Item 3.2 Zoning Ordinance Regarding Regulation of Cannabis3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
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MEMORANDUM
TO: Otsego Planning Commission
FROM: D. Daniel Licht
DATE: 25 November 2024
RE: Otsego – Zoning Ordinance; Cannabis Regulation
TPC FILE: 101.01
BACKGROUND
Minnesota Statutes Chapter 342 became law in 2023 allowing for legalization of recreational
adult-use cannabis. Implementation of the law will be the responsibility of the Office of
Cannabis Management (OCM) through regulatory rules and procedures still being developed.
The law does establish that cities cannot prohibit cannabis businesses from operating within
their jurisdictions and limits the scope of regulations that a city can adopt to control public use,
as well as time, place, and manner operations of a cannabis business. Wright County has
already adopted an ordinance prohibiting the public use of cannabis, which includes areas of
Otsego. Time, place, and manner regulations would be incorporated within the Zoning
Ordinance and can include specific provisions of the law regarding setbacks from certain
sensitive uses and limits on hours of operation. There are also administrative functions that
counties and/or cities will be responsible for in terms of certification of license applications, site
inspections, and confirmation of compliance with zoning requirements.
Our office, with input from City Attorney, is providing this this memorandum to outline
regulatory concepts that may be implemented in Otsego prior licenses being issued for
cannabis businesses as soon as 1 January 2025. The OCM is reportedly behind schedule in
terms of rule making and outlining procedures for the licensing and operation of cannabis
business to the extent that licenses are not likely to be issued until sometime during 2025. It is
seen as beneficial that the City be proactive in discussing potential approaches to cannabis
regulation and having regulations in place as more information becomes available and the
issuance of licenses draws closer.
Item 3.2
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Exhibit:
Draft ordinance
Zoning Map
ANALYSIS
Policy. The City must initially decide upon a regulatory policy to be taken towards cannabis
businesses. At one end of the spectrum is a laissez faire approach of the City taking the
minimum action required by Statute regarding the license and operation of cannabis businesses
on the basis that the State has deemed this to be a legal activity in Minnesota. The draft
ordinance provided for review by the Planning Commission provides for regulation of cannabis
businesses to the extent allowed by Statute. The Planning Commission may recommend, and
the City Council, may approve less restrictive regulations.
Public Use. The Statute legalized adult use of cannabis within public places effective 1 August
2023 unless otherwise regulated by local government jurisdictions. Wright County has adopted
Ordinance 23-3 regulating use of cannabis and cannabis derived products in public places with
in the County, which includes Otsego. Adult use of cannabis is only allowed on private
properties and those properties licensed to permit its use.
Number. The Statue establishes that counties and cities may impose the following limits the
number of cannabis business licenses issued within their jurisdictions.
Minimum 1 license 12,500 population within issuing LGU (county/city)
If County has 1 license / 12,500 county population, a city not required to register
Based on both the 2020 census and most current official population estimates, Otsego would
be required to register at least one cannabis business license, subject to allowed local
regulations. Coordination with Wright County would be necessary to monitor the number of
licenses issued in the County as to how that may affect limits for cannabis businesses in Otsego.
The City may also elect to establish less restrictive limits on number of cannabis businesses in
Otsego or no limit at all.
Cannabis Businesses. The Statute defines 14 specific cannabis businesses and two hemp-based
businesses allowed to operate in Minnesota, listed below. This list includes medical cannabis
cultivator and medical cannabis processor, which would include an existing business operating
in Otsego.
Cannabis microbusiness
Cannabis mezzobusiness
Cannabis cultivator
Cannabis manufacturer
Cannabis retailer
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Cannabis wholesaler
Cannabis transporter
Cannabis testing facility
Cannabis event organizer
Cannabis delivery service
Medical cannabis cultivator
Medical cannabis processor
Medical cannabis retailer
Medical cannabis combination business
Low Potency Hemp Edible Manufacturer
Low Potency Hemp Edible Retailer
Definitions of these businesses are to be incorporated into the definitions section of the Zoning
Ordinance as the basis for time, place, and manner regulations applicable to specific types of
operation.
Time/Place/Manner Regulations. The concepts of time, place, and manner regulations is the
fundamental basis of zoning. Allowed uses are defined and located within the City based on
land use compatibility and access to infrastructure so as to protect public health safety and
welfare. Uses are allowed by the Zoning Ordinance either as permitted, conditional, or interim
uses that are subject to varied levels of review by the Planning Commission and City Council,
with likewise varied levels discretion to impose conditions related to the operation of the use.
Zoning Districts provide for co-location of like land uses within a defined geographic area where
they will compatibly exist and, in the case of businesses, provide for market attraction and
business interchange.
