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Committee votes to pursue ordinance extending dispensary moratorium through year end
Summary
With state rules on dispensary excise and revenue-sharing still unsettled, the committee directed staff to draft an ordinance extending the local moratorium on cannabis dispensaries through Dec. 31 so zoning can be prepared once state actions are finalized.
Scott briefed the Development Committee on the city's existing moratorium on dispensaries, which is set to expire in early July. He said pending state legislation and budget actions could alter excise rates and where excise revenue is directed; under current law a 10% excise could be split with approximately one-third returning to the host municipality, but proposed changes could redirect or increase the excise and change whether funds return to the host city.
Committee members expressed concern about allowing the moratorium to lapse before the state finalizes how dispensary excise proceeds will be handled and before local zoning could be written. One member observed that if the moratorium lapses while staff are still drafting zoning, a dispensary application could arrive before the city has appropriate regulations in place. Another member noted that the moratorium can later be canceled if the state outcome is clear.
After discussion a committee member moved that staff prepare an ordinance to extend the dispensary moratorium until Dec. 31 to allow time to review final state budget language and draft local zoning. The motion was seconded and the committee recorded affirmative votes; the committee instructed staff to prepare the ordinance for council consideration.
The committee did not adopt a final zoning ordinance for dispensaries at the meeting; the action was to pursue an extension of the moratorium and prepare code language for council review once state rules are known.
