Item 7.1 Cannabis Ordinance 2024-14
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 9 December 2024
PRESENTER(s) REVIEWED BY: ITEM #:
City Planner Licht City Administrator/Finance Director Flaherty
Assistant City Administrator/Human Resources Director Hille
City Attorney Kendall
7.1 – Cannabis Businesses
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
X Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff and the Planning Commission recommend adoption of a Zoning Ordinance amendment.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No Yes, held by Planning Commission 2 December 2024
BACKGROUND/JUSTIFICATION:
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 establishes 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. Time, place, and manner regulations are to 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.
City staff, with input from the City Attorney, has outlined regulatory concepts that may be implemented in Otsego prior
to licenses being issued for cannabis businesses as soon as 1 January 2025. The OCM is reportedly behind schedule in
terms of rulemaking 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
establishing an approach to cannabis regulation and having such regulations in place as more information becomes
available and the issuance of licenses draws closer. City staff has drafted an amendment to the Zoning Ordinance to
establish regulations for cannabis businesses within the City. These regulations are based on the provisions of the
Statute, model language prepared by the League of Minnesota Cities, and draft Wright County regulations. The Planning
Commission held a public hearing to consider the draft cannabis regulations. There were no public comments, and the
public hearing was closed.
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 drafted by City staff provides for regulation of cannabis businesses to the extent allowed by Statute. The
City Council may approve less restrictive regulations. This was an issue discussed at length by the Planning Commission
at their meeting on 2 December 2024. Some Commissioners favored allowing for cannabis businesses the same as liquor
stores as a State regulated industry. The majority of the Commissioners, however, supported a more conservative
approach to limit cannabis businesses by zoning district and with the full extent of time, place, and manner regulations
allowed by the Statute.
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 all public places within the County, which includes Otsego. Adult use of cannabis is only
allowed on private properties and those properties licensed to permit its use. The prohibition of public use of cannabis is
repeated in the draft Zoning Ordinance amendment.
Number. The Statute establishes that counties and cities may impose limits on the number of cannabis business licenses
issued within their jurisdictions. The license minimum requires one license for each 12,500 population within the issuing
LGU (county/city). Additionally, if a county has one license for each 12,500 of county population, a city is not required to
register a cannabis business.
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 draft Zoning Ordinance amendment includes the limitation as to the number of allowed cannabis regulations based
on both Otsego and Wright County population, whichever is more restrictive. 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. Definitions of these businesses are to be incorporated into the
definitions section of the Zoning Ordinance as needed to establish the basis for time, place, and manner regulations
applicable to specific types of operation.
• Cannabis microbusiness
• Cannabis mezzobusiness
• Cannabis cultivator
• Cannabis manufacturer
• Cannabis retailer
• 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
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. We also have not included the I3, Special Industrial District for
allowance of cannabis businesses based on this District not currently having access to City sewer and water utilities.
Commercial Industrial
Zoning Districts B1 B2 B3 B4, I1, I2
Business
Microbusiness I
Mezzobusiness I
Cultivator I
Manufacturer I
Retailer P P
Transporter I
Testing facility P
Event organizer A A
Delivery service I
Medical
Cultivator I
Processor I
Retailer P P
Combination I
LP Hemp Edible
Manufacturer
I
LP Hemp Edible Retailer P P
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. 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 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 is terminated with a change in
circumstances, including ownership, such that City can review the new or altered operations.
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
respective zoning districts.
The draft Zoning Ordinance amendment allows for medical and retail cannabis businesses as permitted uses with the B2,
Highway Business District and B3, General Business District. The Planning Commission discussed if these businesses are
also to be allowed in the B1, Retail Business District. This discussion was parallel to the general policy issue of the extent
to which cannabis businesses should be regulated by the City. Again, the majority supported limiting medical and retail
cannabis businesses within commercial areas to only the B2 and B3 Districts. Allowance of such businesses in the B1
District could be reconsidered at some point in the future.
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
as interim uses.
The existing medical cannabis business in Otsego operates within an agricultural district as a conditional use and the draft
Zoning Ordinance amendment provides for a continuation of that specific business unaltered.
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 and building
code regulations adopted by the City. The joint powers agreement with Wright County has been approved by the City
Council.
SUPPORTING DOCUMENTS ATTACHED:
• Wright County draft Ordinance
• Ordinance 2024-14
• Summary of Ordinance 2024-14
• Zoning Map
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Ordinance 2024-14 amending the Zoning Ordinance for regulating cannabis businesses and approve
publication in summary form.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
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ORDINANCE NO. 24-8
AN ORDINANCE REGULATING THE RETAIL SALE OF CANNABIS
AND LOWER-POTENCY HEMP EDIBLES WITHIN THE
COUNTY OF WRIGHT, MINNESOTA
THE COUNTY BOARD OF THE COUNTY OF WRIGHT
HEREBY ORDAINS:
ARTICLE 1
Create Chapter 112 and insert the following:
Chapter 112 – Cannabis Regulation and Registration
§ 112.01 Findings of Fact.