Zoning Districts. The primary form of place regulations for land uses is by Zoning
District. A preliminary outline of the cannabis businesses and hemp businesses by land
use characteristics and corresponding zoning districts, not including residential or
institutional districts, is provided below:
Commercial Industrial
Zoning Districts B1 B2 B3 B4, I1, I2, I3
Business
Microbusiness C
Mezzobusiness C
Cultivator C
Manufacturer C
Retailer P P
Transporter C
Testing facility P
Event organizer A A
Delivery service C
Medical Cultivator C
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Processor C
Retailer P P
Combination C
LP Hemp Edible
Manufacturer
C
LP Hemp Edible Retailer P P
The existing medical cannabis business in Otsego operates within an agricultural district
as a conditional use. Further distinctions regarding specific businesses may be possible
depending on the definitions of each. For example, a cultivator business that has
outdoor growing of cannabis or hemp may be appropriate in an agricultural zoning
district. Conversely, a cultivator that uses indoor growing facilities may require access
to utilities including electricity, water, and sewer and would have a building design more
consistent with that of an industrial district.
The purpose of each zoning district within a land use category must also be considered
such whether a manufacturer is appropriate within the B4, Office Warehouse District
where a testing facility may be.
Assignment of the cannabis businesses within each category is also place regulation
based on their location as established on the Zoning Map. Medical and retail cannabis
businesses are to be allowed uses with the B2, Highway Business District and B3,
General Business District. The Planning Commission must determine if these businesses
are to be allowed in the B1, Retail Business District. Those businesses involved in
cultivation, processing, manufacture, and distribution, as well as medical businesses, are
to be allowed in the B4, Office-Warehouse Business District, I-1, Limited Industrial
District, and I-2 General Industrial District.
Allowed Uses. How each of the cannabis business is allowed within the assigned zoning
districts will also need to be determined as allowance as a permitted, conditional, or
interim use is a form of time, place, and manner regulation. The Statute does not
provide direction as to how cities must allow cannabis businesses within the Zoning
Ordinance as Statutes do with other certain uses. The Planning Commission and City
Council would need to determine if there are potential negative impacts with the
cannabis business that warrants the additional review process required of a conditional
or interim use and what types of conditions could be reasonably established beyond the
limited standards outlined by Statute.
Requiring the additional review processes of a conditional use or interim use can also be
problematic from a political perspective. The Planning Commission and City Council
have an educated understanding of the level of discretion allowed to the City for review
of conditional uses and interim uses and application of conditions. The public does not
always have this level of understanding and may have unfounded expectations of the
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City Council’s ability to approve or deny a cannabis business application through the
Conditional Use Permit or Interim Use Permit review process.
To this end, it the most practical approach for the City is to allow retail cannabis
businesses subject to the general performance standards established by the Zoning
Ordinance applicable to any business within the same zoning district and those
specifically established by Statute or OCM rules and procedures. For the cultivation,
processing, manufacture, and distribution businesses, the Statute does not provide
specific performance standards. As such, City staff recommends that these uses be
established as interim uses within the designated zoning districts. Allowance as an
interim use versus a conditional use permit provides that the approval for the business
can be terminated with a change in circumstances, including ownership, such that City
can review the new or altered operations.
Building Code. The Statute allows for compliance with the building code as a requirement for a
county or city to registering a license within its jurisdiction. The Zoning Ordinance already
establishes this requirement as a general performance standard applicable to all uses within the
City. Connecting building code compliance to the cannabis business license does provide an
additional avenue of enforcement in the case of known violations.
Property Taxes. The Statute requires a cannabis business to certify that the current years’
property taxes have been paid as a condition of a county or city registering a license within its
jurisdiction. This provision is consistent with other State Statutes requiring certification of
taxes paid as a condition of zoning and subdivision approvals.
Other Licenses. Certain licensed businesses, such as businesses with liquor licenses, may also
acquire hemp business licenses to sell hemp products. A criminal conviction for violating the
terms of the hemp license impacts liquor licenses by operation of state statute. The city should
also consider adding conditions to business licenses that the business will not sell illegal hemp
or cannabis products. This will allow for administrative enforcement without the need to secure
a criminal conviction. Businesses that may risk illegal hemp or cannabis sales may be more likely
to obey the law if noncompliant sales could also result in, for example, liquor license
revocation.
Other Regulations. OCM may establish additional regulations regarding the manner of
operation for cannabis business beyond those outlined above. City staff will monitor OCM’s
rule making process and review potential applications of regulations as they are published.
Administration. Wright County has worked with Cities to develop a joint powers agreement
whereby Wright County will be responsible for administration, inspection, and enforcement of
cannabis businesses. The City’s role in the licensing and registration of cannabis businesses will
be confirmation that the proposed use complies with the zoning regulations adopted by the
City. The joint powers agreement is subject to review and approval of the City Council.
