Council adopts cannabis zoning changes; limits standalone retail in industrial zones

The Dayton City Council voted unanimously on Jan. 14 to amend local zoning rules for adult-use and other state-authorized cannabis businesses.

Planning staff told the council the state legalized adult-use cannabis in 2023 and the Office of Cannabis Management will verify site-level compliance with local zoning. Under state law, cities may regulate time, place and manner for cannabis businesses. The council adopted a draft that generally mirrors rules the city uses for tobacco and liquor retail: retail cannabis is permitted in commercial zoning districts where similar retail is already allowed, and retail activity must be conducted inside a building.

At the planning commission level staff initially proposed allowing standalone retail in the I-1 industrial district; planning commissioners later recommended changing that. Council amended the draft to remove a standalone-retail allowance in the I-1 district so that retail-only cannabis shops would not be a permitted principal use in industrial zones. The ordinance retains conditional-use review for locations in the city’s GMU-4 area, consistent with current treatment of liquor and tobacco in that district.

Staff noted more specialized cannabis uses such as microbusinesses or mixed production/retail operations (manufacturing plus a retail component) may still be located in industrial areas if they meet the ordinance definitions and applicable performance standards. The council’s motion instructs staff to treat cannabis retail much the same as liquor and tobacco retail in Dayton.

The council vote was 5-0 in favor.