[0:12] Commissioner Sandhu Commissioner Redding

[0:16] Commissioner Cheras >> Here.

[0:17] » Commissioner Vanderveen >> Here.

[0:19] » Commissioner Robbins >> Here.

[0:22] » Great. Second item is approval of the agenda. Is there anything that needs to

[0:25] be added or removed from the agenda as it is stated today?

[0:29] » No. >> All right. Can I get a motion to

[0:32] approve? >> So moved.

[0:33] » Second. >> Thank you.

[0:37] Uh we'll need a all approve say I.

[0:39] » I. >> I.

[0:40] » All opposed say nay. All right. That passes. Uh third item is

[0:46] recognition of the board by any interested citizens for anything that's

[0:50] not on the agenda today.

[0:53] » [snorts] >> Seeing and hearing none.

[0:56] I will move to the consent agenda which is the approval of the minutes for the

[0:59] last meeting of July 9th. Any changes that need to be made to the

[1:04] minutes from July 9th? >> Hopefully we spelled everyone's name

[1:08] right. >> [laughter]

[1:10] » Mr. Chair, I'll move approval of the Board of Adjustment uh minutes for July

[1:16] 9th, 2026. >> Thank you, Mr. Robbins.

[1:22] We need a second. >> I got a second.

[1:24] » Okay. All right. We got a second.

[1:27] Uh all those I I will abstain as I was not at the meeting on July 9th.

[1:32] Uh but all those in favor say I. >> I.

[1:34] » I. >> I.

[1:35] » All opposed say nay.

[1:38] All right. Uh fifth item, other business. Uh any other business? No,

[1:42] nothing? Great. Then [clears throat] I will entertain a

[1:45] motion to adjourn to our next meeting which would be September 3rd, I believe.

[1:51] » So moved. >> Thank you, Mr. Robbins.

[1:54] » Second. >> Thank you, Mr. Vanderveen. All in favor

[1:57] say aye. Aye. >> I. All opposed say nay.

[2:00] We are adjourned. >> All right. Thank you.

[2:06] And now I'll call to order this meeting of the Charlevoix Planning Commission.

[2:10] Uh we'll start with item one on the agenda, roll call.

[2:12] » Commissioner Forsythe. >> Here.

[2:14] » Commissioner Wheeler. >> Here.

[2:15] » Commissioner Sandhu. Commissioner Redding.

[2:18] Commissioner Cheres. >> Here.

[2:20] » Commissioner Vanderveen. >> Here.

[2:21] » Commissioner Robbins. >> Here.

[2:24] » Thank you. Now we're going to on to item two, approval of the agenda. Are there

[2:27] any changes or additions to the agenda? >> Nope.

[2:29] » Hearing none, I'll entertain a motion to approve it.

[2:32] » So moved. >> Commissioner Robbins, is there a second?

[2:34] » Second. >> Commissioner Cheres with the second. Any

[2:36] discussion on approving the agenda? All in favor?

[2:39] » Aye. >> Any opposed? Great. Moving on to item

[2:42] three, recognition by the Planning Commission of interested citizens. Is

[2:44] there anybody here that would like to speak on something that's not on the

[2:48] agenda?

[2:51] All right. Move on to item four, consent agenda. The only item in the consent

[2:54] agenda is the approval of meeting minutes from July 9th.

[2:57] Are there any changes or additions to the minutes?

[3:01] No. Hearing none, I'll entertain a motion to approve the consent agenda.

[3:04] » So moved. >> Commissioner Vanderveen, is there a

[3:06] second? Commissioner Robbins with the second.

[3:08] Commissioner Wheeler will abstain from the vote. Any discussion on those

[3:12] meeting minutes? Hearing none, all in favor?

[3:15] » Aye. >> Aye. Any opposed?

[3:17] All right, that passes unanimously. We'll go on to item five. The only thing

[3:21] on general business today is a public

[3:23] hearing with a request to amend city code section 151.002

[3:27] and 151.007K related to the definition of cannabis

[3:31] cultivator, indoor cannabis cultivation, and manufacturing uses in the highway

[3:35] business B1 zoning district. Is there a uh

[3:39] » Mr. Chair. >> Yeah.

[3:40] First of all, I'll entertain a motion to open the public hearing.

[3:42] » So moved. >> Commissioner Robbins, is there a second?

[3:44] » Second. >> Commissioner Vanderveen with the second.

[3:47] Any discussion on opening the public hearing?

[3:50] Hearing none, all in favor? Any

[3:53] Thank you, Mr. Kurski. Is there a presentation from staff?

[4:06] So again, this is an ordinance amendment to this public hearing to amend title XV

[4:11] chapter 151 section 151.002 definitions and 151.007K

[4:17] table of uses related to cannabis cultivator definition

[4:21] and cannabis cultivation and manufacturing in the B1 zoning district.

[4:27] So the city council, some background, the city council approved this ordinance

[4:30] in December 17th, 2024. It amended these city code sections by adding cannabis

[4:37] and lower potency hemp use classifications.

[4:40] Ordinance was written by the city attorney's office, so the use is either

[4:43] permitted in the letter P or not permitted, which is blank but in the

[4:47] zoning district in the use table with the subscript references for additional

[4:51] conditions of approval. Any endorsement received from the state

[4:55] of Minnesota's office of cannabis management, the OCM, for cannabis

[4:59] microbusiness, mesobusiness, or medical cannabis combination business must all

[5:04] per permitted in the zoning district to be allowed.

[5:08] Rory Cummings, applicant, and Tom Madden, business partner, have

[5:11] pre-approval from the OCM for cannabis microbusiness license with retail

[5:16] endorsement. They're requesting three ordinance amendments related to allow

[5:21] indoor cultivation and manufacturing in the lease space at 491 Marshall Road in

[5:26] the B1 zoning district.

[5:30] Uh they request to modify the definition for cannabis cultivator to outline what

[5:34] is allowed versus what the license license holder can do.

