In 2023, Minnesota became the 23rd state to legalize recreational cannabis. This legislation also established a new Office of Cannabis Management (OCM) to oversee the industry, prompting cities to scramble to implement new licensing and zoning requirements.
While sales were initially expected to begin in 2025, the state established a new social equity licensing vetted lottery this spring with a preapproval window opening later this month, accelerating the need for local regulatory frameworks.
In response to these developments, the Mound City Council held a public hearing at its July 9 meeting to discuss amending its zoning code for cannabis businesses.
According to Rita Trapp, city planning consultant, Minnesota state statute mandates that cities must allow at least one cannabis business per 12,500 residents. However, cities have the discretion to adopt reasonable restrictions on the time, place, and manner of cannabis business operations, as long as these restrictions do not outright prohibit the establishment or operation of such businesses.
Trapp noted that Hennepin County’s size could accommodate over 100 cannabis businesses, potentially attracting interest to Mound.
The council’s discussion coincided with the rollout of a social equity licensing vetted lottery overseen by the OCM, prioritizing applicants adversely affected by historical cannabis laws, veterans, small-scale farmers, and others meeting specific criteria.
Trapp clarified that currently, the city can license edible cannabinoid products until the end of the year. Beginning Jan. 1, 2025, licensing will shift to the OCM, and cities may adopt a registration process at that time.
Additionally, starting next month, Minnesota residents aged 21 and older will be permitted to use cannabis flower and products on their private property and at events licensed for on-site consumption. They may also cultivate up to eight cannabis plants, with a maximum of four mature plants, in a secure, non-public space.
During the public hearing, residents expressed concerns about the new law, advocating for the council to adopt stringent regulations.
Following a lengthy discussion, the council opted to restrict potential cultivation, manufacturing, or retail activities to the Mixed Use Downtown (MUD) district, alongside establishing a 1,000-foot buffer zone from public and private schools and a 500-foot buffer zone from local parks. The ordinance governing businesses currently selling low-potency hemp products remains unchanged. Trapp highlighted that the city retains the flexibility to revise its ordinance once model ordinances are released by the OCM.
In other news, Mayor Jason Holt provided an update on plans for a Fire District aimed at supporting multiple communities on the west side of Lake Minnetonka. Recently, mayors from interested cities, along with their city administrators, received a presentation from a representative of the State Fire Marshal division of the Minnesota Department of Public Safety. According to Holt, the average establishment time for a fire district is five years. The group will convene monthly through the rest of the year to assess its options moving forward.
Another council agenda item involved approving a bid for the Downtown Paver Sidewalks Replacement project to Create Construction of Maple Grove for just over $370,000, significantly lower than the engineer’s estimate.
Additionally, the council authorized the solicitation of quotes for the Marion Lane Water Main Replacement project. City Engineer Matt Baumann informed the council that during the Artessa development construction, staff learned that the old water main contained lead joints that needed to be removed from service. The projected cost is approximately $100,000, reflecting a reduced amount due to the developer’s continued responsibility to complete the full roadway installation.
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