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PC 12.03.2024CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES DECEMBER 3, 2024 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:02 p.m. MEMBERS PRESENT: Chair Eric Noyes, Steve Jobe, Perry Schwartz, Ed Goff, Ryan Soller, Jeremy Rosengren, Katie Trevena MEMBERS ABSENT: None. STAFF PRESENT: Rachel Jeske, Planner; and Eric Maass, Community Development Director. PUBLIC PRESENT: None. PUBLIC HEARINGS: 1. CONSIDER PROPOSED ORDINANCE XXX: ADOPTING ZONING ORDINANCE REGULATIONS FOR CANNABIS BUSINESSES Rachel Jeske, Planner, summarized the cannabis ordinance development and the previous discussion. She reviewed the different types of state license and presented maps of the permitted zoning districts. Commissioner Schwartz asked about the differences between a microbusiness and a mezzobusiness. Ms. Jeske answered that the difference was in the size of the square footage of plants that they could grow and the square footage of their retail locations. Commissioner Schwartz commented that he did not see language in the packet that defined the differences. Ms. Jeske responded that the definition was clear in the state language. Commissioner Schwartz asked if there would be testing for purity of the product. Ms. Jeske responded that all products grown in the state of Minnesota had to be tested at state-approved facilities before reaching retail stores. Chair Noyes asked if the number of retail licenses allowed had changed. Eric Maass, Community Development Director, commented that the City Council had not discussed the item. Commissioner Schwartz asked about the email from a resident about adding additional buffers around schools. Ms. Jeske responded that the Economic Development Commission and the Planning Commission considered the possibility, but neither commission wanted to include buffers for schools because they wanted it to be the same as liquor license requirements. Planning Commission Minutes – December 3, 2024 2 Commissioner Schwartz said that there was a difference between the consumption of alcohol and the consumption of marijuana. Chair Noyes stated that the discussion was about the sale of cannabis, not the consumption. Commissioner Soller clarified the differences between microbusinesses and mezzobusinesses according to the state definitions. Chairman Noyes opened the public hearing at 6:14. There were no public comments. Chairman Noyes closed the public hearing at 6:14. Commissioner Soller asked about the lounges and asked for clarification on where they would be zoned. Ms. Jeske clarified where smoking cannabis could and could not occur. Commissioner Soller questioned whether the testing of products would override the Carver County ordinance. He asked in which zoning districts a lounge could be allowed. Ms. Jeske responded that it would be in the microbusiness zoning district and possibly the mezzobusiness. Mr. Maass explained that the Carver County ordinance prohibited smoking cannabis in a public place, but a private business was not considered a public place. Smoking inside of a private business is covered by the MN Clean Air Act. Commissioner Soller asked if there was a loophole in the regulation of indoor smoking with the ability to test products for five minutes. Chair Noyes requested that the email from Emily Nagel be presented. He clarified the response to the resident. Commissioner Trevena moved, Commissioner Jobe seconded that the Chanhassen Planning Commission recommends that the Chanhassen City Council approve the attached Ordinance regulating cannabis businesses as presented. All voted in favor and the motion carried unanimously with a vote of 7 to 0. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED NOVEMBER 4, 2024 Commissioner Jobe moved, Commissioner Schwartz seconded to approve the Chanhassen Planning Commission summary minutes dated November 4, 2024, as presented. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. 2. APPROVAL OF PLANNING COMMISSION WORK SESSION MEETING MINUTES DATED NOVEMBER 19, 2024 Planning Commission Minutes – December 3, 2024 3 Commissioner Goff moved, Commissioner Trevena seconded to approve the Chanhassen Planning Commission work session minutes dated November 19, 2024, as presented. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: 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. Eric Maass, Community Development Director, reviewed the previous discussion about the conditional use approval and noted that this topic would be on the agenda for the next meeting’s public hearing. Commissioner Goff asked about the current zoning of Hope House and if they were in the right zoning if they wanted to do the seven to 16 persons. Mr. Maass answered that Hope House was zoned rural residential. They applied for an ordinance to serve seven to 16 persons but rescinded the request. Mr. Maass informed Hope House about the discussion with the City Council. He stated that Hope House understood the proposal and they were moving forward with their building project. Commissioner Jobe asked if Hope House were to serve above sixteen persons, if it would have to be zoned commercial. Mr. Maass responded that he would research the question. Commissioner Soller clarified that a group home could serve six residents. He asked whether a group home could serve 24 individuals if they had four separate houses. Mr. Maass confirmed this information. Commissioner Soller asked if Hope House would have to request an amendment to build a house for seven to 16 persons. Mr. Maass responded that there was a difference between how many the house was planning to serve versus the size of the house. Chair Noyes asked whether Hope House could buy a property in another zoning district to serve seven to 16 persons. Mr. Maass responded