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05.a PC Staff Report - Emerald Horizon CUP 1 | P a g e Date of Meeting: April 7, 2026 To: Chair Loeffler and Members of the Planning Commission From: Greenlee Dahle, Consultant City Planner Re: Conditional Use Permit (CUP) for Indoor Cannabis Cultivation and Light Manufacturing of Cannabis and Lower-Potency Hemp Edibles Applicant: Joe Whebbe Zoning: Industrial Park (I-P) Owner: Royal Stirling, LLC Future Land Use: Village Mixed Use Location: 21080 Ozark Ct N PID 14.032.20.43.0013 Review Deadline May 16, 2026 (60 days) The applicant is requesting approval for a Conditional Use Permit (CUP) to allow for the indoor cultivation of cannabis and the light manufacturing of cannabis and lower-potency hemp edibles at 21080 Ozark Ct N. BACKGROUND The current site is approximately 2.52 acres in the Industrial Park (I-P) zoning district. The 2040 Future Land Use Map’s current guidance for this area is Village Mixed Use. There are no special overlay districts or wetlands on the subject property. The CUP request is for three conditional uses in the I-P zoning district. A state microbusiness license authorizes these uses (upon City approval). The applicant proposes to use all aspects of their microbusiness license except for retail sales. 2 | P a g e State of Minnesota Authority All cannabis and lower-potency hemp edible (LPHE) operations are regulated by the Minnesota Office of Cannabis Management (OCM) under Minnesota Statutes, Chapter 342, and Minnesota Rules, Chapter 9810. Prior to final licensure, OCM must receive certification from the City that the proposed business complies with all applicable local zoning regulations and, where applicable, state fire and building codes. State law allows local governments to regulate the time, place, and manner of cannabis and LPHE businesses, provided such regulations do not prohibit the establishment or operation of cannabis businesses. Indoor cannabis cultivation and light manufacturing uses are commonly located in industrial zoning districts and are subject to state requirements related to security, product tracking, inspections, and testing. Local zoning approval does not authorize retail sales. Cannabis and LPHE sales require a separate retail license or endorsement issued by the OCM and a local retail registration issued by the City. EVALUATION OF REQUEST The 2040 Comprehensive Plan intends for development in the Industrial Park and Village Mixed Use areas to accommodate employment and business opportunities. The Zoning and Future Land Use Maps are added as attachments to this report. Existing Conditional Uses There was a Conditional Use Permit (CUP) issued for the subject property in 1995, and amendments were approved to the CUP in 1997, 2008, 2015, and 2018. The most recent amendment was to allow for expansion to the building, along with storage use. The 5,800 sq ft addition was completed and now the facility is approximately 11,815 sq ft in gross floor area. Pursuant to the City’s Unified Development Code (UDC) Sec. 153.500.060(C)V., the sale of the property and proposed land uses associated with this request constitute a significant change requiring a new CUP for the site. This CUP would replace the permit under Resolution No. 05- 15-18-03. Proposed Conditional Uses The applicant is requesting CUP approval for the following uses in the I-P zoning district: 1. Agriculture, Commercial Indoor Cannabis. a. Indoor cultivation of cannabis plants. b. No outdoor cultivation proposed or allowed. 2. Light Manufacturing, Lower-Potency Hemp Edible (LPHE). a. Processing, production, and packaging lower-potency hemp edibles. b. No retail sales or onsite consumption proposed. 3. Light Manufacturing, Cannabis. a. Processing, production, and packaging of cannabis products. b. No retail sales or onsite consumption proposed. Permitted Uses 3 | P a g e The following uses are allowed by right in the I-P zoning district, and are authorized under the applicant’s state microbusiness license, but are not subject to the conditions of this CUP request: 1. Cannabis, Microbusiness. 2. Lower-Potency Hemp Edible sales. 3. Wholesaling, Cannabis. The applicant has stated that they would not offer retail sales at this location. Cannabis sales and LPHE sales are permitted in the I-P zoning district, but retail activities require: a retail license or endorsement from OCM and a local retail registration issued by the City. Staff are proposing a condition of approval that would require future approvals from the City for retail sales of cannabis or LPHE products on site (registration and CUP amendment). Conditional Use Permit Chapter 153.500.060 Subd. 1(C)(I) of the UDC lists the general standards to meet to grant a CUP or IUP. The standards are listed below in italics, followed by the staff’s findings: 1. The proposed use will be in compliance with and shall not have a negative effect upon the Comprehensive Plan, including public facilities and capital improvement plans. Objectives of the Comprehensive Plan include encouraging development that is compatible with surrounding land uses, protects natural resources, and efficiently utilizes existing infrastructure. The proposed uses comply with the Comprehensive Plan and will not have a negative effect on public facilities or capital improvement plans. 2. The establishment, maintenance or operation of the proposed use will promote and enhance the general public welfare and will not be detrimental to or endanger the public health, safety, morals or comfort. The proposed uses are allowed in the I-P zoning district with a Conditional Use Permit. The proposed uses would operate indoors, utilizing the existing facility, isolated from public access, and are subject to state licensing, security, inspection, and tracking requirements. These uses will not negatively impact public welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. Reasonable conditions of approval can be added if the City Council finds issues with proposed uses. 3. The proposed use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values or scenic views. The proposed uses will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values or scenic views. 