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HomeMy WebLinkAboutAugust 06, 2026 - Planning Packet 1.11kill SHAKOPEE Shakopee Planning Commission Regular Meeting Thursday, August 6, 2026 7:00 PM City Hall, 485 Gorman Street Vision:Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being the place people want to live, work, and play! Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1 . Roll Call 2. Approval of Agenda 3. Recognition by Planning Commission of interested Citizens 4. Consent Agenda These items are considered routine and will be enacted by one motion. There will be no separate discussion of these unless a Commissioner or staff requests, in which event the item will be removed form consent agenda for separate discussion &action. 4.a Approval of Planning Commission Meeting Minutes from July 9, 2026 5. General Business 5.a Public Hearing - Request to amend City Code Section 151.002 and 151.007 K related to the definition of cannabis cultivator and indoor cannabis cultivation and manufacturing uses in the Highway Business (B-1) zoning district. 6. Other Business 7. Adjournment If a commissioner has any comments, concerns or questions, he or she should contact the project manager prior to the scheduled meeting date.Also, if a commissioner is unable to attend the meeting for any reason, Please call the Department of Planning and Development at(952)233-9300 as soon as possible. Thank you! 1 Pliell Shakopee Planning 4.a SHAKOPEE Commission August 6, 2026 Agenda Item: Approval of Planning Commission Meeting Minutes from July 9, 2026 Prepared by: Rick Parsons Reviewed by: Action to be considered: Approve the Planning Commission meeting minutes from July 9, 2026. Motion Type: Simple Majority Background: The Planning Commission meeting minutes from July 9, 2026, are ready for review and approval. Recommendation: Approve the Planning Commission meeting minutes from July 9, 2026. Budget Impact: N/A Attachments: 07/09/2026 PC Minutes 2 CITY OF SHAKOPEE PLANNING COMMISSION MEETING MINUTES JULY 9, 2026 7:00PM 1. Call to Order and Roll Call Chair Forsythe called the meeting of the Shakopee Planning Commission to order. Commissioners present: Forsythe, Sandhu, Reding, Cherus, Vander Veen, and Robbins. Commissioners absent: Weiler. 2. Approval of Agenda Commissioner Reding made a motion to approve the agenda. Commissioner Sandhu seconded the motion. Motion carried unanimously. 3. Recognition of Interested Citizens The Chair invited members of the public to address the Planning Commission regarding matters not listed on the agenda. No members of the public came forward. 4. Consent Agenda The consent agenda included approval of the June 4, 2026, Planning Commission meeting minutes. The Commission requested corrections to the spelling of Commissioner Sandhu's name and the word "Minnesota." Commissioner Robbins made a motion to approve the consent agenda with the identified corrections. Commissioner Sandhu seconded the motion. Motion carried unanimously. 5. General Business 3 A. Public Hearing— Planned Unit Development Amendment Southbridge Crossings East 1300 Crossings Boulevard The public hearing had been opened and continued from the previous Planning Commission meeting. Planning Director Michael Kerski presented the request for a planned unit development amendment for Southbridge Crossings East. The approximately 14.26-acre property is located at 1300 Crossings Boulevard, across Highway 169 from Sam's Club and Walmart and near Home Depot, River Valley Church, and the public transit station. The property is owned by Shakopee Crossings Limited Partnership and is zoned B-1, Highway Business. The 2040 Comprehensive Plan designates the property as Mixed-Use Commercial Center. The conceptual development plan included: • A 7,300-square-foot car wash; • Three approximately 5,000-square-foot retail buildings, two of which could include drive-through facilities; • A 23,000-square-foot retail garden center; • An approximately 8,000-square-foot greenhouse; • An approximately 48,000-square-foot landscape yard; and • Two lots for regional stormwater ponding. Staff stated that the wetland replacement plan had previously been approved by the City Council. The development would include pedestrian connections along the private street, Crossings Boulevard, and between the proposed buildings. Vehicular access would be provided by a 28- foot-wide private drive. Employee parking and loading areas for the garden center would share access with River Valley Church. Parking requirements would be met for each proposed use. Although the impervious surface area on the garden center parcel would slightly exceed 75 percent, the entire development would remain below the 75 percent maximum when the regional ponding areas were included. A draft condition would allow individual parcels to exceed 75 percent provided the overall development remained compliant. The development's tree-replacement requirements would be addressed through on-site plantings