Legislative and Ordinance Committee

CITY OF MARSHALL Legislative and Ordinance Committee Agenda Thursday, July 16, 2026 at 9:00 AM City Hall, 344 West Main Street APPROVAL OF AGENDA APPROVAL OF MINUTES 1. Approval of the Minutes NEW BUSINESS 2. Ordinance amendment to Section 86-1 Definitions 3. Ordinance amendment to Sections 86-164 Accessory Equipment 4. Ordinance amendment to Sections 86-248 Exterior storage 5. Maximum garage size in residential districts – discussion only 6. Cannabis Macrobusiness OTHER BUSINESS ITEMS ADJOURN Disclaimer: These agendas have been prepared to provide information regarding an upcoming meeting of the Common Council of the City of Marshall. This document does not claim to be complete and is subject to change. Page 1  CITY OF MARSHALL LEGISLATIVE AND ORDINANCE COMMITTEE MINUTES Monday, March 16, 2026 MEMBERS PRESENT: James Lozinski and See Moua-Leske MEMBERS ABSENT: Amanda Schwartz. STAFF PRESENT: Jason Anderson, Director of Public Works/City Engineer; Ilya Gutman, Plans Examiner; and Steven Anderson, City Clerk. OTHERS PRESENT: None. At 3:00 PM Chair Lozinski called the meeting to order. Consider Approval of the Minutes Motion made by Moua-Leske seconded by Lozinski to approve the minutes as presented. All voted in favor. Ordinance Amendment to Table 86-185 Sign Limitations Gutman explained that the changes are minor and are relaxing the ordinance to allow residents to keep small temporary signs out longer than is currently allowed. Ordinance limits temporary signs to 14 consecutive days and no more than 60 days total in a year. Staff found that many people keep temporary signs up for long durations for sports, school recognition, and other promotions and that keeping a small temporary sign next to a residence and out of the public right of way to be acceptable. Lozinski questioned if advertising signs would still be allowed. Gutman said if it is next to the house it would be allowed. Motion made by Lozinski seconded by Moua-Leske to recommend amendments to Table 86-185 Sign limitations be brought to city council for consideration. Ordinance Amendment to Section 86-247 Landscaping The changes being made are part of continued effort of staff to make zoning ordinances more straightforward, consistent and user-friendly. The changes are minor clarifications or removals to the landscaping ordinance. Members discussed the need for an escrow account and requiring trees on residential properties. Several developers install trees to meet ordinance and may not place them in optimal locations or use popular varieties. Many homeowners end up either relocating or removing the trees altogether. Director Anderson was also not in favor of keeping the escrow provision and would rather see more commercial properties follow landscaping regulations than residential areas. Gutman conceded that he would be okay with only needing the planting of grass on residential lots, but trees and grass would still be required in commercial zones. Motion made by Lozinski seconded by Moua-Leske to recommend amendments to Section 86-247 Landscaping be brought to city council consideration. Ordinance amendment to Sections 86-27 Nonconforming Use, 86-30 Amendments, and 86-46 Issuance; Purpose The changes are minor and for clarification on ordinance provisions. The language is being changed to align with other language found in similar ordinance sections. Lozinski asked if the change from 60 days to 30 days was intentional to come to city council quicker. Director Anderson explained that staff had run into issues having a quorum with Planning Commission members before and businesses or homeowners would become frustrated because their item would need to come back to the Planning Commission one additional time before city council would see it. Changing the ordinance to 30 days would still give the Planning Commission an opportunity to be heard. Motion made by Lozinski, seconded by Moua-Leske to recommend amendments to Sections 86-27, 86-30 and 86-46 be brought to city council for consideration. Item 1. Page 2  Legislative and Ordinance Committee March 16, 2026 Minutes Page 2 of 2 Ordinance amendment to Section 86-50 Home occupations and businesses For the last nine years the City of Marshall has not issued a single permit for a home occupation. There are plenty of people in town who run businesses from their homes, few complaints are received so there is no follow up. This contradiction showed that there was a need for staff to review the home occupation section. One option as currently being amended in the proposed ordinance, was to allow all home occupations as accessory use without requiring a permit (provided they meet certain requirements intended to reduce the neighborhood’s impact) while still banning certain types. This would leave very few home occupations that need an interim use permit as most would be either permitted or banned. This option will significantly reduce government regulations and City’s involvement in home occupations. The second option may be to significantly reduce the application fee for the initial one-year term, coupled with allowing staff to approve the initial application without the need for public hearing, planning commission or council involvement. This would be accompanied by an awareness campaign to share home occupations’ rules and requirements and a willingness to go after those who conduct business from home without first obtaining a permit. Including charging