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The Austin City Council, with a vote of 4-0 on Monday night, moved a cannabis and cannabis management ordinance out of work session to be voted on at the next meeting.

Three council members were not in attendance.

The ordinance lays the groundwork for where cannabis can be used as well as where businesses can be set up within the city of Austin as well as the permitting structure. City Attorney Craig Byram, in going over the ordinance with council members, said the structure of the ordinance follows closely a template provided by the Minnesota Office of Cannabis Management as well as the city’s existing ordinance on alcohol and smoking.

The ordinance also works with the state’s ruling that the city cannot limit licenses below one retail business for every 12,500 citizens. In Austin, that would result in a minimum of three retail businesses within the community.

It does not state that other areas of the industry including transportation of and manufacturing of cannabis products have the same restrictions.

Retail businesses were zoned commercial and would fit in places like the Oakland Avenue West and 18th Avenue NW corridors as well as downtown Austin. Cannabis growing operations, manufacturing, wholesalers, warehousing and trucking would be designated for industrial districts. 

The city also has discretion in terms of where cannabis businesses can be set up and follows through with the council’s wishes not to establish setbacks from places like schools and daycares.

“The driving reason behind this is that if you do a certain number of feet, say from Austin High School, it would take out some crucial development areas,” Byram said. “A lot of cities are doing setbacks, but our understanding is we decided not to do that.”

“It’s consistent with tobacco and alcohol,” Byram added.

Also part of the ordinance is the establishment of city fees being coat-tailed onto state fee structuring meaning that it will always be half of what the state charges.

While the city’s ordinance establishes where cannabis-related businesses can be set up and fee rates, it also establishes where it can be used. Like tobacco regulations, cannabis will not be allowed in public places.

This would apply to anybody looking for a temporary event license to hold events like a festival. 

“No such events will be permitted in any city owned park, recreation area or facility, or in or on any city owned property,” the ordinance reads.

Hours of operation for on-sale consumption will not be allowed between 1-8 a.m. while hours for operation for off-sale consumption is limited to between 8 a.m. and 10 p.m. as well no sales on Thanksgiving Day, Christmas Day or after 8 p.m. on Christmas Eve.

The council will vote on the ordinance during its Dec. 2 meeting and will be posted both on the city website at: https://www.ci.austin.mn.us/city-council/new-ordinances as well as being posted at City Hall for anyone to view.