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CONCLUSION
The City Council Administrative Subcommittee previously discussed regulatory concepts
surrounding cannabis businesses within Otsego upon which the draft Zoning Ordinance
amendment is based. City staff has noticed a public hearing for the Planning Commission
meeting on 2 December 2024 to consider the proposed Zoning Ordinance amendments. The
Planning Commission, as part of their discussion, may make directions to modify the scope of
proposed regulations provided that such changes are consistent with the Statute. City staff
recommends approval of the draft Zoning Ordinance amendment as presented.
c. Adam Flaherty, City Administrator
Audra Etzel, City Clerk
David Kendall, City Attorney
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO.: 2024-XX
ORDINANCE AMENDING THE ZONING ORDINANCE
FOR REGULATION OF CANNABIS BUSINESSES
The Otsego City Council does ordain:
Section 1. Section 11-2-2 of the City Code (Zoning Ordinance – Definitions) is hereby amended to
include the following definitions:
CANNABIS BUSINESSES RELATED: Unless otherwise noted in this section or chapter 35 of this title, words
and phrases contained in Minnesota Statutes, section 342.01 and the rules promulgated pursuant to any
of these acts, shall have the same meanings in this title.
A. Adult-Use Cannabis Product: As defined under Minnesota Statutes, section 342.01, subd. 4.
B. Cannabis Cultivation: 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 office.
C. Cannabis Retail Businesses: A state licensed retail location and the retail location(s) of a
mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations
endorsement, medical combination businesses operating a retail location, and lower-potency
hemp edible retailers.
D. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or domestic,
selling cannabis product to a consumer and not for the purpose of resale in any form.
E. Daycare: A location licensed with the Minnesota Department of Human Services to provide the
care of a child in a residence outside the child's own home for gain or otherwise, on a regular
basis, for any part of a twenty four (24) hour day.
F. Lower Potency Hemp Edible: As defined under Minnesota Statutes, section 342.01, subd. 50.
G. Office of Cannabis Management: State of Minnesota Office of Cannabis Management, as may be
referred to as “OCM” in reference to this title.
H. Place of Public Accommodation: A business, accommodation, refreshment, entertainment,
recreation, or transportation facility of any kind, whether licensed or not, whose goods, services,
facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise
made available to the public.
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I. Preliminary License Approval: Office of Cannabis Management pre-approval for a cannabis
business license for applicants who qualify under Minnesota Statutes, section 342.17.
J. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by
the general public, including, but not limited to, restaurants; bars; any other food or liquor
establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common
areas of rental apartment buildings, and other places of public accommodation.
K. Residential Treatment Facility: As defined under Minnesota Statutes, section 245.462 subd. 23.
L. Retail Registration: An approved registration issued by Wright County to a cannabis retail
business.
M. School: A public school as defined under Minnesota Statutes, section 120A.05 or a nonpublic
school that complies with the reporting requirements under Minnesota Statute, section 120A.24.
N. State License: An approved license issued by the Office of Cannabis Management to a cannabis
retail business.
Section 2. Title 11, Chapter 35 of the City Code (Zoning Ordinance - Reserved) is hereby amended
to read as follows:
Chapter 35
CANNABIS BUSINESS USES
11-35-1: Purpose and Intent; Authority and Jurisdiction
11-35-2: License and Retail Registration
11-35-3: Buffer Zone Required
11-35-4: Performance Standards
11-35-5: Temporary Cannabis Events
11-35-6: Lower Potency Edibles
11-35-7: Use in Public Places
11-35-1: FINDINGS AND PURPOSE; AUTHORITY:
A. Findings and Purpose. The city makes the following legislative findings:
1. The purpose of this chapter is to implement the provisions of Minnesota Statutes, chapter
342, which authorizes the city to protect the public health, safety, and welfare of
residents by regulating cannabis businesses within the city.
2. The City finds that the proposed provisions are appropriate and lawful regulations for the
city, that the proposed amendments will promote the interests of the community in
reasonable stability in zoning for now and in the future, and that the proposed provisions
are in the public interest and for the public good.
B. Authority. The city has the authority to adopt this chapter pursuant to:
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1. Minnesota Statutes, section 342.13(c), regarding the authority of a local unit of
government to adopt reasonable restrictions of the time, place, and manner of the
operation of a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.
2. Minnesota Statutes, section 342.22, regarding the local registration and enforcement
requirements of state licensed cannabis retail businesses and lower potency hemp edible
retail businesses.
3. Minnesota Statutes, section 152.0263, Subd. 5, regarding the use of cannabis in public
places.