NOW THEREFORE it is the intent of the County Board, in enacting this ordinance,
to regulate the establishment, operations, and sales of cannabis retailers and lower-
potency hemp edible retailers located in Wright County.
112.02 Authority and Jurisdiction.
(A) Authority. The County Board of Commissioners is authorized to adopt
this Ordinance by Minnesota Statutes sections 144.417, subd. 4(a),
145A.04, 145A.05, 152.0263, subd. 5, Chapter 342, and Chapter 375, and
any other applicable state law, as may be adopted or amended from time to
time.
(B) Jurisdiction. The registration requirements of this Ordinance govern
the regulation of cannabis and lower-potency hemp edible retailers in the
County of Wright and in any city or town located in Wright County that has
consented to county jurisdiction. The sections specifically enacted pursuant
to Wright County’s public health authority apply throughout Wright County
unless otherwise specified.
(C) Nothing in this Ordinance shall prevent cities and townships within
Wright County from adopting stricter regulations to protect people from
public health and public safety harms of the retail sale of cannabis and
lower-potency hemp edibles.
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§ 112.03 Definitions.
Except as otherwise provided or clearly implied by context, all terms are given their
commonly accepted definitions. For this Ordinance, the following definitions apply
unless the context clearly indicates or requires a different meaning:
Advertisement. Any written or oral statement, illustration, or depiction that is
intended to promote sales of approved products or sales at a specific cannabis
business or hemp business and includes any newspaper, radio, internet and
electronic media, or television promotion; the distribution of fliers and circulars; and
the display of window and interior signs in a cannabis business. “Advertisement”
does not include a fixed outdoor sign that meets the requirements in Minn. Stat.
§342.64, subdivision 2, paragraph (b) as amended from time to time.
Approved products. Any cannabis plants, cannabis flower, cannabis products,
artificially derived cannabinoids, and lower-potency hemp edibles that are a product
category approved by the Office of Cannabis Management and that comply with
Chapter 342 and rules adopted pursuant to Chapter 342 regarding the testing,
packaging, and labeling of cannabis plants, cannabis flower, cannabis products,
artificially derived cannabinoids, and lower-potency hemp edibles. “Approved
products” does not include medical cannabinoid products, as defined in Minn. Stat.
Ch. 342.
Attractive to underage persons. Products that are attractive to individuals under age
21 as described in Minn. Stat. §342.62, subd. 3, and products prohibited under
Minn. Stat. §342.06 (d), as may be amended from time to time.
Child-resistant. Packaging that meets the poison prevention packaging standards in
Code of Federal Regulations, Title 16, Section 1700.15.
Cannabinoid Product. “Cannabinoid product” as defined in Minn. Stat. § 342.01,
subd. 12, as amended from time to time.
Compliance checks. The system the county uses to investigate and ensure that those
retail establishments authorized to sell approved products and medical cannabinoid
products are following and complying with age verification requirements and the
requirements of this Ordinance. Compliance checks may also be conducted by the
county or other units of government for educational, research, and training purposes
or for investigating or enforcing state or local laws and regulations relating to
approved products.
Delivery sale. The sale of any approved products and medical cannabinoid products
to any person for personal consumption and not for resale when the sale is
conducted by any means other than an in-person, over-the-counter sales transaction
in a registered retail establishment. Delivery sale includes but is not limited to the
sale of any approved product when the sale is conducted by telephone, other voice
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transmission, mail, the internet, or app-based service. Delivery sale includes
delivery by registered retail establishments or third parties by any means, including
curbside pickup.
Electronic delivery device. Any product containing or delivering nicotine, lobelia,
or any other substance, whether natural or synthetic, intended for human
consumption through the inhalation of aerosol or vapor from the product. Electronic
delivery device includes, but is not limited to, devices manufactured, marketed, or
sold as e-cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any
other product name or descriptor. Electronic delivery device includes any
component part of a product, whether or not marketed or sold separately. Electronic
delivery device does not include any nicotine cessation product that has been
authorized by the U.S. Food and Drug Administration to be marketed and for sale as
“drugs,” “devices,” or “combination products,” as defined in the Federal Food,
Drug, and Cosmetic Act.
