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VII.2. First Reading of Ordinance 2026-1235 Amending the Development Code Related to Cannabis & Hemp Sales; Krzos 1 City Council Report 2026-072 To: Honorable Mayor and City Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: July 14, 2026 Subject: First Reading of Ordinance 2026-1235 Amending the Development Code Related to Cannabis & Hemp Sales, Off-Sale Liquor Stores, Tobacco Shops, and Storefront Transparency Standards _____________________________________________________________________ REQUEST Consider a first reading of Ordinance 2026-1235 amending the Development Code to: • Reclassify Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops as Conditional Uses within the MX-D, Mixed-Use Downtown Center Zone. • Distinguish Hemp Retail and Cannabis Retail uses. • Refine storefront window transparency standards. The proposed amendments are the result of Planning and Zoning Commission discussion regarding the appropriate regulatory approach for these uses in Downtown Hopkins. RECOMMENDATION MOTION TO adopt Resolution 2026-023 approving the first reading of Ordinance 2026-1235 amending the Development Code. ANALYSIS Background In late 2025, the City approved amendments to its Cannabis Business Registration Requirements and separation standards. During that review process, the Planning and Zoning Commission expressed interest in revisiting how certain regulated retail uses: Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops; are regulated within the downtown area. Planning & Development CITY OF HOPKINS 2 The Commission held discussions at meetings on January 27, 2026, and April 28, 2026, focusing on whether the current zoning framework for these uses supports the long-term vision for Downtown Hopkins as outlined in the 2040 Comprehensive Plan. Discussion topics included land use compatibility, downtown design objectives, and the potential need for additional regulatory tools. The Commission generally supported exploring a conditional use approach to allow for site-specific review of new establishments. Based on this direction, Staff prepared an Ordinance Amendment. The Planning and Zoning Commission held a public hearing on June 23, 2026, and following the hearing voted to recommend approval of the proposed Ordinance Amendment. Proposed Amendment Reclassification of Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops The proposed amendment would reclassify Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops from permitted uses to conditional uses within the MX-D District. As a result, the establishment or relocation of these businesses in the district would require approval of a Conditional Use Permit (CUP). This change provides an additional level of review for regulated retail uses in Downtown Hopkins while continuing to allow them within the district. Through the CUP process, the City can evaluate whether a proposed location is appropriate based on site-specific considerations such as surrounding land uses, characteristics of the building and/or site, and consistency with the overall vision and goals for Downtown Hopkins. A map of the MX-D District is included as an attachment to this report. CUP applications are reviewed through a public process that includes a public hearing before the Planning & Zoning Commission and final action by the City Council. In approving a CUP, the City Council must find that the proposed use: 1. Is consistent with the Comprehensive Plan and the purposes of the Development Code; 2. Complies with all applicable provisions of the Development Code; and 3. Will not be injurious to the neighborhood or otherwise detrimental to the public health, safety, or welfare. The proposed amendment does not prohibit these uses in the MX-D District. Instead, it establishes a process that allows the City to evaluate individual proposals and ensure they are compatible with their surroundings and support the long-term vision for Downtown Hopkins. The ordinance amendment would keep in place current requirements for separation of said uses from sensitive land uses; and maximum registrations in the case of Cannabis, and maximum license in the case of Off-Sale Liquor Sales. 