Planning Commission - Regular Meeting

to order. Um, approval of the agenda. We have a motion to approve. So moved. I'll second. Uh, all in favor? I oppose. Same sign. All right. New business. We have two interim use permit applications on the agenda this evening. Um the first interim use permit is uh a public uh and there'll be a public hearing um for applicant Sugar High Cannabis Consulting LLC located at 112 Washington Avenue East. Proposal cannabis sales sales in uh B3 district. Um and then the second uh public hearing and interim use permit request is by applicant Elevate Cannabis Dispensary LLC located at 214 Lincoln Avenue West and proposal is cannabis sales again in a B3 district. So we will turn it over first to Clara Beck for a staff report. Thank you Chair Duffy. Um, and I will also just take a minute to say thank you planning commission members for um, fitting a special session into your schedules. I know that that can be difficult to do with all the things happening now that it's finally spring. Um, and thank you to all the people who are here in the audience, both our applicants and members of the community to uh, be able to weigh in on this process. Um, I'm just going to back us up, I think, a little bit and start with I thought maybe there'd be more of a turnout from the community. So, I was going to do a plug for planning commission. We meet every fourth Monday. Um, members are chosen annually by the mayor and serve terms of I believe it's three years, two years, three years, and you can serve up to two terms consecutively. Um, so if anyone's ever

interested in planning commission, uh, the reason that we are here talking about cannabis in Fergus Falls is due to changes at the state level that allow it as, um, an allowable substance to be sold in any municipality in the state of Minnesota. The way that our um local municipality plays into it is that we can have options on how to regulate the location of a cannabis business um and certain other regulations of things like hours of operation, etc. Reasonable restrictions, but nothing that could prevent a business from operating in the city of Fergus Falls. Um, we can also um let limit the number of cannabis businesses in Fergus Falls. Right now, the limit in Fergus Falls is up to two businesses is what our city code states. So, first up um is a a request from Sugar High, which is a current business in town. They will be switching locations in order to best fit the zoning regulations that have been set forth by the city of Fergus Falls. Um they are going to be located at 112 Washington Avenue East, which is zoned B3. Um the Fergus Falls City Council decided that B3 is an appropriate place for cannabis sales through the use of an interim use permit. Um which is why we're here tonight. So that's why we are having this discussion. This is a B3 zone. This would be cannabis sales in that B3 zone. Surrounding this location is further B3 zoning. So there really isn't anything close by that is not B3 zoning. Um there is some uh some it's mostly commercial, but there is some residential on upper levels, including in this building itself. There are three

apartments that are currently licensed for um for rental. And we do have the building owner here with us in the audience should anyone have any questions about the building itself. Uh, next. Okay, that's not working. There we go. Um, like I said, this would be cannabis retail sales. This would not include on-site consumption or manufacturing. We have decided in our zoning code that there are other locations that are a better fit for um those uses. And um the applicants are reporting that there are only going to be interior renov renovations to the building. So you would not see exterior changes to the architecture. Um staff did go through all of the required uh criteria. Um part of the city's um sorry part of the city's process oh gosh I need to go back is for an interim use permit is to apply the same conditions or to apply the same framework that we would use for a conditional use permit. So that's where we get the um that's where we get the um findings that we have. So the following criteria are what staff went through to ensure that this would be a good fit in the B3 zone. First, it's not going to be detrimental or endanger the public health, safety, or general welfare of the neighborhood or the city. Um criteria is met in that regard. These are legal sales. It's a legal use of the um substance here in Minnesota. and state and local laws regulate the actual operation of the business and the business in their application agrees that they are going to be following all applicable state and local laws. So criteria is considered met will be harmonious with the general and applicable specific objectives of the comprehensive plan and code provisions. Um I have indicated that the criteria

there is met. The city does not have a comprehensive plan, but as I mentioned earlier, the city council did determine that cannabis retail sales are a compatible use in the B3 zone with an interim use permit. Um three, it will be designed, constructed, operated, and maintained so as to be compatible or similar in architectural and landscape appear appearance with the existing or intended character of the general vicinity and will not change the essential character of that area nor substantially diminish or impair property values within the neighborhood. Um criteria indicated here is met. Again, only interior interior renovations have been proposed which do not generate enough of an effect um to affect surrounding property values and operations are of a retail nature which is again not out of character for the area which is a commercial district. um will be adequately served by existing essential public facilities and services include including streets, police and fire protection, drainage structures, refuge disposal, water and sewer systems and schools. I've stated that criteria are met. The building is adequately served by public facilities and services. It's an existing building. It's been a business in the past. That has not been an issue that's come up. Um, building code review is currently underway to account for um, services on the inside of the building. Um, five, it will not involve uses, activities, processes, materials, equipment, and conditions of operation that will be hazardous or detrimental to any persons, property, or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare, or odors. Again, criteria met. uh only retail activities are proposed as part of the business lensure and so no manufacturing, no consumption on site. Um and just as a reminder, the city does have rules about consumption in public

