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06-28-2016HOPKINS PLANNING AND ZONING COMMISSION AGENDA Tuesday, June 28, 2016 6:30 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF PLANNING AND ZONING COMMISSION MEETING I. CALL TO ORDER II. ADOPT AGENDA III. OPEN AGENDA – PUBLIC COMMENTS/CONCERNS IV. CONSENT AGENDA 1. Minutes of the May 31, 2016, Planning & Zoning Commission V. PUBLIC HEARING 1. Planning & Zoning Commission Bylaws Update (PR 16-12-TA) CONTINUED TO AUGUST 30th 2. Medical Cannabis (TA-16-13) VI. OLD BUSINESS VII. NEW BUSINESS VIII. ANNOUNCEMENTS 1. 2040 Comprehensive Plan Update 2. July 26 Planning & Zoning Meeting – Joint work session with Minnetonka to discuss Shady Oak zoning regulations 3. Floodplain Ordinance Update 4. Health Care Dwellings IX. ADJOURN UNOFFICIAL PLANNING & ZONING COMMISSION MINUTES May 31, 2016 A regular meeting of the Hopkins Planning & Zoning Commission was held on Tuesday, May 31, 2016, at 6:30 p.m. in the Council Chambers of Hopkins City Hall. Present were Commission Members Brian Hunke, Matt McNeil, Gary Newhouse, Mike Tait, Emily Wallace-Jackson and James Warden. Absent was Commissioner Scott Kerssen. Also present was City Planner Jason Lindahl. CALL TO ORDER Vice Chair Hunke called the meeting to order at 6:30 p.m. ADOPT AGENDA Commissioner Warden moved, Commissioner Newhouse seconded, to adopt the agenda. The motion was approved unanimously. CONSENT AGENDA Commissioner Warden moved, Commissioner McNeil seconded, to approve the minutes of the April 26, 2016, regular meeting. The motion was approved unanimously. NEW BUSINESS 1. Planning & Zoning Commission Bylaws Update (PR 16-12-TA) Mr. Lindahl stated that the Commission will discuss the bylaws at this and one other meeting, a formal draft will be written and brought to the City Manager and City Attorney, and the Commission will have a chance discuss that draft before it is adopted. He stated that there are several discrepancies among the bylaws, City Charter, City Code 325 and state law that should be resolved. Among the discrepancies are: the Commission has the power to approve plats; the Commission can amend the bylaws with a 2/3 vote; the Commission is referred to as “Planning & Zoning Commission; one business owner can/should be on the Commission; and, the Development & Planning director and a City Council liaison as ex officio are members of the Commission. Mr. Lindahl stated that the goal is to have the final draft by the end of summer. Following are some of the comments from Commissioners: McNeil: Keep “Planning and Zoning Commission” name as it’s more descriptive. Warden: Bylaws should be based on City Charter. Ms. Wallace-Jackson stated she is chair of the Charter Commission, and they did not have their regular annual meeting in April because the Assistant City Manager retired. She asked Mr. Lindahl to check on when the Charter Commission will meet next. Warden: Clarify articles membership, removal and absenteeism standards. They should be consistent with City Code. Hunke: Keep membership provision that includes Hopkins business owner. UNOFFICIAL Minutes of the Planning & Zoning Commission, May 31, 2016 – Page 2 2. Shady Oak Station Area Zoning (PR 16-11-TA) Mr. Lindahl stated that staff’s vision for this station is that it be mobility-oriented, recognized as a trail head, include innovation district uses and build upon the authentic raw industrial character of the area. Generally the Commission was concerned about balancing implementation of this zoning district and its impact on existing businesses. Following are some of the comments from Commissioners: Warden: Concerned about auto-oriented uses and how they will fit in this transit-oriented district. Simplify the use table to be more like a Form Based code. Tait: Does the City have any redevelopment assistance available for this area? Mr. Lindahl responded that the City has not identified specific resources for individual businesses; however, the City will be making investments in trails, roads and storm water infrastructure with the expectation that these investments will spur private investment and redevelopment. Newhouse: Concerned about parking calculation methodology; 25% bicycle parking credit and reallocation of parking from the Blake Road station to the Shady Oak and Downtown stations. McNeil: If riders can’t find a parking spot they will move to the next station closer to their destination. He asked staff to provide parking information for the St. Louis Park stations. Hunke: Likes the minimum and maximum parking standards, and suggested Minnetonka rename 47th Street to fit in with the surrounding street names. 