4. Minnesota Statutes, section 462.357, regarding the authority of a local authority to adopt
zoning ordinances.
11-35-2: LICENSE AND RETAIL REGISTRATION:
A. State License. Operation of a cannabis business of the types established by Minnesota Statues,
section 324.10 shall require a state license in accordance with Minnesota Statutes, section 342.14.
B. Retail Registration. No individual or entity may operate a cannabis retail business within the city
without first obtaining approval of a registration from Wright County in accordance with
Minnesota Statutes, section 342.22.
11-35-3: BUFFER ZONE REQUIRED:
A. Operation of a retail cannabis business within shall be prohibited within:
1. One thousand feet (1,000’) of a school.
2. Five hundred feet (500’) of a day care.
3. Five hundred feet (500’) of a residential treatment facility.
4. Five hundred feet (500’) of an attraction within a public park that is regularly used by
minors, including a playground or athletic field.
B For purposes of this section, the distance of a required buffer between a cannabis retail business
and a use identified in section 11-35-3.A of this section shall be measured in a straight line,
without regard to the intervening structures or objects or political boundaries, from the closest
exterior wall of the structure the cannabis business is located to the property line of said use.
C. Pursuant to Minnesota Statutes, section 462.367, subd. 14, a registered cannabis business
established in accordance with the provisions of this chapter or a cannabis business seeking
registration from continuing operation at the same site shall not be prohibited if a use identified
within section 11-35-3.A of this section a moves within the minimum required buffer zone.
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11-35-4: PERFORMANCE STANDARDS: Operation of a registered cannabis business of the types
established by Minnesota Statues, section 324.10 within the city shall comply with the provisions of this
title and the following:
A. Building Code. The cannabis business shall comply with the provisions of Title 9, Chapter 2 of
this code.
B. Fire Code. The cannabis business shall comply with the provisions of Title 9, chapter 4 of this
code.
C. Allowed Hours:
1. Retail sale of cannabis, cannabis flower, cannabis products, lower potency hemp edibles,
or hemp-derived consumer products shall be limited to occur between the hours of ten
o’clock (10:00) A.M. to nine o’clock (9:00) P.M each day, unless extended by approval of
an interim use permit.
2. Temporary cannabis evens shall be limited to occur between the hours established by
section 4-13-6 of this chapter.
3. Hours of operation for cannabis businesses other than those specified by section 11-35-
4.C.1 and section 11-35-4.C.2 of this section shall be allowed subject to other applicable
provisions of this title.
D. Ventilation. A cannabis business shall be ventilated so that the odor of marijuana cannot be
detected by a person with a normal sense of smell at the exterior of the cannabis business at
the property line.
E. Age Limitations. No person under twenty-one (21) years of age shall be within the cannabis
business premises.
F. Public View:
1. All activities of a cannabis business businesses, including, without limitation, cultivating,
growing, processing, displaying, manufacturing, selling, and storage, shall be conducted
out of public view.
2. No cannabis or paraphernalia shall be displayed or kept in a business so as to be visible
from outside the licensed premises.
G. Prohibited Activities:
1. Consumption or use of cannabis products onsite of a cannabis retail business is
prohibited.
2. There shall be no outdoor events or sales associated with a cannabis business; all such
activities shall occur within a principal or accessory building, including temporary
structures, as allowed in compliance with title 11 of this code.
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3. No cannabis business shall occupy a residential dwelling unit.
11-35-5: TEMPORARY CANNIBIS EVENTS:
A. Special Event Permit Required. A special event permit is required to be issued in accordance with
title 4, chapter 2 of this code prior to holding a temporary cannabis event.
B. Information Required. In addition to the required for an application for a special event permit in
accordance with title 4 chapter 2 of this code, the applicant shall submit the following
information:
1. A copy of the Office of Cannabis Management cannabis event license application
submitted pursuant to Minnesota Statutes, section 342.39, subd. 2.
C. Conditions. In addition to the provisions of Section 4-2-5 of this code, the following conditions
shall be required for temporary cannabis events:
1. Minimum Buffer Zone Required: A temporary cannabis event shall comply with the
minimum buffer zone requirements established by section 11-35-3 of this chapter.
2. Temporary cannabis events shall only occur between the hours of seven o’clock (7:00)
A.M. and ten o’clock (10:00) P.M, unless extended by the city council with approval of a
special event permit.
3. Notice to Property Owners. Unless a greater distance is required by section 4-2-7 of this
code, a copy of the special event permit for a temporary cannabis event shall to be mailed
not less than fourteen (14) days prior to the special event to all property owners within
five hundred feet (500’) of the event location, subject to approval of the zoning
administrator.