and a contribution to the City's tree fund for replacement trees that could not reasonably be accommodated on the property. Mr. Kerski stated that the landscape plan would be revised to reflect the pedestrian connections shown on the site plan. 4 Future approvals would include City Council consideration of the PUD amendment and site plan, staff review of a grading permit, and subsequent Planning Commission and City Council review of preliminary plats, final plats, and individual site plans. Staff recommended that the Planning Commission recommend City Council approval of the proposed PUD amendment ordinance. In response to a question from the Commission, Mr. Kerski stated that City Engineering supported the proposed increase in the private drive width from 24 feet to 28 feet. Public Comment Steve Soltau, representing Shakopee Crossings Limited Partnership, addressed the Commission. Mr. Soltau described the lengthy development process and the challenges created by wetlands, existing roads, established grades, stormwater ponds, neighboring development, and utility requirements. He stated that the proposal was conceptual and intended to establish the overall development framework, including pond reconfiguration, access to Hansen Avenue, connections to the surrounding retail area, and pedestrian connections to Crossings Boulevard and the transit station. Mr. Soltau stated that there was current interest from a car wash operator and other potential retail users. Individual buildings and lots would be subject to future plat and site-plan approvals. Mr. Soltau raised concerns regarding the City's tree-preservation requirements. He stated that existing site grades and the need to accommodate buildings, parking, utilities, and stormwater facilities limited the ability to preserve mature trees. He noted that a substantial portion of the existing vegetation consisted of boxelder trees. Mr. Soltau requested relief from the financial contribution required when the replacement tree obligation could not be fully satisfied on the property. He stated that the developer would install landscaping exceeding the minimum commercial landscaping requirements but could not provide enough trees on the site to fully offset the size of the trees being removed. Mark Anderson, civil engineer with Sambatech addressed the Commission. Mr. Anderson stated that approximately 200 trees were located on the property, including oak, elm, willow, boxelder, and cherry trees. Due to the existing grades and the space required for buildings, parking, and stormwater facilities, most of the trees would need to be removed. Mr. Anderson stated that the proposed plan included approximately 176 new trees. However, the replacement obligation was based on caliper inches rather than the number of trees. The estimated deficiency was approximately 1,400 caliper inches, which could result in a tree-fund contribution approaching $200,000. 5 Mr. Soltau stated that he believed the required payment functioned as an economic penalty because the full replacement requirement could not reasonably be met on a commercial development site. He also referenced recent litigation involving the City of Edina's tree- preservation ordinance and expressed concern regarding the use of development-related fees for improvements away from the subject property. Mr. Kerski stated that Shakopee's ordinance had previously been amended to exclude many invasive species and that Edina's revised ordinance remained more restrictive than Shakopee's requirements. He noted that other large commercial developments in Shakopee had made substantial payments to the tree fund when adequate replacement trees could not be planted on- site. Mr. Kerski explained that, for this project, staff intended to use the tree fund contribution within the Southbridge area. The funds would be used to replace trees lost to disease along Southbridge Parkway and within the nearby dog park. A diverse variety of replacement trees would be planted. Commission members discussed whether the Planning Commission had authority to waive or modify the tree-replacement requirements. Mr. Kerski stated that any relief would be within the authority of the City Council rather than the Planning Commission. The Commission discussed the project's impervious-surface calculations. Staff confirmed that individual development parcels could exceed 75 percent impervious surface provided the development as a whole remained below the 75 percent maximum. Pervious pavement would also be used in portions of the project. The Commission discussed shared parking, access, and utilities. Mr. Soltau stated that reciprocal easement agreements and declarations would establish cross-access, shared-parking, and utility rights. More specific easements would be created as individual lots were platted and developed. These rights and obligations would apply to future purchasers, tenants, and ground lessees. Mr. Soltau stated that the developer wanted to proceed as quickly as possible and hoped to begin grading during 2026. However, additional preliminary plat, final plat, neighborhood meeting, public hearing, and site-plan approvals would be required. Mr. Kerski explained that, following City Council approval of the PUD amendment, the developer could apply for a grading permit. Individual development parcels could not proceed without the necessary plat and site-plan approvals. The Chair invited any additional members of the public to speak. No additional public comments were received. Commissioner Robbins made a motion to close the public hearing. Commissioner Sandhu seconded the motion. Motion carried unanimously, and the public hearing was closed. 