administrative fines for ordinance violation when appropriate. Staff believe that either proposed approach would be reasonable and would provide greater flexibility while still maintaining a certain degree of control over situations where people may complain. Members discussed the types of prohibited activities that would not be allowed. Suggestions were made to change subsection (f) (10) to be “for sale” instead of “or sale”. Motion made by Moua-Leske, seconded by Lozinski to recommend amendments to Section 86-50 as written with the change to subsection (f) (10) be brought to city council for consideration. Ordinance amendment to Section 18-41 Special Requirements for Moving Buildings This section was for regulating the moving of buildings on city streets, whether they are being moved into town or just through it. The proposed changes exclude situations when the move occurs along state and county routes only, since a state or country permit would be required. This section would now also align with state requirements for size and allow for appeal if a permit were denied. Motion made by Lozinski, seconded by Moua-Leske to recommend amendments Section 18-41 be brought to city council for consideration. Ordinance amendment to Section 18-56 Required The proposed change was minor and was intended to exclude small sheds from the section requirements. Staff thought it would be unreasonable to require people who want to bring a 100 square foot shed, which wouldn’t require a building permit, to go through the same process that people who are bringing an entire house would have to go through. Motion made by Lozinski, seconded by Moua-Leske to recommend amendments to Section 18-56 be brought to city council for consideration. Adjournment At 3:45 PM Motion made by Moua-Leske, seconded by Lozinski to adjourn the meeting. All voted in favor. Respectfully submitted, Steven Anderson City Clerk Item 1. Page 3  CITY OF MARSHALL AGENDA ITEM REPORT L&O 7/16/26 Presenter: Ilya Gutman Meeting Date: Thursday, July 16, 2026 Category: NEW BUSINESS Type: ACTION Subject: Ordinance amendment to Section 86-1 Definitions Background This is a small change to align definitions and remove a contradiction. Current definition of a Information: gazebo refers to it as a building; however, a building is defined as an enclosed structure, and gazebos are not enclosed. To make all definitions aligned, a gazebo will now be referred to as a structure. This change is a part of the continuing improvement process staff have undertaken to make Zoning Ordinance more straightforward and consistent. Fiscal Impact: None. Alternative/ None recommended. Variations: Recommendations: Staff recommend the recommendation to the City Council approving the revisions amending Section 86-1 Definitions as recommended by staff. Item 2. Page 4 Item 2. Page 5 Item 2. Page 6 Item 2. Page 7 Item 2. Page 8 Item 2. Page 9 Item 2. Page 10 Item 2. Page 11 Item 2. Page 12 Item 2. Page 13  CITY OF MARSHALL AGENDA ITEM REPORT L&O 7/16/26 Presenter: Ilya Gutman Meeting Date: Thursday, July 16, 2026 Category: NEW BUSINESS Type: ACTION Subject: Ordinance amendment to Sections 86-164 Accessory Equipment Background This is a small change intended to close the loop that was made obvious by a recent variance Information: application and subsequent construction. Currently, an accessory building size is limited, but a roofed structure size is not. This change will fix it by limiting the roofed structure size in the same manner as garages. We are also changing the section’s name to make the ordinance easy to navigate. This change is a part of the continuing improvement process staff have undertaken to make Zoning Ordinance more straightforward and consistent. Fiscal Impact: None. Alternative/ None recommended. Variations: Recommendations: Staff recommend the recommendation to the City Council approving the revisions amending Section 86-164 Accessory Equipment as recommended by staff. Item 3. Page 14 Item 3. Page 15  CITY OF MARSHALL AGENDA ITEM REPORT L&O 7/16/26 Presenter: Ilya Gutman Meeting Date: Thursday, July 16, 2026 Category: NEW BUSINESS Type: ACTION Subject: Ordinance amendment to Sections 86-248 Exterior storage Background This is another small change intended to close the loop that was exposed by a recent problem. Information: Currently, people can store up to three RV’s, trailers, boats, or similar units on their properties in residential districts. However, there is no clause that prevents them from doing it on empty lots, even though the Ordinance prohibits building accessory structure or buildings on vacant lots. This proposed change will make the ordinance more logical by inserting similar language into the section regulating exterior storage. This change is a part of the continuing improvement process staff have undertaken to make Zoning Ordinance more straightforward and consistent. Fiscal Impact: None. Alternative/ None recommended. Variations: Recommendations: Staff recommend the recommendation to the City Council approving the revisions amending Section 86-248 Exterior storage as recommended by staff. Item 4. Page 16 Item 4. Page 17 Item 4. Page 18 Item 4. Page 19  CITY OF MARSHALL AGENDA ITEM REPORT L&O 7/16/26 Presenter: Ilya Gutman Meeting Date: Thursday, July 16, 2026 Category: NEW BUSINESS Type: ACTION Subject: Maximum garage size in residential districts – discussion only Background During a recent discussion on a variance request for a larger garage, staff