City Council Meeting Date: May 5, 2026
To: Mayor and Members of Council
City Administrator
From: Mathias Hughey, Associate City Planner
Mikayla Schmidt, City Planner
Scott Wopata, Community Development Director
Title
Consideration of a Conditional Use Permit for Black Bear Wellness MN to Operate a Cannabis Retail Establishment at 680 Professional Dr.
Body
Action Requested:
The Northfield City Council is asked to approve the conditional use permit (CUP) for Black Bear Wellness MN to operate a cannabis retail establishment at 680 Professional Dr.
Summary Report:
The Planning Commission recommended City Council approval of the CUP at their April 16, 2026, meeting. That resolution is attached.
Background
The applicant, Black Bear Wellness MN (the applicant) has applied for a CUP to operate a cannabis retail establishment at 680 Professional Dr. The applicant has received Preliminary License Approval from the State of Minnesota Office of Cannabis Management to operate a cannabis business and has applied for a Retail Registration from the City Clerk. For the Retail Registration to be approved, the applicant must first receive a conditional use permit.
State law requires that the City of Northfield issue a minimum of two (2) cannabis retail licenses, based on the population of the city. These licenses are to be issued on a first-come, first-served basis, according to City Code. This applicant is the second to apply, and the first received a CUP in 2025. City code limits cannabis retail licenses to a maximum of two licenses.
The business will be a retail-only establishment with no on-site production or consumption.
Table 2.7-1: Permitted Principal Uses allows Cannabis Retail as a conditional use in the C2-B: Highway Commercial District. The use-specific standards for Cannabis Retail the C2-B: Highway Commercial zoning district, include the following regulations:
- A cannabis business with a retail license or a cannabis retail endorsement is prohibited from sharing a common entrance with a business licensed as a tobacco product shop.
- Cannabis businesses with a retail license or a cannabis retail endorsement shall be located a minimum distance of 300 feet from any primary or secondary school, measured from the property line of the school to the principal structure of the cannabis retail business.
- Cannabis businesses with a retail license or cannabis retail endorsement shall be separated from other such cannabis retail businesses by a minimum distance of 1,320 feet.
The application satisfies these requirements.
Additional regulations for cannabis establishments are included under Chapter 30 - Health and Sanitation, of the City Code. Some of these include:
- A limitation on the hours of operation from 10:00 AM until 10:00 PM
- The prohibition of on-site consumption without satisfying additional conditions
- The prohibition of on-site consumption by smoking or vaporization
- A limit of two (2) cannabis retail registrations in the city
The approval criteria for a CUP do not include these additional regulations. Compliance with and enforcement of those regulations falls outside the considerations of the CUP process. Specifically, they are administered through licensing and law enforcement.
Minnesota state law also includes additional requirements for cannabis retail businesses, including security systems, minimum age limits for employees and patrons, specific building configurations, the products that may be sold, interior lighting, and more. These regulations also fall outside the consideration of the CUP process.
A CUP follows a Type 4 Review Procedure found in Section 8.4.7 of the land development code (LDC). Type 4 Review Procedures requires the Planning Commission (PC) to hold a public hearing and make a recommendation to the City Council. The City Council makes the final decision on the CUP.
In the approval of a CUP, the PC may recommend City Council impose conditions as necessary to make the use compatible with other uses allowed in the same district zone or vicinity. Criterion (a) must be met and criteria (b) through (n) shall be considered in the review of conditional use permit applications. The analysis of the criteria is provided in the PC resolution. The PC has not recommended any conditions.
Staff Recommendation:
Staff recommends approval without conditions of the CUP to operate a cannabis retail establishment at 680 Professional Dr. consistent with the recommendation of the PC.
City Plans & Policies Relevance:
City Plans support small business development.
Alternative Options:
If the proposed conditional use satisfies both the general and specific standards set forth in the zoning ordinance, the applicant is entitled to the conditional use permit. Importantly, if the applicant meets the general and specific ordinance standards, the city usually has no legal basis for denying the CUP.
Financial Impacts:
NA
Tentative Timelines:
ü April 1, 2026: Public hearing notice in Northfield News
ü April 1, 2026: Public hearing notice mailed to properties within 350 ft.
ü April 16, 2026: Public hearing and PC recommendation to City Council
o May 5, 2026: City Council reviews and makes a final decision on CUP