3. Election of 2016-2017 Planning Commission Officers Vice Chair Hunke requested nominations for the position of Chair. Commissioner Newhouse nominated Commissioner Warden, who declined. Commissioner Tait nominated Commissioner Hunke; Commissioner McNeil seconded the nomination. Commissioner Warden nominated Commissioner Wallace-Jackson, who declined. Commissioner Tait moved, Commissioner Newhouse seconded, to elect Commissioner Hunke to the position of Chair. The motion was approved unanimously. Vice Chair Hunke requested nominations for the position of Vice Chair. Commissioner Hunke nominated Commissioner Warden; Commissioner McNeil seconded the nomination. There were no other nominations. Commissioner Tait moved, Commissioner McNeil seconded, to elect Commissioner Warden to the position of Vice Chair. The motion was approved unanimously. ANNOUNCEMENTS During the announcements, Mr. Lindahl updated the Planning & Zoning Commission on the following items. 1. Planning & Zoning Commission Members Update: The Council will reappoint Commissioners Hunke and McNeil on June 7. Commissioner Tait is also up for reappointment but must meet the residency requirement by the end of his current term to be eligible for reappointment. Commissioner Kerssen’s second term ends in June, which will be his last meeting. The Commission welcomed his replacement, Kristin Hanneman, who was present. 2. Japs Olson Plat: City Council approved this plat on May 3. UNOFFICIAL Minutes of the Planning & Zoning Commission, May 31, 2016 – Page 3 3. Moline Groundbreaking: Commissioners Kerssen and Hunke attended the groundbreaking for this project on May 16. 4. 2040 Comprehensive Plan Update: Staff is working on an “elevator speech” video commercial for the Comprehensive Plan that will be part of the City’s social media public engagement process. 5. Mr. Lindahl provided an update on LRT, stating that the Legislature adjourned without funding this project but the Governor and Legislative leaders are suggesting that it could be addressed during a special session. 6. Commissioner McNeil provided an update to the Commission about his concerns with the Hopkins mobile phone app and suggested staff continue to work with City Center, the app developer, to fully implement it. ADJOURN Commissioner Tait moved, Commissioner Warden seconded, to adjourn the meeting. The motion was approved unanimously. The meeting adjourned at 8:03 p.m. Respectfully submitted, Shannon Smith June 28, 2016 Planning Report 16-12-TA Review and Update of Regulations Governing the Planning & Zoning Commission Proposed Action: After conducting a public hearing, staff recommends the following motion: • Move to table planning application 16-12-TA, Planning & Zoning Commission Bylaws, to the August 30 Planning and Zoning Commission regular meeting to allow time for staff and the City Attorney to complete this item. Overview Last month, the Commission reviewed the documents governing its operation including the City Charter, Section 325 of the City Code and its Bylaws. Commissioners provided comments and suggested changes (see minutes) and directed staff to amend these documents and bring them back for further review and action. While staff had scheduled a public hearing on this item during tonight’s meeting, the City Attorney is still reviewing these changes. Given the number of items on the Commission’s July agenda, staff recommends tabling this item to the August 30 regular meeting. Primary Issues to Consider • None Supporting Documents • None _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: June 28, 2016 Planning Report 16-13-TA Zoning Code Text Amendment Related Medical Cannabis Businesses Proposed Action: After conducting a public hearing, staff recommends the following motion: • Move to table planning application 16-13-TA, Zoning Code Text Amendment related to Medical Cannabis uses, to the July 26 Planning and Zoning Commission regular meeting. Overview This application was initiated by the City Council after it adopted a one-year moratorium on Medical Cannabis (marijuana) manufacturing and distribution facilities and directed staff to study this issue. This memo reviews the THC Therapeutic Research Act, Minnesota Statutes §§152.21 -152.37 (the “Act”), concerns with Medical Cannabis (marijuana), how other communities regulate these facilities and recommends