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09.b1 Resolution 04-21-26-02 CUP for Emerald Horizon_revised4-20-26 CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 04-17-26-02 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 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 use, protects natural resources, and efficiently utilizes existing infrastructure. The proposed use complies with the Comprehensive Plan and will not have a negative effect on public facilities or capital improvement plans. 2. The proposed use is allowed in the I-P zoning district with a Conditional Use Permit. The proposed use would operate indoors, utilizing the existing facility, isolated from public access, and are subject to state licensing, security, inspection, and tracking requirements. This use will not negatively impact public welfare and will not be detrimental to or endanger the public health, safety, or comfort. Reasonable conditions of approval can be added if the City Council finds issues with proposed use. 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. 4. The proposed use will not impede development or improvement of surrounding properties. 5. The proposed use will utilize existing utility services and does 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 is generally consistent with the applicable regulations of the I-P zoning district and all other applicable standards of the UDC. Reasonable conditions have been included with the approval to address where the application is inconsistent with the UDC, or, more information is needed to confirm conformance with the standards of the UDC. Any changes to the use or site plan that do not meet the standards of a “minor” change as detailed by 153.500.060 Subd. 1 (D) I. a., will be required to conform with the applicable regulations of the district and the Conditional Use Permit must be amended to allow for the change. 7. This Conditional Use Permit meets the general and specific performance standards of the UDC. As required in 153.200.030 Subd. 5 (A) Industrial Park (I-P) Zoning District, 1530.300.030 Subd. 1 (J) Cannabis, Microbusiness of the UDC. 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, which include “Cannabis, Microbusiness.” 2. 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. 3. Prior to a building permit being issued for the site, the applicant shall submit plans prepared by a licensed or qualified professional that include a statement regarding the efficacy of the following systems and plans, demonstrating that: a. The applicant has proposed to recapture and filter approximately 90% of all water used for reuse in the growth process. Water use within the site shall be designed to maximize water reuse. b. The applicant shall submit documentation that the well and septic on the site support the proposed use c. The applicant has proposed a closed-air carbon filtration system with negative air pressure at all entrances. The entire facility shall not produce noxious or nuisance- causing odors and shall be in accordance with the standards from the Office of Cannabis Management and the Minnesota Pollution Control Agency. 4. All exterior alterations, new structures, fencing, signage, exterior lighting, security requirements, and off-street parking and loading areas shall comply with any and all relevant standards adopted in the Unified Development Code and any other local and state standards and regulations. 5. The expansion of the structure shown in the approved site plan shall be subject to an administrative minor project site plan review prior to a building permit being issued, provided that the application for the expansion is complete and in compliance with the standards of this approval, the applicable codes, ordinances, and policies, and does not require any variance from this approval or those standards. If the expansion is not complete and in compliance, a CUP Amendment shall be required. 6. An approved fire department access system shall be installed prior to occupancy. 7. The owner shall ensure the odor mitigation system, including carbon filtration and negative air pressure, be maintained in working order at all times. 8. 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 as well as the recommended tree species from the Minnesota Department of Natural Resources. 9. 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. 10. The applicant shall obtain and maintain all required licenses and permits for the duration of the use, including but not limited to the applicable licenses to allow the approved uses. The applicant shall submit proof of valid license issuance by the Office of Cannabis Management or authorized state officials to the City annually. 11. The applicant shall comply with all applicable local, county, and state laws, rules, and regulations, including requirements of the Minnesota Office of Cannabis Management. Failure to comply may result in enforcement action or revocation of the Conditional Use Permit. 12. The City may revoke the Conditional Use Permit for the site if all permits and required work to comply with approvals from other local and state permits are not completed. 13. 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. 14. 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 the conditional use permit is issued or extended through the process described in 153.500.060 Subd. 1(C)(v) of the Unified Development Code. The Whereupon, said Resolution is hereby declared adopted on this 21st day of April 2026. Steve Kronmiller, Mayor Joseph Whebbe, Applicant Jeffrey Sutton, Royal Stirling, LLC, Owner ATTEST: Kyle Morell, City Administrator