Fergus Falls planning commission recommends approval of two cannabis retail interim use permits

The Fergus Falls City Planning Commission on a unanimous-when-voting recommendation moved both applications for interim use permits for cannabis retail sales to the city council, with one commissioner recording an abstention. The applications were for Sugar High Cannabis Consulting LLC to locate at 112 Washington Avenue East and for Elevate Cannabis Dispensary LLC to operate at 214 Lincoln Avenue West.

Planning staff member Clara Beck opened both hearings and said the permits are sought under the city’s interim use permit process after changes at the state level allow municipalities to permit adult-use cannabis businesses. Beck told the commission that the city code allows up to two cannabis businesses and that the commission’s role is advisory: the planning commission’s recommendation will go to the city council, which has the final decision.

Beck said staff applied the same review framework used for conditional-use permits and found both proposals met the required findings, including that the uses would not “be detrimental or endanger the public health, safety, or general welfare” and that operations would be harmonious with the B-3 commercial zoning. She noted in both cases the applicants propose only interior renovations and no on-site consumption or manufacturing. "This would be cannabis retail sales. This would not include on-site consumption or manufacturing," Beck said.

On the Sugar High application, Beck said the proposed site at 112 Washington Avenue East is in a B-3 district surrounded mostly by other commercial uses; the building contains three licensed rental apartments on upper floors. A member of the public, Grant Davenport of 114 East Washington, asked about the five-year term of an interim use permit and what happens after that period. Beck replied that "they would have to reapply" and that the permit "will expire no more than 5 years from the date of city council approval or on an earlier date or event as specified in any permit conditions." A building owner in the audience confirmed exterior changes were not proposed beyond lighter signage and interior improvements.

For Elevate Cannabis Dispensary LLC at 214 Lincoln Avenue West, Beck said the business is already operating at that location and that staff again found the required criteria met. She said the business indicated in its application that it plans to engage in outreach and education to address community concerns. Beck repeated the five-year interim definition for that application as well.

Commissioners asked procedural questions about hours of operation, licensing and the difference between conditional-use and interim-use permits. Beck and others clarified that city code sets local hours (not state law), that Fergus Falls has limited operations to 9 a.m. to 9 p.m., and that the zoning approval (interim use permit) is separate from any merchant licensing or registration the city may require as a second step.

Votes at a glance

- Application 2020-5-1 (Sugar High Cannabis Consulting LLC, 112 Washington Ave. E.): Motion to approve with no conditions and findings of fact as listed in the staff report; recommended to city council (approved; commission vote recorded with an abstention).

- Application 2020-5-2 (Elevate Cannabis Dispensary LLC, 214 Lincoln Ave. W.): Motion to approve with no conditions and findings of fact as listed in the staff report; recommended to city council (approved; commission vote recorded with an abstention).

Both staff reports recommended approval without added conditions, with the rationale that state and local regulations and building-code review would govern safe operation. Planning commission member Mark Layton (a city council member sitting in the audience) and other participants were reminded that the city council may impose conditions, deny, or approve the permits when it considers the applications.

The planning commission closed both public hearings, approved the staff findings and forwarded both interim use permit recommendations to the city council. The two permits, if approved by the council, would be limited to a maximum five-year interim term; applicants would need to reapply or seek a different zoning approval after that period. The commission adjourned after the second vote.