“The state does say the bar can do that on sale. The state allows that. I would propose we follow that guideline with the state and allow that product to be sold,”

Lisa Leifield, Ward 3 City Council Member

The city passed licensing and zoning ordinances and a fee schedule for businesses selling the cannabinoid edibles. Sales of the edibles at up to 5mg per serving and 50 mg per package were allowed by state law last year.

After lengthy discussion, the Hastings City Council on Monday, March 20 approved ordinances that will govern how and where products containing cannabis can be sold in the city.

The city passed licensing and zoning ordinances and a fee schedule for businesses selling the cannabinoid edibles. Sales of the edibles at up to 5mg per serving and 50 mg per package were allowed by state law last year.

Several Hastings businesses started selling the product, and the city council put a moratorium in place to keep additional businesses from offering the product until ordinances were put in place. That moratorium was set to expire this month. The new rules will take affect July 1 to allow city departments time to prepare applications.

The zoning ordinance allows for sales of the product in C-3 and C-4 shopping district areas. The zoning also allows for a district where it could be manufactured and another where it could be grown on a tract of at least 100 acres zoned agricultural.

The retail sales prohibit purchase to anyone under 21, and clerk must be at least 21 to sell the product. Sales would be between 8 a.m. and 10 p.m., and the cannabinoid product must be behind a counter. The business must have a security plan approved by the police chief, and the retailers would undergo compliance checks, similar to alcohol and tobacco outlets.

Sales would not be allowed at liquor stores or bars. An amendment to the motion to approve the ordinances to allow THC-infused beverages to be sold at bars tied 3-3 at the council, so it died.

A lot of the licensing regulations are still an unknown, because the Minnesota Legislature is also drafting bills on THC products that would supersede some local actions.

“I would say we move forward with adoption of the two ordinances. We don’t know for sure what the legislature is going to do,” said City Attorney Korine Land. “Why not adopt this and see what happens?”

She said starting July 1 gives the city and retailers some time.

“We thought we better have an education time period,” she said. “They might decide it’s not worth it.”

The city will also know the direction the legislature takes by then.

“By then, we can pivot if we need to,” she said.

The city license fee was set at $8,000 by the council for retailers wishing to sell the cannabinoid products. The proposal was for a $10,000 fee, as Cottage Grove and Woodbury have set.

“I’m on the (city council’s) Public Service Committee. We had extensive conversation about this. $10,000 is inhibitive to the people who are interested in being retailers,” said Jen Fox. “Today, I would like to make a motion to approve this at $8,000 as a slight amendment. I think that’s still high. It’s still within the ballpark of some of the communities we’re around. It may be a little more attainable for some retailers.

The city’s retail liquor license fee is $4,200 annually.

Leifeld advocated for bars to be able to sell the THC beverages.

“The state does say the bar can do that on sale. The state allows that. I would propose we follow that guideline with the state and allow that product to be sold,” said Leifeld.

Councilmember Trevor Lund said the city should move slow, and the bars could be added a later date if necessary.

“My opinion is baby steps,” he said.

Councilmember Dave Pemble and Mayor Mary Fasbender agreed.

“In six weeks, there may be something completely different that finishes out in the legislature this year. I’m looking at the time and effort that staff and yourself (Land) have put into this. Do we really want to tweak something before the legislature has finished with their recommendations or set it in law? I would rather see us adopt both of these as written at this time and wait for the legislature,” he said.

“I’m cautious. I want to be cautious,” she said.

Leifeld said it could be a boost to local businesses.

“We have some really fine restaurants and bars in this town that are playing by the rules, following the laws. This is another revenue stream for them,” she said.

Leifeld, Fox and Angie Haus supported the amendment letting bars sell the THC beverages. Fasbender, Lund and Pemble voted against it. Councilmember Tina Folch was absent from the meeting. The council then voted unanimously on the ordinance proposals as initially presented.