Flavored product. Any cannabis flower, cannabinoid product, hemp-derived
consumer product, or medical cannabinoid product intended to be inhaled as smoke,
aerosol, or vapor from the product that: (1) contains any added artificial, synthetic,
or natural flavoring, either in the product itself or in its components or parts; (2)
presents any descriptor or depiction of flavor that would imply to an ordinary person
that the product contains flavors other than the natural taste or smell of cannabis; (3)
imparts a taste or smell, other than the taste or smell of cannabis, that is
distinguishable by an ordinary consumer prior to or during the consumption of the
product; or (4) imparts a cooling, a burning, a numbing, or another sensation
distinguishable by an ordinary consumer to impart a flavor other than cannabis
either prior to or during the consumption of the product.
Limited Access Area. “Limited Access Area” means a building, room, or other
contiguous area upon the registered cannabis retail business premises where retail
cannabis is stored, weighed, packaged, or processed for sale, where customers are
not permitted and is under control of the registered cannabis retail business.
Lower-potency hemp edible. “Lower-potency hemp edible” as defined in Minn.
Stat. § 342.01, subd. 50, as amended from time to time.
Lower-potency hemp edible retailer. Any place of business with a license or
endorsement to sell lower-potency hemp edible products to the public from the
Office of Cannabis Management and that has a lower-potency hemp edible retail
registration from the county.
Medical cannabinoid product. “Medical cannabinoid product” as defined in Minn.
Stat. § 342.01, subd. 52, as amended from time to time.
Medical cannabis combination business. “Medical Cannabis combination business”
as described in Minn. Stat. § 342.515, as amended from time to time.
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Moveable place of business. Any form of business that is operated out of a kiosk,
truck, van, automobile or other type of vehicle or transportable shelter and that is
not a fixed address or other permanent type of structure licensed for over-the-
counter sales transactions.
Pharmacy. A place of business at which prescription drugs are prepared,
compounded, or dispensed by or under the supervision of a pharmacist and from
which related clinical pharmacy services are delivered.
Registered cannabis retail business. Any cannabis business with a license or
endorsement from the Office of Cannabis Management for retail sales of approved
products or medical cannabinoid products and that has a cannabis retail registration
from a local unit of government.
Registered retail establishment. Refers to registered cannabis retail businesses,
medical cannabis combination businesses with retail sales, and lower-potency hemp
edible retailers.
Retail establishment. Any place of business where products are available for sale to
the general public. “Retail establishment” includes, but is not limited to, grocery
stores, tobacco product shops, convenience stores, liquor stores, gasoline service
stations, bars, and restaurants.
Sale. Any transfer of goods for money, trade, barter, or other consideration.
Sample. Refers to any approved products or medical cannabinoid products that are
offered free of charge or for sale at a nominal cost.
Self-service display. The open display of approved products or medical cannabinoid
products in a retail establishment in any manner where any person has access to the
products without the assistance or intervention of the registered retail establishment
or its employee and where a physical exchange of the products from the registered
retail establishment or its employee is not required to access the products.
Smoking. Inhaling, exhaling, burning, or carrying any lighted or heated cigar,
cigarette, or pipe, or any other lighted or heated product containing, made, or
derived from nicotine, tobacco, cannabis, or other substance, whether natural or
synthetic, that is intended for inhalation. Smoking also includes carrying or using
an activated electronic delivery device. “Smoking” does not include the use of
traditional, or sacred, tobacco used by any American Indian, Indigenous, and Alaska
Native communities for spiritual and medicinal purposes.
Temporary cannabis event. Events described in Minnesota Statutes 342.39 and
342.40, held by an individual or business with a cannabis event organizer license
granted by the Office of Cannabis Management, with approval from the city.
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True party of interest. Any party with ownership or control over the business, as
defined in Minn. Stat. § 342.185 subd. 1(g).
Vending machine. Any mechanical, electric or electronic, or other type of device
that dispenses products upon payment by any form by the person seeking to
purchase the product.
§ 112.03. Registration and Operations of Registered Retailers.
The provisions in this section apply to businesses operating in the unincorporated areas within
the county and jurisdictions that have deferred registration to the county.
(A) License required. No person shall sell or offer to sell any approved product or
medical cannabinoid product without first having obtained a license or retail endorsement
to do so from the Office of Cannabis Management.
(B) Registration required. No person shall sell or offer to sell any approved product or
medical cannabinoid product without first being granted a registration by the county.
Operating a retail establishment without a valid retail registration is a violation of this
Ordinance and of Minn. Stat. § 342.22, subd. 5(e) and is subject to a civil penalty of up to
$2,000 per violation.
