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On Tuesday, Aug 26, the Chisago City Council passed Ordinance 335 Chapter 177 regulating cannabis businesses within the legal boundaries of Chisago City.

The city had originally planned to rely on Chisago County to regulate and oversee cannabis businesses; however, the League of Minnesota Cities has since encouraged all cities to have cannabis ordinance.  

City Administrator John Pechman told the council, “The League said, without hesitation, if you use the county’s ordinance you will have to follow their setbacks (distances from public areas, parks, daycares or schools where cannabis can be used or sold).”  

Before creating the new ordinance, city staff researched and compared the cannabis ordinances of several other communities. The result was an ordinance that adds a new chapter, Chapter 177, to the Chisago City’s municipal code. Before being brought to the council, the ordinance was reviewed by City Administrator  Pechman, Associate Planner Leah Nelson, Police Chief Bill Schlumbohm and the city atttorney. 

The ordinance contains the following sections: administration (including definitions of various cannabis terminology), registration of cannabis businesses, requirements for cannabis businesses, temporary cannabis events, local government as a retailer, and use of cannabis in public. 

Details of some of these sections were discussed by the council prior to the required public hearing at the Aug. 26 meeting. Much of the discussion centered on whether cannabis businesses required a different setback from parks and schools than businesses that sell alcohol or tobacco.

Chisago City’s ordinance allows up to two state licensed cannabis businesses. Licensed retail sale of cannabis and hemp derived products in the city must take place between 8 a.m. and 10 p.m. 

After considerable back and forth discussion, the council agreed that the setbacks from schools, daycares, parks, etc. will be the same for cannabis businesses as they are for the sale of alcohol and tobacco.     Also, no person is permitted to use cannabis or hemp-derived consumer products “in a public place or a place of public accommodation unless the premises or event is licensed to permit onsite consumption of adult use.”  

Public places include parks, trails, streets, sidewalks, enclosed areas used by the general public including restaurants, bars, any food or liquor establishment, hospitals, nursing home, auditoriums, gyms, meeting rooms, common areas of apartment buildings and “other places of public accommodation.”

When it comes to “temporary cannabis events,” a special event permit issued by the city is required. With the required city-issued permit, a private property owner may be permitted to allow the adult use of cannabis products and low-potency hemp products for a temporary event if the property exceeds 20 acres.     

Businesses licensed to cultivate cannabis, and those that both grow and sell cannabis are permitted in industrial, light industrial and agricultural zones with an interim use permit. Cannabis and low-potency hemp edible manufacturing, wholesale and transportation businesses are permitted in industrial and light industrial zones with an interim use permit.      The ordinance also states that the city may establish, own and operate one municipal cannabis retail business, if it chooses to do so. There was no indication the city had any plans to do so at this time.

Hearing no public comment at the required public hearing, the council passed the new cannabis ordinance by unanimous vote and also set the registration and annual renewal fees for retail sale of cannabis. These range from $500 to $1,000 a year depending on the type of cannabis business being licensed. Background checks and regular compliance checks are required similar to those done for alcohol and tobacco permit holders.

The full ordinance and fee schedule are available for viewing at city hall.

    

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