6 Commission Discussion and Action The Commission discussed the developer's request for relief from the tree-replacement contribution. Staff reiterated that the Planning Commission did not have authority to grant the requested relief and that the matter could be considered by the City Council. Commission members expressed appreciation for the work completed by the developer to address the site's wetland, grading, access, stormwater, and development constraints. Members also expressed support for maintaining the City's tree-replacement requirements and restoring trees elsewhere within the Southbridge area. Commissioner Robbins made a motion to recommend that the City Council approve the proposed planned unit development amendment for Southbridge Crossings East. Commissioner Reding seconded the motion. Roll-call vote: • Commissioner Forsythe —Aye • Commissioner Sandhu—Aye • Commissioner Reding—Aye • Commissioner Cherus—Aye • Commissioner Vander Veen — Aye • Commissioner Robbins—Aye Motion carried 6-0. 6. Other Business There was no other business. 7. Adjournment Commissioner Robbins made a motion to adjourn the meeting. Commissioner Vander Veen seconded the motion. Motion carried unanimously. The meeting adjourned at 7:52 p.m. The next meeting was scheduled for August 6, 2026. 7 PiallikfrAl Shakopee Planning 5.a SHAKOPEE Commission August 6, 2026 Agenda Item: Public Hearing - Request to amend City Code Section 151.002 and 151 .007 K related to the definition of cannabis cultivator and indoor cannabis cultivation and manufacturing uses in the Highway Business (B-1) zoning district. Prepared by: Amanda Schwabe, Planner Reviewed by: Michael Kerski, Planning & Development Director Action to be considered: Recommend denial to the City Council of proposed ordinance amendments to change the definition of cannabis cultivator and allow cannabis cultivation indoors and manufacturing in the Highway Business (B-1) zoning district. Motion Type: Simple Majority Background: On December 17, 2024 the City Council approved Ordinance O2024-011 which amended City Code Section 151.002 by adding cannabis definitions and Section 151 .007 K by adding cannabis use classifications. The ordinance was written so the use is either permitted (P) or not permitted (blank) by zoning district in the use table with superscript references for additional conditions of approval. In addition, any endorsement received from the state for a cannabis microbusiness, mezzobusiness, or medical cannabis combination business must also be permitted in the zoning district to be allowed. Rory Cummings, applicant, and Tom Madden, business partner, have received pre- approval from the State of Minnesota Office of Cannabis Management (OCM) for a Cannabis Microbusiness license with a retail endorsement. They leased space at 491 Marschall Road and obtained the necessary building permit(s) to modify the space for a cannabis retail store in Fall 2025. They are still pending submittal of an application and receipt of the city of Shakopee Cannabis Retail Registration, completion of building and fire inspections, and issuance of the license from the OCM. Based on discussions with the applicant, staff understands they are experiencing difficulty obtaining sufficient product for retail sales. As a result, the applicant is requesting the Planning Commission consider three ordinance amendments to allow cultivating indoors and manufacturing cannabis products in their leased location as follows: 8 1)Amend the definition of cannabis cultivator. Current Cannabis Cultivator definition: A business with a cannabis cultivator license, or cultivation endorsement from the State of Minnesota Office of Cannabis Management. Proposed Cannabis Cultivator definition (same as the City of Chaska): Cannabis cultivation means a cannabis business licensed to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant, harvest cannabis flower from mature plant, package and label immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the OCM. Current definitions were intentionally written by the City Attorney's Office to refer to state rules and statutes as they describe what the license holder can do. Modifying the definition to outline what is allowed, instead of referring to the state required license for this specific definition, would result in this specific definition being in a dramatically different format than all of the other cannabis definitions and may result in confusion in the future if the language in the rules and statutes are amended and the city does not update its definition to specifically align. 