Council sets public hearing, invites county attorney and directs outreach on cannabis ordinance

Virginia City councilors spent extended time Jan. 7 vetting a draft adult-use cannabis ordinance, agreed to hold a public hearing next Tuesday and directed staff to expand outreach and bring a county attorney to the hearing to explain state rules and enforcement.

Lede/action: Councillor Paulson moved and the council approved a motion directing staff to invite the St. Louis County assistant county attorney to the public hearing and to notify businesses in potentially affected zoning districts; both motions passed by voice votes.

Nut graf: Councilors debated several land-use and regulatory issues: buffer distances (500 vs. 1,000 feet from schools, child-care and public parks), whether to limit the downtown (B1) central business district to a single municipal license, hours of operation, the treatment of low-potency hemp products versus state-licensed cannabis retail, and local tax implications.

Discussion highlights: Planning and zoning commissioner Jacob Littler told councilors the planning commission recommended allowing one municipal license in the downtown central business district and limiting private retail there; Littler also said low-potency hemp products currently on the market are regulated differently and are separate from OCM-licensed cannabis retail. Legal counsel and staff noted HF100 and related state changes have altered moratoria and licensing rules; Jenny (planning staff) confirmed many moratoria were superseded and that OCM will re-open application processes (staff and commissioners referenced a Feb. 18 notice for re-opened applications).

Buffers, zoning and grandfathering: Councilors discussed using 500 or 1,000-foot buffers; staff and counsel noted municipalities can set buffer distances (the packet included options) but must consider state limits and grandfathering of existing uses. Councilors asked about on-site consumption, hours of operation and whether municipal licensing must be paired with at least one private license under recent state adjustments.

Taxation and revenue: Councillor Johnson noted state guidance that tax revenues from cannabis are deposited with 80% to general fund and 20% to local government cannabis aid and that cannabis sales are subject to state and local sales taxes; councilors discussed municipal revenue potential and enforcement costs.

Outcome and next steps: Council authorized staff to notify businesses in affected zoning districts about the public hearing, invited the St. Louis County assistant county attorney to present at the hearing, and scheduled the public hearing for next Tuesday. Staff emphasized that zoning should be set before licenses are issued so the city can control where retail may locate.

Ending: The council left the draft ordinance in committee review pending public input, county attorney guidance, and further zoning refinements.