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09.b Draft 04-07-2026 Planning Commission minutes April 7, 2026 The Scandia Planning Commission held their regular monthly meeting on the above date. The meeting was conducted in-person and virtually over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute to discussions. Chair Travis Loeffler called the meeting to order at 7:00 p.m. The following were in attendance: Commissioners Mary Cullen, Laszlo Fodor, Jan Hogle, Michael Marosok, and Chair Travis Loeffler. Staff present: Bolton & Menk Planner Greenlee Dahle, substituting for City Planner TJ Hofer who is on parental leave, and City Administrator Kyle Morell. City Council member liaison Mike Lubke was present over Zoom. PUBLIC FORUM There were no public comments. APPROVAL OF AGENDA, MINUTES Chair Loeffler announced the addition to General Business – Height of Accessory Structures. Hogle, seconded by Fodor, moved to approve the agenda as amended. The motion carried unanimously. Hogle. seconded by Fodor, moved to approve the March 3, 2026 minutes as presented. The motion carried unanimously. PUBLIC HEARING: CONDITIONAL USE PERMIT (CUP) FOR THE CULTIVATION OF INDOOR GROWN CANNABIS AND THE LIGHT MANUFACTURING OF LOW- POTENCY HEMP EDIBLES AT 21080 OZARK COURT NORTH. APPLICANT JOE WHEBBE Applicant Joe Whebbe is requesting approval for a Conditional Use Permit to allow for the indoor cultivation of cannabis and the light manufacturing of cannabis and lower-potency hemp edibles at 21080 Ozark Court North. The site is approximately 2.52 acres in the Industrial Park zoning district and contains an existing 11,815 square-foot industrial building with a proposed future addition at the rear. Planner Dahle explained the applicant is requesting approval for specific cannabis and hemp related land uses that are conditionally permitted in the Industrial Park zoning district, saying this is a zoning and land-use request, not an approval of a business license or retail operation. The applicant is in the process of obtaining a state cannabis microbusiness license, which authorizes multiple activities under Minnesota law. Staff has identified certain uses such as indoor cultivation and manufacturing as conditional uses, requiring a CUP. Planner Dahle explained that from a regulatory standpoint, cannabis and lower potency hemp facilities in Minnesota operate under dual oversight. The City’s authority is limited to: • Zoning and land use • Site design, building placement, and parking • Landscaping and screening • Lighting and fencing Scandia Planning Commission April 7, 2026 Page 2 of 6 • General compatibility with surrounding uses • Conditions attached to this CUP The City does not regulate: • Odor standards • Security system design • Product handling and tracking • Employee procedures • State inspections and enforcement actions All of those are regulated by the Minnesota Office of Cannabis Management, or OCM, under Minnesota Statutes Chapter 342 and Minnesota Rules. Because of public concerns raised about odor, safety, and enforcement, staff emphasized how state oversight works. OCM reviews and inspects: • HVAC and odor mitigation systems • Negative air pressure systems • Carbon filtration • Security systems, including cameras, alarms, access control, and fencing • Waste handling and tracking • Ongoing operational compliance These inspections occur before licensure and continue on a recurring and unannounced basis. OCM has enforcement authority that includes requiring corrective action, issuing penalties, suspending operations, or revoking a license. Complaints from residents may be submitted directly to OCM through the state’s complaint process, and OCM has statutory timelines for investigation and response. Planner Dahle noted that as an added local safeguard, staff are recommending a condition requiring the applicant to submit annual proof of valid state inspections or approvals to the City. Regarding buffers, Planner Dahle explained that State buffer requirements apply specifically to schools, licensed daycare facilities, and certain youth facilities. The proposed facility meets all applicable buffer requirements under state law. The State does not impose separation distances from general commercial uses, churches, restaurants, or residential properties when located in an industrial zoning district. The City does not have individual buffer zones. Planner Dahle concluded that based on staff review, interdepartmental comments, and analysis of the public input received, staff find that the request is consistent with the Comprehensive Plan and Future Land Use Map, is appropriate for the Industrial Park zoning district, meets all required Conditional Use Permit findings, and the draft resolution of approval includes enforceable conditions to address community concerns. Planner Dahle reviewed the conditions listed in the staff report. Condition #9 will be amended to add a limit of 5,000 square feet of canopy area on the site. Condition #12 will clarify that the odor mitigation system will be for all indoor spaces. Scandia