changes to Hopkins zoning regulations. Staff will present this information to the Commission, take comments from the Commission and public and bring a zoning ordinance text amendment back at a future meeting for further review and action. Primary Issues to Consider • Background Information • Concerns about Medical Marijuana • Legal Authority • Proposed Zoning Standards Supporting Documents • Medical Cannabis Overview Chart • Zoning Map • Ordinance 2015-1092 – An Interim Ordinance Temporarily Prohibiting Medical Cannabis Manufacturing and Distribution Facilities _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: Planning Report 16-13-TA Page 2 Background On April 30, 2015, the City Council adopted a one-year moratorium on medical marijuana manufacturing and distribution facilities so staff could study the need for amendments or additions to the City’s official controls to protect the public health, safety and welfare from the potential negative impacts of such land uses. Current state law and rules make locating one of these facilities in Hopkins unlikely in the near future. However, changes to these standards by the Commissioner of Health or State Legislature could bring new interest in Hopkins. The only manner in which the City can ensure that the state’s current limitations as to form of marijuana, security requirements, and other operational characteristics remain constant is to adopt its own standards to codify these requirements. Marijuana remains a controlled substance that is illegal under federal law. When the Minnesota Legislature approved the THC Therapeutic Research Act, Minnesota Statutes §§152.21 -152.37 (the “Act”) it recognized the many practical difficulties this status creates when opening the door to medical marijuana facilities. The Act and the state rules implementing the Act currently are very strict and only allow marijuana in a liquid, pill or vapor form for a limited number of qualified medical conditions. At present, the Act allows for two manufacturing facilities (now open in Cottage Grove and Ostego) and eight distribution facilities (now open in Eagan, Minneapolis and Rochester and scheduled to open July 1, 2016, in Bloomington, Hibbing, Moorhead, St. Cloud and St. Paul). The table below lists the communities across the state that have or will have a Medical Marijuana distribution facility and their regulation standards. Medical Cannabis Distribution Facilities Zoning Standards Community Standards Facility Status Bloomington Approved standards similar to those proposed for Hopkins Scheduled for July 1, 2016 Eagan Considered a retail pharmacy (ex: CVS or Target) or clinical pharmacy use (ex: Allina or Park Nicollet) Opened July 1, 2015 Hibbing No response Scheduled for July 1, 2016 Minneapolis No response Opened July 1, 2015 Moorhead Considered medical facility, clinic or pharmacy Scheduled for July 1, 2016 Rochester Considered medical office or clinic use Opened July 23, 2015 St. Cloud Considered a retail/pharmacy use Scheduled for July 1, 2016 St. Paul No response Scheduled for July 1, 2016 Vadnais Heights Approved standards similar to those proposed for Hopkins No facility planned Source: MN Dept. of Health – Medical Cannabis Program Update, April 2016 In December, the Commissioner of Health expanded the number of qualifying medical conditions to include chronic pain. Some predict this could greatly increase the number of patients qualified for medical marijuana and could require the authorization of additional distribution facilities. It is also predictable that other features in the Act may soften over time, Planning Report 16-13-TA Page 3 potentially to include distribution of medical marijuana in other forms, some of which may also be more suitable for recreational use. The Office of Medical Cannabis (OMC) posts updated registration data weekly on their website. The cumulative statistics in the Minnesota Medical Cannabis Patient Registry are detailed in the table below. Minnesota Medical Cannabis Patient Registry Statistics, June 1, 015 to June 16, 2016 Role in Registry Number of People Number of health care practitioners that are registered and authorized to certify patients 565 Number of patients that have been approved in the registry to pick up medical cannabis 1,519 Number of patient caregivers that have received their background checks and are approved in the registry 180 Source: MN Dept. of Health Concerns with Medical Marijuana. The federal prohibition on marijuana creates the following challenges for