[5:38] The current definition written by the city attorney was a business with a

[5:41] cannabis cultivator license or cultivation endorsement from the state

[5:45] of Minnesota office of Cannabis Management. Proposed definition

[5:49] same as the city of Chaska's cannabis cultivation means a cannabis business

[5:53] license to grow cannabis plants within the approved amount of space from

[5:57] seed or immature plant to mature plant, harvest the cannabis flower from mature

[6:01] plant, packaging and labeling mature plants and seedlings and cannabis flower

[6:04] for sale to other cannabis businesses, transport cannabis flower to

[6:08] a cannabis manufacturer located in the same premises, and perform other actions

[6:13] approved by the OCM. Changing the definition as proposed

[6:17] would result in different format for this definition than all the other

[6:20] cannabis definitions and raises concerns if the state changes their language in

[6:24] the rules and statutes in the future, which we may not align with them.

[6:31] They have uh let's see here. Come on.

[6:36] There we go. Request to change the use table to allow

[6:39] indoor cannabis cultivation up to 5,000 sq ft and cannabis manufacturing in the

[6:43] high wind highway business B1 zoning district.

[6:47] City code allows cannabis cultivation and manufacturing in light industry, the

[6:51] I1 and heavy industry I2 zoning districts along with limited retail with

[6:56] a maximum of 15% of operational area or 2,000 sq ft, whichever is less.

[7:01] The intent of the B1 zoning district is to offer goods and services directly to

[7:05] the ultimate consumer. Horticulture not involving retail sales and manufacturing

[7:10] are currently not permitted in the B1 district.

[7:13] The 2040 comprehensive plan guides the B1 zone properties as mixed-use

[7:18] commercial corridor or mixed-use commercial center, amending the city

[7:21] code to allow industrial uses in these commercial classifications would be in

[7:25] conflict with the comprehensive plan. B1 also includes residences and a

[7:30] majority of the properties abut residential zoning districts. There are

[7:34] concerns related to compatibility with adjacent commercial businesses,

[7:37] neighborhood residential uses, odor, noise, and security.

[7:43] So, here's our zoning map. B1 is sort of the this color right here.

[7:49] So, it would be a significant amount of area. Here's the downtown. B1 covers

[7:53] this entire area. And then also out in Southbridge, that's a large B1 district

[7:59] also along Marshall Road here. Um this is all B1.

[8:08] So, the proposed ordinance under a subscript 61A is to request to modify

[8:12] the subscript A to remove language of each endorsement received or when

[8:16] combined must follow the current language states cannabis

[8:19] microbusinesses, cannabis meso-businesses, and medical cannabis

[8:22] combination businesses may be zoned based on each endorsement received or

[8:26] when combined must follow the designations for each license in the use

[8:29] table. This was written by the city's attorney's office to ensure that both a

[8:33] license type examples of microbusiness, meso-business, medical cannabis

[8:37] combination business any endorsement received by OCM are

[8:41] permitted in a specific zoning district um to be allowed. Removing the language

[8:46] as proposed would allow any license type to operate with any combination of

[8:50] endorsements in any district where that license type is allowed regardless of

[8:54] whether the individual endorsements are otherwise allowed.

[8:59] So, here's the current B1. So, basically we allow

[9:04] low-potency hemp um cannabis retail and cannabis microbusiness in the B1 zone

[9:09] right now. You can see over here I1 and I2 have a significant number uh of a

[9:14] more allowed uses.

[9:18] So, staff recommendation is denial of the proposed ordinance amendments with

[9:21] the following findings. Cannabis cultivation manufacturing uses are not

[9:25] in the spirit or intent of the B1 um zoning district. B1 zoning district

[9:29] includes both commercial and residential.

[9:32] Proximity of cannabis cultivation and manufacturing uses to non-cannabis

[9:35] related commercial businesses abutting residential zoning districts as well as

[9:39] existing residential homes raises concerns including but not limited to

[9:43] odor, noise, and security. The 2040 comprehensive plan guides the B1 zone

[9:49] properties as mixed-use commercial corridor or mixed-use commercial center,

[9:53] which does not allow any type of industrial use. Amending the city code

[9:56] to allow industrial uses would be in conflict with the comprehensive plan.

[10:01] Modifying the definition of cannabis cultivator to list what is allowed

[10:05] instead of referring to the state required license for a specific

[10:07] definition would result in this definition being dramatically different

[10:11] format than all the other cannabis definitions and may result in confusion

[10:15] in the future, particularly if the language in the

[10:17] rules and statutes are amended or no longer aligned with the city

[10:20] definitions. Eliminating the requirement all cannabis license types and

[10:24] endorsements to follow the designations in the use table would result in

[10:28] industrial uses operating in any district where a license type is

[10:31] permitted, which was not the intent of the original ordinance um 02024-11.

[10:41] » Thank you for that. Uh before we

[10:44] have anybody up to speak, do we have any uh questions for city staff?

[10:48] » Miss Chair, >> um

[10:50] um Mike um

[10:54] I'm I'm trying to

[10:57] get my hands around this endorsement, this um

[11:03] um definition

[11:05] of the endorsements and lack of endorsements. Can you walk me through

[11:09] that again? >> So, basically when you get your

[11:11] approvals from the Office of Cannabis Management, you get certain

[11:15] endorsements. So, you can get a retail endorsement, you can get a you know,

[11:18] basically a license to grow. So, when the city attorney working with

[11:23] the state and other the League of Minnesota Cities,

[11:26] um they came up with kind of a policy that

[11:29] the endorsements would follow the zoning districts. That's how we came up with

[11:33] the table. Um I think the biggest issue here is

[11:37] allowing any It doesn't matter whether it's cannabis or otherwise, any kind of

[11:41] manufacturing or production of anything in the B1

[11:45] district opens us up I mean, that's a comprehensive plan

[11:49] change, so that's going to be a Met Council

[11:54] discussion, full Council discussion beyond this ordinance, and

[12:00] I'm not sure that would go well because it

[12:02] You know, in the B1 district, we allow residential two ways. Either you can be

[12:07] a standalone multifamily, so an apartment building.

[12:11] You can do high-density townhomes, or you can do mixed use, and those are

[12:15] allowed by right, so it's going to change the whole character

[12:20] basically of the B1 district. >> Just to be clear, if I understood if

[12:24] these amendments go through, then any use

[12:29] uh would be uh allowable in some of the B1 districts.

[12:33] » Yeah. I mean, I think that's the concern.

[12:36] » it didn't It wouldn't have to be cannabis.

