SF FLOWER 11 223 2923 SF FLOWER 13 224 47'-0"13'-0"8'-4"41'-3"26'-0"8'-4"26'-0"41'-3" 633 SF RECEIVING 180 305 SF STORAGE / QUARANTINE 182 1185 SF FERTIGATION 179 1070 SF DRY 1 175 1169 SF DRY 2 177 601 SF HARVEST 195 1319 SF OPEN OFFICE 206 1527 SF BREAKROOM 188 507 SF MEN'S LOCKERS 193 505 SF WOMEN'S LOCKERS 194 69 SF IT EQUIPMENT 192 185 SF SECURITY EQUIPMENT 191 207 SF WOMEN'S RR 198 208 SF MEN'S RR 197 872 SF PRE-TRIM STORAGE 184 852 SF CORRIDOR 214 1759 SF CORRIDOR 204 355 SF AIRLOCK 201 267 SF CORRIDOR 176 18'-10"33'-6"10'-10"35'-1"33'-7"49'-4"25'-4"31'-0"12'-7"12'-11"8'-4"25'-5"23'-3"40'-9"34'-4"30'-10"5'-5"20'-6"20'-4"682 SF JANITOR / STORAGE 196 Project No.: Date: Drawn by: Checked by: Revisions: NOT FOR CONSTRUCTION PRINTED:FILE PATH:IMPORTANT NOTICE: This document is confidential. Do not reproduce this document in any way other than what is needed to perform within the scope of your work. Return this document to 2WR + Partners upon completion of your work or destroy. Delete electronic copies from your system once work is completed. This document, and any affiliated design, construction, security, and planning documents ("Affiliated Documents") are confidential and contain proprietary data and information of the owner and 2WR + Partners. This document, and any affiliated documents, shall only be viewed/used by individuals and entities that have been explicitly authorized in writing by the owner and 2WR + Partners' nondisclosure agreement, and shall be viewed/used soley for the purpose stated in such authorization. Any copying, reproducing, modifying, distributing, displaying, or communcating the contents of these documents, by any means, is strictly prohibited. 7430 E. Caley Ave, Suite 280E Centennial, CO 80111 P. (720) 258-4780 1/26/2024 1:42:27 PMAutodesk Docs://24-01818 Vireo Health - Cultivation/24-01818 Vireo Health_Arch_R24.rvtA1.1 FLOOR PLANVIREO HEALTH0700 165TH AVE NW, ELK RIVER, MNVIREO HEALTH - CULTIVATIONSG 01/26/2024 24-01818CONCEPT BH No.Date Description SCALE: 1/16" = 1'-0" FLOOR PLAN