the state and its cities: • Physicians, nurse practitioners, and physicians’ assistants can only certify a qualifying medical condition, they cannot prescribe marijuana under their licensing restrictions; • The distribution facility functions as a stand-alone clinic where patients must be examined by a pharmacist, who then determines the type of medical marijuana and the dosage. Many patients will be vulnerable due to their medical conditions. • Credit card companies will not authorize transactions dealing in marijuana; hence the clinic operates as a ‘cash only’ business. • Insurance companies will not cover medical marijuana and it is expensive ranging from $55 to $85 per gram; totaling an average of $500 per cash transaction. • Due to the uncovered, high cost of medical marijuana there has developed a black market for stolen medical marijuana, which is then sold to qualified patients and others at a lower cost. These factors result in serious security concerns for patients going to and from the distribution facility, an increased risk of employee theft of the product, an increased risk of burglary and non-employee theft from the building. Legal Authority Zoning Code amendments are legislative actions in that the City is creating new standards to regulate the development of certain types of uses and/or structures. Under the law, the City has wide flexibility to create standards that will ensure the type of development it desires. However, zoning regulations must be reasonable and supported by a rational basis relating to promoting the public health, safety and welfare. Proposed Zoning Standards There are three land use types associated with the medical marijuana industry, as stipulated by the State of Minnesota legislature in the THC Therapeutic Research Act, Minn. Stat. §§152.21: Planning Report 16-13-TA Page 4 • Manufacturing facilities: Where medical marijuana is cultivated, harvested, manufactured and packaged. • Laboratories: Where medical marijuana samples are tested to ensure compliance with state manufacturing standards. • Distribution facilities: Where medical marijuana is sold and distributed to patients on the state’s medical marijuana register. Staff recommends amending Hopkins’ zoning ordinance to address distribution facilities. Staff recommends no changes related to Laboratories because the Minnesota Department of Health indicates that they will only have very small amounts of medical marijuana product on site for testing purposes, and therefore do not have the potential to create negative impacts on neighboring properties. Currently, Research Labs are a permitted use in the I-1 Industrial District and a conditional use in the B-3 General Business District. Dental – Med Labs are permitted uses in the B-2 Central Business and B-3 General Business Districts. Staff finds Medical Marijuana manufacturing facilities are fundamentally commercial agriculture and substantially different from other types of manufacturing allowed within Hopkins. Staff recommends this use be prohibited in Hopkins due to potential negative impacts on neighboring properties, and because these uses are frequently lower intensity, lower employment, and/or lower value uses. Staff recommends no changes to the City zoning regulations based on the finding Medical Marijuana manufacturing is already prohibited within Hopkins because it is not expressly allowed under the zoning regulations. Staff recommends adding the following land use regulations and performance standards for medical marijuana distribution facilities. • Allow distribution facilities as a conditional use in a limited portion of the Business districts. The particular Business district will depend on the impact of the buffer requirement from existing K-12 schools (see below). • Prohibit: o The sale of any products other than medical marijuana within a dispensary. o The sale of non-medical marijuana. • Requires all distribution facilities be sited at least 1,000 feet from any existing K-12 schools (also a state requirement). • Allows only one distribution facility per 15,000 Hopkins residents or fraction thereof. • Consider requirements for multiple security measures such as electronically controlled access systems, building location, and lighting. Alternatives 1. Direct staff to prepare a zoning code text amendment related to Medical Marijuana uses and bring this amendment back to the Commission for further review and action. 