11-35-6: LOWER POTENCY EDIBLES: The retail sale of lower potency edibles and beverages shall
be allowed, subject to the conditions within this section:
A. Age Restrictions. The sale of lower potency edibles is permitted only in places that admit persons
twenty one (21) years of age or older.
B. Product Storage. Lower potency edibles shall only be sold behind a counter and shall be stored
in a locked case.
11-35-7: USE IN PUBLIC PLACES: No person shall use cannabis flower, cannabis products, lower
potency hemp edibles, or hemp-derived consumer products in a public place or a place of public
accommodation unless the premises is an establishment or an event licensed to permit on-site
consumption of cannabis products.
Section 3. Section 11-52-5.H of the City Code (Zoning Ordinance – A2, Agriculture Long Range
Urban Service Area; Conditional Uses) is hereby amended to read as follows:
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H. State licensed mMedical cannabis production facilities businesses existing upon [EFFECTIVE
DATE]; provided, that:
1. The facility shall be licensed by the State of Minnesota as a medical cannabis
manufacturerbusinesses and shall be developed and operated in accordance with
Minnesota Rules chapter 4770, as amendedStatutes, chapter 432.
2. The use shall not include a distribution facility for medical cannabis as defined by
Minnesota Rules chapter 4770.0200 subparagraph 13, as amended.
32. The traffic generated by the proposed use can be adequately accommodated (both
volume and weight) by the streets accessing the property upon which the use is located.
43. The principal building shall be constructed with exterior materials as required for uses
developed in industrial districts established in chapter 17 of this title.
54. All fencing shall comply with the requirements of section 11-19-4 of this title.
65. The site shall be landscaped and screened in accordance with chapter 19 of this title.
76. All exterior lighting shall comply with the requirements of section 11-16-6 of this title
applicable to industrial uses.
87. Any odor emissions shall be within the limits established by section 11-16-9 of this title.
98. The use shall have adequate sewage disposal facilities in accordance with section 11-16-
11 of this title or section 8-1-3 of this Code, as may be applicable.
109. All off street parking areas and drive aisles shall be constructed in accordance with the
design and construction standards of chapter 21 of this title.
1110. All loading areas shall be constructed in accordance with the design and construction
standards of chapter 22 of this title.
1211. All signs shall comply with the provisions of chapter 37 of this title.
1312. The use shall not include any outdoor storage.
Section 3. Section 11-76-2 of the City Code (Zoning Ordinance – B2, Highway Business District;
Permitted Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
E. Cannabis businesses; retail businesses, medical cannabis retailer, and lower potency hemp edible
retailer only, subject to the provisions of chapter 35 of this title.
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Section 4. Section 11-76-4 of the City Code (Zoning Ordinance – B2, Highway Business District;
Uses By Administrative Permit) is hereby amended to add the following provisions with subsequent
sections renumbered accordingly:
B. Temporary cannabis events in accordance with chapter 35 of this title and title 4, chapter 13 of
this code.
Section 5. Section 11-77-2 of the City Code (Zoning Ordinance – B3, General Business District;
Permitted Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
E. Cannabis businesses; retail businesses, medical cannabis retailer, and lower potency hemp edible
retailer only, subject to the provisions of chapter 35 of this title.
Section 6. Section 11-77-2 of the City Code (Zoning Ordinance – B3, General Business District;
Uses By Administrative Permit) is hereby amended to add the following provisions with subsequent
sections renumbered accordingly:
B. Temporary cannabis events in accordance with chapter 35 of this title and title 4, chapter 13 of
this code.
Section 7. Section 11-78-2 of the City Code (Zoning Ordinance – B4, Business Office District;
Permitted Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
B. Cannabis businesses; medical cannabis retailer, subject to the provisions of chapter 35 of this title.
Section 8. Section 11-78-3 of the City Code (Zoning Ordinance – B4, Business Office District;
Interim Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
C. Cannabis businesses; combination medical cannabis, cultivator, delivery service, manufacturer,
medical cannabis combination, mezzobusiness, microbusiness, testing facility, transporter, and
lower potency hemp manufacturer only, provided that:
1. City Code. The cannabis business shall comply with the provisions of chapter 35 of this
title.
2. Indoor Operations:
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a. A cannabis business shall be conducted entirely within a principal or accessory
building as allowed by this title; all outside storage is prohibited.
b. All waste and recycling containers shall be kept within a principal or accessory
building.
3. Minimum Buffer Zone. All principal and accessory buildings occupied by a cannabis
business shall be setback a minimum of five hundred feet (500’) from any residential
districted established by chapter 50 of this title.
