The commission’s discussion on cannabis regulations was prompted by the recent state legislation that legalizes adult-use cannabis, with retail licenses set to become available in early 2024. Associate Planner Travis Beerley outlined the city’s responsibilities under the new law, which requires cities to permit at least one cannabis retail business. The draft ordinance aims to integrate cannabis regulations into the city’s zoning code, focusing on performance and community standards to manage the impact of cannabis businesses.

The ordinance includes provisions for advertising restrictions to prevent marketing that targets individuals under 21. It also establishes guidelines for possession limits, home cultivation, and prohibits unlicensed sales. The Office of Cannabis Management (OCM) will oversee the application and licensing process, while the city will manage local regulations, including zoning approvals.

A significant portion of the discussion revolved around the taxation of cannabis sales. A 10% gross tax will be imposed on cannabis sales, with the majority allocated to the state general fund and a smaller share divided between the county and the city. The city anticipates potential revenue from this tax, although the exact figures will depend on sales volume.

The limited number of retail licenses available statewide has raised concerns about the distribution of licenses. The county has capped the allocation at ten licenses total, with only two designated for the city. This limited availability has prompted discussions about the potential competitive advantage larger urban areas might have in securing licenses.

Commission members considered various regulatory mechanisms, such as overlay districts or conditional use permits, to control where cannabis businesses could be located within the city. While the city cannot outright ban cannabis retail locations due to state mandates, it can impose standards to influence their operation.

In addition to cannabis-related discussions, the commission considered a variance request for a second access point at a property on Rolling Acres Road. This request seeks to separate access for a residential home and an existing boat launch. The variance is necessitated by upcoming changes to County Road 13, which will include a new median impacting current access. The commission ultimately recommended that the city council approve the variance, contingent on the removal of the existing connecting driveway, to enhance safety and usability.

The meeting also addressed proposed amendments to zoning ordinances concerning impervious surfaces and nonconformities. One proposal involves a 2% increase in allowable impervious surfaces for properties like Brent Grebner’s in the Deer Run area, facilitating the construction of a detached garage. The adjustment aims to align with definitions used in Shoreland areas and reduce the need for future variances.

The commission also discussed ordinances related to nonconformities due to public projects. These ordinances would classify changes arising from land acquisition for transportation projects as lawful, eliminating the need for variances and streamlining processes for affected property owners.

Lastly, the commission reviewed adjustments to the subdivision definition related to public improvement projects. This change would allow for administrative handling of minor property line adjustments without requiring a full subdivision process, thereby reducing bureaucratic delays.