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PERHAM
— The Perham City Council approved its cannabis ordinance in a 4-1 vote during the meeting on Tuesday, Nov. 12.
Councilman Brien Meyer voted against it. He was contacted after the meeting and offered an opportunity to share the reason behind his opposition, but he declined.
Prior to the vote, the council held a public hearing on the cannabis ordinance, but no one spoke in favor or against it.
While the city’s cannabis ordinance was approved, the Otter Tail County Board could opt to flex its authority and require the city to abide by its ordinance instead.
Perham City Administrator Jon Smith explained that the state provided counties with authority over local municipalities when it came to the cannabis industry.
The
county’s proposed ordinance
outlines the time, place and manner a cannabis business could operate in Perham.
“Which would take away pretty much all of what we’re doing (in the ordinance),” Smith said. “But if they actually did that, then we would have some choices to make on whether or not we’re going to contest that authority.”
The
county’s proposed ordinance
is in line with the city ordinance with regard to the business being for those 21 years of age and older, and is close in regards to hours of operation. The county’s ordinance limits business hours from 10 a.m. to 9 p.m., whereas the city’s cannabis ordinance regulates hours from 9 a.m. to 10 p.m.
Smith said the hours in the city ordinance mirror those of other adult use establishments in city limits.
The notable difference between the two ordinances comes down to where cannabis-related businesses may operate. The county requires them to be at least 1,000 feet away from educational institutions and 500 feet from other cannabis businesses, residential treatment facilities, group homes, halfway houses, parks or trails and other public amenities used by minors.
At Perham City Council’s
Committee of the Whole meeting on Wednesday, Oct. 30
, Smith explained the county’s location regulations would reduce the viable lots to about 10 in the city.
The city ordinance limits cannabis retail shops to be at least 500 feet from a school or school athletic facility and 300 feet from a residential treatment facility or other cannabis related business.
The city ordinance also regulates where a cannabis business is allowed:
Retail cannabis businesses are allowed in the downtown commercial district, as well as the districts designated for service commercial and highway commercial.Cultivation facilities are limited to districts designated open or industrial, while manufacturers and wholesalers can be in light industrial and industrial districts.
At the council meeting, Smith said he did not expect the county commissioners to supersede local municipality authority, as long as a city has an ordinance in place.
The county is also set to review its cannabis ordinance on Wednesday, Nov. 20, at 6 p.m. at 515 West Fir Ave., Fergus Falls. The meeting will be aired on the county’s YouTube channel,
www.youtube.com/OtterTailCountyMN.
The city ordinance requires cannabis businesses to obtain a license from the state, as well as a registration from the city of Perham. The initial registration fee would be non-refundable once it is processed, and cannot exceed $500, or half the amount of the initial state license fee.
The state initial license fees vary. A transporter’s initial fee is $500, whereas cannabis retailers see an initial fee from the state of $2,500, a wholesaler is $5,000 and cultivator $20,000. A full list can be found
here.
“They (the State) had some statutory limits on the amount that we can charge with that,” Smith said, noting the council will review the proposed addition to the city’s fee schedule during the first council meeting of 2025. “They haven’t offered us licenses yet, so the fee schedule hasn’t been a high priority until we adopt the ordinance.”
Once a business owner has obtained the state licensure and registration fee from the city of Perham, the application would be reviewed. If complete, the application would be sent to the city council for consideration.
If approved, the business would have to follow the regulations set in the city ordinance, and obtain an annual registration renewal. The ordinance notes that renewal fees are not to exceed $1,000, or half the amount of the state’s renewal fee.
The ordinance also outlines fines for failure to obtain a registration or violating the ordinance.
Smith was asked if the ordinance impacts businesses currently selling low-dose hemp products. He explained the higher potency cannabis products have more regulations, and added that the city does have regulations for the businesses selling hemp or low dose THC products as well, which are also outlined in the ordinance.
“}]] Perham’s cannabis business ordinance is at odds with Otter Tail County’s proposed ordinance. The county’s ordinance would limit the location of cannabis related businesses to about 10 sites. Read More
