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12-03-24 Agenda and Packet A.6:00 P.M. - CALL TO ORDER B.PUBLIC HEARINGS B.1 Consider Proposed Ordinance XXX: Adopting Zoning Ordinance Regulations for Cannabis Businesses C.GENERAL BUSINESS D.APPROVAL OF MINUTES D.1 Approve Planning Commission Meeting Minutes dated November 4, 2024 D.2 Approve Planning Commission Work Session Meeting Minutes dated November 19, 2024 E.COMMISSION PRESENTATIONS F.ADMINISTRATIVE PRESENTATIONS F.1 Discuss Ordinance XXX: Amending Conditional Uses in the Agricultural Estate and Rural Residential zoning districts to remove group homes serving seven to 16 persons as a conditional use in those zoning districts, as well as removing City Code Section 20-261. G.CORRESPONDENCE DISCUSSION H.OPEN DISCUSSION I.ADJOURNMENT AGENDA CHANHASSEN PLANNING COMMISSION TUESDAY, DECEMBER 3, 2024 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD NOTE: Planning Commission meetings are scheduled to end by 9:00 p.m. as outlined in the official by-laws. We will make every attempt to complete the hearing for each item on the agenda. If, however, this does not appear to be possible, the Chairperson will notify those present and offer rescheduling options. Items thus pulled from consideration will be listed first on the agenda at the next Commission meeting. 1 If a constituent or resident sends an email to staff or the Planning Commission, it must be made part of the public record based on State Statute. If a constituent or resident sends an email to the Mayor and City Council, it is up to each individual City Council member and Mayor if they want it to be made part of the public record or not. There is no State Statute that forces the Mayor or City Council to share that information with the public or be made part of the public record. Under State Statute, staff cannot remove comments or letters provided as part of the public input process. 2 Planning Commission Item December 3, 2024 Item Consider Proposed Ordinance XXX: Adopting Zoning Ordinance Regulations for Cannabis Businesses File No.Item No: B.1 Agenda Section PUBLIC HEARINGS Prepared By Eric Maass, Community Development Director Applicant Present Zoning Land Use Acerage Density Applicable Regulations SUGGESTED ACTION Proposed Motion: "The Chanhassen Planning Commission recommends that the City Council approves the attached Ordinance regulating Cannabis businesses as presented." SUMMARY City staff, in partnership with the City Attorney's office, has drafted an initial ordinance regulating cannabis sales and manufacturing for review and discussion by the City Council and supporting commissions. The draft ordinance recommends treating the retail sales of Cannabis and Hemp the same way in which the sale of alcohol is regulated from a zoning standpoint. A cannabis retail licensing authority must be designated to coordinate license approvals with the Office of Cannabis Management and to conduct compliance inspections. The proposed ordinance delegates the cannabis retail licensing authority to Carver County. 3 BACKGROUND The draft ordinance has been discussed at a City Council work session on October 28, an Economic Development Commission Meeting on November 12, and a Planning Commission work session on November 19. The City Council agreed with the suggested zoning districts proposed for the various types of cannabis and hemp businesses in the draft ordinance. The City Council was undecided as it relates to whether or not to require additional buffering from cannabis and hemp retail businesses, which are not required for liquor or tobacco stores. The City Council requested additional feedback on the above topics and the draft ordinance from the Planning Commission and Economic Development Commission; they also hoped to gain feedback from the public hearing process associated with an amendment to the zoning ordinance. The Economic Development Commission (EDC) and the Planning Commission (PC) expressed the desire to treat cannabis retail businesses identically to liquor stores, with no additional buffers and to base house of operation based on Minnesota state statute. Following review by the EDC and PC, staff has updated the draft ordinance with the following revisions: Removed the 500-foot buffering requirement around schools and residential treatment facilities. Added Hemp Retail Business (Low Potency Hemp Edible) retail sales as a permitted use in the Business Neighborhood (NB) and Industrial Office Park (IOP) zoning districts based on existing businesses within the IOP that currently sell low-potency hemp edibles. Added Hemp Manufacturing Businesses as a permitted use in the