[12:38] » Yeah. I mean, I

[12:42] Chair and members, I think the issue is that

[12:45] it opens kind of the Pandora's Box. It's very difficult to limit, you know, you

[12:49] For instance, if you want to do automotive repair, I mean, that's not a

[12:52] by right, that's by conditional use um cuz that's already set up in our

[12:57] code. Um I think the proposed changes would

[13:02] make it really difficult to do some uses. I mean, we would end up with, for

[13:06] instance, a cannabis store or manufacturing

[13:09] growing in an apartment building by right.

[13:15] » Thank you, Mr. Chair. >> Yeah, thanks.

[13:17] » I have questions for >> Okay. Any other questions for staff?

[13:23] » The notes said Chaska does it differently. So, is Chaska not in

[13:27] alignment with state language? >> No.

[13:32] » No, they're not in alignment. >> Correct.

[13:34] » Correct. Okay, thank you. >> Yeah, I mean we we have believe it or

[13:36] not we have a cannabis attorney at the city attorney's office and they're out

[13:41] of alignment. They're one of the few cities that did not kind of follow the

[13:44] lead. >> That's what I was going to ask. So,

[13:47] Chaska is sounds like more of the exception than

[13:50] the rule and and the rule is more likely what we're doing where it says

[13:54] just match what the state does. >> right right now today you can go sell

[13:59] cannabis in the B1 district. We if you remember the city council did not

[14:04] there's no parameters, distance requirements. They said, "Look, you

[14:07] know, we don't have distance requirements for liquor stores. So, if

[14:09] you want to open a cannabis retailer next to a school, have at it." And so

[14:15] it's >> But you can't for example grow the

[14:17] grapes to make the wine in a B1 district.

[14:19] » Correct. >> Right.

[14:20] » Yeah. >> In the same way that you couldn't grow

[14:24] the leaves to make the cannabis in >> Yeah, so so for instance a a good

[14:28] example would be a nursery. So, they're allowed in B1 district, but

[14:32] they're not growing the plants there. They come from a farm. So, when you go

[14:36] to uh

[14:38] Bachman's or you know, some kind of nursery plant, you're buying a

[14:42] a plant that you're going to go home and plant in the ground. I mean, it's not a

[14:45] seed which you take home and grow. I mean, they don't have

[14:50] any greenhouses or things like that. So, any of the things you see Home Depot or

[14:54] Lowe's, they're not growing any of the plants

[14:56] there. They're all brought in from outside the district.

[15:00] » Thank you. >> Got it.

[15:01] » Anything else from city from for city staff I should say?

[15:05] » All right, this is the public hearing. Is there anybody here that like to speak

[15:07] on this?

[15:10] And if you do come up, uh please sign your name

[15:14] uh in there. Uh

[15:15] both of you if you could. Then we'll let you hear what you have to

[15:19] say.

[15:54] » [clears throat]

[16:05] » And just while they're signing in, so the process here is whatever you all

[16:08] decide then goes on to the city council. If they

[16:12] decide to move this forward, we'd have to ask the city attorney to come up with

[16:15] a ordinance which we'd have to publish.

[16:22] » Thank you for that.

[16:44] » How are you all doing tonight? >> Very good. How about yourselves?

[16:46] » Good. Glad to If you wouldn't mind introducing yourselves and then

[16:48] » Yes, my name is Rory. It's very nice to meet you all.

[16:54] » My name's Tom Madden. >> Thanks.

[16:56] » Excuse me, Rory. Rory what? >> Rory Cummings.

[16:59] » Thank you. >> Firstly, I'd like to thank you all for

[17:03] being here today and listening to our proposal.

[17:06] Uh I hear your concerns and I believe that

[17:10] some of those concerns are very valid, such as smell, odor.

[17:15] Um one of the big concerns that our

[17:18] landlord also had was the odor with cultivating cannabis.

[17:22] And one of the endorsements actually that we had skipped to make sure that

[17:27] odor was under control is the onsite consumption.

[17:31] Uh, the onsite consumption would create a very strong odor in the

[17:37] area. Um,

[17:40] very very similar to a cannabis grow operation. Generally, cannabis will not

[17:47] smell until about the last month right before harvest.

[17:51] And that cannabis flower is then packaged and sold. And that flower will

[17:57] be ripe and so it will have a smell uh

[18:01] from consumer to sale. The

[18:05] um, cultivation of cannabis as well

[18:10] is uh

[18:12] we propose to do them through grow tents, which would have inline filters

[18:17] and carbon filters. And on top of that, the OCM does require us to have a

[18:22] negative pressure HVAC system, which would also include a large uh carbon

[18:28] filter system to help remove any smell. Um,

[18:34] and with that system, that would be implemented on top of these tents, which

[18:39] would essentially double the filtration that's being used currently.

[18:45] » So, to give you an idea, 70% >> just moving the mic over yourself while

[18:48] you're speaking, thank you. >> give you an idea, 70% of the plant's

[18:51] life is odorless. Um, so

[18:55] it's only in the last 30% does it start to get odor. And as the plant matures,

[19:01] the odor gets stronger. So, it comes out initially very faint. And then as you

[19:05] get closer to maturity, that's when the odor um

[19:10] is is is is is stronger.

[19:13] But, um you know, as much as we're all concerned

[19:16] about the odor, our landlord was was on another level. So, before we even

[19:21] suggested um doing our small grow, we went through

[19:27] the landlord and we've got estimates. And so, the OCM has their level of

[19:33] filtration systems, so we're going above and beyond that. So, we're going to have

[19:37] a massive filtration system. Even though the plants themselves will

[19:42] be in in these tents, and they're called grow

[19:45] tents. You can think of them like um they're almost like in capsules, like

[19:51] like like space in capsules. So, they have this filtration system within the

[19:55] tent themselves that basically releases all the odor

[19:59] out. So, it's going to have multiple layers on top of what the state requires

[20:05] um to reduce any odor. And uh so, we we think the plan we have

[20:11] for the last 30% of the plant's life, and it's really the last 5% is when the

[20:15] odor gets strong, we'll we'll be removing all of it cuz the the grow will

[20:19] be so small. We're only going to use about 1,000 sq ft for this small grow.

