Otsego City Council adopts temporary moratorium on cannabis businesses

by Joni Astrup

Associate Editor

The Otsego City Council has adopted an interim ordinance temporarily prohibiting the operation of cannabis businesses in the city.

In 2023, the state legalized the cultivation, manufacturing, testing, distributing and selling of cannabis products and defined 14 types of cannabis businesses that will be allowed in Minnesota.

While businesses would apply for a license to the state, there also is a local component, according to City Planner Dan Licht.

“The city or county has to sign off on compliance with the zoning ordinance, compliance with the building code and that property taxes have been paid to date,” Licht said.

Retail sale of cannabis products cannot occur before Jan. 1, 2025. However, the Minnesota Legislature approved an amendment earlier this year allowing certain applicants to obtain a cultivation license to operate in 2024, according to city documents.

Otsego’s moratorium will give the city time to establish local controls and nail down other details. The city has also been waiting for guidance from the state Office of Cannabis Management.

Cities cannot prohibit cannabis businesses, Licht said. However, Otsego can decide in which zoning districts the various businesses can locate. Cities can establish other measures as well, including dealing with issues such as hours of operation and setbacks from schools, daycares, residential facilities and parks.

Otsego’s moratorium can only be in place until Dec. 31, 2024, and may be repealed prior to that if local controls are adopted, according to city documents.

Council Member Brittany Moores said the moratorium is a good thing to have in place.

“I think it’s uncharted territory and there’s a lot of unknowns yet still,” she said.

The moratorium will not affect existing licensed medical cannabis or businesses currently selling THC products in Otsego, according to city documents.

The City Council held a public hearing on the proposed moratorium on June 24, but no one commented. The City Council voted 4-1 to adopt the moratorium, with Council Member Ryan Dunlap voting against.