2) Amend the use table to allow indoor cannabis cultivation up to 5,000 sq. ft. and cannabis manufacturing in the Highway Business (B-1) zoning district. City Code currently allows cultivation and manufacturing in the Light Industry (I-1) and Heavy Industry (I-2) zoning districts. These districts also allow for microbusinesses, mezzobusinesses, and medical cannabis combination businesses to have a limited retail component (15% of the operational area or 2,000 sq. ft. whichever is less). Amending the city code to allow indoor cultivation and/or manufacturing in a commercial zoning district would apply to all properties in the B-1 zoning district (not just the leased space). The intent of the B-1 zoning district is to offer goods and services directly to the ultimate consumer. Horticulture (not involving retail sales) and manufacturing uses are not permitted within the B-1 zoning district. Some B-1 properties are improved with residences and a majority of the B-1 properties abut residential zoning districts (including the subject property) which raises concerns including, but not limited to, compatibility with adjacent commercial businesses as well as compatibility with adjacent residential uses, odor, noise, and security. In addition, the 2040 Comprehensive Plan guides the B-1 zoned properties as either Mixed Use Commercial Corridor or Mixed Use Commercial Center. The primary and secondary uses for these classifications are commercial, office, 9 mixed uses, institutional, multifamily residential, parking, transit facilities, and public gathering spaces. Amending the city code to allow industrial uses in the commercial classification would be in conflict with the comprehensive plan. 3) Amend superscript 61 a. of the Use Table to delete the language "each endorsement received or, when combined, must follow". Superscript 61 a. states "Cannabis microbusinesses, cannabis mezzobusinesses, and medical cannabis combination businesses may be zoned based on each endorsement received, or, when combined, must follow the designations for each license in the use table." This language was intentionally written by the City Attorney's Office to ensure that both the license type and any endorsement(s) received are permitted in a specific zoning district to be allowed. For example, an operator with a cannabis microbusiness license with a cannabis retail endorsement is permitted in the B-1 zoning district because both the license type (microbusiness) and the endorsement (cannabis retail) are permitted uses in City Code Section 151 .007 K Use Table. However, an operator with a cannabis microbusiness license as well as a cannabis retail endorsement and a cannabis cultivation endorsement is not permitted as cannabis cultivation is not a permitted use in the B-1 zoning district. Removing the language as proposed would allow any microbusiness, mezzobusiness, or medical cannabis combination business to operate with any combination of endorsements in any district where that license type is allowed, regardless of whether the individual endorsement(s) are otherwise allowed. Staff recommends denial of the proposed ordinance amendments with the following findings: • Cannabis cultivation and manufacturing uses are not in the spirit and intent of the Highway Business (B-1) zoning district. • The B-1 zoning district includes both commercial and residential uses. Proximity of cannabis cultivation and manufacturing uses to non-cannabis related commercial businesses, abutting residential zoning districts as well as existing residential homes raises serious concerns including, but not limited to, odor, noise, and security. • The 2040 Comprehensive Plan guides the B-1 zoned properties as Mixed Use Commercial Corridor or Mixed Use Commercial Center, which does not allow industrial uses. Amending the city code to allow industrial uses would be in conflict with the comprehensive plan. • Modifying the definition of cannabis cultivator to list what is allowed instead of referring to the state required license for this specific definition would result in this specific definition being in a dramatically different format than all of the other cannabis definitions and may result in confusion in the future if the language in the rules and statutes are amended and not longer align with the city definition. 