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HomeMy WebLinkAbout2024.11.25 CCM WORKSESSION11/25/24 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION NOVEMBER 25, 2024 CITY HALL – COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President April Graves at 8:34 p.m. ROLL CALL Mayor/President April Graves and Councilmembers/Commissioners Marquita Butler, Dan Jerzak, and Teneshia Kragness. Councilmember/Commissioner Kris Lawrence-Anderson was absent and excused. Also present were City Manager Reggie Edwards, Zoning Administrator Ginny McIntosh, City Attorney Jason Hill, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Siobhan Tolar. BROOKLYN CENTER COMMUNITY SAFETY AND VIOLENCE PREVENTION COMMISSION This item was addressed during the November 25, 2024, Study Session. ADULT-USE CANNABIS LEGISLATION Dr. Edwards introduced the item and invited Planning and Zoning Administrator Ginny McIntosh to continue the Staff presentation. He added municipal sales have been considered in the planning process. Many Departments have collaborated on the topic. Ms. McIntosh stated City Staff is requesting City Council/EDA authorize the Planning Commission to proceed with proposed amendments to the City’s Unified Development Ordinance (UDO) and provide direction with respect to amendments regarding the new Adult-Use Cannabis and Lower Potency Hemp Edibles (LPHE) legislation. An amendment to the UDO may be initiated by the Council/EDA, the Planning Commission, or the property owner. As local governments have some jurisdiction, the purpose of the amendments is to adopt new zoning standards relating to land use and buffers. Ms. McIntosh pointed out the item was brought to the Planning Commission. However, there was an issue meeting the quorum. The City Attorney instructed Staff to bring the item to the Council/EDA in Work Session. Given the impending issuance of cannabis licenses in 2025, City Staff proceeded with the submittal of a public hearing notice for amendments to Chapter 35 of the 11/25/24 -2- DRAFT City Code of Ordinances at the December 12, 2024, Planning Commission meeting. Other amendments include Chapter 11, Chapter 23, Chapter 13, and Chapter 19. Ms. McIntosh showed a timeline for the decision-making process. The planning process takes longer because the Planning Commission has separate meetings for public hearings. The first reading for Council/EDA would be January 13, 2025, and the second reading would be January 27, 2025. Due to requirements with public notices, the changes would not go into effect until March 2025. Ms. McIntosh explained that in July 2022, the Minnesota Legislature made changes to Minnesota Statute 151.72, that impacted the legal sale of products containing cannabinoids derived from hemp and allowed consumers aged 21 or older to purchase products containing THC derived from hemp. Edible cannabinoid products could not contain more than five milligrams of any tetrahydrocannabinol (THC) in a single serving, or more than a total of 50 mg of THC per package. Brooklyn Center currently has 16 businesses registered with the state for the sale of hemp-derived cannabinoids, including two municipal liquor stores and the golf course. Ms. McIntosh noted the City of Brooklyn Center authorized a study and imposed a moratorium on the establishment of new uses, or the expansion of existing uses related to the sale of THC products in 2022. Ms. McIntosh stated in 2023, the State of Minnesota passed the Adult Use Cannabis Act, legalizing the possession, use, and growth of recreational marijuana for individuals aged 21 and older. The Minnesota Office of Cannabis Management (OCM) is responsible for developing the licensing process for a total of 13 different business types and establishing rules and logistics for retail operations, dispensaries, production, wholesale, micro/mezzo businesses, and delivery services, including both cannabis and low-potency hemp edibles (LPHE). Ms. McIntosh added the City established an ordinance to prohibit the use of cannabis and hemp products in public places and amended Chapter 23 of the City Code to address the licensing and sale of edible cannabinoid products within the City was adopted. At the time, then City Attorney Jason Hill had prepared a presentation after the legalization of LPHE, outlining legislation and further steps the City would need to follow to be compliant with State Statute. There may need to be amendments throughout the process due to State-level changes. Ms. McIntosh pointed out the role of the Office of Cannabis Management (OCM) is to regulate the cannabis industry statewide and provide guidance on the standards for the State. The OCM requires all cannabis and lower potency hemp businesses to obtain a license once the State of Minnesota has established the licensing process and includes the Division of Medical Cannabis, which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. Ms. McIntosh stated January 1, 2025, has been the slated date for the issuance of State licenses. In the last couple of days, news articles have been released on the topic. The OCM was supposed 11/25/24 -3- DRAFT to have its first round of lotteries through the Division of Social Equity. However, it was delayed because