4. Allowed Hours:
a. Retail sale of cannabis, cannabis flower, cannabis products, lower potency hemp
edibles, or hemp-derived consumer products shall be limited to occur between
the hours set forth by section 4-13-4.c. of this title.
b. The hours of operation for a cannabis business other than those specified by
section 11-85-6.C.2.a of this section shall be limited to the hours of seven o’clock
(7:00) A.M. to ten o’clock (10:00) P.M each day, unless extended by the city
council.
5. Emissions. An emissions plan shall be submitted with application for a conditional use
permit describing the emissions(s) anticipated to originate at the premises and the
methods to be used to prevent such odor(s) from leaving the premises, subject to the
following:
a. Sufficient measures and means of preventing any gas, vapors, odors, smoke,
odors, debris, dust, fluids, or other substances from exiting a cannabis business
shall be provided at all times.
b. In the event that any gas, vapors, odors, debris, dust, fluids, or other substances
exit a cannabis business, the cannabis business and the owner of the subject
property shall be jointly and severally liable for such conditions and shall be
responsible for immediate, full clean-up and correction of such condition.
c. The cannabis business shall properly dispose of all such materials, items, and
other substances in a safe, sanitary, and secure manner and in accordance with
all applicable federal, state and local laws and regulations.
6. Cultivation:
a. Cannabis cultivation shall not be perceptible from the exterior of the building
in which the cultivation occurs.
b. Lighting:
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(1) The use of any lighting for indoor marijuana cultivation shall be limited
to light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), or
other fluorescent lighting.
(2) Use of high-intensity discharge (HID) lighting, including, but not limited
to, mercury-vapor lamps, metal-halide (MH) lamps, ceramic MH lamps,
sodium-vapor lamps, high-pressure sodium (HPS) lamps and xenon
short-arc lamps, shall be prohibited.
7. Utilities:
a. The use shall be connected to public water, sanitary sewer, and stormwater utility
systems.
b. Public Water:
(1) There shall be adequate capacity within the public water system,
including wells, pump houses, water towers, pressure valves, and
distribution pipes serving the property to accommodate the cannabis
business.
(2) Connection to the public water system shall comply with title 8, chapter
2 of this code, including provision of cross connection controls subject to
approval of the city engineer.
c. Sanitary Sewer:
(1) There shall be adequate capacity within the sanitary sewer system,
including collection pipes, lift stations, forcemains, and wastewater
treatment facilities serving the property to accommodate the cannabis
business.
(2) Discharges to the sanitary sewer system shall comply with title 8, chapter
3 of this code, subject to approval of the city engineer.
d. Storm Sewer. All discharges to the storm sewer utility system shall comply with
the provisions of this chapter and title 8, chapter 3 of this code, subject to
approval of the city engineer.
6. Security:
a. Burglary alarm systems with audible and sheriff notification components that are
professionally monitored and maintained in good working condition shall be
installed on all doors, windows, and access points.
b. Surveillance cameras shall be installed and operate twenty-four (24) hours a day,
seven (7) days a week, with thirty (30) day video storage, to monitor all entrances
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and trash receptacles, along with the interior and exterior of the premises shall
be required.
c. Exterior lighting shall be required sufficient for observers to see and for cameras
to record, that is either constantly on or activated by motion detectors, subject
to the requirements of section 11-16-6 of this title
d. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall
be installed on all other windows or access points.
e. Additional security requirements including, but not limited to, security guards,
steel doors, and steel window coverings shall be required as determined by the
city council.
7. Retail sale of products other than cannabis products as an accessory use shall be allowed
subject to approval of separate conditional use permit.
Section 9. Section 11-78-4 of the City Code (Zoning Ordinance – B4, Business Office District; Uses
By Administrative Permit) is hereby amended to add the following provisions with subsequent sections
renumbered accordingly:
A. Temporary cannabis events in accordance with chapter 35 of this title and title 4, chapter 13 of
this code.
Section 10. Section 11-85-2 of the City Code (Zoning Ordinance – I1, Limited Industrial District;
Permitted Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
D. Cannabis businesses; delivery, medical cannabis retailer, and transporter only, subject to the
provisions of chapter 35 of this title.
Section 11. Section 11-85-3 of the City Code (Zoning Ordinance – I1, Limited Industrial District;
Conditional Uses) is hereby amended to add the following provisions with subsequent sections
renumbered accordingly:
A. Cannabis businesses; combination medical cannabis, cultivator, delivery service, manufacturer,
medical cannabis combination, mezzobusiness, microbusiness, testing facility, transporter, and
lower potency hemp manufacturer only, provided that:
1. City Code. The cannabis business shall comply with the provisions of chapter 35 of this
title.
2. Indoor Operations:
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a. A cannabis business shall be conducted entirely within a principal or accessory
building as allowed by this title; all outside storage is prohibited.
b. All waste and recycling containers shall be kept within a principal or accessory
building.