[20:25] Um and we're simply trying to do it because it's impossible to find product,

[20:30] so we try to find creative ways we can actually open our store after waiting 3

[20:34] years to open our our store um in another location. So, we worked this

[20:39] out with the landlord and um and but we we we we want to work as we have with

[20:45] Minnetonka for 13 years, um and Chanhassen for 5 years, you know, we

[20:49] want to work with the city and hopefully come up with a solution that's good for

[20:53] everybody, you know, on this on this issue. Um

[20:57] do you want to elaborate? >> On the on the on the brewery there.

[21:01] » Yeah, and so, one other thing that we've noted is that breweries and uh

[21:07] do uh zone in the B1 zone, which those do

[21:11] allow the manufacturing, the sale, and the consumption of alcohol, which would

[21:16] be similar to a cannabis dispensary um with their operations of

[21:22] manufacturing, growing, and the sale in the B1 zone.

[21:27] » And and on top of that, breweries uh we There is a brewery on map next to our

[21:31] Minnetonka store, and the amount of noise they make versus

[21:35] a plant growing, which is basically there is no noise,

[21:39] is is is exponentially higher for the brewery. So, I know another another

[21:45] issue was the noise, but um you know, anyone who does any gardening

[21:48] knows that when you grow a plant, there is there there is no noise. Um in fact,

[21:53] the HVAC system that we're putting in will be the loudest noise we'll have in

[21:57] the whole process. When that kicks in,

[22:01] cuz we have the same one in Minnetonka, when that kicks in, that that will be

[22:04] the loudest noise in the whole process. Cuz, you know, not only are they

[22:07] encapsulated, but they're just they're just growing like any plant. So, there's

[22:12] no noise issue that we're aware of anyone who

[22:15] anyone who does this. >> So,

[22:19] Do you have more to say? Otherwise, we can certainly ask.

[22:21] » just going to talk about the security, too.

[22:23] » Oh, go ahead. >> Yeah, yeah. That was the third issue

[22:25] that we thought it was. So, go ahead and >> Yeah. And so, along with the security

[22:29] issue, um that OCM requires us to have very strict security regardless of if

[22:35] it's a retail, cultivation, manufacturing,

[22:39] um and so, all of our um all of our processes would be done up to

[22:46] OCM standards. And along so, we would also include having a higher-tiered

[22:52] security system than what is the base requirement from OCM.

[22:56] And so, this includes 24-hour monitoring,

[23:00] um the ability to save recordings for up to um,

[23:04] 3 to 6 months, which allows for if there is anything that occurs on site, we can

[23:09] instantly pull up the footage and view it or pass it on to whoever we may need

[23:15] to. Um, and this would also allow us to hold a uh, stricter

[23:23] uh, what's the word I'm looking for? A

[23:29] Mhm. It would allow us to essentially um,

[23:33] streamline the process of security between if we were doing retail sales or

[23:38] cultivation.

[23:42] » I I wanted >> Go ahead, yeah.

[23:43] » to make one more comment, too, just cuz I know uh, Mr. Robinson had a question

[23:46] about the endorsement process. And when we filled our our licenses out,

[23:52] it's you literally just just tick a box of what endorsements you want. And

[23:56] because um, the price of license is the same whether

[23:59] you tick all the all four boxes or one box, you know, most people tick the

[24:04] boxes. The only box we didn't test tick was the one to use the product in the

[24:09] store cuz no matter what road we went down, we did not want

[24:14] people um, in our dispensaries just basically uh, using the product in the

[24:20] store and creating a lot of smell. So, just give you a 2-minute background, we

[24:24] started um, we we have a vape store in Minneapolis

[24:27] in Minnetonka that we started 13 years ago to help people stop smoking. My My

[24:30] ex-wife was a smoker and when I bought her electronic cigarette, we went all

[24:34] over in Anoka. We went to about a dozen stores and all six had had uh,

[24:39] guys in hoodies and couches blowing big clouds and it was very intimidating. So,

[24:43] we tried to make a vape store for women and we wanted to make sure that that

[24:47] none of those odors were available at that time. Um, and to extrapolate to the

[24:52] current world, we wanted to have the same kind of atmosphere. We want uh,

[24:56] well-lit stores, but the last thing we wanted anywhere in our 13-year journey

[25:00] down this road is to have odors. One

[25:05] I I I you know, I I I don't think I think it's offensive for the people

[25:08] around us. Two, it's I don't want to be that kind of neighbor to my

[25:12] to the other people around me in in my where we lease our space in Minnetonka,

[25:17] Chanhassen, or Shakopee. So, the odor issue has been something that

[25:22] we've been on top of since the beginning. We started this process 3

[25:25] years ago when when the state first looked at past 342, the cannabis bill.

[25:33] » Thank you. And before we get into the questions, can you just talk a little

[25:35] bit about why you chose this location at 491 Marshall rather than a location

[25:41] that's in I1 or I2 already? >> It is so hard.

[25:45] » [laughter] >> It is It is so hard to find a space

[25:50] between the city zoning. So, we looked at So, so

[25:54] just give you an example, I'm going to take I'll answer your question. I want

[25:57] to take a step back, too. But we looked at properties ev-

[26:02] in like all over the Twin Cities. >> 200

[26:04] » Yeah, 200 areas. We had a spreadsheet of 200 areas in the Twin Cities to look for

[26:09] potential cannabis spots. So, when you get through the zoning

[26:14] and the city requirements and the state requirements. So, for example,

[26:18] the state does not allow you to have a dispensary

[26:23] 500 ft of a of a school. Or or or a nursery, right? Great. We We don't want

[26:28] to do that, either. But that that's a requirement. And then when you get

[26:32] through all the hurdles, what we've learned is

[26:34] if you're if the landlord is anyone who's national, you will never get a

[26:38] spot because the product itself is only legal in 28 states. They don't want to

[26:42] deal with that. So, now you've eliminated like 80% of all spots in in

[26:47] the Twin Cities area. So, now you have to find a landlord that is local, that

[26:52] is small, that is willing to use the product, that is is open to the product.

[26:58] And um we looked we looked for I mean how long it took us

[27:03] what 18 19 at least at least 18 to 24 months to find the Shakopee location.

[27:08] And they were I know there was at least three other people who bid on were

[27:12] trying to get that spot with the landlord. So um so it's it's it's

[27:17] it's next to it's literally next to impossible to find these spots. Um

[27:23] so >> And again in B1 you could run a micro

[27:25] business or a retailer. So why have you decided to

[27:30] uh you know, in essence kind of push the issue to also grow in this location

[27:33] rather than just run a micro business and a retailer in this location?

