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7.4 SR 03-18-2024City of Elk - River To City Council Meeting Date March 18, 2024 Request for Action Item Number 7.4 Prepared By Zack Carlton, Community Development Director Item Description Reviewed by: Conditional Use Permit: Allow Development of Cal Portner Commercial Cannabis Cultivation Facility at 10700 Tina Allard 165th Avenue Action Requested Approve, by motion, a conditional use permit authorizing establishment of a commercial cannabis cultivation facility along with the following conditions to satisfy the standards set forth in Sec. 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 to 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 I I (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. Vireo Health will utilize approximately 75,800 SF of the former GRE facility at 10700 165th 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 odor. The cultivation rooms are also within the existing building, providing an additional barrier to The Elk River Vision A avelcoming community zvitb revolutionary and spirited resourcefulness, exceptional service, and community p p W E R E U A Y engagement that encourages and inspires prosperity 229 potential odor concerns. Planning Commission The Planning Commission held a public hearing on February 27, 2024. The applicant introduced himself and was available for any questions. The Commission did not have any questions but thanked him for bringing 80 new jobs to the community. The Commission unanimously recommended approval of the Conditional Use Permit. Financial Impact None Mission/Policy/Goal Attachments 1. Planning Commission Packet 02-27-2024 2. CUP Recording Document Page 98 of 229 Request for Action ver 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 Vireo Health — Mark Doherty, 10700 1651h Ave NW Chris Leeseber , 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 j procedures required under Minnesota Statutes Chapter 342., 2. The Conditional Use Permit may be issued prior to the cR 33 applicant having received all necessary state permits and licenses, but the applicant shall submit proof of obtaining all state permits prior beginning cultivation operations. r 3. Issuance of this CUP does not exempt the applicant from all I _Rk - 1, standards outlined in state statute. 4. The operation/building must connect to city sewer and water - Hwy to°, y and pay the required SAC/WAC fees in accordance with city _ , _ cR iz_ . codes._ �Y X 5. Construction activities will require signed plans prepared by a qualified professional. r. Background/Discussion y • The property is zoned I1 (Light Industrial) where Commercial 6y Cannabis Cultivation facilities require a Conditional Use Permit (CUP). This use was added to the city ordinances earlier this year and during Figure I the ordinance review, the city has generally considered the use to be similar to a light manufacturing operation. Vireo Health will utilize approximately 75,800 SF of the former GRE facility at 10700 1651h 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 avelcoming community n ith revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and insires prosperity. rPI1EIEI AY NATURE Updated.• January 2023 Page 99 of 229 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 and circulation to support the use. Access to the site will continue from the existing driveway on 1651h 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 reducing 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 the building when the city installed Polk Street and the extension of 1691h 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. mill not endanger, injure or detrimentally affect the use and enjoyment of otherproperty in the immediate vicinity or the public health, safety, morals, comfort, convenience orgeneral n elfare 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. mill 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. mill not impede the normal and orderly development and improvement of surrounding vacant property. Page 100 of 229 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. mill be served adequately by and will not adversely affect essential public facilities and services including streets, police and fare protection, drainage, refuse disposal, avater and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference nrith 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. mill 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. mill 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. mill fully tonpywitb all other requirements of this Code, including any applicable requirements and standards for the issuance of a license orpermit 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. Page 101 of 229 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 Page 102 of 229 C j Vireo Health Cannabis Cultivation Conditional Use Permit 7 `) 165th Ave Case No: 24-03 Elk PageRj Vireo Health Conditional Use Permit— Project Narrative 10700 16511 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 1651" 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 odorwill 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 11 and 12 zones. This property is designated as an 11 zone. The existing industrial site conforms to the screening recommendations Page 104 of 229 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 buildingwill be connected to ERMU electrical service, water, and sanitary lines. The required electrical service is 480W7000 AMP divided into (1) 4,000 AMP and (1) 3,000 AMP service. The maximum dailywater 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 Page 105 of 229 LEGAL DESCRIPTION'. 0��VV ,;� „� . � NOTES CORRESPONDING TO SCHEDULE B: v GENE ^` RALNOTE6' am ea µ+ou,+va xm nxv cJ wad � / SCALF ix FFFf ,=.acne, n». a mo.:rw r,m. c a e,re _ s _..m......,...a a,.....a...., ®, M LEGEND �l x�x���xx ran »,.xwff® x o s vv\v � exxM� ree — VICINITY MAP F \ N � —.m rm san — �� \\\ ersxem ren coca -xn uxe or wem � � / ;.+Jnmu xr,m muxra e m n 6 \ \ ALTA/ACSM LAND TRLE SURVEY Z cj MOSS &BARNM — SITE:10IM1& AVE.NW, V 1,L ELKRIVER,MINNISMTA (Z a qr uo un µo,x�ueu CERTIFICATION �� . .x.,.... _0 Irg AR v� �v V "- V", _.- ` 1�F1_ ,. 197902A I—��991���"'"""LLL ffir urban- "NSTRucnoNOTFOR t p o a pa �.s k SITE PLAN 165TH AVE Nw ati�yy n SITE PLAN Xis � SP1.1 ffir urban- 0 0 or FOR �NsrR"Tj,N 0 0 � 0 0 0 0 - a o 0 0 0 M i pa a 0 £ o, 'o 0 UP- _ FLOOR PLAN n FLOOR PLAN - A1.1 CITY OF ELK RIVER SHERBURNE COUNTY CONDITIONAL USE PERMIT Case No. CU 24-01 Permit. Subject to the terms and conditions set forth herein, the City of Elk River hereby grants a Conditional Use Permit ("Permit") requested by Vireo Health for the following use: Conditional Use Permit for a Cannabis Cultivation facility at 10700 1651h Avenue NW Property. The Permit is for the following described property ("Subject Property") in the City of Elk River, Sherburne County, Minnesota: The Southwest Quarter of the Southeast Quarter of Section 11, Township 32, Range 26, except the South 468 feet of the West 495 feet thereof, according to the United States Government Survey thereof, Sherburne County, Minnesota. Owner. Owner of the Subject Property at time of the approval of the Permit: DM Real Estate, LLC, owner Conditions. The Permit is issued subject to 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. Page 110 of 229 Termination of Permit. The Permit shall remain in effect only for so long as the conditions set for the herein are complied with. The City may revoke the Permit following a public hearing for violation of the terms and/or conditions set forth in the Permit. Lapse. If within two (2) years of the issuance of the Permit the proposed work described in a conditional use permit has not been substantially completed, the permit shall expire and become void, except that the council may, following recommendation of the planning commission, extend the permit for an additional period determined by the council on the receipt of a request for a permit extension prior to its expiration. A conditional use permit authorizes only the use specified in the permit and shall expire if, for any reason, the authorized use ceases for more than six (6) months. Criminal Penalty. Both the owner and any occupant of the Subject Property are responsible for compliance with the permit. Violation of the terms of the Permit is a criminal misdemeanor. Recording. The Permit shall be recorded against the title to Subject Property. Dated: March 18, 2024. CITY OF ELK RIVER By: By: STATE OF MINNESOTA ) ) ss. COUNTY OF SHERBURNE ) Mayor John J. Dietz City Clerk Tina Allard The foregoing instrument was acknowledged before me this day of , 2024, by John J. Dietz and Tina Allard, respectively, the Mayor and City Clerk of the City of Elk River, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by the City Council. Notary Public DRAFTED BY: City of Elk River 13065 Orono Parkway NW Elk River, MN 55330 Phone: 763-635-1032 Page 111 of 229