3. Minimum Buffer Zone. All principal and accessory buildings occupied by a cannabis
business shall be setback a minimum of five hundred feet (500’) from any residential
districted established by chapter 50 of this title.
4. Allowed Hours:
a. Retail sale of cannabis, cannabis flower, cannabis products, lower potency hemp
edibles, or hemp-derived consumer products shall be limited to occur between
the hours set forth by section 4-13-4.c. of this title.
b. The hours of operation for a cannabis business other than those specified by
section 11-85-6.C.2.a of this section shall be limited to the hours of seven o’clock
(7:00) A.M. to ten o’clock (10:00) P.M each day, unless extended by the city
council.
5. Emissions. An emissions plan shall be submitted with application for a conditional use
permit describing the emissions(s) anticipated to originate at the premises and the
methods to be used to prevent such odor(s) from leaving the premises, subject to the
following:
a. Sufficient measures and means of preventing any gas, vapors, odors, smoke,
odors, debris, dust, fluids, or other substances from exiting a cannabis business
shall be provided at all times.
b. In the event that any gas, vapors, odors, debris, dust, fluids, or other substances
exit a cannabis business, the cannabis business and the owner of the subject
property shall be jointly and severally liable for such conditions and shall be
responsible for immediate, full clean-up and correction of such condition.
c. The cannabis business shall properly dispose of all such materials, items, and
other substances in a safe, sanitary, and secure manner and in accordance with
all applicable federal, state and local laws and regulations.
6. Cultivation:
a. Cannabis cultivation shall not be perceptible from the exterior of the building
in which the cultivation occurs.
b. Lighting:
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(1) The use of any lighting for indoor marijuana cultivation shall be limited
to light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), or
other fluorescent lighting.
(2) Use of high-intensity discharge (HID) lighting, including, but not limited
to, mercury-vapor lamps, metal-halide (MH) lamps, ceramic MH lamps,
sodium-vapor lamps, high-pressure sodium (HPS) lamps and xenon
short-arc lamps, shall be prohibited.
7. Utilities. The use shall be connected to public water, sanitary sewer, and stormwater
utility systems.
a. Public Water:
(1) There shall be adequate capacity within the public water system,
including wells, pump houses, water towers, pressure valves, and
distribution pipes serving the property to accommodate the cannabis
business.
(2) Connection to the public water system shall comply with title 8, chapter
2 of this code, including provision of cross connection controls subject to
approval of the city engineer.
b. Sanitary Sewer:
(1) There shall be adequate capacity within the sanitary sewer system,
including collection pipes, lift stations, forcemains, and wastewater
treatment facilities serving the property to accommodate the cannabis
business.
(2) Discharges to the sanitary sewer system shall comply with title 8, chapter
3 of this code, subject to approval of the city engineer.
c. Storm Sewer. All discharges to the storm sewer utility system shall comply with
the provisions of this chapter and title 8, chapter 3 of this code, subject to
approval of the city engineer.
6. Security:
a. Burglary alarm systems with audible and sheriff notification components that are
professionally monitored and maintained in good working condition shall be
installed on all doors, windows, and access points.
b. Surveillance cameras shall be installed and operate twenty-four (24) hours a day,
seven (7) days a week, with thirty (30) day video storage, to monitor all entrances
and trash receptacles, along with the interior and exterior of the premises shall
be required.
13
c. Exterior lighting shall be required sufficient for observers to see and for cameras
to record, that is either constantly on or activated by motion detectors, subject
to the requirements of section 11-16-6 of this title
d. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall
be installed on all other windows or access points.
e. Additional security requirements including, but not limited to, security guards,
steel doors, and steel window coverings shall be required as determined by the
city council.
7. Retail sale of products other than cannabis products as an accessory use shall be allowed
subject to approval of separate conditional use permit.
Section 12. Section 11-85-4 of the City Code (Zoning Ordinance – I1, Limited Industrial District;
Uses By Administrative Permit) is hereby amended to add the following provisions with subsequent
sections renumbered accordingly:
A. Temporary cannabis events in accordance with chapter 35 of this title and title 4, chapter 13 of
this code.
Section 13. Section 11-86-2 of the City Code (Zoning Ordinance – I2, General Industrial District;
Permitted Uses) is hereby amended to add the following provisions with subsequent sections renumbered
accordingly:
D. Cannabis businesses; delivery, medical cannabis retailer, and transporter only, subject to the
provisions of chapter 35 of this title.
Section 14. Section 11-86-6 of the City Code (Zoning Ordinance – I2, General Industrial District;
Conditional Uses) is hereby amended to add the following provisions with subsequent sections
renumbered accordingly:
B. Cannabis businesses; combination medical cannabis, cultivator, delivery service, manufacturer,
medical cannabis combination, mezzobusiness, microbusiness, testing facility, transporter, and
lower potency hemp manufacturer only, provided that:
1. City Code. The cannabis business shall comply with the provisions of chapter 35 of this
title.