4. The establishment of the proposed use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. The proposed uses will not impede development or improvement of surrounding properties. 4 | P a g e 5. Adequate public facilities and services are available or can be reasonably provided to accommodate the use which is proposed. The proposed uses will utilize existing utility services and do not require an extension of city-owned public facilities. The applicant has also proposed filtration systems to minimize water and electricity use. 6. The proposed use shall conform to the applicable regulations of the district in which it is located and all other applicable standards of this Chapter. The proposed uses are consistent with the applicable regulations of the I-P zoning district and all other applicable standards of the UDC. 7. The proposed use complies with the general and specific performance standards as specified by this Section and this Chapter. This Conditional Use Permit meets the general and specific performance standards of the UDC. As required in 153.200.030 Subd. 5 (A) I. of the UDC, all other standards and regulations of the I-P base zoning district are met. Site Plan Review A site plan is included in the application and provided as an attachment to this report. Architectural Design Standards The subject property is within the Character Area: Business Districts, which includes the Industrial Park (I-P) zoning district. Architectural and character area standards applicable to the site are established in Sec. 153.400.040 of the UDC. The existing building is constructed of professionally designed pre-cast textured concrete and is consistent with the architectural materials, scale, and appearance of other development within the Industrial Park. The existing structure is compatible with surrounding development and complies with the applicable character area design standards for the Business Districts. The applicant proposes to utilize the existing building, along with a proposed future building addition, for all cannabis cultivation and light manufacturing activities. No changes to the primary exterior materials or architectural character of the principal structure are proposed as part of this request. Lot Standards The parcel is approximately 2.52 acres in size and does not contain any wetlands or special zoning overlays. The existing site is generally consistent with the dimensional standards of the I- P zoning district. Minimum requirements, including setbacks and lot frontage, are satisfied. The relevant dimensional standards of the subject property are detailed below: I-P Existing Conditions Minimum Lot Size (ac.) 2.00 2.52 Lot Frontage (ft.) 160 199 5 | P a g e I-P Existing Conditions Principal and Accessory Structure Setbacks (ft.) Front 40 141 Side 10 22 Rear 50 263 Maximum Lot Coverage 65% 23% Maximum Building Height (ft.) 45 32 The existing building is approximately 11,815 sq ft and serviced by all required utilities. The proposed expansion is approximately 4,980 sq ft on the rear/south end of the facility. Additionally, there is a 300 sq ft compost shed in the rear yard. Utilities & Air Filtration The proposed uses will be serviced by current connections to public utilities. The application proposes operations that utilize “live soil” and process or reuse 100% of the plant material. Water reuse is also described in the application: approximately 90% of all water used will be recaptured and filtered for reuse in the growth process. At 5,000 sq ft of canopy, the proposed scale of cannabis cultivation and processing are not anticipated to result in negative impacts to public utilities. Odor control for indoor cannabis cultivation and manufacturing is regulated at the state level. The applicant proposes to install and maintain a closed-air HVAC system designed to operate under negative air pressure, meaning that air is drawn into the building rather than expelled out through openings. Exhaust air from cultivation and manufacturing areas will be treated through activated carbon filtration prior to discharge. These systems are designed to absorb odors before air is released from the building, and also to protect the plants from pathogens. The applicant visited the site and stated the HVAC and carbon filtration systems will be designed and maintained in working order at all times. The proposed utility, filtration, and ventilation systems are consistent with state standards and subject to final approval and inspections by the OCM. A condition of approval is recommended to require the applicant to submit proof of valid inspection or approval by the OCM or authorized state officials to the City on an annual basis. Streets, Access, and Parking The proposed uses will utilize the existing access from Ozark Ct N, a city-owned road. The parking and driving areas are currently paved and approximately 150 ft in length from the roadway to the front of the building and shipping door. The application stated that there will be no customers on-site. Activity will be limited to employees, inspectors, and discreet, unmarked deliveries. The anticipated number of deliveries is 0-10 times per day. For industrial uses, parking is required to be provided at a rate of 1 space per 2 employees on maximum shift or 1 space per 2,000 sq ft of gross floor area, whichever is greater. The application stated that 1-12 employees will be on site during business hours. The gross floor area of the existing structure is 11,815 sq ft. Both measures would