Omaha staff outline zoning plan for medical cannabis ahead of Oct. 1 state rollout

The Omaha City Council held a public hearing on an ordinance that would create a new chapter in the Omaha Municipal Code specifying zoning classifications for medical-cannabis businesses permitted under recently passed Nebraska law.

City Law Department attorneys told the council the ordinance does not regulate whether medical cannabis is legal — that authority rests with the state — but would define where the four use types expected under state rules could operate in Omaha. David Grama of the City Law Department summarized the proposal: "All this ordinance is doing is the council is saying where in the city can these establishments be located," he said, describing four categories identified by state statute and emergency regulations: dispensaries, cultivators, product manufacturers and transporters.

Planning staff explained how the use types would map to existing zoning categories. A planning official described dispensaries as "general retail sales," cultivators as either an indoor commercial farm or, for large outdoor operations, an agricultural district, product manufacturers as "light industry," and transporters as warehousing and distribution. The law and planning departments said they had tried to fit the new use types within chapter 55 (the city's zoning code) rather than change the zoning code itself. The presenters also said the ordinance would include provisions such as hours of operation and enforcement mechanisms to allow code enforcement to address illegal operations.

Attorneys noted that the state is still finalizing emergency regulations and that the city's ordinance might be revised if the state's rules change. "If anything changes on the state side... we'll reevaluate and see if we need to change things," Grama said.

Public comment included a mix of residents seeking clarification and a few speakers expressing concern about how many licenses the state will authorize and where facilities might locate. Donnie R. Johnson of local community groups asked whether cultivators could operate on vacant Benson golf-course land if other revenue-generating uses were not feasible.

Councilmembers asked staff to confirm that the ordinance preserves the city's zoning structure and gives the city flexibility to revise rules if state regulations change. Councilmember Festersen described the city action as "the practical thing to do prior to Oct. 1" and said the measure was necessary regardless of personal views about medical cannabis.

No final vote was taken at the public hearing. Staff said they will return with any technical edits needed after the state finalizes permanent rules and the council will take up the ordinance for a vote at a future meeting.