Planning Commission April 7, 2026 Page 3 of 6 Commissioner Hogle noted that the Unified Development Code requirements for vegetative screening are not in line with the DNR recommendations for tree species which are resilient to climate change, as three of the four listed trees are not resilient. Hogle recommended the applicant review and plant trees in accordance with DNR Forest Service recommendations to meet Condition #14 for landscaping and tree plantings. Hogle, seconded by Fodor, moved to open the public hearing at 7:25 p.m. Motion carried 5- 0. Bailey Notch, 14774 Oakhill Road. Said she submitted an email with a list of questions yesterday, included in the meeting agenda packet. Notch said she would like buffer zones to be reconsidered because the building is centralized and close to homes and restaurants, with her main concern being odor from the facility. Commissioner Marosok asked if she had any issues with the previous site occupant related to noise or smell. Notch said she had heard some noise from the site but did not notice a smell. Applicant Joe Whebbe addressed the Commission, saying he will be the owner and operator of the business, with partner Matt who will oversee cultivation, who has 25 years’ experience in this area. Whebbe said he has preliminary approval from OCM for a microbusiness license, and needs City approval for zoning to move forward with the state application. Whebbe explained that the site will only operate indoors, will not be open to the public or have retail sales, and designed to mitigate odor. The facility will use a closed loop HVAC system with negative air pressure and carbon filters. All air released from the building will be treated. Whebbe described the facility acting more like an agricultural laboratory due to the HVAC system and living soil use. No outdoor noise is proposed. Security will be composed of a 24/7 camera system similar to what banks use, with motion sensors inside and outside of the building. Whebbe said he is confident the facility will operate with no negative impacts to the community. There were no further public comments. Hogle, seconded by Fodor, moved to close the public hearing at 7:37 p.m. Motion carried 5- 0. Commissioner Hogle said the biggest concern is odor mitigation; if the applicant can do as they say, she has no other concerns with the application. Commissioner Cullen reviewed an email she shared with the Planning Commission earlier in the day and herein entered into the minutes: Scandia Planning Commission April 7, 2026 Page 4 of 6 MARY CULLEN'S COMMENTS REGARDING ODOR CONDITION AND PROPOSED ADDITIONAL CONDITIONS April 7, 2026 PROPOSED CONDITION RELATING TO ODORS: "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.” The proposed condition reflects industry-standard practice. Carbon filtration combined with negative air pressure is the most widely used and effective approach to odor control in indoor cannabis cultivation and manufacturing. When properly designed, installed, and maintained, this combination can eliminate most cannabis-related odors before air exits the facility. However, the condition as drafted has several limitations that could make enforcement difficult and leave gaps in protection for neighboring properties. Specifically: • The condition does not specify that the system must be properly sized for the facility - a functioning but undersized system will not adequately control odors. • The condition does not identify which spaces must be covered. Drying, curing, trimming, and packaging areas can produce as much or more odor than cultivation rooms. All spaces must be covered. •There is no mechanism for the City to verify compliance. The condition relies on the operator to self-report problems. • Carbon filters degrade over time and lose effectiveness when saturated or in high- humidity conditions. The condition does not require documentation that filters are being replaced on schedule. • There is no complaint response protocol requiring the operator to respond and document corrective action if odor problems are reported. I'M RECOMMENDING ADDITIONAL CONDITIONS TO ADDRESS THESE LIMITATIONS: a) Engineering Certification. Prior to commencing operations, the applicant shall submit to the City a written certification from a licensed mechanical engineer or qualified cannabis odor control consultant confirming that the odor mitigation system has been designed and sized appropriately for the facility's square footage, air volume, and anticipated terpene load. b) Full Facility Coverage. The odor mitigation system shall cover all odor-generating spaces within the facility, including but not limited to cultivation rooms, drying rooms, curing rooms, trimming areas, packaging areas, and any extraction or processing rooms. c) Maintenance Log. The operator shall maintain a written maintenance log documenting all inspections, filter replacements, and repairs to the odor mitigation system. This log shall be kept on site and made available to City staff or its designee upon request during any inspection. Scandia Planning Commission April 7, 