require 6 spaces. The proposed addition is 4,980 sq ft, which would require an additional 2.5 (or 3) spaces. The current parking 6 | P a g e area has 14 parking spaces. If the building expansion is greater than 4,980 sq ft, or if the number of employees increases, additional parking spaces may be required. A CUP amendment is required for any new land uses that would require additional parking. Staff have determined that the proposed uses meet the parking requirements outlined in Table 153.400.080-1, and within other sections of the UDC. Staff also determined that the driveway meets emergency access requirements from the City’s engineering standards adopted in 2025. Landscaping and Screening Table 153.400.060-1 of the UDC establishes landscaping requirements for industrial uses and requires 10 trees or 1 tree per 1,000 sq of gross floor area, whichever is greater. There are several live trees around the parking areas currently. The site is also wooded along the south and east property boundary, which is the corner closest to residential properties and the area planned for expansion. The application proposes planting between 8 and 15 trees on the southeast corner of the lot. Tree spacing would be approximately 6-12 ft apart depending on the species. The list of species includes White Pine, Balsam Fir, White Spruce, and Lilac. The applicant noted that these trees are known to absorb odors and give off natural fragrances. Staff believe the existing vegetation on the site meets the requirements of Sec. 153.400.060 Subd. 3., and other standards within the UDC. Staff recommend a condition of approval to maintain existing vegetation to the highest extent possible and to plant trees consistent with the submitted application. Lighting & Security Plan Security measures for cannabis cultivation and manufacturing facilities are regulated by the OCM. State rules require cannabis businesses to maintain comprehensive security systems, including controlled access, alarm systems, surveillance, and lighting, to prevent unauthorized access. The proposed site plan includes an 8 ft fence. The application states that the facility will operate entirely indoors and that all exterior doors will be secured. Access will be limited to authorized personnel only. Buildings will remain locked outside of business hours, and security systems will be maintained in working order as required by OCM. Exterior lighting will be located at building entrance points. Sec. 153.400 Subd. 4 of the UDC establishes standards regarding exterior lighting. All outdoor lighting must contain shielding and direct light at an angle of 90 degrees or less. The application states that exterior lighting will be downcast, located at all entrance points, and motion detector activated. Indoor lighting will be in closed rooms with no windows. The Fire Department reviewed the proposal and requested confirmation that applicable fire codes will be met and reasonable access will be provided for emergency response. The applicant has stated their intent to comply will all applicable safety and fire codes and to install an approved fire department access system. Staff determined the lighting and security plan to be consistent with the UDC and state requirements. Staff recommend a condition of approval that lighting and security must be 7 | P a g e compliant with both state requirements and the local UDC. Staff also recommend requiring installation of the approved fire department access system prior to occupancy. Fencing The site plan proposes an 8 ft chain link fence surrounding the building. The proposed fence setback is at least 140 ft from the front property boundary, at least 20 ft from the side property boundaries, and at least 100 ft from the rear property boundary. The proposed fence is behind the building frontage. Staff determined the fence to meet all required setbacks. Any fence over 6 ft in height requires a building permit and administrative permit. Staff recommend a condition of approval to allow an 8 ft fence outside of all required setbacks and subject to the height limitations in Sec. 153.400.060 of the UDC. ANALYSIS Review Comments The submittal was sent to city staff and other regulatory agencies for review and comment. Engineering Department The Engineering Department had no comment. Public Works Department The Public Works Director had no comment. Washington County Washington County had no comment. Fire Department The Fire Chief provided the following comments/questions: The only questions I have are whether they meet fire codes for this type of business and whether they provide a fire department key box or a key holder with a short response 8 | P a g e time. These steel buildings are difficult to enter, and if they lack windows for investigation, we require reasonable access. The applicant provided the following responses to the Fire Chief: Yes, we intend to meet fire code as required. In addition, there will be no flammables or combustibles on site. None will be used in any of the cultivation or manufacturing. As far as a fire dept key box, yes we intend on installing that as well. The Fire Department did not provide any other comments or questions. Staff Analysis Staff find the proposed uses to be consistent with the 2040 Comprehensive Plan and the intent of the Industrial Park (I-P) zoning district. The proposed building expansion and site plan are compliant with applicable Unified Development Code standards, and the proposal meets the findings required for approval of a Conditional Use Permit. COMMISSION ACTION The Planning Commission has the following options: 1. Recommend approval, with or without conditions, of the attached resolution. 2. Recommend denial, with findings, of the attached resolution. 