Planning Commission recommends five-year interim permit for Smoky Oaks dispensary at 115 Lake Street North

Forest Lake City planning staff and residents heard public comment and technical review Wednesday before the Planning Commission voted to recommend that the City Council grant Smoky Oaks LLC an interim use permit to operate a retail cannabis shop at 115 Lake Street North for five years.

The staff presentation said the downtown mixed-use zoning permits retail cannabis if state-mandated buffer distances to other cannabis businesses are met and if the city issues an IUP. Abby, city planning staff, told the commission that "staff's recommendation tonight is that you recommend to the City Council the approval of draft resolution 09-22-25-01 which would grant an IUP to Smoky Oaks LLC for a retail cannabis at 115 Lake Street North for a period of 5 years." The recommendation includes 14 conditions detailed in the staff report.

The nut graf: The Planning Commission's recommendation asks the City Council to balance state licensing requirements, local land‑use rules and downtown pedestrian character. If the council approves the IUP, Smoky Oaks would proceed through building‑permit and city licensing steps and then apply for the state's final license before opening.

Planning staff summarized the proposal and outstanding issues. Abby said the proposed retail space would occupy the main level of a long‑vacant building on Lake Street North. Exterior changes described in the application are limited: an HVAC unit for odor control would be located on the building exterior with screening, and storefront windows would be frosted to comply with state rules that require products not be visible to the public. Staff also said the applicant proposed temporary rooftop banners and permanent signage; staff noted the city code does not allow roof signs and is working with the applicant to relocate permanent signage to comply with code and the IUP standards.

Abby also noted building requirements that will be enforced through the building permit process: accessibility (ADA) upgrades, life‑safety and other code items. She told the commission that the property has a lead/copper service line that must be replaced within a 10‑year timeline under the city/state replacement program and that staff wanted the owner and tenant to be aware of that when planning interior work.

On regulatory oversight, Abby explained the two‑step path the state and city use: state preapproval of plans, city land‑use entitlements (IUP and city license), then final state licensing. She said state law requires law‑enforcement inspections at least once a year after licensing and that the city license would trigger the operational inspection regime. Commissioner Susan asked whether the business would be inspected; Abby said annual inspections are a statutory requirement and that the city licensing conditions would address operational compliance.

Applicant comment: Scott Hansen, identified as a principal owner of Smoky Oaks, said he grew up in Forest Lake and described experience working in cannabis retail in other states. Hansen said he had sent updated signage options after earlier comments and that the applicant ‘‘is willing to work with you guys however we need to do to make it as safe and, you know, as compliant as possible.’’

Public comment: No members of the public addressed the commission during the Smoky Oaks public hearing.

Commission action and next steps: Chair Girard made the motion to recommend approval of draft resolution 09-22-25-01, subject to the 14 conditions in the staff report; a commissioner seconded the motion. The motion passed unanimously. Abby told the commission the item will go to the City Council for final action, tentatively on September 22.

Why it matters: The decision would allow a second retail cannabis outlet in the city if the council and the state licensing process both approve — affecting downtown commercial activity, storefront appearance, and local enforcement workload.

What's next: If the City Council approves the IUP, the applicant must obtain building permits, complete any required accessibility and life‑safety work, replace the service line within the stated program timetable if required, obtain a city license, and then secure final state licensing. The recommended IUP contains site‑specific conditions the council will review.