(C) Application. An application for a registration to sell approved products and medical
cannabinoid products must be made on a form provided by the county. The application
must contain the full name of the applicant and any true parties of interest, the applicant’s
and true parties’ residential and business addresses and telephone numbers, the name of
the business for which the registration is sought, and any additional information the
county deems necessary. Upon receipt of a completed application, the county will timely
review the application. If an application is incomplete, it will be returned to the applicant
with notice of the information necessary to make the application complete.
(D) Action. The county shall review the application for conformance with this Ordinance
and all applicable state and local laws and rules, including but not limited to compliance
with local zoning code, building code, and fire code. The county may approve or deny the
application for a registration, or it may delay action for a reasonable period of time to
complete any investigation of the application or the applicant deemed necessary. If the
county approves the application, the county will issue the registration to the applicant. If
the county denies the application, notice of the denial will be given to the applicant along
with notice of the applicant’s right to appeal the decision.
(E) Term. All registrations issued are valid for one calendar year from the date of issue.
(F) Revocation or suspension. Any registration issued may be suspended or revoked
following the procedure set forth in Section 12 (A) of this Ordinance.
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(G) Transfers. All registrations issued are valid only on the premises for which the
registration was issued and only for the person to whom the registration was issued. The
transfer of any registration to another location or person is prohibited.
(H) Display. All registrations must be posted and displayed at all times at the registered
retail establishment or medical cannabis combination business in plain view of the
general public.
(I) Renewals. The renewal of a registration issued under this Ordinance will be handled
in the same manner as the original application. The request for a renewal must be made at
least 30 days but no more than 60 days before the expiration of the current registration.
(J) Issuance is privilege and not a right. The issuance of a registration is a privilege and
does not entitle the registration holder to an automatic renewal of the registration.
(K) Maximum number of Cannabis Retailer registrations. No registrations will be
granted after the county or cities within the county have granted at least one registration
for every 12,500 residents in the county.
(L) Pharmacies ineligible for registration. No new or renewed registration for any
cannabinoid product will be granted to a pharmacy or any retail establishment that
operates an on-site pharmacy.
§ 112.04 Fees.
No registration will be issued under this ordinance until the appropriate registration fees are paid
in full. The fees will be established pursuant to Minnesota Statute § 342.22, subd. 2, as may be
amended from time to time.
§112.05 Basis for Denial of Registration.
(A) An initial application for registration or a renewal of registration with the county
will be denied if:
(1) the applicant is under 21 years of age;
(2) the applicant does not have a valid retail license, preapproved license, or retail
endorsement from the Office of Cannabis Management;
(3) the applicant fails to provide any of the information required on the licensing
application or provides false or misleading information;
(4) the applicant is prohibited by state, or local law, ordinance, zoning regulation,
or other regulation from holding a registration; or,
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(5) the applicant fails a pre-application inspection by the county as provided under
Minn.Stat.§342.22, subd. 3(b) as amended from time to time.
(B) If a registration is mistakenly issued or renewed to any person, it will be revoked
upon the discovery of ineligibility for registration under this ordinance or state or other
local law, ordinance, zoning regulation or other regulation. Any revocation will comply
with the requirements of Minn. Stat. § 342.22, subd. 5, as amended from time to time.
§112.06 Prohibited Sales and Other Restrictions.
The provisions in this section apply to all jurisdictions that have consented to county jurisdiction
and registered retail establishments throughout the County under the County’s Public Health
authority pursuant to Minn. Stat. §145A.
(A) In general. In addition to the prohibitions set forth under Minn. Stat. § 342.46, subd.
7, and Minn. Stat. § 342.27, subd. 12 no registered retail establishment shall sell or
offer to sell any approved product or medical cannabinoid product:
(1) By means of any type of vending machine.
(2) By means of self-service display. All approved cannabinoid products and
medical cannabinoid products, except for lower-potency hemp beverages, must be
stored in a locked case behind the sales counter, in a storage unit, or in another
area not freely accessible by the general public. This does not prohibit registered
cannabis retailers from displaying single product samples pursuant to Minn. Stat.
§ 342.27, subd. 5.
(3) At a moveable place of business. Only fixed location businesses may sell
approved products and medical cannabinoid products.
(4) That does not comply with the packaging and labeling required under Minn.
Stat. §§ 342.62 and 342.63 as may be amended from time to time, except that:
(a) No lower-potency hemp edible beverage may be sold outside of its
original packaging; and,
(b) No lower-potency hemp edible product may be sold that does not
indicate a single serving by scoring or use of another indicator that appears
on the product. If it is not possible to indicate a single serving by scoring
or use of another indicator that appears on the product, the lower-potency
hemp edible may not be packaged in a manner that includes more than a
single serving in each container.