Central Business District (CBD) if it's combined with a brewery with taproom, brewpub, or micro-distillery with cocktail room. DISCUSSION RECOMMENDATION Staff recommends the adoption of the proposed ordinance as written. ATTACHMENTS Cannabis Business Regulations Draft Zoning Ordinance Cannabis License Types Public Comment via Email 4 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 1, CHAPTER 11, AND CHAPTER 20 CHANHASSEN CITY CODE THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 1-2 of the City Code, City of Chanhassen, Minnesota, is hereby amended to include the following definitions: Adult-Use Cannabis Product: As defined under Minnesota Statutes, section 342.01, subd. 4. Cannabis: Any species of the genus cannabis plant, or any mixture or preparation of them including whole plant extracts and resins. Cannabis Business. A cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, dispensary, cannabis wholesaler, cannabis transporter, cannabis testing facility, cannabis delivery services, or medical cannabis combination business licensed, or any use otherwise authorized, under Minnesota Statutes, Chapter 342. Cannabis Cultivation: A cannabis business licensed for planting, growing, harvesting, drying, curing, grading, or trimming of cannabis plants, cannabis flower, hemp plants, or hemp plant parts by a business licensed or authorized to cultivate cannabis or medical cannabis pursuant to Minnesota Statutes, Chapter 342. Cannabis Distribution Facility: Any building, structure, vehicle or grounds where the storage or distribution (including either retail or wholesale distribution) of cannabis is performed. Cannabis Delivery Service: A person or entity licensed or otherwise authorized to purchase cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from licensed cannabis microbusinesses with a retail endorsement, cannabis mezzobusinesses with a retail endorsement, dispensaries, medical cannabis dispensaries, and medical cannabis combination businesses; transport and deliver cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumable products to customers; and perform other actions pursuant to Minnesota Statutes, Chapter 342. Cannabis Laboratory: Any permanent or temporary building or structure; any mobile structure or vehicle; corporation; or other entity that examines, analyzes or tests samples of cannabis and is licensed by the State of Minnesota to do so. 5 Cannabis Manufacturing or Manufacturer: The process of converting or packaging harvested cannabis plant material into medical or recreational cannabis. Cannabis Mezzobusiness: A person or entity licensed to cultivate, manufacture, and sell products containing cannabis and related supplies and products and perform other actions authorized under a cannabis mezzobusiness license pursuant to Minnesota Statutes, Chapter 342. Cannabis Microbusiness: A person or entity licensed to cultivate, manufacture, and sell products containing cannabis and related supplies and products and perform other actions authorized under a cannabis microbusiness license pursuant to Minnesota Statutes, Chapter 342. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. Cannabis Retail Businesses: A state licensed retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, excluding lower-potency hemp edible retailers, pursuant to Minnesota Statutes, Chapter 342. Cannabis Testing Facility: A facility licensed to obtain and test immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp plant parts, hemp concentrate, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products from cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, cannabis wholesalers, lower-potency hemp edible manufacturers, medical cannabis cultivators, medical cannabis processors, medical cannabis combination businesses, and industrial hemp growers pursuant to Minnesota Statutes, Chapter 342. Cannabis Transporter: An entity licensed or otherwise authorized to transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp- derived consumer products from a cannabis business to a cannabis business pursuant to Minnesota Statutes, Chapter 342. Cannabis or Lower-potency Hemp Edible Manufacturing: An entity licensed or otherwise authorized for the creation of cannabis concentrate and manufacture of cannabis products and hemp-derived consumer products for public consumption pursuant to Minnesota Statutes, Chapter 342, an entity licensed or authorized to purchase hemp and artificially derived cannabinoids to make hemp concentrate; manufacture artificially derived cannabinoids and hemp edibles for public consumption; package and label lower- potency hemp edibles for sale to customers; sell hemp