10 • Eliminating the requirement for all cannabis license types and endorsements to follow the designations in the use table would result in industrial uses (e.g. cultivation, manufacturing, testing facilities, wholesaler, etc.) operating in any district where the license type (e.g. microbusiness, mezzobusiness, medical cannabis combination business) is permitted which was not the intent of O2024-011. Recommendation: Recommend denial to the City Council of proposed ordinance amendments to change the definition of cannabis cultivator and allow indoor cannabis cultivation and manufacturing in the Highway Business (B-1) zoning district. Budget Impact: None Attachments: Ordinance O2024-011 Applicant Narrative Applicant Site Plan Shakopee Zoning Map 2040 Comprehensive Plan - Planned Land Use 11 ORDINANCE NO.O2024-011 AN ORDINANCE OF THE CITY OF SHAKOPEE,MINNESOTA, AMENDING CHAPTER 151 OF THE SHAKOPEE CITY CODE BY ADDING REGULATIONS RELATED TO CANNABIS AND HEMP BUSINESSES The City Council of Shakopee,Minnesota ordains: Section 1. Chapter 151.002 is hereby amended by adding the following definitions: Cannabis Cultivator. A business with a cannabis cultivator license, or cultivation endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Delivery Service.A business with a cannabis delivery service license or delivery service endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Manufacturer. A business with a cannabis manufacturer license, or manufacturing endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Microbusiness. A business with a cannabis microbusiness license from the State of Minnesota Office of Cannabis Management. Cannabis Mezzobusiness. A business with a cannabis mezzobusiness license from the State of Minnesota Office of Cannabis Management. Cannabis Retailer.A business with a cannabis retailer license, lower-potency hemp edible retailer license,or retail endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Testing Facility. A business with a cannabis testing facility license or testing endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Transporter. A business with a cannabis transporter license or transportation endorsement from the State of Minnesota Office of Cannabis Management. Cannabis Wholesaler. A business with a cannabis wholesaler license or wholesaling endorsement from the State of Minnesota Office of Cannabis Management. Lower-Potency Hemp Edible Retailer. A business with a lower-potency hemp edible retailer license from the Office of Cannabis Management. Lower-Potency Hemp Edible Manufacturer.A business with a lower-potency hemp edible manufacturer license from the Office of Cannabis Management. DOCSOPEN\SH 155\23A\990983.v2-11!26/24 12 Medical Cannabis Combination Business.A business with a medical cannabis combination business license from the State of Minnesota Office of Cannabis Management. Section 2. Chapter 151.007(K)of the Shakopee City Code is amended by adding the following Use Table: COMMERCIAL AND INDUSTRIAL DISTRICTS A=Accessory Use C=Conditional Use P=Permitted Use PUD=Planned Unit Development Blank=Not Permitted Numbers in superscript indicate additional conditions for approval of use.These conditions are found in City Code 151.007 K. USE CLASSIFICATION B-1 B-2 8-3 NC MR CC I-1 1-2 BP Cannabis Cultivator° p p Cannabis Delivery Service° Cannabis Manufacturer° - P P Cannabis Mezzobusiness61 p p j Cannabis Microbusiness6l P p p p p Cannabis Retailer63 p p p Cannabis Testing Facility° p ' P P Cannabis Transporter° • P P Cannabis Wholesaler° p p Medical Cannabis Combination Business61 p p Lower-Potency Hemp Edible Manufacturer62 p p Lower-Potency Hemp Edible Retailer63 P p p p Section 3. Chapter 151.007 (K)of the Shakopee City Code is amended by adding the following conditions for approval of use: 60. Cannabis Businesses Without Public Facing Retail. a. Must comply with Minnesota Statutes Chapter 341 and applicable Minnesota Rules, City Code,Chapter 110;and any other applicable law. b. Shall sell products only within the principal structure; and c. Shall have no outside storage or display or accessory structures;and d. Waste products must be disposed of in a timely manner and in such a way to reduce odors. 2 DOCSOPEMS11155\23A\990983 v2-11/26/24 13 61 Cannabis Microbusinesses, Cannabis Mezzobusinesses, and Medical Cannabis Combination Businesses. a.Cannabis microbusinesses,cannabis mezzobusinesses,and medical cannabis combination businesses may be zoned based on each endorsement received or,when combined, must follow the designations for each license in the use table. b. On-site consumption is an accessory use to a cannabis business licensed by the OCM as a Microbusiness in B-1, B-3, MR,CC,1-1, I-2; and c. Cannabis retail is an accessory use to a cannabis microbusiness,cannabis mezzobusiness, or medical cannabis combination business in I-1 and I-2; and d. Must comply with Minnesota Statutes Chapter 341 and applicable Minnesota Rules, City Code,Chapter 110;and any other applicable law; and e. When the location of a Cannabis Microbusiness includes a Cannabis Retailer endorsement or on-site consumption endorsement,the business must limit the area devoted to display,sale,and on-site consumption of products to no more than 15%of the operational space or 2,000 square feet within the principal structure, whichever is less; and f. Shall sell products only within the principal structure; and g. Shall have no outside storage or display or accessory structures;and h. Waste products must be disposed of in a timely manner and in such a way to reduce odors. 