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IV.4. Second Reading Ordinance 2025-1230 An Ordinance Amending the Hopkins City Code Modifying Certain Regulations Related to Registration Requirement; Krzos CITY OF HOPKINS City Council Report 2025-182 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: December 16, 2025 Subject: Second Reading of a City Code Amendment for Cannabis Business Registration Requirements, Procedures and Separation Requirements. _____________________________________________________________________ RECOMMENDATION The City Council is asked to, by motion adopt for second reading, Ordinance 2025-1230 amending the Hopkins City Code regarding registration procedures and requirements for cannabis businesses. REQUEST The Ordinance will allow amendments to registration applications, clarify buffer rules, set a deadline to complete registration steps, and miscellaneous modifications for readability and clarity. The Ordinance is modified from the first reading conducted at the December 1, 2025 City Council meeting to strike the increase in number of registrations to remain at a maximum of three. Approval of a second reading of the proposed Ordinance is the next step in the process to officially adopt the regulations. NEXT STEPS If approved for a second reading, the Ordinance will be published in the City’s official paper, as is required to make it effective. The Council was generally favorable regarding the Planning and Zoning Commission’s recommendation to study uses in the downtown for potential changes. Staff intends to commence this work in early 2026. Formal review of a resulting ordinance amendment would need to occur per the requirements of State Statute and the City’s Development Code. Planning & Development DOCSOPEN\HP145\9\1032915.v1-6/12/25 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2025-1230 AN ORDINANCE AMENDING THE HOPKINS CITY CODE MODIFYING CERTAIN REGULATIONS RELATED TO REGISTRATION REQUIREMENTS, PROCEDURES AND SEPARATION REQUIREMENTS OF CANNABIS BUSINESSES SECTION 1. Amending Chapter 10, Article XVIII, Section 10-652 of the Hopkins City Code by adding the following underlined text and deleting striken material, as follows: Sec. 10-652. - Pre-License Zoning Certification of Cannabis Businesses (a) The City Manager, or designee, is authorized to certify whether a proposed cannabis business complies with the city’s zoning ordinances, this article, and if applicable, with state fire code and building code pursuant to Minnesota Statutes, section 342.13. (b) Potential licensees are responsible for obtaining all necessary zoning, building and fire code approvals prior to the city receiving the request for certification from the OCM. If a potential licensee fails to obtain necessary zoning approvals prior to the city receiving a request for certification, the city will inform the OCM that the potential licensee does not meet zoning and land use laws, or does not meet building and fire code requirements. If, at the time the city receives a request for zoning certification, there are no further intended alterations to the building where the business is to be conducted, the city will also certify compliance with building and fire code regulations, provided that the potential licensee has obtained inspections prior the city’s receipt of a request for certification from the OCM. Building and fire code inspections will be valid for 1 year from completion. SECTION 2. Amending Chapter 10, Article XVIII, Section 10-653 of the Hopkins City Code by adding the following underlined text and deleting striken material, as follows: Sec. 10-653 Distance Requirements (a) The city prohibits the establishment and operation of a cannabis retailer within the following buffer zones: • 350 from a school • 350 feet from an attraction with a park feature • 500 feet from another cannabis retailer (b) The buffers in this section will be measured from the potential licensee’sapplicant’s proposed business location based on the location of schools, park features, and cannabis retailers on the earlier of the date the city receives the request from the OCM for certification pursuant to section 10-652 that is ultimately successful or the date the city receives a complete application for a 2 retail registration pursuant to section 10-654. Buffer distances will be measured from the property line of the proposed cannabis retailer to the property line of a school or cannabis retailer, and the border line of a park feature. A buffer from a cannabis retailer will be established from other cannabis retailers with City- issued registrations and from other applicants that have submitted complete applications but have not received a registration from the City as of the date the applicant’s buffer is established. If an applicant amends the proposed business location after submitting a complete application, buffers will be reestablished on the date the application is amended. (c) Nothing in this section shall prohibit a cannabis retailer from continuing to operate at the same location if a school or park feature establishes within the buffer zone. SECTION 3. Amending Chapter 10, Article XVIII, Section 10-654 of the Hopkins City Code by adding the following underlined text and deleting striken material, as follows: Sec. 10-654. - Retailer Registration (a) Retail Registration Required. Before making retail sales to customers or patients, a retailer must register with the city. Making retail sales to customers or patients without an active registration is prohibited. Subject to Minn. Stat. 342.22, subd. 5(e) the city may impose a civil penalty, as specified in the city’s fee schedule, for making a sale to a customer or patient without a valid registration from the city and a valid license from the OCM. (b) Cannabis Retail Registration Limits. (1) The city will issue three (3) registrations to cannabis retailers. (2) Registrations issued to businesses with a cannabis retailer license, preliminary license approval, or other applicable written approval from the OCM will count toward the city’s registration limit. (c) Processing Registrations. (1) Applications will be processed on a first-come, first-served basis based on the city receiving a complete application. Applications will be considered complete when all materials in Section 10-654 (d) are received by the city and include all required information and the required registration or renewal fee is received. (2) The date a certification under Section 10-652 is issued will have no impact on the applicant’s registration processing. (d) Application. The applicant must submit a registration application or renewal form provided by the city. The form may be amended from time to time by the City Clerk, but must include or be accompanied by: 3 (1) Name of the property owner. (2) Name of the applicant. (3) Address and parcel ID for the property for which the registration is sought. (4) Certification that the applicant complies with the requirements of this article. (5) Fee Required. At the time of initial application, and prior to the city’s consideration of any renewal application, each Retailer must pay fees or initial registration and renewal as established in the city’s fee schedule. Initial registration fees and renewal registration fees are nonrefundable. (6)(5) Proof of taxes, assessments, utility charges or other financial claims of the city or the state are current for both the applicant and the proposed location. (7)(6) A copy of a valid state license, preliminary license approval, or other