concentrate, artificially derived cannabinoids, and lower-potency hemp edibles to other cannabis businesses and hemp businesses; and perform other actions pursuant to Minnesota Statutes, Chapter 342, or an 6 entity in possession of a medical cannabis processor license pursuant to Minnesota Statutes, Chapter 342. Cannabis wholesaler: An entity licensed or authorized to obtain, store, and sell or otherwise transfer cannabis or hemp seeds, plants, flower, or other products for the purpose of resale or other transfer to a cannabis business, but not to consumers, pursuant to Minnesota Statutes, Chapter 342. Dispensary: An entity in possession of a cannabis retailer license or otherwise authorized to acquire, possess, transfer, sell, dispense, or distributes products containing cannabis and related supplies and products pursuant to Minnesota Statutes, Chapter 342. Lower-Potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50. Lower-potency hemp edible retailer: A person or entity licensed or authorized to acquire, possess, transfer, sell, dispense, or distribute lower-potency hemp edible products and related supplies and products pursuant to Minnesota Statutes, Chapter 342. Medical Cannabis Combination Business: An entity authorized to cultivate, manufacture, and sell cannabis, hemp, and cannabis and hemp related supplies and products, and perform other actions authorized under a medical cannabis combination license pursuant to Minnesota Statutes, Chapter 342. Office of Cannabis Management: State of Minnesota Office of Cannabis Management, as may be referred to as “OCM” in reference to this title. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment buildings, and other places of public accommodation. Preliminary License Approval: OCM pre-approval for a cannabis business license for applicants who qualify under Minn. Stat. 342.17. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23. Retail Registration: Retail Registration: An approved registration issued by the City or Carver County to a cannabis retail business. State License: An approved license issued by the Office of Cannabis Management to a cannabis retail business. Section 2. Section 11-7 (a) of the City Code, City of Chanhassen, Minnesota, is hereby amended in its entirety to read as follows: Sec 11-7 Public Use Of Cannabis And Hemp In Public Place 7 No person shall use cannabis flower, cannabis products, lower potency hemp edibles, or hemp- derived consumer products in a public place or a place of public accommodation unless the premises is an establishment or an event licensed to permit on-site consumption of cannabis or hemp products. (a) Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Cannabis means any product containing the harvested flower, bud, leaves, or stems of a plant of the genus Cannabis that has a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent on a dry weight basis. Cannabis includes adult-use cannabis flower, medical cannabis flower, and any derivative, concentrate, extract, resin, or other product made from a cannabis plant. Hemp means any product containing the harvested flower, bud, leaves, or stems of a plant of the genus Cannabis that has a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis. Hemp includes any derivative, concentrate, extract, resin, or other product made from a hemp plant. Electronic Device means any product containing or delivering a substance intended for human consumption through the inhalation of aerosol or vapor from the product. Electronic delivery device includes but is not limited to, devices manufactured, marketed, or sold as e-cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any other product name or descriptor. Smoking means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, or any other lighted or heated product that is intended for inhalation. Smoking included using an electronic delivery device. Public Place means property owned, leased, or controlled by a governmental unit and private property that is regularly and frequently open to or made available for use by the public in sufficient numbers to give clear notice of the property's current dedication to public use. Public Place does not include the following: 1) a private residence including the person’s curtilage or yard; 2) private property not generally accessible by the public, unless the person is explicitly prohibited from consuming cannabis flower, cannabis products, lower- potency hemp edibles, or hemp-derived consumer products on the property by the owner of the property; or 3) the premises of an establishment or event licensed to permit on-site consumption. b) Prohibited Activity. No person