Forest Lake, MN — The City Council on Monday paused consideration of an interim use permit (IUP) for a proposed cannabis retailer, Forest Lake Cannabis, following an extended staff presentation and council questions about license type and zoning limits.

City planner Abby told the council the applicant, Budding Measure Movement LLC, is seeking a micro business license from the state for a retail operation at 1467 Lake Street South and that the city’s zoning code currently bars micro businesses within 250 feet of residential properties. “This is the third interim use permit of this nature,” Abby said, explaining that staff and the planning commission had recommended conditional approval while also proposing changes to code language that references specific state license types.

Council members pressed staff and the city attorney for clarity on several points: restroom access for the public, parking availability in the multi‑tenant plaza, odor mitigation and how the city would enforce limits if a micro business license allowed cultivation or manufacturing later. City attorney Amanda summarized the uncertainty the city faces when license types and local land‑use authority interact: “The answer is it depends,” she said, noting she had tried to contact the Office of Cannabis Management (OCM) but had received no response to date.

Jamie White, speaking as the applicant's consultant, told the council the proposed operation would be retail sales only and involve approximately 2,100 square feet of interior space; he said no on‑site cultivation, manufacturing or processing was planned. “No cultivation, manufacturing, processing, or production activities are proposed or will occur on‑site,” White said, adding the applicant accepts city review of odor controls as a condition.

Legal staff warned that approving an IUP today without code changes could create a mismatch between the city’s use authorization and a state micro business license that, in practice, allows broader activities. Amanda said the city can suspend a local registration for up to 30 days but that ultimate enforcement or deference by the OCM is unclear.

Council Member Miller moved to table the item so staff could pursue an OCM legal opinion and return with proposed ordinance amendments clarifying buffer requirements and removing direct references to state license names from the local code. The motion was seconded and passed by voice vote.

Next steps: staff will continue outreach to the state OCM, pursue recommended code language updates with the planning commission and return to council with a clearer enforcement pathway before final action on this IUP.