(5) By means of delivery sales. All sales of approved products and medical
cannabinoid products must be conducted in person, in a registered retail
establishment, in over-the-counter sales transactions. This does not prohibit sale
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of medical cannabinoid products by medical cannabis combination businesses by
curbside pick-up as allowed in Minn. Stat. §342.51, subd. 5
(6) By any other means, to any other person, or in any other manner or form
prohibited by state or other local law, ordinance provision, or other regulation.
(a) Legal age. No person shall sell any approved product to any person
under the age of 21. Businesses licensed or endorsed to sell medical
cannabinoid products may sell medical cannabinoid products to persons
under age 21 who are enrolled in the medical registry program pursuant to
Minn. Stat. § 342.24, subd. 1.
(b) Age verification. Before any sale of approved products, the registered
retail establishment must verify by means of government-issued
photographic identification containing the bearer’s date of birth that the
purchaser is at least twenty-one (21) years of age.
(c) Signage. Notice of the legal sales age, age verification requirement,
and possible penalties for underage sales must be posted prominently and
in plain view at all times at each location where approved products are
offered for sale. The required signage, which will be provided to the retail
establishment by the county, must be posted in a manner that is clearly
visible to anyone who is, or is considering, making a purchase.
(d) No admittance of any person under age 21. No person shall sell or
offer for sale any approved products or medical cannabinoid products,
except in registered retail establishments that prohibit persons under the
age of 21 from entering at all times. This subpart does not apply to
establishments only registered for the sale of lower-potency hemp edibles.
(e) Cannabis retailer hours of operation. A registered cannabis retail
business with a license or endorsement authorizing the retail sale of
cannabis flower or cannabis products may not sell cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products between 2:00 a.m. and 8:00 a.m. on the days of
Monday through Saturday nor between 2:00 a.m. and 10:00 a.m. on
Sunday.
(f) Instructional program. Registered retail establishments must ensure
that all sales clerks complete a training program on the legal requirements
related to the sale of approved products or medical cannabinoid products,
and the possible consequences of registration or license violations.
Registered retail establishments must maintain documentation
demonstrating their compliance and must provide this documentation to
the county at the time of renewal, or whenever requested to do so during
the registration term.
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(g) Minimum clerk age. Individuals employed by a registered retail
establishment and medical cannabis combination business, including any
establishment selling lower potency hemp edibles, must be at least 21
years of age to sell approved cannabinoid products and medical
cannabinoid products.
(h) Samples prohibited. No samples of any approved products or medical
cannabinoid products may be distributed free of charge or at a nominal
cost. The distribution of approved products or medical cannabinoid
products as a free donation is prohibited.
(i) Smoking prohibited. Smoking is prohibited within the indoor area of
any registered retail establishment.
(j) Sale of other products. Registered cannabis retail businesses and
medical cannabis combination businesses with retail sales are limited to
selling only the products allowed under Minn. Stat. § 342.27, subd. 3, as
amended from time to time. The sale of any products other than approved
products by registered retailers must comport with all requirements of
state law.
(k) Child-resistant packaging. All sales of any approved products and
medical cannabinoid products must be packaged in child-resistant
packaging. Upon request by the county, a registered retail establishment
must provide a copy of the certificate of compliance or full laboratory
testing report for the packaging used.
(l) Advertising restrictions. Registered retail establishments must follow
all advertisement restrictions pursuant to Minn. Stat. § 342.64, as amended
from time to time.
(m) Products that are attractive to underage persons. No person shall sell
or offer for sale any approved products and medical cannabinoid products
that are attractive to underage persons.
(n) Coupon and price promotion. No registered retail establishment may
accept or redeem any coupon, price promotion, or other instrument or
mechanism, whether in paper, digital, electronic, mobile, or any other
form, that provides any approved products to a consumer at no cost or at a
price that is less than the non-discounted, standard price listed by a retailer
on the item or on any shelving, posting, advertising, or display at the
location where the item is sold or offered for sale, including all applicable
taxes.
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(o) Flavored product. No person shall sell or offer for sale any flavored
products intended to be inhaled as smoke, aerosol, or vapor.
(p) Visitor Log and Identification.
(i) A registered cannabis retail business shall maintain a log of all
visitor and customer activity, for any purpose, within the business
area where cannabinoid products are displayed, processed, sold, or
stored and shall make such logs available for inspection by the
County. The log at a minimum shall include the full name, date of
birth, address and the date and time of entry for all visitors and
customers.
(ii). All visitors and customers prior to being admitted into a
registered cannabis retail business must provide acceptable proof
of age and must be at least 21 years of age.
(iii). The registered cannabis retail business prior to completing a
sale or transaction shall check the identification for all visitors and
customers to verify that the name on the identification matches the
name in the visitor log.
