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072924 PC-CC Work Session SignedPLANNING COMMISSION MEETING MINUTES Richfield, Minnesota City Council and Planning Commission Joint Work Session July 9, 2024 CALL TO ORDER Mayor Supple called the joint work session to order at 5:45 p.m. in the Bartholomew Room. Council Members Mary Supple, Mayor; Sharon Christensen; Sean Hayford Oleary, Ben Present: Whalen Council Members Simon Trautmann Absent: Planning Brett Stursa, Brendan Kennealy, Cole Hooey, Ben Surma, Matt Taraldsen Commission Members Present: Commissioners Eddie Holmvig-Johnson and Stephanie Kowalkowski Absent: Staff Present: Katie Rodriguez, City Manager; Melissa Poehlman, Community Development Director; Sam Crosby, Planner II; Jennifer Anderson, Support Services Manager; Mary Tietjen, City Attorney; Joe Sathe, Assistant City Attorney; Michelle Friedrich, City Clerk; and Kelly Wynn, Administrative Assistant ITEM #1 DISCUSSION OF POTENTIAL CANNABIS REGULATIONS City Manager Rodriguez provided a summary and turned the item over to Planner Crosby, Planner Crosby presented the staff recommendation to the group. She shared details related to the retail of cannabis. Council Member Christensen asked for clarification between a retail outlet and a municipal dispensary. Planner Crosby clarified that a municipal dispensary would be considered a retail outlet, just owned municipally. Commissioner Hooey asked why it is a required minimum of three and what that looks like. City Council Work Session Minutes 2- July 9, 2024 Planner Crosby stated that they seem to have the demand for at least three so they should have no problem meeting that minimum. Council Member Hayford Oleary noted his support for the cap of three retail outlets. Commissioner Kennealy asked for clarification on whether a municipal dispensary counts towards the cap. Planner Crosby noted that it does not count towards the cap. Planner Crosby presented details related to the zoning districts and what staff recommends is allowed in these districts. She noted staff recommends only allowing retailers, event organizers, and maybe micro production in the commercial zoning districts. All other uses would be allowed in the industrial zoning district. Commissioner Stursa asked for clarification on what an event organizer means. Planner Crosby explained that it's a marketing position and wouldn't be doing any retail sales, just organizing events. Commissioner Kennealy asked if an event organizer would potentially have samples around. Planner Crosby noted that they are not able to sell any products but is unsure about the samples. Commissioner Hooey asked if a general event organizer would need to be classified as this specific type of event organizer if cannabis is available at the event. Assistant Attorney Sathe explained that if an event organizer would be planning an event where cannabis is on site, they would need to obtain this specific license/permit. He explained more details about the regulations related to cannabis at events. Attorney Tietjen explained that a city can have a separate cannabis license than the State has. Council Member Hayford Oleary suggested lifting restrictions on LPHE, since sales are already allowed throughout the community. Planner Crosby agreed and thanked him for catching this. Planner Crosby explained staff recommends adopting the maximum buffers that are allowed by the State. She noted the number of spaces that would be available for retailers based on the maximum buffers, half buffers and no buffers. Commissioner Surma asked for further explanation on the reason for buffers in some areas. Planner Crosby explained the details that are listed in the State statute and how it applied to areas in the city. Assistant Attorney Sathe further explained what is considered a park in relation to the State statute. Commissioner Hooey shared his concerns for increasing stigma around these types of business if they increase these buffers and restrictions. City Council Work Session Minutes 3- July 9, 2024 Council Member Hayford Oleary stated he agrees with Commissioner Hooey and supports the half buffer. Council Member Whalen noted how he feels about the zoning regarding Cedar Avenue. Commissioner Kennealy agreed that the full buffer feels too aggressive. Mayor Supple also shared her agreement for the use of the half buffer. In response to a question by Commissioner Hooey, Manager Anderson explained that since this is a relatively new retail space, they won't really have studies based on the proximity of cannabis retailers to education centers and the increase in use. However, health studies demonstrate an increase in use in proximity to tobacco shops, which indicates that buffers are effective tools. Council Member Hayford Oleary asked about the process of identification that would take place in these retailers for minors. Manager Anderson noted that other places on the east coast ID at entrance and it might just depend on the retailer. Commissioner