3 Conditional Use Permit Review Standards During discussion of the proposed ordinance amendments, the Planning & Zoning Commission wanted clarity for how a Conditional Use Permit (CUP) application for Cannabis Sales would be evaluated and the extent of the City's discretion in reviewing such applications. The Commission also wanted to explore additional review standards that could be established for cannabis retail uses in the MX-D District to aid in making decisions on individual requests. With the exception of the existing 5,000-square-foot maximum for Off-Sale Liquor Stores, the MX-D District does not impose use-specific conditional use standards on retail businesses. The City Attorney advised that adopting discretionary review criteria applicable only to cannabis retailers could present legal concerns by treating one retail use differently than other similarly situated businesses. Additionally, Minnesota law does not expressly authorize municipalities to apply cannabis-specific discretionary review standards beyond their general zoning authority. Accordingly, Conditional Use Permit applications for Cannabis Sales would be evaluated using the same general CUP approval criteria that apply to all conditional uses in the MX-D District. This approach provides a consistent and legally defensible review process while allowing the City to consider each proposal on its individual merits. Window Transparency Requirements A primary topic of discussion was how these uses interact with the downtown pedestrian environment, particularly through storefront design and visibility. While this consideration applies to Cannabis Sales, Liquor Stores, and Tobacco Shops, specific concerns were raised regarding Cannabis Sales because state law prohibits cannabis products from being visible from outside the business. The current Development Code regulates the opacity of storefront glazing but does not directly address the use of window films, curtains, displays, or similar treatments that may obscure storefront windows. Recognizing that storefront transparency is a key element of pedestrian-oriented design, the proposed amendment establishes clear and consistent storefront visibility standards for all storefront-type buildings. The intent is to clearly articulate the City's expectations for storefront appearance and transparency while supporting an active and engaging pedestrian environment. These standards would apply within the MX districts, which serve as the City's primary retail zoning areas. The proposed amendment would require first-floor storefront windows to remain unobstructed for a minimum depth of three feet into nonresidential tenant spaces. Merchandise displays would continue to be permitted, provided displays and signage do not occupy more than 30 percent of the window area. This standard is currently applied to Pawn Shops and is similar to regulations found in Minneapolis, Saint Paul, and Saint Louis Park. The purpose of the requirement is 4 to support Downtown design goals related to transparency, pedestrian engagement, and active storefront character. It should be noted that if approved, the regulations would be applicable to new uses that are established in the zone, existing businesses would not be required to change their storefront windows. Hemp Retail and Cannabis Retail Classifications The proposed amendment would create separate use classifications for Hemp Retail and Cannabis Retail. Hemp Retail would be classified as a permitted use in zones where retail uses are currently allowed, including the P2, Public and Institutional Zone; the zoning designation for golf courses. As a result, existing businesses that sell hemp-derived edible products, such as bars, restaurants, and golf course facilities, would not be affected by the amendment. Cannabis Retail would become a conditional use in the MX-D Zone and would be prohibited in the P2 Zone. This distinction recognizes the different regulatory frameworks governing hemp-derived products and cannabis products while maintaining the City's current approach toward businesses that sell hemp-derived edibles. Planning Context The Downtown section of the City’s 2040 Comprehensive Plan establishes a vision for Downtown Hopkins as a vibrant, walkable, and welcoming mixed-use district that serves as both the economic and social center of the community. The plan emphasizes preserving Downtown’s unique character, supporting small and locally owned businesses, encouraging active pedestrian-oriented storefronts, and fostering a business mix that contributes to a strong sense of place and community identity. The MX-D Zone was established in the 2022 Zoning Code update to implement this vision. The MX-D Zone is intended to promote an active pedestrian environment, a diverse mix of uses, and high-quality urban design that supports downtown vitality. Peer Community Regulations Staff reviewed regulations for communities that have a downtown zoning designation with similar characteristics to Hopkins’, summarized in the table below. White Bear Lake Excelsior Robbinsdale Stillwater Wayzata Anoka Cannabis Prohibited Prohibited Permitted Prohibited Prohibited Permitted Tobacco Prohibited