(q) No admittance of any person under age 21. Registered cannabis retail
businesses and medical cannabis combination business establishments
must verify by means of government-issued photographic identification
containing the bearer’s date of birth that the purchaser is at least twenty-
one (21) years of age.
(r) Potency and amount per sale transaction.
(i.) Registered cannabis retail businesses may sell or offer for sale
approved products that comply with potency limits in accordance
with Minn. Stat. § 342.27, subd. 2, c, d, and e, as amended from
time to time.
(ii.) Lower-potency hemp edible retailers and cannabis retailers
may sell or offer for sale lower- potency hemp edible products that
comply with potency limits in accordance with Minn. Stat. §
342.46, subd. 6, as amended from time to time.
§ 111.07 Cannabis Storage Requirement
The provisions in this section apply to all jurisdictions that have consented to county cannabis
registration and registered retail establishments throughout the County under the County’s Public
Health authority pursuant to Minn. Stat. §145A.
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(A) Registered cannabis retail businesses and medical cannabis combination businesses with
retail sales shall utilize one of the following methods for storage of processed cannabis
and cash during non-business hours:
(1) One or more safes, which shall be incorporated into the building structure or securely
attached thereto, located in a limited access area on the registered cannabis retail
business premises to store all processed cannabis and cash.
Cannabinoid products that must be kept refrigerated or frozen may be locked in a
refrigerated container or freezer on the sales area or limited access area on the
registered cannabis retail business premises, so long as the appliance is affixed to the
building structure.
(2) A vault with a steel security door, a steel frame, and a multi-point, single motion
locking system located in a limited access area on the registered cannabis retail
business premises to store all processed cannabis and cash, with the walls and ceiling
of the vault reinforced with one of the following:
(a) At least one layer of ¾" plywood;
(b) At least two layers of ½” plywood;
(c) Steel mesh; or
(d) Reinforced concrete.
Cannabinoid products that must be kept refrigerated or frozen may be locked in a
refrigerated container or freezer on the sales area or limited access area on the
registered cannabis retail business premises, so long as the appliance is affixed to the
building structure.
(B) Registered cannabis retail businesses and medical cannabis combination businesses that
comply with all of the following requirements may be found to have functionally
equivalent security features and may be exempted from the requirements identified in
subpart (A):
(1) All cannabis concentrates and cash shall be stored during non-business hours in a safe
or vault satisfying the requirements set forth in subpart (A);
(2) Cannabinoid products that must be kept refrigerated or frozen may be locked in a
refrigerated container or freezer on the sales area or limited access area on the
registered cannabis retail business premises, so long as the appliance is affixed to the
building structure.
(3) All other processed cannabinoid products shall be stored during non-business hours
in either:
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a. An opaque, locked, non-glass cabinet(s) that are securely affixed to the
building and located within a restricted access area or limited access area on
the registered cannabis retail business premises, or
b. A locked inventory storage room(s) located within the sales area or limited
access area on the registered cannabis retail business premises;
(4) All areas that are vulnerable to vehicle impact, including but not limited to all doors
and floor-level windows, shall be protected with guard posts or other physical barriers
designed to resist, deflect, or deter vehicular impact; and
(5) Pry shields shall be affixed to all exterior doors of the registered cannabis retail
business premises.
(C) Should the requirements identified in Subpart (B) of this section fail to mitigate burglary
and theft at a registered cannabis retail businesses or medical cannabis combination
businesses with retail sales the County may require that the registered cannabis retail
businesses or medical cannabis combination businesses with retail sales comply with
Subpart (A) of this section.
(D) The premises of a registered cannabis retail businesses or medical cannabis combination
businesses with retail sales shall be monitored in either of the following manners:
(1) Live remote monitoring of video surveillance at all points of ingress and egress shall
be conducted 24 hours a day, seven days a week, with loudspeakers allowing the
monitoring entity to speak to persons at the registered cannabis retail business
premises; or
(2) On-site security guard(s) who patrol the premises at all times during non-business
hours.
(E) Prior to making physical changes to a registered cannabis retail business premises any
registered premises, registered cannabis retail businesses or medical cannabis
combination businesses with retail sales shall obtain any required approvals from the
appropriate county agencies verifying compliance with this section and any other
applicable laws, rules, regulations, or codes.
§ 112.08 Temporary Cannabis Events.
(A) No sales of approved products, except for lower-potency hemp edibles, are allowed
at temporary cannabis events.
(B) No use of approved products, except for lower-potency hemp edibles, are allowed at
temporary cannabis events.
§ 112.09 Compliance Checks and Inspections.