shall smoke cannabis or hemp in a public place. c) Penalty. Violation of this section shall be a petty misdemeanor. Section 3. Article 20, Division 20-XXXIII of the Chanhassen City Code is amended to add a new Section 20-973 to read as follows: Section 20-973 Reserved 8 Section 20-973 Cannabis Business Uses (a) Purpose The purpose of this Section is to establish provisions for the opportunity as well as controls of cannabis business uses within the City. (b) General Performance Standards. (1) A cannabis business must be registered in accordance with Chapter 10 of the City Code to operate within the city. (2) A cannabis business must provide evidence of a state license issued under Minnesota Statues, section 342.14 and all applicable state laws and regulations. (3) All cannabis businesses must be in compliance with the provisions of Chapter 20 of the City Code and all applicable state laws and regulations related to the operation of the cannabis business. (4) Advertising a. The size, number, and location of signs for cannabis businesses must meet the regulations of the City of Chanhassen’s sign ordinance. (c) Performance Standards for Cannabis Uses in Commercial Zoning Districts (1) The cannabis business shall be conducted entirely within a principal structure and all outside storage is prohibited. (2) All waste and recycling containers shall be kept within a principle or accessory building. (3) Hours of operation: Must operate within the hours specified in Minnesota Statutes, section 342.27. (4) Sufficient measures and means of preventing any gas, vapors, odors, smoke, debris, dust, fluids or other substances from exiting a cannabis business shall be provided for at all times. (5) Cannabis or associated products shall not be perceptible from the exterior of the building in which cultivation occurs. (6) Security: a. Burglary alarm systems with audible and police notification components that are professionally monitored and maintained in good working condition shall be installed on all doors, windows, and access points. 9 b. Surveillance cameras shall be installed and operate twenty-four (24) hours a day, seven (7) days a week, with thirty (30) day video storage, to monitor all entrances and trash receptacles, along with the interior and exterior of the premises shall be required. c. Exterior lighting shall be required sufficient for observers to see and for cameras to record, that is either constantly on or activated by motion detectors. d. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall be installed on all other windows or access points. e. Additional security requirements including, but not limited to, security guards, fencing, steel doors, and steel window coverings may be required as determined by city staff. (d) Performance standards for Cannabis Uses in Industrial Zoning Districts (1) The cannabis business shall be conducted entirely with a principal structure and all outside storage is prohibited. (2) All waste and recycling containers shall be kept within a principle or accessory building. (7) Hours of operation: Must operate within the hours specified in Minnesota Statutes, section 342.27. (3) All on-site consumption of cannabis (in a microbusiness licensed facility only) shall be entirely indoors. (4) Sufficient measures and means of preventing any gas, vapors, odors, smoke, debris, dust, fluids or other substances from exiting a cannabis business shall be provided for at all times. (5) Cannabis, associated products, or cultivation shall not be perceptible from the exterior of the building in which cultivation occurs. (6) Security: a. Burglary alarm systems with audible and police notification components that are professionally monitored and maintained in good working condition shall be installed on all doors, windows, and access points. b. Surveillance cameras are required and must operate twenty-four (24) hours a day, seven (7) days a week, with thirty (30) day video storage, to monitor all entrances and trash receptacles, along with the interior and exterior of the premises. 