places. So um even if somebody is in the retail store buying a product, they cannot then go out into the street and use that product. That is an illegal use. There are other places where that is more appropriate including um private property and um in certain establishes that have liquor licenses that are active where they are selling lowdosese THC beverages. Um six will have vehicular ingress and egress to the property which does not create traffic congestion or interfere with traffic on surrounding public streets. Again, this is an existing building that has had um previous business use. So I have stated the criteria is met. the the proposed commercial use is consistent with the previous commercial use um which never did generate reports of traffic congestion or disruption to public streets. Um seven will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. Um I stated that that criteria is also met. The property itself is not historically designated. Um and again the the project is not suggesting uh the creation of any exterior changes. Uh the site itself is located at a sufficient distance from the Ottertale River which is you know a visual and recreational amenity in the city. Um and the river in which is a historically designated building. the visual lines are far enough apart that I've I've indicated that the um visual impacts would be negligible. Um I did add one further finding of fact that would uh relate specifically to the interim use of the properties. The interim nature of the use is defined um the permit will expire no more than 5 years from the date of city council approval or on an earlier date or event as specified in any permit conditions. So ultimately the staff

recommendation is to um recommend the IUP for approval to the city council. Uh I did not place any conditions on that on that approval at this time. Um that said planning commission andor city council does have the option to place reasonable conditions. My reasoning for not placing conditions is that I think that state and local reg regulations and building code regulations would be um sufficient to ensure that the business is running in a legal and safe manner. So that concludes my staff report. Um I think maybe you would like to open it for the public hearing at this time. Yeah, just to clarify, so we uh we have two applications uh before us tonight. So we will have two separate public hearings on each application. So, right now we'll open up for public hearing on the um application 2025-1 for Sugar High Cannabis Consulting LLC. And if you want to come up and speak, please just state your name um and your address for the record. [Music] Uh yes, my name is uh Grant Davenport. I'm at uh 114 East Washington. Uh so just up the road there. Um can you explain a little bit on the 5-year period of this? Like what happens after the fifth year? Does it become permanent or is it another interim? They would have to reapply. Okay. And then um in the application I would say that just the the building as it sits um when you talk about like exterior updates or changes it's staying as is right now just so I understood that. Correct. Yeah. The building owner is is here if he wants to weigh in but um there's some repairs that need to be done there on the side of the building. So the building will be improved but won't

change. Sure. signage or Yeah. Yeah. Yes. Okay. All right. That's all I had. So, thank you. So, just to clarify, too, we have conditional use permits and interim use permits. So, conditional use permits run with the land and essentially going they they don't end. Um so, they if we put a conditional use permit on a piece of property, it'll continue uh without an end date. an interim use permit. Um they're very similar as the conditions are are are the same. You know, we go through the same analysis on on both of those. The difference is is the time frame. So the interim is is exactly kind of what that says. It's for that fiveyear time period and then it ends and then it would have to they'd have to reapply and start again. So thank you for your time. Mark Leighton. I'm a sitting council member. Uh I should have maybe preluded the the previous speaker for the benefit of the public. Uh Claire, you can help clarify any please. The process you're handling today will then be presented to the council. Yeah. The uh the recommendation that's being made by the planning commission tonight will be made to the council. So there will not be further public hearings that are recommended. I suppose planning or city council could reconsider that. But um this process would come to an end and simply the recommendation would be going to the council. And how does the council know uh that all the qualifications have been made that these applicants conform to the current ordinances that we have? Well, you would be hopefully reviewing the the recommendation that'd be made by

the planning commission which would include all of the findings of fact. Okay. So, and again on the the important announcement or how would you want to call it for public information, you will make the recommendations to the council. the council has the final say and at that point the council very well could come back with a yes, a no, or we need this. Um, yes. Yes. The council would have the option to place conditions if you choose to place conditions differently or above and beyond anything that the planning commission places on it. Um, if you choose a no, then you need to state uh clearly what the no is based on with the um rules that are laid out for an interim use permit. And if it's a yes, then that permit would move forward um for up to 5 years. Correct. Again, for clarification, thank you. Uh this by no means that a permit would be your your decision tonight is just to bring it to the council and the council has the ultimate question and clarifications. Yep. Planning commission is an advisory board to the city council. Correct. Thank you very much. So the council will then be able to review the facts that you find today and bring to us. Yes. Thank you. All right, without any further comment, we'll close the public hearing and bring it back to the planning commission for discussion. Do we are there set or defined hours of operation from the state on this? Um,

from the state, no. from city code. Yes, we have indicated that cannabis businesses can operate from I think it's 9:00 a.m. to 900 pm. Andrew, does that you guys are nodding, so yes. Okay. So, yes, we have we have placed we have placed those recommendations. Sounds good. And this is this is maybe a a dumb question and probably just a hypothetical or a theoretical one, but with an IUP, we so there could be two of these in the city, right? Uh and uh and and and once the council grants one, it ties up that slot for five years. Now, suppose the business ceases to exist or decides to pivot into something else within the 5-year period. Is that still is there a use it or lose it component of this where they have to remain engaged in the sale of cannabis to keep the IUP? Yes. Okay. There are two separate tracks here. I think also yes that uh so this is just the zoning um so that they can use the piece of property for that use and then there'll be a separate licensing or registration through the city where the city will have the discretion um to allow up to I think two businesses um to actually operate in the city. So that'll be step two. So this is just step one which is can we use our property for this use and then and then they'll have to go through the separate process. That's my understanding I think. Yes. Yeah. Perfect. Perfect. All right. Any further discussion? Do we have a motion? Yeah, I'll I'll make the motion to approve with no conditions. And and and you said findings of fact, so these would be the findings of fact. Okay. Yeah. Second. Second.