two-thirds of the applicants were denied. Applicants were flooding the zone on purpose while other applicants were denied because they weren’t the true owners. Four lawsuits have been filed. It would be in the best interest of the City to work through their own regulations before the State’s licensure process is fully established. Mayor Graves pointed out she has received emails on the topic. Ms. McIntosh stated Staff has also received emails with concerns. Ms. McIntosh stated local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by a state law. With that said City Staff will be working with the City’s respective Planning Commission and City Council/EDA to identify and amend, as necessary, any City Codes to address the new provisions relating to adult-use cannabis law. Ms. McIntosh noted local governments may limit the number of retailers and microbusinesses or mezzobusinesses with retail endorsements, but in no case can there be less than one retail location per 12,500 residents. As the City of Brooklyn Center has 33,982 residents per the 2023 Minnesota State Demographer Estimates, the City would be expected to provide for at least three of these license types. Additionally, cannabis retail sales must be in standalone shops as the primary use and cannot be accessory to another use. State law requires the OCM to issue a license to a city or county seeking to operate a single municipal cannabis store. This store is not included in the minimum number of registrations required. Ms. McIntosh pointed out Brooklyn Center will be tasked with approving text amendments to Chapter 35 of the Unified Development Ordinance. The City Council/EDA will have to address licensing standards and ultimately adopt an amended ordinance if it would like to have any say in where these establishments can be located. Through land use and zoning, the City could identify with zoning districts cannabis businesses may operate within. The OCM released a Guide for Local Governments on Adult-Use Cannabis which provides some direction on where certain license types might be located in a community, and a table of “comparable districts,” as well as certain “municipal considerations,” such as potential nuisances like odors, security, transportation, on-site consumption, and fleet vehicle storage. Ms. McIntosh noted any developments with certain covenants and restrictions prohibiting the growing, delivering, transporting, distributing, or sale of cannabis would prevail unless the restrictions were amended to allow for the use. As an example, Shingle Creek Crossing has prohibitions on marijuana, whether by prescription, medical recommendation, or otherwise. It was a private condition for business owners. The measure was included in Planned Unit Development (PUD) approvals. Mayor/President Graves asked if the Council/EDA would need to take action to amend the prohibitions. Ms. McIntosh stated she would need to confer with the City Attorney. However, they will definitely need to work with the anchor store. The process is complicated. Mayor Graves stated she would like for Staff to start moving on the amendments. 11/25/24 -4- DRAFT Ms. McIntosh stated the City also has the option to establish buffer zones between cannabis businesses and sensitive locations such as schools, daycares, residential treatment facilities, or public park attractions regularly used by minors, including playgrounds and athletic fields. There are maximum amounts allowed for the buffers. A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis business within certain distances of other uses. Terms of measurement are not provided for but should use a measuring system consistent with the rest of its ordinances. Ms. McIntosh explained residential treatment facilities are defined under Minnesota Statutes 245.462 subd. 23, and are defined as a “24-hour-a-day program under the treatment supervision of a mental health professional, in a community residential setting other than an acute care hospital or regional treatment center inpatient unit, that must be licensed as a residential treatment program for adults with mental illness under chapter 245I, Minnesota Rules, parts 9520.0500 to 9520.0670, or other rules adopted by the commissioner.” Ms. McIntosh added the City can regulate cannabis stores through zoning compliance. The City would be able to review an applicant’s location for compliance with its zoning regulations during the vetting process by OCM. She pointed out the Brooklyn Center Police Department Compliance Checks must be done once per year for age verification and local ordinance requirements. Ms. McIntosh stated the local government, as part of the registration process for cannabis retailers or other cannabis/hemp businesses seeking a retail endorsement, may require payment of a registration fee or renewal fee, including an “initial registration fee” of $500 or half the amount of the applicable initial license fee, whichever is less, and a “renewal registration fee” of $1,000 or half the amount of the applicable renewal license fee, whichever is less. Similarly, a local government may refuse a registration or license renewal in situations where the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal fee, or