applicable written approval from the OCM. (e) Amending an Application. An applicant may amend information on the application once it has been submitted. (f) Immediate Denial. An applicant that does not comply with the distance requirements of Section 10-653 will be immediately denied. (g) Processing Application. Once the City receives a complete application, and the maximum number of registrations defined in Section 10-654(b)(1) have not been issued, the applicant will receive written confirmation confirming that the applicant has submitted a complete application and informing the applicant of the steps that must be completed before the City will issue the registration: a. Fee Required. At the time of initial application, and prior to the city’s consideration of any renewal application, each Retailer must pay fees or initial registration and renewal as established in the city’s fee schedule. Initial registration fees and renewal registration fees are nonrefundable. b. Preliminary Compliance Check. Prior to issuing any retail registration, the city shall conduct a preliminary compliance check to ensure compliance with this article and any other regulations established pursuant to Minnesota Statutes, section 342.13. c. At the time of the preliminary compliance check, the applicant must also submit a form recertifying that the applicant complies with the requirements of this article and proof of taxes, assessments, utility charges or other financial claims of the city or the state are current for both the applicant and the proposed location. 4 d. Applicants will have twelve (12) months between date the initial complete application is submitted to complete the required steps to receive the registration. Once the twelve (12) month period has passed, the application shall be denied. Applicants that have submitted applications prior to the effective date of this ordinance shall have twelve (12) months from the effective date of this ordinance to complete the required steps to receive the registration. e. During the time when applications for open registration slots are being processed, applicants that submitted complete applications will be placed on a waitlist based on the order in which they were received and processed should applicants ahead of them be denied. (e) Preliminary Compliance Check. Prior to issuing any retail registration, the city shall conduct a preliminary compliance check to ensure compliance with this article and any other regulations established pursuant to Minnesota Statutes, section 342.13. (h)(f) Reasons for Denial. The city shall not issue a registration or renewal if any of the following conditions are true: (1) The applicant has not submitted a complete application. (2) The applicant does not comply with the requirements of this article. (3) The applicant does not comply with applicable zoning and land use regulations. (4) The applicant is found to not comply with the requirements of the Act or this article at the preliminary compliance check. (5) The applicant is not current on all property taxes and assessments at the location where the retailer is located at any time this information must be submitted. (6) The maximum number of registrations, pursuant to Section 10-654 (b), have been issued by the city. (7) The applicant does not have a valid license, preliminary license approval, or other applicable written approval from the OCM. (8) An applicant obtains a registration, or the maximum number of registrations, making them ineligible under state law to obtain an additional cannabis retail registration. (i)(g) Issuing the Registration or Renewal. The city shall issue the registration or renewal if the Retailer meets the requirements of this article, including that none of the reasons for denial in Section 10-654 (f) are true. 5 (j)(h) Nontransferable. A registration is not transferable to another person, entity, or location. This prohibition does not apply to a transfer of property ownership at the location where a retailer is located. (f) Registration Enforcement. (1) Generally. The city council may impose a fine or suspend a registration under this article on a finding that the registered business has failed to comply with the requirements of this article or any applicable statute or regulation. (2) Notice and Right to Hearing. Prior to imposing a fine or suspending any registration under this article, the city shall provide the registered business with written notice of the alleged violations and inform the registered business of his or her right to a hearing on the alleged violation. a. Notice shall be delivered in person or by regular mail to the address of the registered business and shall inform the registered business of its right to a hearing. The notice will indicate that a response must be submitted within ten (10) business days of receipt of the notice, or the right to a hearing will be waived. b. The registered business will be given an opportunity for a hearing before the city’s hearing officer before final action to fine or suspend a registration. Provided, the registered business has submitted a written application for appeal within ten (10) business days after the notice was served. The hearing officer shall give due regard to the frequency and seriousness of the violations, the ease with which such violations could have been cured or avoided and good faith efforts to comply and shall issue a decision to fine or suspend the registration only upon written findings. Within ten (10) business days of the hearing officers order, the decision may be appealed to the city council. c. If no request for a hearing is received within ten (10) business days following the service of the notice, the matter shall be submitted to the city council for imposition of the fine or suspension of the registration. (3) Emergency. If, in the discretion of the City Manager, a registered business poses an imminent threat to the health or safety of the public, the City Manager may immediately suspend the registration and provide notice of the right to hold a subsequent hearing as prescribed in part (2) of this section. (4) Reinstatement. The city may reinstate a registration if it determines that the violations have been resolved. The city shall reinstate a registration 6 if the OCM determines the violations have been resolved. SECTION 4. In accordance with Section 3.03 of the City Charter and Minn. Stat. § 412.191, subd. 4, due to the significant length of this Ordinance, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On December 16, 2025, the Hopkins City Council adopted Ordinance 2025-1230 that amends Chapter 10, Article XVIII of the Hopkins City Code. The purpose of amending the City Code is to modify Cannabis Business Registration Requirements, Procedures and Separation Requirements. The Ordinance permits amendments to applications, clarifies buffer rules, sets a deadline to complete registration steps, and makes miscellaneous modifications for readability and clarity. A printed copy of the ordinance is available for inspection during regular business hours at Hopkins City Hall and is available online at the City’s web site located at www.hopkinsmn.com. SECTION 5. EFFECTIVE DATE. The effective date of this ordinance shall be the date of publication. First Reading: December 1, 2025 Second Reading: December 16, 2025 Date of Publication: December 25, 2025 Date Ordinance Takes Effect: December 25, 2025 By: ____________________________ Patrick Hanlon, Mayor ATTEST: ______________________________ Amy Domeier, City Clerk