62. Lower-Potency Hemp Edible Manufacturers. a. Must comply with Minnesota Statutes Chapter 341 and applicable Minnesota Rules; City Code,Chapter 110; and any other applicable regulations. b. Shall have no outside storage or display or accessory structures; and c. Waste products must be disposed of in a timely manner and in such a way to reduce odors. 63 Cannabis Retailers and Lower Potency-Hemp Edible Retailers. a. Must comply with Minnesota Statutes Chapter 341 and applicable Minnesota Rules; City Code,Chapter 110; and any other applicable regulations. b. Shall sell products only within the principal structure. Section 3. Effective Date. This ordinance becomes effective from and after its adoption and publication. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of L„:_( e , 2024. -/1/1„4 ovItA Matt Lehman, Mayor of the City of Shakopee Attest: 3 DocsopCN\SH 155123A\990983.v2-11/26/24 14 'Cif idi Emerson, Deputy City Clerk Published in the New Prague Times on the Q.140 day of fix-o,,.NiErL.,2024. 4 DOCSOPEMSH l55\23A\990983.v2-1112W24 15 AnAmendment to Ordinanse_No.O2024-011 Sectioni_andSection 3-61-a State of Current Ordinance O2024-011 Section 1. Cannabis Cultivator.A business with a cannabis cultivator license, or cultivation endorsement from the State of Minnesota Office of Cannabis Management. Section 3. 61. a. Cannabis microbusinesses, cannabis mezzobusinesses, and medical cannabis combination businesses may be zoned based on each endorsement received or,when combined, must follow the designations for each license in the use table. Requested Amendments to Ordinance O2024-011 Regarding Section 1. We are looking to have the Cannabis Cultivator definition be inline with other cities in the area. We looked at cities located within a 20 miles radius of Shakopee. Cities that use the term"Cannabis Cultivator"all follow a similar definition. We are suggesting using the direct wording of the city of Chaska. Regarding Section 3-61-a. We are looking to remove the words"each endorsement received or,when combined, must follow" to have the ordinance comply with licenses intent stated purpose in: Minnesota State Law 342.28 CANNABIS MICROBUSINESS LICENSING AND OPERATIONS , 342.28 MINNESOTA STATUTES 202563 1-6, Subd.2. Size limitations. (a), 64MINNESOTA STATUTES 2025342.28 section 342.02, subdivision 1 16 MINNESOTA STATE STATUTE 342 342.02 OFFICE OF CANNABIS MANAGEMENT. Subdivision 1. Establishment.The Office of Cannabis Management is created with the powers and duties established by law. In making rules, establishing policy, and exercising its regulatory authority over the cannabis industry and hemp consumer industry,the office must: (1) promote the public health and welfare; (2) protect public safety; (3)eliminate the illicit market for cannabis flower and cannabis products; (4) meet the market demand for cannabis flower and cannabis products; (5) promote a craft industry for cannabis flower and cannabis products; and Revisor of Statutes 12 MINNESOTA I N N ESOTA STATUTES 2025342.01 (6) prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition. 17 342.28 CANNABIS MICROBUSINESS LICENSING AND OPERATIONS. Subdivision 1.Authorized actions.A cannabis microbusiness license, consistent with the specific license endorsement or endorsements, entitles the license holder to perform any or all of the following within the limits established by this section: Revisor of Statutes 342.28MINNESOTA STATUTES 202563 (1)grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant; (2) make cannabis concentrate; (3) make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight; (4) manufacture artificially derived cannabinoids; (5) manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption; (6) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower- potency hemp edibles, and hemp-derived consumer products from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, a medical cannabis combination business, a lower-potency hemp edible manufacturer, or a lower-potency hemp edible wholesaler; (7) purchase hemp plant parts and propagules from an industrial hemp grower licensed under chapter 18K; (8) purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K; 18 (9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products; (10) package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers; (11) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; (12) operate an establishment that permits on-site consumption of edible cannabis products and lower-potency hemp edibles; and (13) perform other actions approved by the office. Subd. 1a. Cannabis research.An institution of higher education, any department or program of an institution of higher education that is regionally or nationally accredited, and any entity working in partnership with an institution