Permitted Permitted Permitted Permitted Prohibited Off-Sale Liquor Conditional Permitted Municipal Permitted Permitted Permitted 5 Community Input and Engagement: The Planning and Zoning Commission held a duly noticed public hearing on June 23, 2026. Following the public hearing and discussion, the Commission recommended approval of the proposed ordinance amendment. Engagement activities included: • Planning and Zoning Commission discussion sessions (January and April 2026). • Planning and Zoning Commission public hearing (June 23, 2026). • Published notice in the City's official newspaper. As of the preparation of this report, no public comment was received regarding the proposed amendment. However, the Commission's interest in the matter coincided with public comments received during last fall's Ordinance amendment process expressing concerns about regulated product retailers in downtown. Review Criteria: Staff finds that the proposed development code amendment meets the criteria for approval. In making decisions about code amendments, the City must consider all relevant factors, including at least the following criteria: 1. Whether the proposed Development Code text amendment is in conformity with the Comprehensive Plan The 2040 Comprehensive Plan identifies Downtown Hopkins as a vibrant, walkable, mixed-use center that serves as the economic, civic, and social heart of the community. The plan emphasizes maintaining an active pedestrian environment, supporting a diverse mix of businesses, preserving downtown character, and encouraging high-quality design. The MX-D Zone was established to implement this vision through pedestrian-oriented development standards and a mix of commercial, residential, civic, and cultural uses. The proposed amendment does not prohibit Cannabis Sales, Off-Sale Liquor Stores, or Tobacco Shops within the MX-D Zone. Rather, it establishes a Conditional Use Permit process that allows the City to evaluate individual proposals based on site-specific circumstances and their compatibility with surrounding uses and downtown objectives. The amendment also includes clear and objective storefront transparency standards intended to support an active and engaging pedestrian environment. Staff finds that the proposed amendment will further the goals and vision of the Comprehensive Plan and therefore meets this criterion. 2. Whether the proposed Development Code text amendment corrects an error or inconsistency or will help meet the challenge of a changed or changing condition. 6 Since adoption of the 2022 Development Code, the City has experienced changes in the retail marketplace, including the legalization and regulation of adult-use cannabis sales in Minnesota and the emergence of new state- licensed retail business types. As these uses become established, the City has had an opportunity to evaluate how existing zoning regulations address their potential impacts and compatibility within Downtown Hopkins. The proposed amendment responds to these changing conditions by requiring a Conditional Use Permit for new Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops within the MX-D Zone. This additional review process allows the City to evaluate site-specific factors such as location, operational characteristics, and compatibility with adjacent uses while ensuring consistency with the vision and goals of the 2040 Comprehensive Plan. The amendment also establishes storefront transparency standards for storefront buildings to promote active, pedestrian-oriented streetscapes and maintain the welcoming and vibrant character envisioned for Downtown Hopkins and other retail corridors. Staff finds that the proposed amendment will help address changing conditions affecting the downtown retail environment and therefore meets this criterion. Staff finds that the proposed amendment is consistent with the Comprehensive Plan, responds to changing regulatory and market conditions, and provides an appropriate mechanism to evaluate certain regulated retail uses within the MX-D Zone. Accordingly, staff recommends approval of the proposed amendment. Alternatives The proposed amendment is a legislative action and the City Council has broad discretion in establishing land use regulations that promote the public health, safety, and welfare. The Council may: • Approve the first reading of the Ordinance as proposed. • Approve the first reading with modifications. • Deny the proposed Ordinance amendment. NEXT STEPS If the City Council approves the first reading of the Ordinance, a second reading a second reading will be scheduled for the August 3, 2026 City Council meeting. Upon adoption the ordinance amendment will become effective