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(A) All registered retail establishments must be open to inspection by authorized
county officials or their designees during regular business hours.
(B) In accordance with Minn. Stat. § 342.22, subd. 4, the county will conduct
compliance checks of every retail establishment with a retail registration issued by the
county. The checks will assess compliance with age verification requirements and all
provisions of this Ordinance.
(C) From time to time, but at least twice per year, the county must conduct compliance
checks to ensure compliance with all provisions of this Ordinance.
(D) In accordance with state law, the county will conduct at least two annual
compliance checks that involves participation of a person at least 17 years of age, but
under the age of 21 to enter the registered retail establishment to attempt to purchase
approved products under the supervision of a law enforcement officer or an employee
of the county. Prior written consent from a parent or guardian is required for any
person under the age of 18 to participate in a compliance check.
§112.10. Responsibility.
All registered retailer establishments are responsible for the actions of their employees regarding
the sale, offer to sell, and furnishing of approved products or medical cannabinoid products on
the licensed and registered premises. The sale, offer to sell, or furnishing of any approved
product or medical cannabinoid product by an employee will be considered an act of the
registrant.
§112.11. Defenses.
It is an affirmative defense to a violation of this ordinance for a person to have reasonably relied
on proof of age as described by state law.
§ 112.12. Violations, Penalties, and Administrative Hearings.
(A) Violations.
(1) Notice. A person violating this ordinance may be issued, either personally or
by mail, an administrative citation from the county that sets forth the alleged
violation and that informs the alleged violator of their right to a hearing on the
matter and how and where a hearing may be requested, including a contact address
and phone number.
(2) Hearings.
(a) Upon issuance of a citation, a person accused of violating this ordinance
may request in writing a hearing on the matter. Hearing requests must be
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made within 10 business days of the issuance of the citation and delivered to
the County Administrator or other designated county officer. Failure to
properly request a hearing within 10 business days of the issuance of the
citation will terminate the person’s right to a hearing.
(b) The County Administrator or other designated county officer will set the
time and place for the hearing. Written notice of the hearing time and place
will be mailed or delivered to the accused violator at least 10 business days
prior to the hearing.
(3) Hearing officer. The County Board will designate a hearing officer. The
hearing officer will be an impartial employee of the county or an impartial person
retained by the county to conduct the hearing.
(4) Decision. A decision will be issued by the hearing officer within 10 business
days of the hearing. If the hearing officer determines that a violation of this
ordinance did occur, that decision, along with the hearing officer’s reasons for
finding a violation and the penalty to be imposed, will be recorded in writing, a
copy of which will be provided to the county and the accused violator by in-person
delivery or mail as soon as practicable. If the hearing officer finds that no
violation occurred or finds grounds for not imposing any penalty, those findings
will be recorded and a copy will be provided to the county and the acquitted
accused violator by in-person delivery or mail as soon as practicable. The decision
of the hearing officer is final, subject to an appeal as described in Section 12 (A)(6)
of this Ordinance.
(5) Costs. If the citation is upheld by the hearing officer, the county’s actual
expenses in holding the hearing up to a maximum of $1,000 must be paid by the
person requesting the hearing.
(6) Appeals. Appeals of any decision made by the hearing officer must be filed in
Wright County district court within 10 business days of the date of the decision.
(7) Continued violation. Each violation, and every day in which a violation occurs
or continues, will constitute a separate offense.
(B) Administrative penalties.
(1) Registrants. Any registrant or other retail establishment cited for violating this
ordinance, or whose employee has violated this ordinance, will be charged an
administrative fine of $300 for a first violation; $600 for a second offense at the
same registered premises within a 36-month period; and $1,000 for a third or
subsequent offense at the same location within a 36-month period from the first
violation. The registration will be suspended for a period of not less than 30
consecutive days for any violation of this ordinance and may be revoked. Upon a
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fourth violation within a 36-month period from the first violation, the registration
will be revoked.
(2) Registration suspension. In accordance with Minn. Stat. § 342.22, subd. 5, the
county will suspend the retail registration of any registered retail establishment for
30 days for violations of this ordinance or if the operation of the business poses an
immediate threat to the health or safety of the public.
(3) Retail establishment operating without a registration. Pursuant to Minn. Stat. §
342.22, subd. 5(e), any retail establishment found to be making or attempting to
make any sales to a customer or patient without a valid retail registration will be
charged a civil penalty of $2,000 for each violation.
(C) Tobacco retail licensees. In accordance with Minn. Stat. § 461.12, subd. 2a, a
tobacco retail license will be suspended for no less than seven (7) days and may be
revoked for certain cannabis-related violations by the licensed tobacco retailer on the
licensed premises.