Surma also shared his support for a half buffer. Council Member Whalen asked about the turnover rate for these locations available for retail. Planner Crosby noted that some of these businesses already have store fronts purchased in these approved areas and are just waiting on permits. Commissioner Kennealy supports a smaller buffer around schools and parks. Mayor Supple stated that due to further discussion she may be in support of a full buffer and at minimum, a half buffer. Commissioner Stursa noted agreement on a half buffer. Planner Crosby explained the staff recommendation for distance separation of retailers. Council Member Hayford Oleary noted that he feels like they should do nothing about distance separation and leave it up to the small businesses. Commissioner Hooey recommended something smaller, such as 1,000 feet. Council Member Christensen agrees with not implementing a distance separation. Council Member Whalen shared his opinion that some distance separation is desirable. Commissioner Kennealy stated he thinks that half buffers will create enough space between retailers, and they won't need to implement a distance separation. Commissioner Taraldsen stated he doesn't think they need to implement both buffers and distance separations. Commissioner Stursa stated that she supports a short distance separation; like enough to prevent all three from being in the same strip mall City Council Work Session Minutes 4- July 9, 2024 Commissioner Hooey asked about a distance separation regulation on cannabis to tobacco/liquor stores. Planner Crosby presented that staff recommends the same hours of operation as the City's liquor stores. Commissioner Kennealy noted that surrounding cities have implemented more convenient hours of operations and staff may want to look into changing these suggested hours. Council Member Hayford Oleary shared his concern for treating Sunday differently and would like to see that changed to match other days. Council Member Whalen concurred. Planner Crosby presented the staff recommendation to prohibit cannabis businesses as home occupations except for event organizers. There seemed to be general consensus regarding the staff recommendation. Mayor Supple asked if there are any precautions in place around samples that event organizers may give. Assistant Attorney Sathe explained how usually business owners will have to obtain something from a state level. Planner Crosby presented the staff recommendations regarding signage — to reference the state statute in the appropriate locations. There seemed to be general consensus regarding the staff recommendation. Commissioner Hooey asked if there is any City code that regulates the amount of store signage on windows and doors. Planner Crosby noted City code states that no more than 30% of windows can be covered with signage. Commissioner Surma asked what the current rules are around light up signage. Planner Crosby noted that City code does not give much detail on this topic. Director Poehlman explained that flashing signs are prohibited and there are some special rules related to illuminated signs in certain districts. Planner Crosby presented the staff recommendation to implement the maximum fee possible to offset staff time and expenses for compliance inspections. Council Member Hayford Oleary asked how much these fees would be. Manager Anderson explained that the State would license the applicants and the city may provide a registration fee. She estimated the fees might be around $125 and another $125 for renewal. She explained what these fees will cover. Council Member Hayford Oleary supports the maximum fee. Commissioner Taraldsen also supports the maximum fee to better offset staff time being used. City Council Work Session Minutes 5- July 9, 2024 Assistant City Attorney Sathe clarified that the fees are expected to be a maximum of half the state fee or $500 for initial registration and $1,000 per annual renewal. So slightly more, but still relatively low. Commissioner Hooey asked what the process will be for deciding which applicants will be accepted to open retail business. Manager Anderson explained that applicants will apply through the State, and it will go through inspections then be sent to the city. If the city receives more than a few applications, it will likely be first come, first serve. Mayor Supple asked for feedback on limiting shared entrances or requiring a cop or some kind of entrance regulation. The group discussed the possibility of restrictions that could be placed on entrance. Council Member Hayford Oleary supports welcoming these businesses in having a good base relationship with public safety. Planner Crosby provided a brief recap of what had been discussed and decided on during tonight's meeting and provided the anticipated timeline for moving forward. ADJOURNMENT Mayor Supple adjourned the work session at 6:50 pm. Date Approved: July 22, 2024 Michelle Friedrich Brett Stursa City Clerk Planning Commission Secretary