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Home My WebLink About2024-01-16 CC MIN216 4th Street N, Stillwater, MN 55082 651-430-8800 www.stillwatermn.gov CITY COUNCIL MEETING MINUTES January 16, 2024 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent:None Staff present: City Administrator Kohlmann City Attorney Land Community Development Director Gladhill Finance Director Provos Fire Chief Glaser Police Chief Mueller Public Works Director Sanders PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. RECOGNITIONS OR PRESENTATIONS 2023 Reserve Officer of the Year, Benjamin Sullivan Police Chief Mueller recognized Officer Sullivan, in his ninth year as a Reserve Officer. OPEN FORUM Dale Tennison, 911 Abbott Street, addressed the need for cleanup in certain areas of the City. STAFF REPORTS Public Works Director Sanders reported that buckthorn was removed at Lumberjack Landing; and the feasibility study and public hearing for the 2024 Street Improvement Project will be at the next meeting. Police Chief Mueller gave updates on personnel and legislative items, including school resource officers and extreme risk protection orders. Fire Chief Glaser reported on World Snow Sculpting Championship events; stated the blood drive had 34 donors; gave fire safety tips; and urged people to stay off the river. Finance Director Provos acknowledged a Certificate of Achievement for Excellence in Financial Reporting for 2022. Community Development Director Gladhill gave parking reminders and summarized Department activities. cStillwater ~~ ......, ' The Birthplace of Minnesota J City Council Meeting January 16, 2024 Page 2 of 4 City Administrator Kohlmann reminded the Council of a Senate Committee meeting January 17; gave a Downtown Service District Board update; and commended staff on training on the new ERP software. CONSENT AGENDA January 2, 2024 Workshop and Regular Meeting Minutes Payment of Bills 5th Street City Garage Project Agreements Drainage and Utility Easement for 1395 Curve Crest Blvd Solid Waste, Recycling and Roll-off Hauler License Renewals for 2024 St. Croix Rec Center Freon Purchase Request Short Term Home Rental License Washington County Household Hazardous Waste Day License Agreement to Use Lily Lake Park Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS CBD Establishment License Renewals for 2024 City Attorney Land reviewed the process the City went through to enact CBD-related ordinances. She explained that renewal applications for CBD (cannabinoid) Retail Establishment licenses were received for the following businesses: Stillwater Smoke Shop Plus, Stillwater Tobacco, and CBD House. She explained in detail the licensing violations, zoning issues, state law violations and compliance check violations. She stated that the City Attorney’s Office is not comfortable renewing any of the CBD retail licenses, and has provided sufficient documentation, in a 67-page report, to deny all three of the renewal applications. A moratorium is in place so no other business can apply for these licenses. The State will have its Office of Cannabis Management (OCM) up in 2025 and businesses could re-apply at that time. Mayor Kozlowski stated the City received an email at 6:30 tonight from the CBD House proprietor clarifying his commitment to abiding by the regulations and stating it is legal to ship CBD products. City Attorney Land stated that the City regulates it and does not allow offsite delivery in order that the age of the purchaser can be verified. Councilmember Junker commented the sale to someone under 21 is inexcusable. Tommy Andreen, CBD House, stated that City Attorney Land does not understand the definition of CBD - it means cannabidiol, which is a non-psychoactive anti-inflammatory, not City Council Meeting January 16, 2024 Page 3 of 4 cannabinoid. He stated he is a legal expert on cannabis paid by the State of Minnesota to testify on the topic. The City Attorney should use an expert to write the law properly. Councilmember Junker asked Mr. Andreen if he has a license to manufacture product in Stillwater, and Mr. Andreen replied no, but when he got his license initially, City inspectors saw his microwave and hotplate and knew that he was manufacturing. He is being harassed, alienated, and pushed out of the community. CBD House did not sell THC products to someone under 21. The CBD honey says zero THC right on the packaging. Councilmember Odebrecht stated that the City purposely did not zone the downtown for cannabis sales. He asked what Mr. Andreen’s future business plan is. Mr. Andreen stated he has invested $70,000 into development and design of a state of the art cannabis manufacturing facility in the industrial park where passersby will get no scent of cannabis. He was going to present his plan to the City in three weeks. His general revenue is going to be $30 million the first year. He wants to create a valuable business for the City. Mayor Kozlowski remarked he can entertain Mr. Andreen’s passion for the industry and his business. No one is trying to run his business out of town. He is disappointed but not surprised about the compliance check failures. He would like to do this in a way that does not permanently shut the door on any of these businesses. Mr. Andreen stated the law states if his license is denied or revoked by any City, he will never get a license from the OCM, so his future in the industry is in jeopardy. City Attorney Land responded that she does not know that what Mr. Andreen stated is true. When someone applies for a license, the OCM will ask the City whether it complies with zoning. As far as she knows that is all they will ask. Councilmember Odebrecht remarked the City communicated well throughout the process, and the failed compliance checks show the City’s trust was violated several times. These products are viewed as dangerous, requiring extra care. He does not want to shutter a business permanently, but feels it is time to hit pause on this. Ms. Land stated if the license is denied, CBD House cannot sell edible cannabis products, but may sell non-edible cannabis and accessories. Manufacturing of products is not allowed. Badawi Junaili, Still Tobacco, stated he has been in business for 12 years and has complied 100%. Councilmember Collins thanked City Attorney Land for the thorough documentation and voiced great disappointment with the compliance check failures. Mayor Kozlowski asked how the businesses, if denied, could get their licenses back; and Ms. Land replied they would not be allowed to sell edible cannabis in the City until the State overtakes all regulations and licensing, then the businesses may apply to the OCM. At that point the only thing the City will regulate is zoning. If they withdraw the current applications, then there would be no denial. Badawi Junaili, Still Tobacco, withdrew the application for a license. Motion by Councilmember Collins, seconded by Councilmember Odebrecht, to continue the application for Stillwater Smoke Shop Plus. All in favor. City Council Meeting January 16, 2024 Councilmember Junker asked Mr. Andreen if there is anything in his store that he does not make. Mr. Andreen replied that he makes everything; some products are made in Florida. The Health Department came today and he passed with flying colors. 90% of it is edible. He stated he was legal non -conforming, grandfathered in as he has been doing it since he started his business and never had a problem until CBD honey sticks got sold and now he is being ousted. Mayor Kozlowski suggested that Mr. Andreen withdraw his license application. Mr. Andreen stated if he is put out of business, then he will appeal and it will go to a court of law which will find there has a been a gross oversight. Whether denied or not, he is going to open his doors tomorrow and do business. Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt Resolution 2024-010, A Resolution Denying the Issuance of a CBD Retail Establishment License to CBD House. All in favor. COUNCIL REQUEST ITEMS Councilmember Polehna stated the Martin Luther King Jr. Breakfast hosted by the Human Rights Commission went well and had approximately 85 attendees. ADJOURNMENT Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adjourn. All in favor. The meeting was adjourned at 8:13 p.m. • Ted Kozlowski, Mayor ATTEST: Beth Wolf, City CleqV Resolution 2024-010, A Resolution Denying the Issuance of a CBD Retail Establishment License to CBD House Page 4 of 4