Any further discussion? All in favor say I. I. Oppose. Same sign. And uh let the record reflect that I abstain from voting. All right. We will um go to our second application which is interim use permit 2025-2. Um again public we'll have a public hearing um on the interim use permit for Elevate Cannabis Dispensary LLC. But first we'll turn it over to Clarbec for a staff report. Congratulations. Thank you. Um we are now at our second here. What did I do last? There we go. Okay. So, this subject property is 214 Lincoln Avenue West. Um the the this business is actually already operating in this location. They are not um proposing to change location. Uh so they are um in operation currently. Again, a B3 general business district. Very similar land uses surrounding this business, commercial, um, and some upper level residential. This building itself does not have any residential above it. So, that is a difference. Um, keep trying that and it keeps not working. There we go. Proposed use. This is a cannabis retail business. Again, no on-site consumption or manufacturing as part of the business operations and no exterior changes were proposed in the application. Um staff has found that all the um

requirements have been met for conditional uses and I will run through that similarly to uh what I did with our our first application. So, first um will not be detrimental to or endanger the public health, safety or general welfare of the neighborhood or city. Um criteria is is met. Again, state and local laws are regulating the operation of these uh businesses. It is a legal use in in Minnesota. And um this business also put in their application that they are going to um abide by all applicable state and local laws. They also noted in their application that they uh plan to engage and I I think already do some of this work um engage in regular outreach and education efforts in an effort to address any community concerns that may come to light. Next, uh will it be harmonious with the general and specific objectives of the comprehensive plan? Again, we do not have a comprehensive plan, but city council has stated that in the B3 zone, this isn't it. this isn't an acceptable use with an interim use permit. So, we do have that in code that we can fall back on. Um, it will be designed, constructed, operated, and maintained to be compatible or similar in an architectural and landscape appearance with the existing or intended character of the general vicinity. It's not going to be changing the character of the area, nor substantially diminishing or impairing property values. um criteria is met, the business uh will maintain its current architectural architectural characteristics because again no external changes were proposed in the application. Um operations are of retail nature which is not out of character with the area. um will be served adequately by existing public facilities and services including streets, police and fire protection, drainage structures, refuge disposal, water and sewer systems and schools

criteria is met. The business is currently operational in the same location and um as far as the city is aware is adequately served by those existing services. um will not involve uses, activities, processes, materials, equipment and conditions or operations that will be hazardous or detrimental to any person's property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare, or odors criteria is met. Um the business will continue operating in its current location with no significant changes to its retail operations beyond what is required in the new rules. Um, and to date, the business has not generated reports of excessive traffic, noise, smoke, or other nuisances that I was aware of at the writing of this report. Um, six, we'll have vehicular in ingress and egress to the property, which does not create traffic congestion or interfere with traffic on surrounding public streets. Uh, criteria met. Again, the business will continue operating in its current location and um no reports of traffic con congestion or disruption to public streets have been made will not result in the destruction, loss or damage of a natural, scenic or historic feature. Criteria met. The property is not historically designated. Um, and it is located a sufficient distance from both the Ottertale River, which is a recreational and um, aesthetic asset that the city has and the historically designated Red River Mill um, which is nearby. Uh, but it is surrounded by other commercial uses such that any visual impacts are negligible to those two assets. Um the final finding of fact that I've stated is the interim nature of the use is defined as the permit will expire no more than 5 years from the date of city council approval or on an earlier date or event as specified in

any permit conditions. So staff recommend that um this IUP be approved and sent on to the city council. Um once again I have not placed conditions on it. I uh as I stated with our first case, I feel that state and local regulations are sufficient um including building code regulations to account for the safety and general welfare of the city in regard to businesses um that are operational in town. And uh it is up to the planning commission and city council should you choose to place any conditions um after the fact. So, that is my report. All right. Thank you, Clara. We'll open it up for public hearing. Again, if anybody wants to come up and make any comments, just state your name and address for the record. Uh, thank you again for uh this time. Uh Mark Leighton, sitting council member, I found your uh clarifications helpful for me. Um in you call it the IUP and then the actual licensings of the merchant. There are two different steps. Yep. Thank you very much. That clarification is very nice. I appreciate the opportunity. You're welcome. All right, without further comment, we'll close the public hearing and bring it back to the planning commission for discussion. Any

discussion? All right. Do we have a motion? I'll make the motion to approve with no conditions and specifically findings of fact that mirror the staff report. I will second that. Second, Nate. Any further discussion? All in favor say I. I. I. Oppose. Same sign. And you can let the record reflect again that I abstain from voting. All right. Without anything else, we will adjourn. Thank you.