of higher education may apply for a cannabis microbusiness license to conduct cannabis crop research.A cannabis researcher with a cannabis microbusiness license may perform activities identified in subdivision 1, clauses (1)to (9) and (13). Cannabis plants and cannabis flower grown for research purposes must not be offered for sale or otherwise enter the stream of commerce.As used in this subdivision, "institution of higher education" has the meaning given in sections 15D.04, subdivision 6, and 135A.51, subdivision 5. Subd. 2. Size limitations. (a)A cannabis microbusiness that cultivates cannabis at an indoor facility 19 may cultivate up to 5,000 square feet of plant canopy.The office may adjust plant canopy limits for licensed businesses upward to meet market demand consistent with the goals identified in section 342.02, subdivision 1. In each licensing period, the office may adjust plant canopy limits upward or downward for licenses that Revisor of Statutes 64M I N N ESOTA STATUTES 2025342.28 will be issued in that period to meet market demand consistent with the goals identified in section 342.02, subdivision 1, except that the office must not impose a limit of less than 5,000 square feet of plant canopy. (b)A cannabis microbusiness that cultivates cannabis at an outdoor location may cultivate up to one-half acre of mature, flowering plants. The office may increase the limit for licensed businesses to meet market demand consistent with the goals identified in section 342.02, subdivision 1. In each licensing period,the office may adjust the limit upward or downward for licenses that will be issued in that period to meet market demand consistent with the goals identified in section 342.02, subdivision 1, except that the office must not impose a limit of less than one-half acre of mature,flowering plants. (c)The office shall establish a limit on the manufacturing of cannabis products, lower-potency hemp edibles, or hemp-derived consumer products a cannabis microbusiness that manufactures such products may perform. The limit must be equivalent to the amount of cannabis flower that can be harvested from a facility with a plant canopy of 5,000 square feet in a year, but may be increased if the office expands the allowable area of cultivation under paragraph (a). (d)A cannabis microbusiness with the appropriate endorsement may operate one retail location. Subd. 3.Additional information required. In addition to the information required to be submitted 20 under section 342.14, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis microbusiness license must submit the following information in a form approved by the office: (1)an operating plan demonstrating the proposed layout of the facility, including a diagram of ventilation and filtration systems; plans for wastewater and waste disposal for any cultivation or manufacturing activities; plans for providing electricity,water, and other utilities necessary for the normal operation of any cultivation or manufacturing activities; plans for compliance with applicable building codes and federal and state environmental and workplace safety requirements and policies; and plans to avoid sales to unlicensed cannabis businesses and individuals under 21 years of age; (2) if the applicant is seeking an endorsement to cultivate cannabis plants and harvest cannabis flower, a cultivation plan demonstrating the proposed size and layout of the cultivation facility that will be used exclusively for cultivation, including the total amount of plant canopy; (3) if the applicant is seeking an endorsement to create cannabis concentrate, hemp concentrate, or artificial cannabinoids, information identifying all methods of extraction,concentration,or conversion that the applicant intends to use and the volatile chemicals and catalysts, if any,that will be involved in extraction, concentration, or creation; and (4)evidence that the applicant will comply with the applicable operation requirements for the license being sought. Subd. 4. Exception. (a)An attestation signed by a bona fide labor organization stating that the applicant 21 has entered into a labor peace agreement is not required as part of an application for a cannabis microbusiness license. (b)When renewing a cannabis microbusiness license, a cannabis microbusiness with ten or more full-time equivalent employees must submit an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement. Subd. 5. Multiple licenses; limits. (a)A person, cooperative, or business holding a cannabis microbusiness license may also hold a cannabis event organizer license. Official Publication of the State of Minnesota Revisor of Statutes 342.28MINNESOTA STATUTES 202565 (b) Except as provided in paragraph (a), no person,cooperative, or business holding a cannabis microbusiness license may own or operate any other cannabis business or hemp business or hold more than one cannabis microbusiness license. (c) For purposes of this subdivision,a restriction on the number