10 c. Exterior lighting shall be required sufficient for observers to see and for cameras to record, that is either constantly on or activated by motion detectors. d. Deadbolt locks shall be installed and utilized on all exterior doors and locks shall be installed on all other windows or access points. e. Additional security requirements including, but not limited to, security guards, fencing, steel doors, and steel window coverings may be required as determined by city staff. (7) Vehicles: a) All vehicles stored on site shall comply with provisions in Chapter 20 of this title and shall be enclosed in a secured fenced area. No non-business related vehicles shall be stored on site. Section 4. Section 20-692 of the City Code (“BN” Neighborhood Business District, Permitted Uses), City of Chanhassen, Minnesota, is hereby amended to add the following uses alphabetized accordingly within the Section: Lower-potency hemp edible retailer meeting performance standards of Chapter 20, Section 973. Section 5. Section 20-712 of the City Code (“BH” Highway and Business Servies District, Permitted Uses), City of Chanhassen, Minnesota, is hereby amended to add the following uses alphabetized accordingly within the Section: Cannabis Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Cannabis Medical Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Lower-potency hemp edible retailer meeting performance standards of Chapter 20, Section 973. Section 6. Section 20-732 of the City Code, (“CBD” Central Business District, Permitted Uses), City of Chanhassen, Minnesota, is hereby amended to add the follow uses alphabetized accordingly within the Section: Cannabis Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Cannabis Medical Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Lower-potency hemp edible retailer meeting performance standards of Chapter 20, Section 973. 11 Hemp Manufacturing Business meeting performance standards of Chapter 20, Section 973 and which is associated with a Brewery with taproom, Brewpub, or Micro-distillery with cocktail room. Section 7. Section 20-752 of the City Code (“BG” General Business District, Permitted Uses), City of Chanhassen, Minnesota, is hereby amended to add the following uses alphabetized accordingly within the Section: Cannabis Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Cannabis Medical Retailer/Dispensary meeting performance standards of Chapter 20, Section 973. Lower-potency hemp edible retailer meeting performance standards of Chapter 20, Section 973. Section 8. Section 20-812 of the City Code (“IOP” Industrial Office Park, Permitted Uses), City of Chanhassen, Minnesota, is hereby amended to add the following uses alphabetized accordingly within the Section: Cannabis Businesses: cultivator (including medical), manufacturer (including medical and lower potency Hemp edible), mezzobusiness, testing facility, and wholesaler meeting the performance standards in Chapter 20, Section 973. Cannabis Businesses: microbusiness, medical combined transporter and delivery service, transporter and delivery service meeting the performance standards in Chapter 20, Section 973. Lower-potency hemp edible retailer associated with a Brewery or Distillery meeting performance standards of Chapter 20, Section 973. Section 9. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ___day of _____, 2024, by the City Council of the City of Chanhassen, Minnesota ______________________________ ________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor (Published in the _________________________ on ______________________________) 12 Background Information - State License Types License Type Definition Fee Schedule (State License) Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location. They can also have on-site lounges where customers can use cannabis. Application: $500 Initial License: $0 Renewal: $2,000 Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. Application: $5,000 Initial: $5,000 Renewal: $10,000 Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. Application: $10,000 Initial: $20,000 Renewal: $30,000 Manufacturer Manufacturers may process raw cannabis plants into various products, such as edibles, concentrates, wax, oils, and tinctures. Manufacturers can buy cannabis flowers, cannabis products, and lower-potency hemp products from other cannabis businesses. They turn these materials into cannabis products, then package and sell them to other cannabis businesses. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. Application: $10,000 Initial: $10,000 Renewal: $20,000 Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients. They can buy cannabis (including plants and seedlings) and lower-potency hemp products from other cannabis businesses and sell them to customers. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. A cannabis retailer may operate up to five retail locations; however, no person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county. Application: $2,500 Initial: $2,500 Renewal: $5,000 Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp-derived consumer products and lower-potency hemp edibles. Application: $5,000 Initial: $5,000 Renewal: $10,000 Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses. Application: $250 Initial: $500 Renewal: $1,000 13 Testing Facility Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis manufacturer and cultivator businesses to test. They ensure these products meet safety standards. Application: $5,000 Initial: $5,000 Renewal: $10,000 Event Organizer Cannabis event organizers plan and host events featuring cannabis, and may allow for the sale of cannabis, cannabis products, and lower-potency hemp products to consumers at events like festivals (an event cannot last more than four days). An event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government. On-site consumption is allowed if approved by local government, in an access-restricted area not visible to the public and where smoking is not otherwise prohibited. Application: $750 Initial: $750 Delivery Service Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery directly to customers. Application: $250 Initial: $500 Renewal: $1,000 Medical Cannabis Combination Business Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district. Application: $10,000 Initial: $20,000 Renewal: $70,000 LPHE Manufacturer Lower-potency hemp edible manufacturers may manufacture and package lower-potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp edibles to other cannabis and hemp businesses. This license type cannot hold any cannabis business licenses. Sale of a product designed to be consumed on-site requires an on-sale (liquor) license. Application: $250 Initial: $1,000 Renewal: $1,000 LPHE Retailer Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers. This license type cannot hold any cannabis business licenses. Sale of a product designed to be consumed on- site requires an on-sale (liquor) license. Application: $250 Initial: $250 Renewal: $250 (Per retail location) *Note that the local registration fee is limited to a maximum of half of the state fee, and not all businesses have to register. 14 From: Emily email redacted Sent: Friday, November 8, 2024 10:49 AM To: DL Public Comments <publiccomments@chanhassenmn.gov> Subject: Public Comment - Cannabis Ordinance Discussion - Nov 12, 2024 Hello, I have a public comment for the Cannabis Ordinance Discussion on November 12, 2024 Economic Development Forum meeting. I think the currently proposed ordinance proposes a potential buffer of 500 feet from schools and residential treatment facilities. I ask the commission / council to consider adding that buffer to playgrounds / parks and daycare facilities as well. Thank you for considering. Emily Nagel 7603 Iroquois 15 Planning Commission Item December 3, 2024 Item Approve Planning Commission Meeting Minutes dated November 4, 2024 File No.Item No: D.1 Agenda Section APPROVAL OF MINUTES Prepared By Amy Weidman, Senior Admin Support Specialist Applicant Present Zoning Land Use Acerage Density Applicable Regulations SUGGESTED ACTION "The Chanhassen Planning Commission approves its November 4, 2024 meeting minutes" SUMMARY BACKGROUND DISCUSSION RECOMMENDATION 16 ATTACHMENTS Planning Commission Meeting Minutes dated November 4, 2024 17 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES NOVEMBER 4, 2024 CALL TO ORDER: Vice Chair Steve Jobe called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Steve Jobe, Edward Goff, Jeremy Rosengren, Perry Schwartz, Ryan Soller, Katie Trevena MEMBERS ABSENT: Chair Eric Noyes. STAFF PRESENT: Rachel Arsenault, Associate Planner. PUBLIC PRESENT: Chris Campbell 6261 Galpin Boulevard PUBLIC HEARINGS: 1. CONSIDER A VARIANCE TO ALLOW AN ADDITION TO A SINGLE-FAMILY HOME THAT WOULD ENCROACH INTO THE BLUFF AND REQUIRED BLUFF SETBACK AT 6261 GALPIN BOULEVARD. Rachel Arsenault, Associate Planner, reviewed the variance request for 6261 Galpin Boulevard. She presented the background about the bluff on the property and noted that three trees would be impacted on the property. She reviewed the zoning code on the property and how it impacted the request. She summarized the proposed addition to the house and explained the staff feedback. Commissioner Schwartz asked if the property had city services, such as water and sewer. Ms. Arsenault answered that the property had city services. Commissioner Goff asked if it was okay to build into the bluff, but it was a small triangle into the bluff setback. Ms. Arsenault answered that the request was to build within the bluff setback and the bluff. The variance is a two-fold request. Commissioner Soller clarified that there were no comments from neighbors about the project. Ms. Arsenault stated that there had not been any feedback from neighbors. Vice Chair Jobe opened the public hearing. Chris Campbell, 6261 Galpin Boulevard, explained how they are trying to restore the property. They explored ways to construct a garage with the architect and this was the only option. 