once published in the City’s official paper. ´ 12/1/2025 Downtown Hopkins MX-D Parcels Excelsior Blvd Excelsior Blvd Mainstreet 1st St N 7th Ave S2nd St S14th Ave N13thAveN10th Ave N9th Ave N2nd St N 1st St S 6th AveNExcelsior Blvd16th Ave N8th Ave S15th Ave N12th Ave N11th Ave N8th Ave N7th Ave N15th Ave S12th Ave S9th Ave S13thAveS11th Ave S10th Ave S6th Ave S 1 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2026-1235 AN ORDINANCE AMENDING THE HOPKINS DEVELOPMENT CODE TO RECLASSIFY OFF-SALE LIQUOR SALES, TOBACCO SALES ESTABLISHMENTS, AND CANNABIS RETAIL AS CONDITIONAL USES IN THE MX-D ZONE, AMEND PROVISIONS RELATED TO CANNABIS AND HEMP RETAIL USES, AND WINDOW TRANSPARENCY SECTION 1. Article 5, Section 102-510 (a), Table 5-1 is hereby amended by adding the double-underlined language, as follows: Table 5-1. Principal Use Table ZONES Reference MX-TOD MX-D MX-N MX-S RX-TOD RX-D RX-N IX-TOD I-TOD IX-S I1 N1, N2 N3-A N3-B NX1 NX2 P1 P2 RESIDENTIAL 102-530 Household Living, 1 unit ◓ ◓ ◓ ◓ ● ● ● – – – – ● ● ● ● ● – – Household Living, 2 units ◓ ◓ ◓ ◓ ● ● ● – – – – – ● ● ● ● – – Household Living, 3–4 units ◓ ◓ ◓ ◓ ● ● ● – – – – – – – ● ● – – Household Living, 5+ units ◓ ◓ ◓ ◓ ● ● ● – – – – – – – – ● – – Manufactured Home Park – – – – – – – – – – – – ○ ○ ○ ○ – – Group Living (except as below) ◓ ◓ ◓ ◓ ● ● ● – – – – – – – ○ ○ – – Residential Facility, Small ● ● ● ● ● ● ● – – – – ● ● ● ● ● – – 102-580 (h) Residential Facility, Large ○ ○ ○ ○ ○ ○ ○ – – – – – – – ○ ○ – – 102-580 (h) COMMERCIAL 102-540 Adult-Oriented Business – – – ● – – – – – ● ● – – – – – – – Animal Boarding – – – – – – – ● ● ● ● – – – – – – – Consumer Service ● ● ● ● ◐ ◐ ◐ ◐ ● ● ● – – – – – – ◐ Day Care, Adult ● ◓ ● ● ◐ ◐ ◐ ◐ ● ● – – – – ○ ○ – ● Day Care, Small ● ◓ ● ● ◐ ◐ ◐ ◐ – – – ● ● ● ● ● – – Day Care, Large ● ◓ ● ● ◐ ◐ ◐ ◐ – ● – – – – ○ ○ – – Entertainment Venue, Large – – – ● – ● – ● – ● – – – – – – ○ ● Funeral & Mortuary Service – – – – – – – – – – – – – – – – – – Lodging (except as below) ● ◓ ◓ ● ● ● ● – – ● – – – – – – – – Short-Term Rental ◓ ◓ ◓ ◓ ● ● ● – – – – ○ ○ ○ ○ ○ – – 102-580 (h) Office ◑ ◑ ● ● ● ● ● ● ● ● ● – – – – – – – 102-580 (d) Personal Credit Establishment ○ – – ○ – – – – – – – – – – – – – – 102-580 (g) Retail & Entertainment (except as ● ● ● ● ◐ ◐ ◐ ◐ – – – – – – – – – ◐ 2 below) Brewpub – ● ● ● – ◐ ◐ – – – – – – – – – – – 102-580 (a) Firearms Sales Establishment – – – ○ – – – – – – – – – – – – – – 102-580 (b) Liquor Sales, Off-Sale ● ●○ ● ● ◐ ◐ ◐ ◐ – – – – – – – – – – 102-580 (e) Tobacco Sales Establishment ● ●○ ● ● ◐ ◐ ◐ ◐ – – – – – – – – – – 102-580 (j) Self-Service Storage – – – – – – – ○ – – ○ – – – – – – – 102-580 (l) Vehicle Sales & Service (except as below) – – – ○ – – – – ○ ○ ○ – – – – – – – 102-580 (n) Major Vehicle Repair & Maintenance – – – – – – – – ○ ○ – – – – – – – 102-580 (n) MANUFACTURING & INDUSTRY 102-550 Manufacturing, Artisan ● ● ● ● ◐ ◐ ◐ ● ● ● ● – – – – – – – Manufacturing, Limited – – – – – – – ● ● ● ● – – – – – – – High-Impact Industry – – – – – – – – – – ● – – – – – – – Urban Farm – – – – – – – ● ● ● ● – – – – – ● – 102-580 (l) Warehousing & Distribution – – – – – – – – ● ● ● – – – – – – – CIVIC & INSTITUTIONAL 102-560 College ◓ ◓ ◓ ◓ ● ● ● ● – – – – – – – – – ● Community Assembly ◓ ◓ ◓ ◓ ● ● ● – – – – – – – – – – ○ Cultural Facility ● ● ● ● ● ● ● ● ● ● – – – – – – ● ● Community Garden ● – ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 102-580 (c) Detention or Correctional Facility – – – – – – – – – – – – – – – – – ○ Hospital – – – – ○ ○ – – – – – – – – – – – ● Parks and Open Space – – ● ● ● ● ● ● ● ● ● ○ – – – – ● ● 102-580 (f) School ◓ ◓ ◓ ◓ ● ● ● – – – – – – – – – – ○ Utilities & Services, Minor ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 102-580 (m) Utilities & Services, Major ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ 102-580 (m) OTHER 102-570 Wireless Communication Facility 102-580 (o) Tower – – – – – – – – – – ○ – – – – – – – 102-580 (o) Cannabis Businesses Cannabis & Hemp Retail ● ●○ ● ● ◐ ◐ ◐ ◐ – – – – – – – – – – 102-580 (p) Hemp Retail ● ● ● ● ◐ ◐ ◐ ◐ – – – – – – – – – ◐ 102-580 (p) Cannabis Cultivation, Small-scale ● ● ● ● ◐ ◐ ◐ ● ● ● ● – – – – – – – 102-580 (p) Cannabis Cultivation, Large-scale – – – – – – – ● ● ● ● – – – – – – – 102-580 (p) Cannabis & Hemp Product Manufacturing, Small-scale ● ● ● ● ◐ ◐ ◐ ● ● ● ● – – – – – – – 102-580 (p) Cannabis & Hemp Product Manufacturing, Large-scale – – – – – – – ● ● ● ● – – – – – – – 102-580 (p) Cannabis Wholesale & Transportation – – – – – – – – ● ● ● – – – – – – – KEY: ● = Permitted ◓ = Permitted in Upper Stories Only ◐ = Limited to No More than 25% of Building Area ◑ = Limited on first floor to buildings on the interior of a block see 102-580 (d) ○ = Requires Conditional Use Approval – = Prohibited 3 SECTION 2. Article 5, Section 102-570 (b)(1)(a) is hereby amended by deleting the striken language and adding the double-underlined language, as follows: a. Cannabis and Hemp Retail. A cannabis retailer and the retail location(s) of a mezzobusiness with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, or lower potency hemp edible retailers, as defined under Minn. Stat. 342.01. Such uses are subject to the supplemental use regulations of 102-580(p). a. Cannabis and Hemp Retail. The cannabis and hemp retail use category includes sale-licensed uses involved in the retail sale of cannabis and hemp products. Such uses are subject to the supplemental use regulations of 102-580(p). The cannabis and hemp retail use category includes the following subcategories: 1. Cannabis Retail. A business with a cannabis retailer license, cannabis retail endorsement, or other approval from the Office of Cannabis Management. 2. Hemp Retail. A business licensed as a lower-potency hemp edible retailer by the Office of Cannabis Management. SECTION 3. Article 5, Section 102-580 (p)(1) is hereby amended by deleting the striken language and adding the double-underlined language, as follows: 102-580 (p) CANNABIS BUSINESS USES (1) Cannabis and Hemp Retail. Cannabis and Hemp Retail uses are subject to the following supplemental use regulations: a. Setbacks as established in City Code, section 10-653. b. Retailers are permitted to erect up to two fixed signs on the exterior of the building or property of the business, in compliance with the regulations of Article 10. c. Accessory Delivery of cannabis and cannabis products is allowed provided the business is licensed for such activity. d. An Accessory Lounge is allowed for a cannabis microbusiness business with an on-site consumption endorsement. An Accessory Lounge means a portion of the premise for consumption of edible cannabis products and lower-potency hemp edibles subject to the provisions of Minn. Stat. 342.28 subd 10. e. Requirements established in City Code, Chapter 11, Article XVIII. SECTION 4. Article 7, Section 102-750 (b)(4) is hereby amended by deleting the striken language and adding the double-underlined language, as follows: 4 (4) Visibility Through Glass. Reflective glass and glass block are prohibited on street and other front facades. Windows shall be clear or lightly tinted and meet the transmittance and reflectance factors established in the transparency definition (see 102-1620 (m)). Additionally, first floor windows on storefront type buildings must be free of obstruction for at least three feet into nonresidential spaces in the building. Products may be displayed in such windows, provided the display, including signage, does not occupy more than 30% of the window area. SECTION 5. 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 August 3, 2026, the Hopkins City Council adopted Ordinance 2026-1235 that amends Article 5 of the Hopkins Development Code to reclassify Cannabis Retail, Tobacco Sales Establishments, and Off-Sale Liquor Sales as conditional uses in the MX-D Zone. The amendment also modifies provisions related to Cannabis and Hemp Retail, and window transparency on Storefront Buildings. 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 6. EFFECTIVE DATE. The effective date of this ordinance shall be the date of publication. First Reading: July 14, 2026 Second Reading: August 3, 2026 Date of Publication: August 13, 2026 Date Ordinance Takes Effect: August 13, 2026 By: ____________________________ Patrick Hanlon, Mayor ATTEST: ______________________________ Amy Domeier, City Clerk CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2026-023 A RESOLUTION APPROVING A FIRST READING OF ORDINANCE 2026-1235 AMENDING THE HOPKINS DEVELOPMENT CODE TO RECLASSIFY CANNABIS AND HEMP SALES, OFF-SALE LIQUOR SALES, AND TOBACCO SALES ESTABLISHMENTS AS CONDITIONAL USES IN THE MX-D ZONE, AND AMEND PROVISIONS RELATED TO CANNABIS AND HEMP RETAIL USES AND WINDOW TRANSPARENCY WHEREAS, the Hopkins Development Code is intended to establish development regulations that implement the community vision and advance the goals and policies of the 2040 Comprehensive Plan – Cultivate Hopkins; and WHEREAS, the 2040 Comprehensive Plan establishes a vision for Downtown Hopkins as a vibrant, walkable, mixed-use district that serves as the economic, civic, and social center of the community and emphasizes pedestrian activity, high-quality storefront design, a diverse mix of businesses, and preservation of downtown character; and WHEREAS, the MX-D, Mixed-Use Downtown Center Zone was established to implement this vision by encouraging a pedestrian-oriented environment and a diverse mix of commercial, residential, civic, and cultural uses; and WHEREAS, Cannabis and Hemp Sales, Off-Sale Liquor Sales, and Tobacco Sales Establishments are currently listed as a permitted use in the MX-D, Mixed-Use Downtown Center Zone; and WHEREAS, City Staff, on behalf of the Planning and Zoning Commission, has drafted Ordinance 2026-1235, a Development Code Text Amendment to: 1. Reclassify Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops as conditional uses within the MX-D Zone; 2. Establish separate use classifications for Hemp Retail and Cannabis Retail; 3. Prohibit Cannabis Retail within the P2 (Public and Institutional) Zone while maintaining existing allowances for Hemp Retail; and 4. Amend storefront window transparency standards applicable to Storefront Building Types; and WHEREAS, the procedural history of the Development Code Text Amendment is as follows: 1. That the above stated Development Code Text Amendment was initiated by City Staff on behalf of the Planning and Zoning Commission; and, 2. That the Hopkins Planning & Zoning Commission, pursuant to published notice, held a public hearing on the application and reviewed such application on June 23, 2026 and all persons present were given an opportunity to be heard; and, 3. That written comments and analysis of City staff were considered; and, WHEREAS, staff recommended and the Planning and Zoning Commission recommended approval of the above stated application based on the analysis provided in the City Council Report 2026-072 dated July 14, 2026. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby recommends that the City Council approve a first reading of Ordinance 2026-1235 based upon the following findings: 1. The proposed zoning text amendment is in conformity with the Comprehensive Plan. The 2040 Comprehensive Plan identifies Downtown Hopkins as a vibrant, walkable, mixed-use center that serves as the economic, civic, and social heart of the community. The plan emphasizes maintaining an active pedestrian environment, supporting a diverse mix of businesses, preserving downtown character, and encouraging high-quality design. The MX-D Zone was established to implement this vision through pedestrian-oriented development standards and a mix of commercial, residential, civic, and cultural uses. The proposed amendment does not prohibit Cannabis Sales, Off-Sale Liquor Stores, or Tobacco Shops within the MX-D Zone. Rather, it establishes a Conditional Use Permit process that allows the City to evaluate individual proposals based on site-specific circumstances and their compatibility with surrounding uses and downtown objectives. The amendment also includes clear and objective storefront transparency standards intended to support an active and engaging pedestrian environment. The Ordinance amendment will further the goals and vision of the Comprehensive Plan and therefore meets this criterion. 2. The proposed zoning text amendment helps address a changed or changing condition. Since adoption of the 2022 Development Code, the City has experienced changes in the retail marketplace, including the legalization and regulation of adult-use cannabis sales in Minnesota and the emergence of new state- licensed retail business types. As these uses become established, the City has had an opportunity to evaluate how existing zoning regulations address their potential impacts and compatibility within Downtown Hopkins. The proposed amendment responds to these changing conditions by requiring a Conditional Use Permit for new Cannabis Sales, Off-Sale Liquor Stores, and Tobacco Shops within the MX-D Zone. This additional review process allows the City to evaluate site-specific factors such as location, operational characteristics, and compatibility with adjacent uses while ensuring consistency with the vision and goals of the 2040 Comprehensive Plan. The amendment also establishes storefront transparency standards for storefront buildings to promote active, pedestrian-oriented streetscapes and maintain the welcoming and vibrant character envisioned for Downtown Hopkins and other retail corridors. Staff finds that the proposed amendment will help address changing conditions affecting the downtown retail environment and therefore meets this criterion. 3. The proposed amendment promotes the public health, safety, and general welfare by providing additional review of certain regulated retail uses while supporting an active, pedestrian-oriented downtown environment consistent with the City's planning objectives. Adopted by the City Council of the City of Hopkins this 14th day of July, 2026. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk