The ordinance specifically amends city code establishing zoning district and standards for cannabis and hemp businesses. The new regulations detail where and what type of cannabis businesses operate in New Ulm.

The greatest restriction in the zoning amendment were the buffer zones. Minnesota has buffer guidelines for zoning, prohibiting a cannabis business within 1,000 feet of a school or 500 feet of a day care, residential treatment facility or public park. Guidelines can be reduced by a city, but cannot be expanded. New Ulm staff decided to keep the maximum buffer standard for the city.

With buffers in place, most of New Ulm is blocked from operating cannabis businesses, but there are commercial districts on the northwest and southeast out of the buffer zones. There are a few industrial section on the east side of New Ulm.

Downtown New Ulm is mostly located in a buffer zone due to proximity to German Park and Kiesling Park, however a portion of downtown near the intersection of Center and Minnesota Street is outside of the buffer.

Glenn Hauser (left) and his business partner Todd Christiansen (right) stand outside the City Hall Chambers following the Planning Commission’s public hearing for the cannabis zoning ordinance. Hauser and Christiansen are planning to start a cannabis retail business in New Ulm once the proper zoning and licensing regulations are in place. The two are also working with Sarah Christiansen and Tad Ulrich. Hauser said he was happy with the Planning Commission decision and was happy to answer questions about the cannabis business. Photo by Clay Schuldt

In addition to the buffer zones, the amendment established which types of districts permitted different types of cannabis businesses. Cannabis retail as a permitted use in most business districts including the General Business District (B-2), Community Business District (B-3) and Central Business District (B-4).

The amendment would also allow cannabis retail with a Conditional Use Permit (CUP) in the planned industrial (I-1) and general industrial (I-2) districts. Cannabis delivery, cannabis manufacturer, testing, transportation, wholesale and hemp manufacturers would be permitted in I-1 and I-2 districts.

Cannabis cultivation would only be permitted in agricultural use districts (AOS).

Cannabis retail was excluded as a permitted use from the B-1 district because this was considered transitional zoning. City Planner John Knisley said the B-1 districts abut residential districts and the staff wanted to avoid placing cannabis retail next to homes.

During the public hearing, there was some concern from commissioners that the cannabis zoning was too restrictive compared to alcohol sales.

The color areas on the map of New Ulm are the areas where cannabis based businesses could be allowed. The New Ulm Planning Commission approved a zoning amendment allowed cannabis and hemp businesses, but established buffer zones where the businesses cannot operate. In New Ulm, marijuana retail businesses will be prevented from operating with 1,000 feet of a school and 500 feet from a day cares and public parks. This limits potential cannabis businesses to the extreme edges of town and a small section of the downtown. Submitted photo

Commissioner Anne Earl asked for clarification on the laws. She said currently all local bars are allowed to sell cannabis enhanced beverages.

“Why are we putting everyone else through the wringer, but the bars are free to do what they want?” She asked.

Her question was answered by Glenn Hauser, a Lafayette resident who is planning to open a cannabis retail business in New Ulm.

Hauser said bars and other establishments were able to sell some cannabis products due to a legal loophole. There are other cannabis products being sold legally and many gas stations and grocery stores, but these are derived from hemp.

“Hemp is federally legal,” Hauser said. “It’s just the amount of THC in the plant.”

These hemp based products that are already sold in New Ulm have a lower THC level than the cannabis products.

“So it is the 3.2 of cannabis?” Earl asked.

“Essentially, yes,” Hauser said. “You just have to use more of it.”

Earl was concerned the lower THC hemp products were being too loosely monitored

Hauser said every batch of hemp and cannabis is tested through the state to ensure products are safe. There are licensed testing products in place.

Earl asked staff if there were any objections to allowing cannabis retail in any area where alcohol retail was already allowed. She wanted to make sure cannabis was not being held to a higher standard than alcohol.

Commissioner Bobbi Fuhr agreed. She believed cannabis was on the same level as alcohol and should be treated to similar standards.

Knisley said in general, staff tried to follow the same zoning standards for cannabis as they would for alcohol. The city does not permit bars in B-1 districts. In addition, alcohol sales require a CUP in I-1 and I-2 district. This was the same requirement for cannabis retail in the industrial districts.

In drafting this zoning ordinance for New Ulm, city staff looked at Owatonna, Marshall, North Mankato and Albert Lea cannabis zoning for comparisons.

“Generally speaking, the zoning provisions we are proposing follow in line with those other communities,” Knisley said. “I would note that some of them are even more lenient than what we are proposing.”

For most of the other cities they looked at, retail cannabis sales were simply permitted. Only North Mankato required a CUP for its downtown area.

Fuhr said based on this information she believed New Ulm’s cannabis zoning ordinance was a reasonable amendment.

Earl made the motion to approve the amendment to zoning with a second from Fuhr. It was unanimously approved by the commission.

This is the first part of the ordinance amendment process. This recommendation will go to the city council next Tuesday, Feb. 18 for the first reading. The second reading will be held at the next council meeting in March. After a second reading, there is a 30 day comment period. If major changes are sought by the public, it could come back to the council for another review. If not, the zoning amendment becomes law.

This amendment only impacts the zoning. The actual licensing of cannabis business and the number of licenses allowed in New Ulm will be determined by the city council at a different date. The council have previously discussed allowing at least two cannabis retail licenses.

Following the planning commissions recommendation approving the zoning amendment, Hauser said he was happy with the decision. He was also happy to provide further information to the city on his proposed business.

“There is a lot to educate people on,” he said. “We’re going into a new era. This is new to us too.”

Hauser said he and his business partners will be putting in their licensing application to the state Tuesday, Feb. 18.

Hauser said he and his business partners are still looking for a place in New Ulm to open a business. Products sold at the business would be cultivated outside New Ulm near Lafayette.