that they could buy a property in a multi-family zoning district. Commissioner Soller stated that a house could be built with extra bedrooms, but the number of people served, and licensing were of importance. He asked if variance requests came into play with conditional use requests. Mr. Maass answered that variances wouldn’t be used in a CUP. The way to amend this would be to request an amendment to the zoning ordinance. Planning Commission Minutes – December 3, 2024 4 Chair Noyes asked if the property could be rezoned. Mr. Maass answered that the property would not be eligible for rezoning to a multi-family zoning district based on the comprehensive plan. They would need to request a comprehensive plan amendment to reguide their property to medium-density residential and then a rezoning. He did not know if this request would be successful. Commissioner Jobe questioned the commercial and other applicable sizes around the property. Mr. Maass responded that he would have to look into the question. Commissioner Schwartz asked if anything in the ordinance addressed operational concerns brought forth by neighbors of the Hope House. Mr. Maass said that the operational standards are managed by state licensing. Commissioner Schwartz asked if the permit could be pulled because of the use. Mr. Maass responded that the city could not pull a permit because it was a state license. Commissioner Rosengren asked if their conditional use permit would be taken away. Mr. Maass clarified that Hope House does not have a conditional use permit at this time, since they rescinded their application before it made it to the City Council. Commissioner Schwartz asked if this was the only property operating a group home of up to six people. Mr. Maass responded that he could research the rough number of homes that were operating. He said there were no operational conditional-use permits for group homes serving an excess of six people. Commissioner Schwartz asked what recourse the residents or the city had to address the issues found at Hope House. Mr. Maass answered that if there were operational issues with Hope House, a resident would need to file a complaint with the state. Commissioner Schwartz clarified that a resident would not need to voice grievances about group homes at a Planning Commission Meeting. Commissioner Rosengren asked whether a city could issue a complaint with the state about operational concerns on behalf of residents. Mr. Maass replied that he suspected that to be true but did not want to speak for the City Council. Commissioner Soller would like to see a visual about where group homes serving seven to 16 people would be permitted to be built. Mr. Maass answered that the facilities would be zoned multi-family. Commissioner Schwartz asked if the group homes would have to be free-standing. Mr. Maass responded that he would research the answer to this question. Commissioner Soller asked if the position to be more restrictive was unique or aligned with comparable cities. Planning Commission Minutes – December 3, 2024 5 Commissioner Schwartz asked if they were aligned with other communities. Mr. Maass responded that he would research to see if they were aligned with other cities. Commissioner Jobe discouraged a comparison between Brooklyn Park and Brooklyn Center. Commissioner Trevena clarified that there were no revisions to the conditional use permit process or permit process to allow for more effective oversight for larger group homes rather than removing it. Mr. Maass responded that it was an option, but the City Council directed to eliminate it entirely. Commissioner Schwartz asked how other commissioners felt about not having oversight. Chair Noyes said that there were interesting parallels between the cannabis discussion and the group home discussion. He commented that the state had gone through a process to protect industries. Commissioner Schwartz expressed concerns about the comments from residents who live adjacent to the group homes that are not well-managed and have little recourse to address their concerns. Chair Noyes said that most of the audience was not present to voice their concerns about the expansion, but they did not want a group home in their neighborhood. He voiced concerns about the city assessing the operational effectiveness of group homes. He said that the state is responsible for monitoring the operations of a group home. Commissioner Schwartz discussed his experience driving through the neighborhood and said that the residential community was not right next door to Hope House. Commissioner Rosengren commented that it was important that the state mandates group homes. CORRESPONDENCE DISCUSSION: None. OPEN DISCUSSION: Eric Maass, Community Development Director, stated that the Civic Campus construction started with structural steel and the clock tower is complete. The current estimate for completion is August. Commissioner Rosengren asked about the estimate for the start date of the Bluffs Community Center. Mr. Maass responded that the City would need to enter into a purchase agreement with the landowner of the property. The planning, design, and bidding would start in 2025, with the construction starting in 2026. Planning Commission Minutes – December 3, 2024 6 Commissioner Schwartz asked about the warehouse project. Mr. Maass answered that it was the Audubon Business Park. He said that both buildings were leased to a local company. Commissioner Soller asked if anything of the Community Center would come to the Planning Commission. Mr. Maass responded that the Planning Commission would see a site plan and a plat. ADJOURNMENT: Commissioner Schwartz moved, Commissioner Trevena seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 6:52 p.m. Submitted by Eric Maass Community Development Director