2. Indoor Operations:
a. A cannabis business shall be conducted entirely within a principal or accessory
building as allowed by this title; all outside storage is prohibited.
14
b. All waste and recycling containers shall be kept within a principal or accessory
building.
3. Minimum Buffer Zone. All principal and accessory buildings occupied by a cannabis
business shall be setback a minimum of five hundred feet (500’) from any residential
districted established by chapter 50 of this title.
4. Allowed Hours:
a. Retail sale of cannabis, cannabis flower, cannabis products, lower potency hemp
edibles, or hemp-derived consumer products shall be limited to occur between
the hours set forth by section 4-13-4.c. of this title.
a. The hours of operation for a cannabis business other than those specified by
section 11-85-6.C.2.a of this section shall be limited to the hours of seven o’clock
(7:00) A.M. to ten o’clock (10:00) P.M each day, unless extended by the city
council.
5. Emissions. An emissions plan shall be submitted with application for a conditional use
permit describing the emissions(s) anticipated to originate at the premises and the
methods to be used to prevent such odor(s) from leaving the premises, subject to the
following:
a. Sufficient measures and means of preventing any gas, vapors, odors, smoke,
odors, debris, dust, fluids, or other substances from exiting a cannabis business
shall be provided at all times.
b. In the event that any gas, vapors, odors, debris, dust, fluids, or other substances
exit a cannabis business, the cannabis business and the owner of the subject
property shall be jointly and severally liable for such conditions and shall be
responsible for immediate, full clean-up and correction of such condition.
c. The cannabis business shall properly dispose of all such materials, items, and
other substances in a safe, sanitary, and secure manner and in accordance with
all applicable federal, state and local laws and regulations.
6. Cultivation:
a. Cannabis cultivation shall not be perceptible from the exterior of the building
in which the cultivation occurs.
b. Lighting:
(1) The use of any lighting for indoor marijuana cultivation shall be limited
to light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), or
other fluorescent lighting.
15
(2) Use of high-intensity discharge (HID) lighting, including, but not limited
to, mercury-vapor lamps, metal-halide (MH) lamps, ceramic MH lamps,
sodium-vapor lamps, high-pressure sodium (HPS) lamps and xenon
short-arc lamps, shall be prohibited.
7. Utilities. The use shall be connected to public water, sanitary sewer, and stormwater
utility systems.
a. Public Water:
(1) There shall be adequate capacity within the public water system,
including wells, pump houses, water towers, pressure valves, and
distribution pipes serving the property to accommodate the cannabis
business.
(2) Connection to the public water system shall comply with title 8, chapter
2 of this code, including provision of cross connection controls subject to
approval of the city engineer.
b. Sanitary Sewer:
(1) There shall be adequate capacity within the sanitary sewer system,
including collection pipes, lift stations, forcemains, and wastewater
treatment facilities serving the property to accommodate the cannabis
business.
(2) Discharges to the sanitary sewer system shall comply with title 8, chapter
3 of this code, subject to approval of the city engineer.
c. Storm Sewer. All discharges to the storm sewer utility system shall comply with
the provisions of this chapter and title 8, chapter 3 of this code, subject to
approval of the city engineer.
6. Security:
a. Burglary alarm systems with audible and sheriff notification components that are
professionally monitored and maintained in good working condition shall be
installed on all doors, windows, and access points.
b. Surveillance cameras shall be installed and operate twenty-four (24) hours a day,
seven (7) days a week, with thirty (30) day video storage, to monitor all entrances
and trash receptacles, along with the interior and exterior of the premises shall
be required.
c. Exterior lighting shall be required sufficient for observers to see and for cameras
to record, that is either constantly on or activated by motion detectors, subject
to the requirements of section 11-16-6 of this title
16
d. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall
be installed on all other windows or access points.
e. Additional security requirements including, but not limited to, security guards,
steel doors, and steel window coverings shall be required as determined by the
city council.
7. Retail sale of products other than cannabis products as an accessory use shall be allowed
subject to approval of separate conditional use permit.
Section 14. Section 11-86-4 of the City Code (Zoning Ordinance – I2, General Industrial District;
Uses By Administrative Permit) is hereby amended to add the following provisions with subsequent
sections renumbered accordingly:
A. Temporary cannabis events in accordance with chapter 35 of this title and title 4, chapter 13 of
this code.
Section 16. This ordinance shall take effect immediately upon its passage publication.
(The remainder of this page inentionally blank)
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ADOPTED by the Otsego City Council this 9th day of December, 2024.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk