City Council Meeting Date: May 6, 2025
To: Mayor & City Council
From: Ben Martig, City Administrator
Jeff Schroepfer, Police Chief
Lynette Peterson, City Clerk
Title
Consider Resolution Setting Fees and Penalties related to Chapter 30 - Health and Sanitation of the City Code, Article III - Regulation of Cannabis Retail Businesses, Lower-Potency Hemp Edible Retailers, and Events.
Body
Action Requested:
The Northfield City Council is asked to consider a motion to approve Resolution Setting Fees and Penalties related to Chapter 30 - Health and Sanitation of the City Code, Article III - Regulation of Cannabis Retail Businesses, Lower-Potency Hemp Edible Retailers, and Events.
Summary Report:
Attached is a proposed fee resolution. Fees are also listed below that are included in the resolution:
|
Cannabis and Hemp Retail Business Registration Fees |
|
|
Cannabis Retailer |
|
|
Initial Retail Registration Fee |
$500.00 |
|
Retail Registration Renewal Fee |
$1,000.00 |
|
Cannabis Microbusiness |
|
|
Initial Retail Registration Fee |
$0.00 |
|
Retail Registration Renewal Fee |
$1,000.00 |
|
Cannabis Mezzobusiness |
|
|
Initial Retail Registration Fee |
$500.00 |
|
Retail Registration Renewal Fee |
$1,000.00 |
|
Medical Cannabis Combination Business |
|
|
Initial Retail Registration Fee |
$500.00 |
|
Retail Registration Renewal Fee |
$1,000.00 |
|
Lower-Potency Hemp Edible Retailer |
|
|
Initial Retail Registration Fee |
$125.00 |
|
Retail Registration Renewal Fee |
$125.00 |
|
Temporary Cannabis Event Permit Fee |
$375.00 |
|
|
|
|
|
Cannabis and Hemp Retail Business Violation Penalties |
|
Violation |
Penalties |
|
1st offense |
$250.00 civil penalty |
|
2nd offense within 2 years* |
$500.00 civil penalty and a 3 day suspension of registration |
|
3rd offense within 3 years* |
$2,000.00 civil penalty and 10 day suspension of registration |
|
4th offense within 5 years* |
$2,000.00 civil penalty and 30 day suspension of registration |
Northfield City Council approved the first reading of Ordinance No. 1076 Amending Chapter 30 - Health and Sanitation of the City Code, Article III - Regulation of Cannabis Retail Businesses, Lower-Potency Hemp Edible Retailers, and Events at their April 15, 2025 meeting. The second reading is a separate item on this agenda. State statute establishes the maximum these fees can be.
The violation fine schedule is substantially similar to the Liquor License and Tobacco fine schedules. The fine schedule should be reasonable and is meant to deter non-compliance with the ordinance, and deter willful violations.
Alternative Options:
Council could establish fee at a lower amount by making a motion to approve resolution by introducing, or amending, the resolution to include an alternative fee amount.
Staff would likely have a better estimate after a year of licensing is completed. The fees could be re-evaluated at that time.
Financial Impacts:
The City would collect fees for licenses related to regulation of cannabis retail businesses, lower-potency hemp edible retailers, and events.
Tentative Timelines:
ü 9/10/2024 City Council discuss at work session
ü 11/19/2024 City Council discuss at work session
ü 4/15/2025 City Council Consider/Approve First Reading of Ordinance
5/6/2025 City Council Consider/Approve Second Reading of Ordinance
5/6/2025 City Council considers Resolution Setting Fees and Penalties related to ordinance
5/14/2025 Summary Ordinance Published in Northfield News
6/13/2025 Ordinance takes effect