NEW ULM – The New Ulm City Council approved first consideration of the cannabis zoning ordinance Tuesday.

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 zoning ordinance includes buffer zones prohibiting a cannabis business within 1,000 feet of a school or 500 feet of a day care, residential treatment facility or public park. The zoning also establishes which types of districts permitted different types of cannabis businesses.

City Planner John Knisley said the cannabis ordinance was written similar to ordinances already in the city code. The different types of cannabis businesses uses match the regulations established for breweries, bars, brew pubs, distilleries and micro distilleries.

Cannabis retail will be 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 manufacturing, testing, transportation, wholesale and hemp manufacturers would be permitted in I-1 and I-2 districts.

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

Before a city can permit a cannabis business, the business must first receive a license from the State of Minnesota. Before the business can apply for a license with the state, they must conduct a zoning verification check with the city they intend to operate.

“That’s another layer of checks before any type of license is issued,” Knisley said.

Staff received no emails or phone calls regarding the cannabis zoning amendment. Knisley said one proposed cannabis business contacted the city and provided helpful information on the licensing process in Minnesota.

New Ulm has worked with city attorneys at Flaherty & Hood to draft the ordinance. Associate Attorney, Morgan Azbill said, as written, the ordinance fits the city’s requirements.

“The most important thing is getting something on the books for now,” Azbill said. “We’re going to continue getting guidance from the Office of Cannabis Management, which may require updates down the line. I think this ordinance is perfectly crafted for the city and meets all requirements.”

City Councilor Eric Warmka praised city staff for their work on the amendment and said he received no calls concerning the ordinance. Warmka asked if on the licensing side of regulations, the city still intended to permit two or three cannabis licenses.

The council previously discussed how many cannabis permits should initially be approved in New Ulm. State law requires at least one cannabis license be granted for every 12,500 people in a community. Since New Ulm’s population is 14,000 the city must grant at least one cannabis sales license, but could allow more. The council were considering two or three licenses.

City Manager Chris Dalton said the council would be able to formally decide on how many licenses to allow next month. Staff plans to bring a draft ordinance on cannabis licensing before the council during either the first or second meeting in March.

Council President Andrea Boettger said City Councilors David Christian and Tom Schmitz were absent from the meeting, but this was only the first reading of the zoning amendment and she supported moving forward with it.

Councilor Larry Mack said based on the zoning map created by staff, there were multiple areas for a cannabis business to operate in New Ulm, including a portion of downtown. He had no issues with amendment and made the motion to approve the first consideration. With a second from Warmka, it was passed by the three councilors present.

The second consideration of the amendment will come before the council Tuesday, March 4.