[27:37] » There there is I was just saying there is no supply.

[27:40] » Mhm. >> So there I mean there is no supply. So

[27:43] we were working with the grower out in Hutchinson and we agreed on a price

[27:48] and that's why we've had the spot for a year. That's when we we switched to this

[27:51] in May. So we agreed to a price the whole time. We helped him

[27:54] we helped him with all his regulations, get his business up. And then in April

[27:59] when we met to uh to sign off on the purchase, he was going to charge us four

[28:04] times the going rate. And the the numbers I ran, if we were to

[28:09] pay that price, we would be out of business in anywhere from 90 to 120 days

[28:13] because the price you would have to charge for the product versus what they

[28:17] can get on you really you're really comparing it to what they get at the

[28:21] street level because um anyone in the state can grow eight plants in their

[28:27] house. You just need it to cover it up. So um any any apartment, any any uh

[28:33] house, any multi-dwelling that has anyone over the age of 21 so you could

[28:37] have can have eight plants, four maturing.

[28:41] So there's there's a lot of underground supply.

[28:45] Uh and then plus there's also a major tax issue we have with this product

[28:49] which you don't have with other products because of the federal versus state

[28:53] issue. So, we were forced after that meeting in April to to get creative and

[28:58] that's when we approached my landlord. And I think we we uh

[29:04] we we went for this amendment I think in in late May or June because it took us a

[29:08] good 5 to 6 weeks at at minimum going back with our

[29:12] landlord our meetings trying to find a compromise to allow him

[29:17] to allow him to let us grow. So, our our intent was not to ever grow. Our intent

[29:21] is is to use our licenses before they expire which is we need to be up and

[29:26] running by by January of 27 or our license expired and we've lost hundreds

[29:32] of thousands of dollars just because we can't get product.

[29:36] Okay, so we were kind of forced behind the eight ball to find a creative way to

[29:39] get product. And with this approach if we're able and

[29:42] all we want to do is grow enough product to service the store in Minnetonka.

[29:48] That's all we want to do so we can get the store and get the business up and

[29:51] running. >> Oh, just to be sure you're not doing a

[29:54] retail location here. This is just to grow for your store in Minnetonka.

[29:57] » So, we assume that prices will be down in 24 months. We just can't survive that

[30:02] long. So, once once the price comes it's got to go

[30:07] below $2,000 for us to break even. We think it's going to go to the

[30:12] national average of $1,000 to $1,200. Once it's there we can make money and

[30:16] then once but once it goes to break even point we're going to convert Shakopee to

[30:21] it to a a dispensary which is what we wanted to be

[30:24] to begin with. We just want to be able to survive

[30:27] this time. Right now the price of cannabis in the state of Minnesota's

[30:30] between $4,000 and $4,500 a pound. You you can't you can't survive at that

[30:36] price. >> And that's that's based on it's just a

[30:39] supply issue. That's why the price is high.

[30:41] » So, the state issued 14 Correct me if I'm wrong. They They issued 49

[30:45] cultivation license, but they've only approved seven.

[30:48] So, and then once you grow it, you have to get it tested.

[30:52] And the testing sites, there's only four. And they've gone from a small

[30:56] amount of product to They want over a pound of the grow. So, there's at least

[31:01] a month backlog in just getting the product tested after you've grown it.

[31:05] So, the the govern- The backlogs at the state level are are monstrous for us.

[31:09] » Yeah. >> Thank you.

[31:10] » Uh Mr. Chair, Commissioner Robinson has >> [clears throat]

[31:15] » You know, I remember when the state passed this legislation.

[31:19] Um and for us it was a new thing for Colorado, for other people.

[31:24] Um I'm sort of though caught by the fact

[31:28] that you want to change in doing this. You're asking us to

[31:32] change some of the state guidelines. You won't be exactly like the state

[31:37] legislation. Um

[31:41] And do you see any I mean, I think we see

[31:45] maybe some difficulties with that down the line.

[31:48] Because we won't be meshing with with that and uh things may change.

[31:54] How do you respond to that? The idea that

[31:57] your guidelines are different than the state's.

[32:05] » Do you want to do it? >> Well, a a few things. One, um

[32:10] We're a little confused as what you mean by different, but on the

[32:13] other side, we we would be very open to working with the city and changing our

[32:18] amendment to whatever would would work with the city. Um

[32:22] The the the uh Are you referring to the the definition

[32:26] amendment that we put in? So, what we did and we put that in our amendment, we

[32:30] we drew a 20-mile radius out of out of Shakopee. I think there was 19 cities.

[32:35] And then of those 19, six I believe used the same

[32:40] definition term called cannabis cultivation. And of those six, they all

[32:44] had very similar definitions. They were based on the same thing. We only chose

[32:48] Chaska because it bordered it bordered Shakopee, but I believe Golden Valley

[32:53] had the same. >> Valley, yeah.

[32:55] » And there were four others that had basically the same wording.

[32:58] » Mhm. >> But the definition that the state uses,

[33:02] I mean we can read that definition. We have that, but it but it's it doesn't it

[33:06] it it's not either one of the it's the uh

[33:09] » It is different. Yeah, you have it you have it over here, right?

[33:12] » Well, so are you saying you had the the state had a definition for canna-

[33:17] cannabis cultivator and you had to change that.

[33:20] » Yeah, so you can read it. So, this is from

[33:23] this is from section um 2005 section 342.01

[33:29] of the bill subsection 4027. Uh go ahead. Cultivation.

[33:36] » Cultivation. And cultivation means any activity involving the planting,

[33:40] growing, harvesting, dying drying, curing, grading, or trimming of cannabis

[33:46] plants, cannabis flowers, hemp plants, or hemp plant parts.

[33:51] » And again, right now that is permissible in I1 and I2 in Shakopee.

[33:56] And there you're just asking to extend that to B1.

[34:00] » Yeah, we're asking is so the microbusiness license when OCM set it up

[34:04] was initiated much like a microbrewery license. That's why it's called a

[34:08] microbusiness license. And they wanted you to be able to do a very small grow

[34:13] if you had that license. So, we're we're asking the the OCM allows you to have a

[34:18] 5,000 square foot grow in um in a micro for a microbusiness. Our spot

[34:24] is only 1,700 square feet because we're going to be using the tents.

[34:28] It's going to be much smaller. And we basically want to do 50 plants and

[34:33] anyone in the in the state can do eight in their house. We just want to do 50

[34:37] because we thought 50 50 plants we thought would just get our store open in

[34:41] Minnetonka. And that's and that's really all the

[34:45] only reason why we were were down this road.

[34:47] » And again, I I can't wrap my head around yet

[34:51] the idea that you're going to be using this location at 491 Marshall, right? To

[34:56] just grow plants for commerce in another city.

[35:02] See what I'm saying? >> the microbusiness license allows you

[35:05] to sell to another microbusiness license.

[35:07] » Sure. >> And it has to be within 100 miles. So

[35:11] we're we're So we're going to be growing in Shakopee and then we're going to be

[35:16] using it in our Minnetonka store. >> not have any retail presence in Shakopee

[35:20] until you said prices come down. >> Until prices come down. We we we

[35:24] initially when we signed the lease a year ago we did the whole build-out. We

[35:27] did it ourselves with the intent of having the dispensary open, you know,

[35:31] months ago. But then when the supply issue came out in April, then we were

[35:36] really backed up and we had to get creative as to how we could get our get

[35:39] We just want one store open, honestly, so

[35:42] so we can meet our expenses. We've had We're paying rent for a year in in a

[35:45] space that we're not doing anything in. And then, you know, our in general our

[35:50] vaping business has gone down as dispensaries have opened, fewer and

[35:53] fewer people are vaping. So our sales at our vape store

[35:56] they're down 22%. So we're getting we're getting hit on both sides. So we're just

[36:00] trying to find a way to honestly just keep the business open until we think

[36:03] things will be in a greener a better place, you know, in probably 24 months

[36:08] is what is what we estimate. >> Yeah. Can you clarify what exact license

[36:13] you're on deck for and the endorsement? Because what I'm hearing is

[36:17] microbusiness, but then I'm also hearing the

[36:20] cultivator, but >> Yeah, so that is one thing that's kind

[36:24] of confusing with the licenses. So, each license structure does have different

[36:30] endorsements that can be attached to that license.

[36:33] » So, I've got the state's >> Mhm.

[36:35] » chart in front of me. And And so, I'm I'm looking at that. And I can see that

[36:40] just Let's start with one question. The license you're hoping to get and on deck

[36:45] for is a micro business. >> Yes.

[36:47] » Correct. Not a cultivator license. >> Correct.

[36:51] » What endorsement do you are you currently in line for and or are you

[36:57] hoping to get additional endorsements because of what you want to do?

[37:01] » So, currently we hold all the endorsements for a micro license besides

[37:05] the onsite consumption. >> Okay.

[37:09] Mr. Kursky, >> Yeah.

[37:11] » can you point to the spot in the city's ordinance about this that limits the

[37:18] cultivating part of what they're trying to do?

[37:21] » Cultivation is only allowed right now in I-1 and I-2.

[37:25] » Is that in >> In the table, if you look at the table.

[37:27] » Yeah, and the table's in the packet. So, >> So So, I'm looking at the

[37:31] » be sure. So, these these classifications, right?

[37:34] » Yeah. >> Cultivator, delivery service,

[37:35] manufacturer in that table. Those are definitions made by the city

[37:39] of Shakopee or made by the state?

[37:42] » So, I'm I mean, I think just looking here at the state statute

[37:46] in the quick interpretation here. >> Right.

[37:49] » It says um Minnesota cannabis micro business can generally cultivate

[37:54] cannabis plants up to a statutory plant limits for a micro business license.

[37:59] Manufacture cannabis products, operate a retail dispensary,

[38:03] deliver cannabis products, and conduct other vertically integrated activities

[38:07] allowed under their license. >> So, where I have

[38:11] incongruity here is that B1 does allow the micro business and by state

[38:17] definition the micro business allows five up to 5,000 square feet

[38:22] of growing. >> Yeah, I mean, I think the bottom line

[38:25] here is you heard it. So, they're going to grow

[38:29] in a retail space and supply in a store in another city, which is allowed, but

[38:36] you all need to make a recommendation. Is that something you want to allow in

[38:39] the B1 zone based on the standards we have today? So, that's going to open the

[38:47] Pandora's Box, so to speak, of >> Right.

[38:50] » Cuz the city can be more restrictive than the state, right?

[38:52] » Yeah. >> Yeah, yeah.

[38:53] » Yeah. >> And okay.

[38:56] » Yeah, I mean, I think we had a long discussion at council and workshops

[38:58] about where did they want people to grow it and so there are conditions. If you

[39:02] go into I1 or I2, it can't be, I think, up against

[39:06] residential. If you are, it has to have all sorts of filtration and others.

[39:10] There's subscript under all of that and council had a long discussion about

[39:14] how you separate uses and I think B1 in general in the city is for um

[39:22] what do you call it? Retail sales. So, they brought up um

[39:27] brewery, so we defined them. So, a small brewery is a conditional use in B1, B2,

[39:31] and B3 and small tap rooms are also CUP, but a brew

[39:38] pub where you have food or whatever is allowed by right.

[39:42] And a brewery over 20,000 barrels a year is only allowed in I1 and I2.

[39:49] » To to >> Because I'm have some familiarity with

[39:51] this. None of the breweries that are in town are in a B1, that's my

[39:55] understanding. They're either in a downtown or a

[39:58] » B3 or in or industrial. >> Right.

[40:00] » Mhm. >> So, there there is a difference here

[40:03] » Sure. >> for that application.

[40:09] » Any other questions for the applicant?

[40:16] » Thanks for your time. I appreciate it. >> Thank you.

[40:18] » Thank you.

[40:42] » Do you want to ask if anyone else wants to

[40:43] » Yeah, I was just waiting for >> I don't believe but yeah.

[40:46] » Stop. >> Yeah.

[40:57] » Since this is a public hearing, is there anybody else here that would like to

[41:00] speak?

[41:05] All right. Thank you. Hearing none, I certainly

[41:08] entertain a motion to close the public hearing.

[41:09] » So moved. >> Commissioner Robinson, is there a

[41:11] second? >> Commissioner Wyler with the second.

[41:13] » Any discussion on closing the public hearing?

[41:16] » All in favor. >> Aye.

[41:17] » Any opposed? >> All right.

[41:19] » So public hearing's closed. It's certainly up to us to discuss it and

[41:23] then at the end of it there'll be some kind of a motion.

[41:25] » Yeah, Madam Chair Mr. Chair, excuse me.

[41:29] Um You know, I'm I'm

[41:32] stuck here because I'm impressed with all the things that

[41:38] these people have said they will do in terms of conducting the business and

[41:45] their intent and resolve to make sure that that there's not a smell

[41:51] or that the it doesn't impact.

[41:54] But there's a couple other issues here that

[41:57] » [cough] [clears throat]

[41:59] » have to do mostly with the structure of the state

[42:03] legislation and what we do or allow in B1s as

[42:08] opposed to industrial. And so while you know, I'm

[42:15] of the mind to try to to promote this,

[42:20] I'm stuck with all of the the difficulties with it. I don't know if

[42:25] uh they can You said you'd be willing to work with

[42:28] with uh city staff, so I think we'd probably have to hear from Michael a

[42:31] little bit, but um there's just a couple of things that

[42:38] don't fit well with our zoning and don't fit well with our regulations.

[42:44] And I think, you know, the the worry is

[42:48] is that this opens some sort of floodgate, that

[42:52] if this happens, we start and then that'd be cannabis

[42:56] now. I mean, it could be something else that there's a floodgate open because of

[43:00] this, so um um Mr. Chair, I have those concerns.

[43:05] I'd like to hear from um my fellow commissioners and maybe at

[43:10] at least Mr. Kiersky wants.

[43:15] » I To point number one, I think um it creates

[43:20] a ton of incongruity with to your point. I I think it's

[43:25] pretty straightforward that if we start creating our own definitions,

[43:30] that we're going to run into trouble. To point three,

[43:34] um >> Which one was point three?

[43:37] » I have to remind myself. I wrote down notes, but not what exactly what it was.

[43:41] » [laughter] >> Give me a moment.

[43:42] » comprehensive plan B1 zone guides? >> It's the to the delete the language each

[43:46] endorsement received or combined must follow.

[43:48] » Okay. >> Um I I think that is a disaster waiting

[43:53] to happen in terms of and it's not about you, it's about just the general

[43:58] business climate. If somebody wants to open something ridiculous,

[44:02] and we don't have that kind of language in these ordinances,

[44:06] then um it becomes chaos, right? Again, not

[44:10] about you and what you're trying to do, but just bigger picture.

[44:15] Um where I'm stuck is number two. Um

[44:20] » I'm still trying to find where it says you can't cultivate

[44:24] in B1. Exactly. Just because the P is not there? Is that

[44:28] » Yeah, I mean I If you remember, I don't think you were

[44:31] on the Planning Commission, but we revised the code to get rid of a lot of

[44:35] language. If it's blank, it's not allowed.

[44:38] » Right. Um So, anything >> if it's not on the permitted thing, it's

[44:43] not allowed. So, if you want to sell used cars, for instance, in

[44:48] B1, not allowed. >> Right.

[44:50] » Um we have some existing that were grandfathered in, but it's not a allowed

[44:54] use. I mean, I think the macro issue is there's a lot of space in

[45:00] B1 and we're going to become the grow center

[45:04] now for you know, be shopping centers are set up to people to shop, whether

[45:09] it's for cannabis or whatever. I mean, I it was not set up for manufacturing and

[45:14] if you think of all the things that could be made, all of a sudden we're

[45:16] turning our B1 district into a a light industrial area.

[45:22] » especially if what we hear is that we're so supply shrunk

[45:27] and everybody's looking for places to grow.

[45:29] » Given the number of calls we're getting, I mean, all of a sudden people are going

[45:31] to be >> Well, right. I mean, like if if word

[45:34] gets out that shock allows people to to you know, grow cannabis in anywhere in

[45:38] B1, then all of a sudden,

[45:42] you know, it's going to be a lot of greenhouse greenhouses.

[45:45] » Yeah, I mean, basically we're whether, you know, beyond the landlord

[45:49] situation, but just as a land use situation,

[45:53] it would allow cannabis cultivation in B1.

[45:57] » Right. Because we are >> Without any other activity.

[46:00] » Yeah. Cuz we're not approving just one business, right? We are changing city

[46:04] code. >> Yeah, correct.

[46:05] » Right. Yeah. >> No, unfortunately, the public hearing's

[46:07] closed, so we're just talking. >> The um

[46:12] um You know, I see the difficulty with all

[46:16] of this.

[46:19] And I expect then, Mr. Kiersky, that given what you've just said, it's very

[46:23] hard >> Mhm.

[46:24] » to find middle ground here because what they're proposing is to do something in

[46:29] B1. Um

[46:32] » No, and and Commissioner, if you remember, I mean, no cannabis use

[46:36] basically is allowed in B3, which is the downtown, because there would be no

[46:40] other businesses left downtown if product were available except cannabis

[46:43] stores because we must have gotten 20 or 30 calls for

[46:48] business space downtown that people wanted to convert either

[46:52] existing business space or vacant space to cannabis retailers. I mean, it was

[46:57] incredible. Now, you know, companies out in New York, I mean, unbelievable the

[47:01] number of phone calls we've had to deal with. And they wanted to change that.

[47:04] And I went, "Well, good luck cuz you can go to B1, you know, if you if

[47:08] you have product, evidently, or or you can, if you want to grow, go to the

[47:12] industrial areas, but we're not going to have it all over the city. I mean,

[47:15] Council said there's no limit to the licenses, but there is a limit to the

[47:18] areas we're going to allow it." >> Thank you. Um

[47:24] » Anything else? Madam Chair?

[47:28] » Nope. >> Nope.

[47:30] » Uh yeah, I mean, I I keep going back to, right, this is

[47:33] not just about are we allowing one business to open or not open, right? Or

[47:38] it's it's about setting a precedent. It's about changing city code. It's

[47:42] about changing, I think, the nature of what the B1 zone is, right? The idea

[47:47] that it's meant for retail. It's meant for, you know,

[47:51] people going and buying something. Um we haven't talked yet, and I think it

[47:55] also bears mentioning that at this specific location on the north side is

[48:00] an apartment building, on the east side is some homes, and on the south side the

[48:04] hotel. Right? I mean, these are very close to places where people either live

[48:09] or visit the city. And, you know,

[48:12] by the way they were talking, 30% of the time there's going to be odor.

[48:16] Right? I mean, that's it's I think it's a recipe for

[48:20] complaints, and I think that's part of the reason why B1 is sort of shielded,

[48:24] right? From this because of the fact that it can be close to residences,

[48:27] hotels, those kinds of things. >> Yeah.

[48:30] Mr. Chair, let me just say one other thing. I, you know, I appreciate the

[48:34] fact that you guys have been looking for a long time, and that it's not easy.

[48:39] Um I I really hope you find a space. I know

[48:44] it's it's difficult to do, but um >> So

[48:48] » I just think there there's going to be difficulties with this one, so.

[48:52] » So So, could you grow in Minnetonka? >> Okay.

[48:57] » [laughter] >> I get it. I guess I guess not.

[49:01] » What zone I was going to actually ask, do you know the zoning for the the other

[49:05] two sites, what kind of zoning they're in?

[49:07] » Well, Jan Askin is a national landlord, and he's not going to allow it.

[49:12] » Well, no, I'm asking what the city zoning is for the two other locations.

[49:16] » Oh. >> You mean Minnetonka and Chanhassen?

[49:17] » Yeah. >> We We do know that

[49:20] our our Minnetonka store is zoned for

[49:23] cannabis uses. >> Do you know if it's B1? Is it I1? Is it

[49:29] » Not the top of my head. We've been pre-approved on this since we got here.

[49:31] » Yeah. Okay. But mostly for retail, right? Not for production.

[49:35] » Well, there's a micro brewery right next to us that does this.

[49:37] » Yes. Different, but right. Yeah.

[49:39] » next to us. >> Okay.

[49:42] Sounds good. >> We can't have um

[49:45] We We can't have a cultivation license with a micro business license by law.

[49:50] We're not allowed to do that. >> Right. Right.

[49:52] » To me, the zoning department would have to break state law.

[49:57] » Sounds good. Any other So, wait. Give me a second.

[50:00] So, what did you say again? >> I can read you the statute.

[50:03] » No, but what license do you have right now?

[50:05] » We have a micro business. And in order to grow at the micro business, we need

[50:09] to also own a cultivation license under >> So, you have a cultivation license?

[50:13] » By We legally cannot.

[50:16] Like, it's against state law to have a cultivation and a micro business

[50:20] together. >> Two licenses. Which is why you want

[50:23] Marshall Road to just cultivate. >> Well, no. We We want it just because our

[50:29] our micro business license allows us. So, the micro business

[50:32] » Okay. Okay. >> we are allowed to do a very small

[50:34] cultivation. But, to me, the zoning and shop you need to have a cultivation

[50:41] and a micro >> That's right.

[50:42] » cultivation license. Not endorsement. You need a cultivation

[50:46] license, not the endorsement. And the micro business license which has the

[50:50] endorsement. But, if we have both, we would be

[50:53] breaking state law because you can't have a micro business license

[50:58] and a cultivation license at the same time.

[51:00] » The Okay. Thank you.

[51:03] But, well, by state law, you can cultivate it, but by city code, you

[51:07] cannot. If I am Mr. Gurski, am I interpreting that correctly?

[51:15] » You can answer this, but I think what you're saying, if I'm following the

[51:18] bouncing ball here, that I With your current license,

[51:23] you can grow, but not sell in a small location.

[51:28] That supply another business. >> So, the micro license, it is kind of

[51:34] confusing, but essentially >> Can you go to the microphone, please?

[51:36] » Yes. Um

[51:39] So, with the micro license, that has different portions of endorsements. So,

[51:47] like one endorsement is the retail sale, then the next would be cultivation,

[51:53] um the next would be onsite consumption, and then manufacturing. And so, those

[51:57] are all enveloped. >> endorsements do you have?

[52:00] » We have all of them besides the onsite consumption.

[52:04] » Does Yeah.

[52:07] » Yeah, okay. >> Is the So, in this table it says can

[52:10] grow. >> Mhm.

[52:12] » But, is that can grow only permissible when you have the cultivation

[52:17] endorsement? >> Correct.

[52:18] » Got it. Okay. Thank you. That solves a lot for me right now.

[52:23] Okay. Thank you for that.

[52:25] » Thank you. >> Any other discussion among

[52:29] the five of us?

[52:36] » No. >> All right. Um

[52:38] by the end of the night, we want to

[52:42] have something about the proposed ordinance amendments to

[52:46] change the definition of cannabis cultivator and allow cultivation indoors

[52:50] and manufacturing in the B1 zoning district. Do we have a motion

[52:55] referring to that?

[53:04] » Um Mr. Chair, I I I guess what I'll do is

[53:08] I'll recommend denial to the city council the proposed ordinance

[53:12] amendments uh to change the definition

[53:16] of cannabis cultivator and allow indoor cannabis cultivation and manufacturing

[53:23] in the highway business B1 zoning district.

[53:28] » Thank you, Commissioner Robbins. Is there a second on that?

[53:30] » I'll second. >> Commissioner Weiler has the second. Uh

[53:33] any discussion on that motion?

[53:38] Hearing none, we'll go to a roll call. And again, just before we do it,

[53:42] An I means you recommend denial and an A means you do not recommend denial. I

[53:47] just it's one of those weird, negative kind of thing. Yeah. Yeah. Yeah.

[53:53] » All right. Commissioner Forsythe. >> I.

[53:55] » Commissioner Weiler. >> I.

[53:57] » Commissioner Cherith. >> I.

[53:59] » Commissioner Vanderveen. >> I.

[54:01] » Commissioner Robbins. >> I.

[54:03] » Thank you. That passes unanimously. And we'll move on to item six, other

[54:08] business. Is there any other business? >> Motion.

[54:10] » All right. Thank you. Then we'll move on to item seven and entertain a motion to

[54:13] adjourn. >> So moved.

[54:15] » We got Commissioner Vanderveen and then Commissioner Robbins with the second.

[54:20] Any discussion on adjournment? Hearing none, all in favor?

[54:24] » I. >> Any opposed?

[54:26] We're adjourned at 7:54 until the September meeting.

Board of Adjustment and Appeals/Planning Commission, August 6, 2026

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