3. Table the request for further review (may need to extend 60-day deadline). RECOMMENDATION Staff recommend the Planning Commission recommend that the City Council approve the request for Conditional Use Permit (CUP) for commercial indoor cannabis cultivation, light manufacturing of cannabis, and light manufacturing of lower-potency hemp edibles. Approval includes adoption of a resolution. The above findings and following conditions of approval are recommended: 1. The CUP is granted only for the specific cannabis and lower-potency hemp edible uses approved and described in the application and staff report. 2. Any expansion, intensification, change in use, or addition of new conditional uses requires a CUP amendment or new CUP approval. 3. Development of the site shall be substantially consistent with the plans submitted to and reviewed by the City as part of this application, except where modifications are required by these conditions. 9 | P a g e 4. All exterior alterations shall comply with the City’s Architectural Design Standards. Any new accessory structure shall be designed to be compatible with the principal structure in architectural style, material, and color, consistent with Sec. 153.400.040. 5. The applicant shall comply with all applicable local, county, state, and federal laws, rules, and regulations, including requirements of the Minnesota Office of Cannabis Management. 6. The applicant shall obtain and maintain all required licenses and permits for the duration of the use, including but not limited to the applicable state microbusiness license. 7. No retail sales, onsite consumption, or public access is permitted unless specifically approved through a future CUP amendment and all required state and local approvals. 8. All cannabis cultivation, processing, and manufacturing activities shall occur entirely indoors. No outdoor cultivation or processing is permitted. 9. Cannabis operations shall be limited to the approved square footage shown on the submitted site plan. 10. The facility shall maintain security measures consistent with state licensing requirements. Access to cannabis areas shall be restricted to authorized personnel only. 11. An approved fire department access system shall be installed prior to occupancy. 12. The facility shall be equipped with a functioning odor mitigation system, including carbon filtration and negative air pressure, which shall be maintained in working order at all times. 13. Hours of operation shall be limited to 8:00 a.m. to 6:00 p.m.. 14. Existing vegetation on site shall be maintained to the highest extent possible to provide screening. Landscaping and tree plantings shall be consistent with the submitted application and the Unified Development Code. 15. Any fence exceeding six feet in height shall require applicable administrative and building permits and meet the standards of Sec. 153.400.060 of the Unified Development Code. 16. Security fencing shall be maintained in good condition at all times. 17. Signage shall meet the standards of Sec. 153.400.100 of the Unified Development Code. 18. Exterior lighting shall be downcast, shielded, and compliant with the Unified Development Code and applicable state security requirements. Lighting shall not produce glare onto adjacent properties or public rights-of-way. 19. The site shall utilize existing utility connections unless otherwise approved, and any proposed reuse or filtration systems shall comply with applicable health and environmental regulations, including those enforced by Washington County. 20. Parking and deliveries shall be provided and managed in compliance with the Unified Development Code. Deliveries shall not obstruct traffic or emergency access. 21. The applicant shall secure any and all applicable and necessary permits required from local, state, and federal entities prior to work on the site. 10 | P a g e 22. The applicant shall submit proof of valid site inspection or approval by the Office of Cannabis Management or authorized state officials to the City on an annual basis. 23. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 24. Failure to comply with any conditions of approval constitutes a zoning violation and may result in enforcement action or revocation of the Conditional Use Permit. 25. The conditional use permit shall expire without further action by the Planning Commission or the City Council, unless the applicant commences the authorized use within one year of the date of the condition use permit is issued or extended through the process described in 153.500.060 Subd. 1. (C) V. of the Unified Development Code. Attachments A. Draft Resolution 04-07-2026-XX Approving a Conditional Use Permit B. Site Maps – Zoning & Future Land Use C. Application D. Site Plan E. Ordinance No. 2024-09 Regarding Cannabis Uses and Standards CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 04-17-26-XX APPROVING CONDITIONAL USE PERMIT FOR PID 1403220430013 LOCATED AT 21080 OZARK COURT NORTH WHEREAS, Joseph Whebbe (the “applicant”) made an application for a Conditional Use Permit, to allow for the indoor cultivation of cannabis, light manufacturing of cannabis, and light manufacturing of lower-potency hemp edibles, located at 21080 Ozark Court North and the property legally described as follows (the “subject property”): Hawkinson Business Park, Lot 6 Block 1, Subdivision Cd91292 WHEREAS, the subject property is zoned as Industrial Park (I-P) District; and WHEREAS, the City of Scandia Unified Development Code (UDC) conditionally permits the indoor cultivation of cannabis, light manufacturing of cannabis, and light manufacturing of lower-potency hemp edibles in the I-P District; and WHEREAS, Section 153.500 of the City of Scandia UDC governs conditional use permits, and the process; and WHEREAS, staff reviewed the submittal and applicable UDC standards and determined the Conditional Use Permit (CUP) application to be complete on March 18, 2026; and WHEREAS, staff recommended approval of the CUP request with conditions; and WHEREAS, the Planning Commission reviewed the request for the Conditional Use Permit (CUP) at a duly noticed Public Hearing on April 7, 2026, and recommended that the City Council approve the CUP, with conditions. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it approves of a Conditional Use Permit to allow for the indoor cultivation of cannabis, light manufacturing of cannabis, and light manufacturing of lower-potency hemp edibles located at 21080 Ozark Court North, based on the following findings: 1. Objectives of the Comprehensive Plan include encouraging development that is compatible with surrounding land uses, protects natural resources, and efficiently utilizes existing infrastructure. The proposed uses comply with the Comprehensive Plan and will not have a negative effect on public facilities or capital improvement plans. 2. The proposed uses are allowed in the I-P zoning district with a Conditional Use Permit. The proposed uses would operate indoors, utilizing the existing facility, isolated from public access, and are subject to state licensing, security, inspection, and tracking requirements. These uses will not negatively impact public welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. Reasonable conditions of approval can be added if the City Council finds issues with proposed uses. 3. The proposed uses will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values or scenic views. 4. The proposed uses will not impede development or improvement of surrounding properties. 5. The proposed uses will utilize existing utility services and do not require an extension of city-owned public facilities. The applicant has also proposed filtration systems to minimize water and electricity use. 6. The proposed uses are consistent with the applicable regulations of the I-P zoning district and all other applicable standards of the UDC. 7. This Conditional Use Permit meets the general and specific performance standards of the UDC. As required in 153.200.030 Subd. 5 (A) I. of the UDC, all other standards and regulations of the I-P base zoning district are met. FURTHER BE IT RESOLVED that the following conditions of approval shall be met: 1. The CUP is granted only for the specific cannabis and lower-potency hemp edible uses approved and described in the application and staff report. 2. Any expansion, intensification, change in use, or addition of new conditional uses requires a CUP amendment or new CUP approval. 3. Development of the site shall be substantially consistent with the plans submitted to and reviewed by the City as part of this application, except where modifications are required by these conditions. 4. All exterior alterations shall comply with the City’s Architectural Design Standards. Any new accessory structure shall be designed to be compatible with the principal structure in architectural style, material, and color, consistent with Sec. 153.400.040. 5. The applicant shall comply with all applicable local, county, state, and federal laws, rules, and regulations, including requirements of the Minnesota Office of Cannabis Management. 6. The applicant shall obtain and maintain all required licenses and permits for the duration of the use, including but not limited to the applicable state microbusiness license. 7. No retail sales, onsite consumption, or public access is permitted unless specifically approved through a future CUP amendment and all required state and local approvals. [GD1.1] 8. All cannabis cultivation, processing, and manufacturing activities shall occur entirely indoors. No outdoor cultivation or processing is permitted. 9. Cannabis operations shall be limited to the approved square footage shown on the submitted site plan. 10. The facility shall maintain security measures consistent with state licensing requirements. Access to cannabis areas shall be restricted to authorized personnel only. 11. An approved fire department access system shall be installed prior to occupancy. 12. The facility shall be equipped with a functioning odor mitigation system, including carbon filtration and negative air pressure, which shall be maintained in working order at all times. 13. Hours of operation shall be limited to 8:00 a.m. to 6:00 p.m.. 14. Existing vegetation on site shall be maintained to the highest extent possible to provide screening. Landscaping and tree plantings shall be consistent with the submitted application and the Unified Development Code. 15. Any fence exceeding six feet in height shall require applicable administrative and building permits and meet the standards of Sec. 153.400.060 of the Unified Development Code. 16. Security fencing shall be maintained in good condition at all times. 17. Signage shall meet the standards of Sec. 153.400.100 of the Unified Development Code. 18. Exterior lighting shall be downcast, shielded, and compliant with the Unified Development Code and applicable state security requirements. Lighting shall not produce glare onto adjacent properties or public rights-of-way. 19. The site shall utilize existing utility connections unless otherwise approved, and any proposed reuse or filtration systems shall comply with applicable health and environmental regulations, including those enforced by Washington County. 20. Parking and deliveries shall be provided and managed in compliance with the Unified Development Code. Deliveries shall not obstruct traffic or emergency access. 21. The applicant shall secure any and all applicable and necessary permits required from local, state, and federal entities prior to work on the site. 22. The applicant shall submit proof of valid site inspection or approval by the Office of Cannabis Management or authorized state officials to the City on an annual basis. 23. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 24. Failure to comply with any conditions of approval constitutes a zoning violation and may result in enforcement action or revocation of the Conditional Use Permit. 25. The conditional use permit shall expire without further action by the Planning Commission or the City Council, unless the applicant commences the authorized use within one year of the date of the condition use permit is issued or extended through the process described in 153.500.060 Subd. 1. (C) V. of the Unified Development Code. Whereupon, said Resolution is hereby declared adopted on this _____ day of April 2026. Steve Kronmiller, Mayor Joseph Whebbe ATTEST: Kyle Morell, City Administrator 37 6.2 © Bolton & Menk, Inc - Web GIS 0 Legend Site Map This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Scandia is not responsible for any inaccuracies herein contained. Disclaimer: 4/3/2026 10:11 AM 263 Feet Parcels 01/19/2026 Lot Lines Right of Way Zoning Agricultural Core Agricultural Preserves Rural Residential General Village Neighborhood Rural Commercial Rural Residential Neighborhood Village Historic Core Village Center Open Space - Planned Unit Development Industrial Park Aerials2025 Red: Band_1 Green: Band_2 Blue: Band_3 37 6.2 © Bolton & Menk, Inc - Web GIS 0 Legend Site Map This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Scandia is not responsible for any inaccuracies herein contained. Disclaimer: 4/3/2026 10:17 AM 263 Feet Parcels 01/19/2026 Lot Lines Right of Way Future Land Use Agricultural Core Area General Rural Mining St Croix River Corridor Area Open Water Railway Recreation Area Protected Rural Commercial Rural Mixed Use Village Mixed Use Village Neighborhood Aerials2025 Red: Band_1 Green: Band_2 Blue: Band_3 Docusign Envelope ID: 3F9135BC-A49C-4C83-8C2B-98D340F2571D 6125082349 suttjh58@gmail.com Docusign Envelope ID: 3F9135BC-A49C-4C83-8C2B-98D340F2571D 3/16/2026 Description of Request We request a conditional use permit to cultivate, manufacture and wholesale indoor grown cannabis, in compliance with all Minnesota Statutes and Rules and all regulations set for by the OƯice of Cannabis Management. Operation Overview - Methodology: We utilize "live soil" that is amended rather than cycled out, which significantly reduces waste. We also plan to process or reuse 100% of the plant material. - Environmental Controls: The facility will feature a closed-air carbon filtration system with negative air pressure at all entrances. This protects the plants from pathogens and ensures that no odors leave the building. - Water Usage: We will recapture and filter approximately 90% of all water used for reuse in the growth process. - Discretion: The operation will function similarly to a controlled laboratory. We intend to have no exterior signage and maintain a very discreet profile. Facility and Scale - Current Space: We plan to utilize the existing building for cultivation, processing, and storage. Our license allows for up to 5,000 sq. ft. of canopy. - Proposed Addition: We are interested in a potential 3,000-5000 sq. ft. addition to the rear of the building for extra storage and processing. -Property use outside of the building: There will be no outdoor storage of containers, pallets, or waste. The yard and lot will be aesthetically pleasing with landscaping and just mostly used for employee parking. Logistics and Staffing - Hours: Estimated at 8:00 AM to 6:00 PM. - Employees: Between 1 and 12 employees will be on-site during business hours. - Traffic: There will be no customers on-site. Activity will be limited to employees, inspectors, and discreet, unmarked deliveries. We anticipate delivers to be taken 0-10 times per day. - Utilities: Our impact on sewage and water systems will be minimal due to our recycling processes. Site Improvements - Security: We plan to install a chain-link fence with a powered gate. We are open to additional screening as required by the city, but all of our operations will be contained inside. - Parking: We will utilize the existing lot at the side and rear of the building for employee parking. -Potential for future addition: See Attached Site Plan. -Exterior Lighting: While in compliance with State and Local regulations, our lighting will ensure security, safety, and compatibility with neighboring properties, focusing on surveillance, visibility, and reducing light pollution. Lights will be downward facing, located at all building and yard entrance points and motion detector activated. On a side note, the light used in the cultivation process will be in closed rooms with no windows, rendering it impossible to escape the building. -Additional Screening: We plan to plant some odor absorbing coniferous trees along the southeast corner of the property as indicated on the Site Plan. Tree species and spacing- White Pine, Balsam Fir, White Spruce, and Lilac. (These trees are known to absorb odors while giving off their own natural fragrance.) Tree spacing on the southeast side will be approx. 6’-12’ apart depending on species. The total number of trees planted on the southeast border will be between 8 and 15. Stormwater/Runoff -The proposed operations will utilize the existing building on site and be indoors. There are no changes planned to the existing grading, stormwater plans, or landscaping plans, other than potential tree plantings to be used as a buƯer and screening. Proposed Schedule - Now – Mid-May: Obtain CUP and close on the property. - May – August: Interior build-out and landscaping (planting of trees). - August onward: Commencement of cultivation and processing. -Spring of 2027: Exterior addition of additional cultivation rooms. Property Line8' Chainlink FenceSecurity Gate 141' 179' 60' 100' 8' Chainlink Fence 8' Chainlink FencePotential Addition Existing Building 70' 550' 199' Existing Lot and Drive 10' x 25' Compost Shed 72'83'24' Shipping Door 11,815 S.F. 4980 S.F. 21080 Ozark Ct N Scandia, MN 55073 Contact: Joe Whebbbe 651-283-3651 SITE PLAN LOT 6, BLOCK 1 Hawkinson Business Park Washington County 20' 155' Screening: Odor absorbing trees- Eastern Red Cedar and White Fir North Scale 0 20'10'50' Page 1 of 8 CITY OF SCANDIA ORDINANCE NO.: 2024-09 AN ORDINANCE AMENDING THE SCANDIA UNIFIED DEVELOPMENT CODE SECTION 153.300.020 AND 153.300.030 REGARDING CANNABIS ZONING STANDARDS The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1 Amendment. The City of Scandia Unified Development Code (“Development Code”, or “Code”), Section 153.300.020 Subd. 1 (B) Table 153.300.020-2. Table of Uses by Base Zoning District, shall be amended by adding the underlined text and deleting the stricken text as follows: BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Commercial Uses Agriculture, Commercial Outdoor Cannabis P P P 153.300.030 Subd. 1 (C) & (H) Agriculture, Commercial Indoor Cannabis CUP CUP CUP 153.300.030 Subd. 1 (D) & (H) Cannabis sales P P P P 153.300.030 Subd. 1 (H) Cannabis, Mezzobusiness CUP CUP P P 153.300.030 Subd. 1 (H) & (I) Cannabis, Microbusiness CUP CUP P P 153.300.030 Subd. 1 (H) & (J) Laboratories, Medical, Research, and Testing CUP 153.300.030 Subd. 1 (H) Light Manufacturing, Cannabis CUP 153.300.030 Subd. 1 (H) & (U) Light Manufacturing, Lower-Potency Hemp Edible CUP 153.300.030 Subd. 1 (H) & (V) Lower-Potency Hemp Edible sales P P P P 153.300.030 Subd. 1 (H) Wholesaling, Cannabis P 153.300.030 Subd. 1 (H) & (PP) Page 2 of 8 Section 2 Amendment. The City of Scandia Unified Development Code (“Development Code”, or “Code”), Section 153.300.030 Subd. 1, shall be amended by adding the underlined text and deleting the stricken text as follows: (C) Agriculture, Commercial Outdoor Cannabis. As a principal or accessory use, commercial outdoor cannabis is allowed, subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Any area used to cultivate or grow cannabis must meet the following setbacks: Horizontal Setbacks (Minimum) Any property line 50 feet Minor Arterial Street 150 Feet from centerline, or 75 Feet from ROW, whichever is greater Major or Minor Collector Street 100 Feet from centerline, or 50 Feet from ROW, whichever is greater Any other Public Street 40 Feet IV. Any area where cannabis is grown, handled, or packaged shall be completely fenced as required by the Office of Cannabis Management and equipped with an emergency key box. (D) Agriculture, Commercial Indoor Cannabis. As a principal or accessory use, commercial indoor cannabis agriculture or cultivation is allowed as a conditional use, subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Lighting. Any building that is not proposed to be constructed with materials that are not 100% opaque, shall submit a narrative or plan that shows how light pollution and nuisances shall be mitigated. IV. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited. V. Water and Wastewater a. Management of wastewater shall be in accordance with the Office of Cannabis Management, Minnesota Pollution Control Agency, or local Page 3 of 8 ordinances. Where multiple standards exist, the more restrictive of the standards shall apply. b. Water use within the site shall be designed to maximize the amount of water reuse possible. (H) Cannabis Businesses and Hemp Businesses are subject to the following standards: I. Character Area Standards. a. Sites and structures shall comply with the applicable Character Area Standards in Section [153.400.040]. b. New structures shall be designed to be substantially consistent with the Architectural Design Standards. II. Lighting. Lighting shall comply with Section [153.400.030 Subd. 4 Lighting] and the applicable Character Area Standards in Section [153.400.040]. III. Odors. The facility shall not produce noxious or nuisance causing odors and shall be in accordance with standards from the Office of Cannabis Management and the Minnesota Pollution Control Agency. IV. Screening. All mechanical, odor suppression equipment, and trash enclosures must be screened from the right-of-way and adjacent residential uses. V. Signs. a. Exterior wall, window and monument signage shall not depict a cannabis flower, cannabis product, hemp edibles, hemp derived edible consumer product or the like. b. Additionally, a business logo containing the above depictions shall not be displayed as part of any exterior signage. c. No products, interior signage, advertisements, or like attention-getting items shall be placed or displayed that may be visible from the exterior of the Cannabis or Hemp Business. VI. Security. a. The facility shall be secured as required by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. b. Any security bars, gates or grills shall be retractable, shall remain open and retracted when the Cannabis or Hemp business is open to the public or otherwise in operation and shall not be installed on the exterior of the building. Page 4 of 8 (I) Cannabis, Mezzobusiness. As a principal or accessory use subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Cannabis cultivation shall conform with the standards established in Section [153.300.030 1 (C) and (D)]. IV. Manufacturing and processing cannabis shall conform with the standards established in Section [153.300.030 Subd. 1 (U)]. (J) Cannabis, Microbusiness. As a principal or accessory use, subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Cannabis cultivation shall conform with the standards established in Section [153.300.030 Subd. 1 (C) and (D)]. IV. Manufacturing and processing cannabis shall conform with the standards established in Section [153.300.030 Subd. 1 (U)]. (U) Light Manufacturing, Cannabis. As a principal use, cannabis manufacturing is allowed, subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Warehousing and distribution are allowed as an accessory use to cannabis manufacturing, subject to the following standards: a. Exterior Storage is permitted as an accessory use to the permitted use provided it meets the following standards: 1. The exterior storage area must be located to the rear of the building. 