Planning Commission approves conditional-use permit for indoor marijuana cultivation in Midway Placer

The Fairbanks North Star Borough Planning Commission on Feb. 10 voted 8–0 to approve CU2026-001, a conditional-use permit for an indoor large marijuana cultivation facility operated by Pagan Enterprises at Building 2, 2835 Old Fairbanks Highway.

Jimmy Dixon, the borough planner who presented the staff report, said the facility holds a valid Alaska Marijuana Control Office (AMCO) license and has been operating for about four years. Dixon told the commission the land-use permit did not accompany the original state licensing process because the application “was sent to the mayor’s office and... never went to the assembly” for its review, describing the lapse as an administrative routing error. He recommended approval with four conditions, including maintenance of odor filtration systems, unobstructed emergency vehicle access, compliance with state fire and life-safety plan review, and submission of revised documents if site or floor plans change. “Staff recommends approval with 4 conditions,” Dixon said.

Attorney Jana Weltzien, representing Pagan Enterprises, apologized to the commission and said the applicant has cooperated with staff. “I apologize that this fell through the cracks in 2022,” she said, adding that a full state plan review had been completed in 2022 and that the business had no notices of violation. The applicant, Steven Pegg, described odor-control measures: “Each room has a charcoal filter in it... every single room is getting filtered through a charcoal filter before it exhausts the building.”

Commissioners questioned odor mitigation, security, waste handling and whether any customers or retail activity would be associated with the site; staff and the applicant said the use is cultivation only, not retail, waste is processed (chopped, mixed and bagged) and placed in a locked receptacle for monthly pickup, and no detectable odor was noted during the staff site visit. Kellen Skillman, Community Planning Director, noted that AMCO (the state regulator) enforces the rule that odor not be perceptible at the property line.

Commissioner Corinne Fisher moved to approve the conditional-use permit, adopting the staff report and three findings of fact; the motion was seconded and passed by roll call 8–0. The decision may be appealed to the Board of Adjustment by filing a notice of appeal, appeal fee and cost bond with the borough clerk no later than 15 days after notification of the decision.

The permit approval includes the four staff conditions and a requirement that any modifications to the submitted site, floor or narrative plans be resubmitted to the FNSB Community Planning Department.