(D) Statutory penalties. If the administrative penalties for violations of this ordinance
authorized to be imposed by Minn. Stat. Chapter 342, as amended from time to time,
differ from those established in this ordinance, then the higher penalty will prevail.
(E) Complaints submitted to the Office of Cannabis Management. In accordance with
Minn. Stat. § 342.13 (h), any violations of this ordinance will be submitted as complaints
to the Office of Cannabis Management.
(F) Payment of fines. Any administrative fines levied by the county pursuant to this
section shall be paid within 30 days of the date of mailing for the citation or the hearing
findings issued under subpart (A)(4).
(G) Unlawful administrative penalty reimbursement. It shall be unlawful for any
Registered Retail Establishment to make an employee reimburse or pay any
administrative fine imposed under this ordinance, whether directly or through payroll
deduction. Any Registered Retail Establishment found to have violated this provision
shall be subject to misdemeanor prosecution and an administrative fine. Nothing in this
section shall prevent an employee from seeking reimbursement or a civil action for the
unlawful withholding of wages or compensation under the state law.
§ 112.13 Severability.
If any section or provision of this ordinance is held invalid, such invalidity will not affect other
sections or provisions that can be given force and effect without the invalidated section or
provision.
§ 112.14 Effective Date.
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This Ordinance becomes effective on the date of its publication, or upon the publication of a
summary of the ordinance as provided by Minn. Stat. § 375.51, subd. 3, as amended from time to
time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as amended from time to
time.
______________________________________
Darek Vetsch
Chair, Wright County Board of Commissioners
ATTEST:
_____________________________
Greg T. Kryzer
Interim Wright County Administrator
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO.: 2024-14
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. Section 11-28-5.B of the City Code (Zoning Ordinance – Home Occupations) is hereby
amended to include the following provision:
5. Cannabis Businesses as defined by Minnesota Statutes, section 342.01.
Section 3. 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
3
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:
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.
4
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.
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.
2. Temporary cannabis events 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.
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.
5
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.
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 and Section 11-35-4 of this
title, the following conditions shall be required for temporary cannabis events:
1. No sales of cannabis products, except for lower-potency hemp edibles, shall be allowed
at temporary cannabis events.
2. No on-site consumption of cannabis products, except for lower-potency hemp edibles,
shall be allowed at temporary cannabis events.
D. 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.
6
Section 4. 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:
H. State licensed mMedical cannabis production facilities businesses existing upon December 9,
2024; 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 5. 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.
7
Section 6. 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.
Section 7. 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 8. Section 11-77-3 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.
Section 9. 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 10. 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. Performance Standards. 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.
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.
8
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 11-35-4.C.1 of this title.
b. The hours of operation for a cannabis business other than those specified by
section 11-78-3.C.4.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 a ny 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.
(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:
9
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
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.
10
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 11. 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.
Section 12. 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 13. Section 11-85-3 of the City Code (Zoning Ordinance – I1, Limited Industrial District;
Interim 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. Performance Standards. 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.
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 section11-35-4.C.1 of this title.
11
b. The hours of operation for a cannabis business other than those specified by
section 11-85-3.C.4.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 a ny 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.
(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.
12
(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
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 11-85-4 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:
13
A. Temporary cannabis events in accordance with chapter 35 of this title.
Section 15. 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 16. Section 11-86-3 of the City Code (Zoning Ordinance – I2, General Industrial District;
Interim 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. Performance Standards. 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.
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 11-35-4.C.1 of this title.
a. The hours of operation for a cannabis business other than those specified by
section 11-86-3.B.4.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:
14
a. Sufficient measures and means of preventing a ny 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.
(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
15
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
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 17. 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.
Section 18. This ordinance shall take effect immediately upon its passage publication.
(The remainder of this page inentionally blank)
16
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
1
SUMMARY OF ORDINANCE NO.: 2024-14
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR REGULATION OF CANNABIS BUSINESSES.
NOTICE IS HEREBY GIVEN that on December 9, 2024 the City Council of the City of Otsego,
Minnesota adopted Ordinance 2024-14.
NOTICE IS FURTHER GIVEN that the ordinance adopted by the City Council amends Zoning
Ordinance to establish regulations for cannabis businesses.
ADOPTED by the City Council of the City of Otsego this 9th day of December, 2024.
CITY OF OTSEGO
BY: Jessica L. Stockamp, Mayor
ATTEST: Audra Etzel, City Clerk
Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, Subd.10, this Ordinance is published in
summary form. Complete copies of the ordinance are available for inspection by contacting the City Clerk,
Otsego City Hall, 13400 90th Street NE, Otsego, Minnesota 55330 during regular office hours.