18 Planning Commission Minutes – November 4, 2024 2 Vice Chair Jobe closed the public hearing. Commissioner Schwartz voiced appreciation for the applicant to attend the meeting. He asked if the lot was empty today, a house would not be constructed on the property because of the code. Ms. Arsenault answered that she was not sure about the ordinance code in 1986, but a variance to an existing house was a reasonable request. Commissioner Schwartz asked if the house was on the wetland. Ms. Arsenault responded that the house was on the bluff and bluff setback. A small portion of the driveway is in the wetland buffer and setbacks. Commissioner Trevena asked about stormwater impact. Ms. Arsenault answered that multiple departments reviewed the request for this and added additional conditions to make sure there were protective measures while constructing the addition. Commissioner Soller moved, Commissioner Schwartz seconded that the Chanhassen Board of Appeals and Adjustments, approve the requested encroachment into the bluff and required setback subject to the conditions of approval and adopts the attached Findings of Facts and Decision. All voted in favor and the motion carried unanimously with a vote of 6 to 0. GENERAL BUSINESS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED SEPTEMBER 17, 2024 Commissioner Goff moved, Commissioner Trevena seconded to approve the Chanhassen Planning Commission summary minutes dated September 17, 2024 as presented. All voted in favor, and the motion carried unanimously with a vote of 6 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: None. CORRESPONDENCE DISCUSSION: Ms. Arsenault shared a discussion of the cannabis regulations from State and County in a general business format is scheduled for the next meeting. OPEN DISCUSSION: Commissioner Schwartz asked if Ms. Arsenault had an update on the City Civic Campus project. Ms. Arsenault answered that they were starting to look at furnishings and should be on track for July 2025 to the extent of her knowledge. 19 Planning Commission Minutes – November 4, 2024 3 ADJOURNMENT: Commissioner Trevena moved, Commissioner Schwartz seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 6:15 p.m. Submitted by Eric Maass Community Development Director 20 Planning Commission Item December 3, 2024 Item Approve Planning Commission Work Session Meeting Minutes dated November 19, 2024 File No.Item No: D.2 Agenda Section APPROVAL OF MINUTES Prepared By Amy Weidman, Senior Admin Support Specialist Applicant Present Zoning Land Use Acerage Density Applicable Regulations SUGGESTED ACTION "The Chanhassen Planning Commission approves its November 19, 2024 Work Session meeting minutes" SUMMARY BACKGROUND DISCUSSION 21 RECOMMENDATION ATTACHMENTS Planning Commission Work Session Meeting Minutes dated November 19, 2024 22 CHANHASEN PLANNING COMISSION WORK SESSION MINUTES November 19, 2024 The work session was called to order at 6:00 p.m. COUNCIL MEMBERS PRESENT: Commissioner Steve Jobe, Commissioner Ed Goff, Chair Eric Noyes, Commissioner Ryan Soller, and Commissioner Katie Trevena COUNCIL MEMBERS ABSENT: Commissioner Jeremy Rosengren, Commissioner Perry Schwartz STAFF PRESENT: Eric Maass, Community Development Director; Rachel Arsenault, Associate Planner; Rachel Jeske, Planner Cannabis Code Discussion • Eric Maass, Community Development Director, introduced topic, scope, and when the commission could expect to see this topic in public hearing. • Mr. Maass reviewed the scope of the ordinances, licensing delegation, and zoning authority. • The Commissioners discussed the caps number of licenses, and the minimum number required. • Chair Noyes asked about the difference between cannabis retail registrations and low potency hemp edibles. Would like to ensure this is clear for the public in the presentation as well. • Rachel Jeske, Planner, clarified the types of products that would be sold in each license category. • The Commissioners asked questions regarding specific business and how they could expand or be potentially hindered in their current activity. • Commissioner Soller commented on the market race for licenses that could occur and how that would affect current businesses. • Miss Jeske clarified the race for licenses that could occur would only be for cannabis retail, not for low potency that we see sold now. Therefore, some business could potentially keep operating as they are today. • The Commissioners requested that staff addresses the existing consumption ordinance at Public Hearing. • Mr. Maass presented on licensing: events, industrial, retail, and delivery. PUBLIC PRESENT: None 23 • Mr. Maass presented the proposed zoning. • Commissioner Jobe asked if the buffers on the zoning map should be discussed at this point in the presentation and expressed interested in keeping the regulations the same as alcohol. • The commissioners had a general consensus that cannabis should be treated the same as alcohol. • Chair Noyes asked if any of the ordinances being discussed affected smoking areas or use areas. • Miss Jeske answered that all regulations related to use are already in place by the state. • Commissioner Soller asked if Chanhassen had any residential treatment facilities. • Miss Jeske responded there are none in Chanhassen that meet the state definition. • Mr. Maass presented on industrial use, event permitting, and highlighted main points of feedback staff would like from the commission. • Commissioner Goff asked clarifying questions on which types of business would be regulated by the caps on licenses. • Mr. Maass responded and then continued to address restrictions on hours of operation. • All commissioners were interested in mimicking state statute for hours. • The commissioners asked clarifying questions about on-sale versus off-sale. • Mr. Maass summarized the main points from the meeting. The meeting was adjourned at 7:24 p.m. Prepared by Rachel Arsenault, Associate Planner, and Rachel Jeske, Planner 24 Planning Commission Item December 3, 2024 Item Discuss Ordinance XXX: Amending Conditional Uses in the Agricultural Estate and Rural Residential zoning districts to remove group homes serving seven to 16 persons as a conditional use in those zoning districts, as well as removing City Code Section 20-261. File No.Item No: F.1 Agenda Section ADMINISTRATIVE PRESENTATIONS Prepared By Eric Maass, Community Development Director Applicant Present Zoning Land Use Acerage Density Applicable Regulations SUGGESTED ACTION No action suggested, general discussion only. SUMMARY The City Council reviewed the city's new regulation of group homes allowed through conditional uses and determined upon further consideration that while group homes serve an important purpose in the community, homes serving more than 6 persons are not something that the city is currently prepared to regulate through a Conditional Use Permit (CUP) process. For that reason, staff has begun the process to amend the City Code to remove this use from the RR and A-2 zoning districts, as well as the applicable performance standards associated with such a CUP. 25 The Planning Commission will hold a public hearing on the proposed ordinance amendment at its meeting on January 7th, 2025. BACKGROUND DISCUSSION RECOMMENDATION No recommendation given or requested with this item. This item will be for discussion purposes only. ATTACHMENTS Draft Ordinance - Rural Residential and Agricultural Estate Conditional Uses 26 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 20 CHANHASSEN CITY CODE THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 20-574 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: Sec 20-574 Conditional Uses The following are conditional uses in an "A-2" District: 1. Reserved. 2. Reserved. 3. Reserved. 4.1.Cemetery. 5. Reserved. 6. Reserved. 7. Reserved. 8. Reserved. 9.2.Electrical distribution and underground electric distribution substations. 10. Reserved. 11.3. Churches. 12.4. Recreational beach lots. 13.5. Group homes for seven to 16 persons. 14.5. Golf courses. 15.6. Towers as regulated by article XXX of this chapter. Section 2. Section 20-594 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: Sec 20-594 Conditional Uses The following are conditional uses in an "RR" District: 1. Churches. 2. Group homes for seven to 16 persons. 3.2.Private stables. 4.3.Recreational beach lots. 5.4.Towers as regulated by article XXX of this chapter. Section 3. Section 20-261 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: 27 Sec 20-261 Group Homes Reserved The following applies to group homes for seven to 16 persons. 1. The structure must be in compliance with the state licensing requirement. 2. The structure must be in compliance with local building and fire codes. 3. The site will be reviewed annually through a public hearing process. 4. Septic systems must be in compliance with chapter 19, article IV. Section 4. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ___day of _____, 2025, by the City Council of the City of Chanhassen, Minnesota ______________________________ ________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor (Published in the _________________________ on ______________________________) 28