or type of license that a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business. Subd. 6. Cultivation endorsement.A cannabis microbusiness that cultivates cannabis plants and harvests cannabis flower must comply with the requirements in section 342.25. Subd. 7. Extraction and concentration endorsement.A cannabis microbusiness that creates cannabis concentrate must comply with the requirements in section 342.26, subdivisions 2 and 3. Subd. 8. Production of consumer products endorsement.A cannabis microbusiness that manufactures edible cannabis products, lower-potency hemp products, or hemp-derived consumer products must comply 22 with the requirements in section 342.26, subdivisions 2 and 4. Subd. 9. Retail operations endorsement.A cannabis microbusiness that operates a retail location must comply with the requirements in section 342.27. Subd. 10. On-site consumption endorsement. (a)A cannabis microbusiness may permit on-site consumption of edible cannabis products and lower-potency hemp edibles on a portion of its premises. (b)The portion of the premises in which on-site consumption is permitted must be definite and distinct from all other areas of the microbusiness and must be accessed through a distinct entrance. (c) Edible cannabis products and lower-potency hemp edibles sold for on-site consumption must comply with this chapter and rules adopted pursuant to this chapter regarding the testing, packaging, and labeling of cannabinoid products. (d) Edible cannabinoid products and lower-potency hemp edibles sold for on-site consumption must be served in the required packaging but may be removed from the products'packaging by customers and consumed on site. (e) Food and beverages not otherwise prohibited by this subdivision may be prepared and sold on site provided that the cannabis microbusiness complies with all relevant state and local laws, ordinances, licensing requirements, and zoning requirements. (f)A cannabis microbusiness shall ensure that the display and consumption of any edible cannabis product or lower-potency hemp edible is not visible from outside of the licensed premises of the business. (g)A cannabis microbusiness may offer recorded or live entertainment, provided that the cannabis microbusiness complies with all relevant state and local laws, ordinances, licensing requirements, and zoning requirements. (h)A cannabis microbusiness may not: 23 (1) sell an edible cannabis product or a lower-potency hemp edible to an individual who is under 21 years of age; (2) permit an individual who is under 21 years of age to enter the premises; (3) sell an edible cannabis product or a lower-potency hemp edible to a person who is visibly intoxicated; Revisor of Statutes 66MINNESOTA STATUTES 2025342.28 (4) sell or allow the sale or consumption of alcohol or tobacco on the premises; (5) sell products that are intended to be eaten or consumed as a drink, other than packaged and labeled edible cannabis products and lower-potency hemp edibles,that contain cannabis flower or hemp plant parts or are infused with cannabis concentrate, hemp concentrate, or artificially derived cannabinoids; (6) permit edible cannabis products or lower-potency hemp edibles sold in the portion of the area designated for on-site consumption to be removed from that area; (7) permit adult-use cannabis flower, adult-use cannabis products, hemp-derived consumer products, or tobacco to be consumed through smoking or a vaporized delivery method on the premises; or (8) distribute or allow free samples of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products. Subd. 11. Transportation between facilities.A cannabis microbusiness may transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products between facilities operated by the cannabis microbusiness if the cannabis microbusiness: (1) provides the office with the information described in section 342.35, subdivision 2; and (2) complies with the requirements of section 342.36. History: 2023 c 63 art 1 s 28; 2024 c 121 art 2 s 81-84; 2025 c 31 s 52,53; 1Sp2025 c 3 art 7 s 30 24 We are proposing the following changes to the B-1 zoning for Cannabis Microbusinesses: Allow small indoor cannabis cultivation up to 5000 square foot in B-1 zones for Cannabis Microbusinesses as allowed under State Statute 342.28 202563 -Subdivision 2 Allow indoor manufacturing in B-1 zones for Cannabis Microbusinesses as stated in 64MINNESOTA STATUTES 2025342.28 and 342.28 CANNABIS MICROBUSINESS LICENSING AND OPERATIONS Shakopee Zoning 4 + 491 Marschall Rd,Shakopee,MN.55379 )(;USA — Search resulttZt n 491 Manc1►al Rd.Snakopee.Minnesota.55379 F !9t a 4 Pat PM air CRY VI . 066 :Tr CM alt OM PP AIP9 aC10 11i5 .: elel alt d!B 572 -. XID4.� 25 N O h E I < Y > 2 , _R 1 ' W • E LL ` J A N r a n , ._N a 5 pal 7 :n..,1 4sng we 6 t o in 3 92 1I• a . it 1 i ; ' - o_o C) �i iNNN:•.real•!���or j 40 1 . illi •,4 ilior•..: iv...,., . I C I 1C C f h •......... r Q I 1::= :- . 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