2. Direct staff to continue to study this item and bring additional information back for further review at a future meeting. MEDICAL CANNABIS MAY NOW BE OBTAINED AT ANY OF EIGHT DISTRIBUTION CENTERSACROSS MINNESOTA *Care-giver may represent a patient by applying and meeting conditions including a background check. HEALTH CARE PRACTITIONER CERTIFIESCONDITION PATIENT HAS A QUALIFYING CONDITION APPROVEDPATIENT IS ADDED TOREGISTRY PATIENT* REGISTERS INFORMATION, PROOF OF I.D. & PAYMENT DID YOU KNOW THAT MINNESOTA IS THE FIRSTSTATE PROGRAM IN THE COUNTRY TO OFFER ONLY SMOKE-FREE MEDICAL CANNABIS?2MANUFACTURERS AUTHORIZED REGULATED INSPECTED CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE 2015-1092 AN INTERIM ORDINANCE TEMPORARILY PROHIBITING MEDICAL CANNABIS MANUFACTURING AND DISTRIBUTION FACILITIES THE CITY OF HOPKINS, MINNESOTA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. FINDINGS AND PURPOSE: A. The City Council finds that it is necessary to temporarily preserve the status quo regarding the City's regulation of land uses through its official controls following the Minnesota Legislature's passage of the Medical Cannabis Therapeutic Research Act of 2014, Minnesota Session Laws, Chapter 311, §§ 1-22 (2014)(the "Act"). B. The City finds that medical cannabis manufacturing and distribution facilities represent new land uses not presently addressed in the City's official controls and never previously studied by the City. C. The City finds that such uses should be studied for the purpose of determining whether amendments or additions to the City's official controls may be necessary to protect the public health, safety, and welfare. SECTION 2: DEFINITIONS: The following terms when used in this ordinance shall mean: Official controls. "Official controls" or "controls" means ordinances and regulations which control the physical development of the City or any part thereof or any detail thereof and implement the general objectives of the Comprehensive Plan. Official controls include ordinances establishing zoning, subdivision controls, site plan regulations, sanitary codes, building codes and official maps. Medical Cannabis. Any species of the genus cannabis plant, or any mixture or preparation of them, including whole plant extracts and resins, which is delivered in the form of: 1) liquid, including, but not limited to, oil; 2) pill; 3) vaporized delivery method with use of liquid or oil, but which does not require the use of dried leaves or plant form; or 4) any other method, excluding smoking, approved by the Minnesota Commissioner of Health. Medical Cannabis Manufacturer. Any entity registered by the Minnesota Commissioner of Health to cultivate, acquire, manufacture, possess, prepare, transfer, transport, supply, or dispense medical cannabis, delivery devices, or related supplies and educational materials. Distribution Facility. A center for the distribution of medical cannabis operated by a medical cannabis manufacturer. SECTION 3. INTENT AND AUTHORIZATION: A. It is the intent of this ordinance to allow the City of Hopkins time to complete an in-depth study concerning adoption of revisions of the City's official controls for medical cannabis manufacturing and distribution facilities and in the interim to protect the planning process and health, safety, and welfare of the citizens of the community. B. City staff is authorized to conduct a study of the City's official controls that may need to be adopted or amended to protect the public health, safety, and welfare as they relate to medical cannabis manufacturing and distribution facilities. SECTION 4. TEMPORARY PROHIBITION: Pending the completion of the above referenced study and the adoption of appropriate official controls, the following uses are prohibited within the City: Medical Cannabis Manufacturer Distribution Facility SECTION 5. EXEMPTIONS: The statutory exemption to this ordinance set forth in Minnesota Statutes § 462.355, Subd. 4 is incorporated herein by reference. SECTION 6. EFFECTIVE DATE: This ordinance shall take effect on the date of publication and shall remain in effect for one year from the effective date of this ordinance or until the adoption of the official controls being studied, whichever occurs first. ADOPTED this 7th day of April, 2015, by the City Council of Hopkins, Minnesota. First Reading: April 7, 2015 Second Reading: April 21, 2015 Date of Publication: April 30, 2015 Date Ordinance Takes Effect: April 30, 2015 Eugene J. axwell, Mayor ATTEST: C/1 Amy Domeier, City Clerk APPROVED AS O FORM AND LEGALITY: City Attome ignature ate