Dayton council moratorium explained to EDA as cities await state rules

City staff told the Dayton Economic Development Authority that the City Council has enacted a moratorium on establishment of city‑licensed cannabis cultivation and related businesses while the city drafts zoning and registration procedures. The moratorium was described as in effect through Jan. 1 and intended to prevent early, potentially nonconforming uses before local rules are established.

An experienced practitioner briefed members on the regulatory distinctions: hemp‑derived THC products are treated differently under federal law than cannabis, which remains illegal at the federal level and cannot be transported across state lines. The speaker said the moratorium helps avoid situations in which a grower obtains an early license and later claims a legal nonconforming use.

"The moratorium is so that there isn't somebody who sort of sneaks in under the radar before the city's rules are in place," the speaker said, describing why many cities adopt the pause while they finalize zoning, conditional‑use frameworks, or registration processes.

Members also discussed a proposed city fee schedule. One member raised that the city fee for a cannabis license was set at about $3,000 and suggested that fee levels may not be aligned with analogous fees (for example, liquor licenses) and that stakeholders should comment on the fee schedule during its rule‑making period. Staff said the state will limit the number of licenses, so the local market may be more constrained than anticipated.

Next steps: Council and staff will continue drafting local rules; interested parties were invited to review and comment on the proposed fee schedule.