2. The exterior storage area must be fenced and screened from view of the public right-of-way, State, County, and City roadways, and all property lines. b. All loading and unloading areas to the facility must be screened from view of the public right-of-way and State, County, and City roadways. c. Landscaping and screening must be provided according to the requirements of Section [153.400.060]. Page 5 of 8 IV. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited. V. Water and Wastewater a. Management of wastewater shall be in accordance with the Office of Cannabis Management, Minnesota Pollution Control Agency, or local ordinances. Where multiple standards exist, the more restrictive of the standards shall apply. b. Water use within the site shall be designed to maximize the amount of water reuse possible. (V) Light Manufacturing, Lower-Potency Hemp Edible. As a principal use, lower-potency hemp edible manufacturing is allowed, subject to the following standards: I. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. II. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. III. Warehousing and distribution are allowed as an accessory use to cannabis manufacturing, subject to the following standards: a. Exterior Storage is permitted as an accessory use to the permitted use provided it meets the following standards: 1. The exterior storage area must be located to the rear of the building. 2. The exterior storage area must be fenced and screened from view of the public right-of-way, State, County, and City roadways, and all property lines. b. All loading and unloading areas to the facility must be screened from view of the public right-of-way and State, County, and City roadways. c. Landscaping and screening must be provided according to the requirements of Section [153.400.060]. IV. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited. V. Water and Wastewater a. Management of wastewater shall be in accordance with the Office of Cannabis Management, Minnesota Pollution Control Agency, or local ordinances. Where multiple standards exist, the more restrictive of the standards shall apply. b. Water use within the site shall be designed to maximize the amount of water reuse possible. Page 6 of 8 (PP) Wholesaling, Cannabis. As a principal use, cannabis wholesaling is allowed, subject to the following standards: a. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. b. The use shall comply with the standards in Section [153.300.030 Subd. 1 (H) Cannabis Businesses and Hemp Businesses]. c. Warehousing and distribution are allowed as an accessory use to cannabis wholesaling, subject to the following standards: i. Exterior Storage is permitted as an accessory use to the permitted use provided it meets the following standards: 1. The exterior storage area must be located to the rear of the building. 2. The exterior storage area must be fenced and screened from view of the public right-of-way, State, County, and City roadways, and all property lines. ii. All loading and unloading areas to the facility must be screened from view of the public right-of-way and State, County, and City roadways. iii. Landscaping and screening must be provided according to the requirements of Section [153.400.060]. d. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited. Section 3 Amendment. The City of Scandia Unified Development Code (“Development Code”, or “Code”), Section 153.600.30 Subd. 1, shall be amended by adding the underlined text and deleting the stricken text as follows: 153.600.030 Definitions of Use, Standards and Terms 7. Agriculture, Commercial Outdoor Cannabis: See “Cannabis cultivation”. 8. Agriculture, Commercial Indoor Cannabis: See “Cannabis cultivation”. 33. Cannabis Business: A business licensed by the Office of Cannabis Management (OCM) as defined by Minnesota Statute 342.01 Subd. 14. 34. Cannabis cultivation: Growing cannabis plants from seed or immature plant to mature plant, harvesting the cannabis flower from a mature plant, and packaging and labeling immature cannabis plants and seedlings and cannabis flower for sale. 35. Cannabis, Mezzobusiness: A cannabis business that conducts an operation pursuant to Minnesota Statute Section 342.29, as it may be amended. 36. Cannabis, Microbusiness: A cannabis business that conducts an operation pursuant to Minnesota Statute Section 342.28, as it may be amended. Page 7 of 8 37. Cannabis sales: The sale of cannabis plants and seedlings, adult-use cannabis flower, and adult use cannabis products directly to consumers. 109. Hemp Business: A business licensed by the Office of Cannabis Management (OCM) as defined by Minnesota Statute 342.01 Subd. 14 as defined by Minnesota Statute 342.01 Subd. 34. 134. Light Manufacturing, Lower-Potency Hemp Edible: A hemp business that conducts an operation pursuant to Minnesota Statute Section 342.45, as it may be amended. 141. Lower-Potency Hemp Edible sales: The sale of lower-potency hemp edibles, that have been obtained from a licensed Minnesota cannabis microbusiness, cannabis mezzobusiness, cannabis manufacturer, cannabis wholesaler, or lower-potency hemp edible manufacturer, directly to consumers Section 4 Amendment. The remainder of the code. Numbering within sections of the Unified Development Code shall be adjusted in tandem to include the amendments within this ordinance. Section 5 Effective Date. This ordinance shall be in full force and effect upon its adoption and publication. Page 8 of 8 Passed and adopted by the City Council of the City of Scandia this 17th day of December 2024. Christine Maefsky, Mayor ATTEST: Kyle Morell, City Administrator