has been found in non-compliance with a preliminary or renewal compliance check. A local government must conduct compliance checks for cannabis and hemp businesses holding retail registrations at least once per calendar year. Ms. McIntosh asked if the Council/EDA has any concerns or questions regarding the designation of certain zoning districts for each of the 13 cannabis license types. She asked if the Council/EDA has any concerns or questions regarding the adoption of certain buffering requirements that prohibit the operation of a cannabis business within a certain distance of schools, daycares, residential treatment facilities, or from an attraction within a public park that is regularly used by minors. Ms. McIntosh added a jurisdiction such as the City of Brooklyn Center may choose to set a limit on the number of cannabis retail registrations within its boundaries. The jurisdiction may not, however, limit the number of registrations to fewer than one per 12,500 residents. If the City is in receipt of multiple applications, a jurisdiction may elect to issue. She asked if the Council/EDA is interested in imposing a limit on the number of cannabis retail locations. 11/25/24 -5- DRAFT Ms. McIntosh pointed out the questions don’t need to be answered at the present meeting, but they need to be considered moving forward. Councilmember/Commissioner Kragness noted her support of buffering requirements. Mayor/President Graves agreed with Councilmember/Commissioner Kragness. Mayor/President Graves asked what the maximum buffer is for daycares. Ms. McIntosh stated schools have a maximum of 1,000 feet, daycares have a maximum of 500 feet, residential treatment facilities have a maximum of 500 feet, and public park attractions regularly used by minors, including playgrounds and athletic fields have a maximum of 500 feet. She showed visual examples of buffering. Ms. McIntosh pointed out that the City will need to create a consistent procedure for measuring. Also, Staff will be seeking clarification on the definition of treatment facilities, group homes, sober homes, and other entities. Councilmember/Commissioner Jerzak asked if Staff has the capacity to customize a registration process should the Council/EDA be interested in it. He is less interested in creating barriers and more interested in an organized process. Mayor/President Graves pointed out she would like to see a combination of a first come, first served basis and merit or feasibility of the business model. Councilmember/Commissioner Kragness stated her primary concern is buffering. Mayor/President Graves stated she doesn’t want to set a limit now. She asked if the Council/EDA could limit the number of establishments in the future. City Attorney Siobhan Tolar stated the Statute only regulates a minimum. She advised Brooklyn Center to create a process and policy closest to the end goal. Councilmember/Commissioner Butler agreed there should be a number set before applications are received because they cannot deny applications without the regulation. She noted her support of buffering. Councilmember/Commissioner Jerzak asked if they are to assume all playgrounds are used by minors. Ms. Tolar stated the definition isn’t clearly defined in the Statute. However, there is a provision requiring the measurement to start at the primary attraction rather than the park perimeter. Councilmember/Commissioner Jerzak added he would like a maximum number implemented to avoid future issues. Mayor/President Graves asked if sampling is allowed per State Statute or if that would be handled per zoning districts. Ms. McIntosh stated some license types have consumption included. Brooklyn Center has a regulation for public consumption that only needs updates to reflect the new State chapter titles. The tobacco regulations include a cap of 15. Another regulation disallows smoking at tobacco stores. Staff pointed out businesses will have to consider courtesy to other 11/25/24 -6- DRAFT businesses. For example, Wing Stop complains of smelling the chemicals from the nail salon due to improper ventilation. As for cannabis, there is a difference in the consumption of edibles in comparison to smoking. Mayor/President Graves requested the Planning Commission make recommendations on maximum facility numbers. She asked for Staff to determine how many could fit in the City without overloading it. The stores can be an excellent business opportunity for residents, but she doesn’t want to expose vulnerable populations. Ms. Tolar asked if the minimum of four includes a municipal license. Mayor/President Graves stated four would likely be plenty, but she doesn’t want to limit businesses should more than four facilities be suitable in the City. Ms. McIntosh asked if the Council/EDA has input about zoning for cannabis production facilities beyond just the commercial areas. Mayor/President Graves stated her only consideration would be security. Councilmember/Commissioner Jerzak noted the State Fire Code must also be considered for cannabis facilities. ADJOURNMENT Mayor/President Graves moved and Councilmember/Commissioner Jerzak seconded adjournment of the City Council/Economic Development Authority Work Session at 9:05 p.m. Motion passed unanimously.