2026 Page 5 of 6 d) Annual Inspection. The odor mitigation system shall be inspected by a qualified third party no less than once per calendar year. A written report of each inspection shall be submitted to the City within 30 days of completion. e) Odor Complaint Response Protocol. If the City receives a verified odor complaint attributable to the facility, the operator shall respond in writing within 48 hours documenting the status of the odor mitigation system and any corrective actions taken or planned. Repeated verified complaints may be grounds for review of the CUP. f) System Failure Notification. If the odor mitigation system becomes non-operational for any reason, the operator shall notify the City within 24 hours and shall suspend any operations generating significant odors until the system is restored to full operation. g) OCM License Condition. No cannabis cultivation or manufacturing operations shall commence until the applicant has provided the City with proof of a valid, active license issued by the Minnesota Office of Cannabis Management for the specific license types applicable to the proposed operations. Commissioner Cullen stated that she doesn’t think the current conditions are adequate to control odor and enforcement may be difficult. Cullen said she does not believe that waiting for the state to address odor issues is appropriate, as the city should have the ability to review the odor mitigation system and enforce non-compliance. Commissioner Marosok said he is concerned about asking the applicant to respond to every level of odor, and questioned if there was a threshold that may need to be exceeded before a response is warranted. Administrator Morell described the process of responding to complaints, which has staff going to the location to attempt to verify what was reported before notifying the property owner. Mr. Whebbe explained that the air mitigation system covers all areas of the building, and believes the living soil system will help with limiting odor. He is working with a certified mechanical engineer who specializes in cannabis air mitigation systems. Odor can be measured in parts per million and test kits are available. Commissioner Marosok asked the Commission if we are okay approving a business that is still illegal at the federal level; is this something the community would support? Administrator Morell noted that hearing notices were sent to over 60 property owners within a ¼-mile with few responses. Commissioner Fodor said the OCM licensing procedure is unknown to the city, which leaves some of our questions unable to be answered. Fodor said he feels he is not really prepared to ask appropriate questions at this point because there are still so many unknowns. Fodor said due to the process of the application to OMC, the zoning application is lacking information on design plans for filtration and machinery. Scandia Planning Commission April 7, 2026 Page 6 of 6 Commissioner Cullen said she has additional concerns about decibel output for the HVAC units outside of the building, and would like to see a condition that covers this issue. Chair Loeffler asked if the Commission was prepared to make a motion on the CUP. Hogle, seconded by Marosok, moved to recommend approval of the Conditional Use Permit subject to conditions in the staff report and as amended with language to Conditions #9 and #12, plus conditions offered by Commissioner Cullen and the addition of a blanket condition that the city can revoke the CUP for failure to follow City Code. Motion carried 5-0. Commissioner Cullen stated her concern that the applicant has not demonstrated the ability to meet the conditions. The recommendation to approve the CUP will be presented to the City Council at their meeting on April 21, 2026. GENERAL BUSINESS Administrator Morell explained that accessory structures are limited to not exceed the height of the principal structure, which can be limiting for one-story homes which need to store campers or trailers inside a building. Morell asked the Commission if they would be interested in pursuing any changes to the Unified Development Code for this standard. Commissioners said they would be open to having staff present draft language at a future meeting. CITY COUNCIL UPDATES Administrator Morell reported that the variance at 19750 Maxwill Avenue approved by the Commission at their meeting on March 3rd is being delayed by a request from the DNR that they did not receive adequate notice. The City Council will hold another hearing on the variance from OWHL setback at their meeting on April 21, 2026. ITEMS FOR FUTURE AGENDA There will be a public hearing for a variance for replacement of a nonconforming structure on Big Marine Lake at the May 5, 2026 meeting. Commissioner Hogle recommended the Commission discuss the UDC list of appropriate trees as compared to the DNR’s recommendations for resilient plantings related to climate change. ADJOURNMENT Fodor, seconded by Marosok, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 8:55 p.m. Respectfully submitted, Kyle Morell, City Administrator