were requested to look Information: into potential action to increase the minimum size of accessory buildings permitted in residential districts. Staff reviewed our current ordinance and also relevant provisions in other cities. The reason the size of an accessory building (in most cases, it is a detached garage that people want to maximize) is twofold: allow for open space in the back yard and keep residential districts feeling residential, meaning that houses are the dominant structures built in the area. Considering that practically all other cities limit garage sizes, it is a common and reasonable idea. The city of Marshall limits garage sizes in three ways: an absolute number of 1,000 SF maximum, as a maximum fraction (80%) of the house size provided a house is over 1,200 SF (which will never be a governing factor in a single family residential district since this percentage will be over 1,000 SF for larger houses, and a 1,000 SF limit will govern), and as a maximum fraction (25%) of the rear yard size (which will rarely be a determining factor, since most rear yards are over 4,000 SF). So for all practical purposes, 1,000 SF limit is usually a decisive factor for maximum garage size determination. In reviewing other city’s ordinances, staff discovered that 1,000 SF absolute limit is by far the most common maximum size (maybe because people like round numbers). For a single building, it varies from 864 SF to 1,080 SF; several cities set a larger limit (1,200 SF and 1,400 SF), but they are for the total square footage of all accessory buildings. It should also be noted that some cities establish a limit based on the site size, for example, 10% of the lot area. Marshall already has a 50% increase built in for lots over 0.7 acres, meaning that a 1,500 SF garage may be built on such property. Applying a 10% limit becomes meaningful only for lots over 10,000 SF, which is realistically applicable only to newer (built in early 80’s and later) houses, and those houses already have at least two car attached garages, possibly even 3-car. On the other side of the spectrum are older and smaller houses without attached garages, and staff have considered a provision to add certain percentage to maximum sizes for such houses. However, this is exactly the areas where extra-large garages would look out of place and unbalanced compared to typical smaller houses, exactly the thing the ordinance provision limiting garage sizes is intended to prevent. It should also be taken into consideration that a 1,000 SF garage allows storing three vehicles, which should be fully adequate for most people, even without attached garages. Fiscal Impact: None. Alternative/ None recommended. Variations: Recommendations: Staff recommend leaving current accessory building size limitations intact. Item 5. Page 20  CITY OF MARSHALL AGENDA ITEM REPORT Presenter: Steven Anderson Meeting Date: Thursday, July 16, 2026 Category: NEW BUSINESS Type: ACTION Subject: Cannabis Macrobusiness Background Under the 2026 Minnesota Omnibus Cannabis Act a new license type, Cannabis Macrobusiness, Information: was created to replace Medical Cannabis Combination Business. This new Macrobusiness allows a single operator to cultivate, extract, manufacture, package, transport and retail both recreational and medical products. Previously a Medical Cannabis Combination could have 90,000 square feet of indoor canopy, but under the new Macrobusiness license only 38,000 square feet would be allowed. This new license type can also operate up to eight retail dispensaries. The Medical Cannabis Combination Business will sunset on Jan 1, 2027 and be replaced by the Macrobusiness license. As of now, OCM will only issue eight Macrobusiness licenses until January 1, 2030. Fiscal Impact: Alternative/ Variations: Recommendations: To recommend the amendments to be brought to council later in the fall. Item 6. Page 21  SECTION 1: AMENDMENT “Section 22-220 Definitions” of the Marshall Municipal Code is hereby amended as follows: AMEN DMEN T Section 22-220 Definitions The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Adult-use Cannabis Concentrate means cannabis concentrate that is approved for sale by the Office of Cannabis Management or is substantially similar to a product approved by the Office. Adult-use cannabis concentrate does not include any artificially derived cannabinoid. Adult-use Cannabis Flower means cannabis flower that is approved for sale by the Office or is substantially similar to a product approved by the Office. Adult-use cannabis concentrate does not include any artificially derived cannabinoid. Adult-use Cannabis Product means a cannabis product that is approved for sale by the Office or is substantially similar to a product approved by the Office. Adult-use cannabis product includes edible cannabis products but does not include medical cannabinoid products or lowerpotency hemp edibles. Adult use products include Adult-use Cannabis Concentrate, Adult-use Cannabis Flower, Adult-use Cannabis Product, Artificially Derived Cannabinoid, Cannabis Concentrate, Cannabis Flower. Artificially Derived Cannabinoid means a cannabinoid extracted from a cannabis plant, cannabis flower, hemp plant, or hemp plant parts with a chemical makeup that is changed after extraction to create a different cannabinoid or other chemical compound by applying a catalyst other than heat or light. Artificially derived cannabinoid includes but is not limited to any tetrahydrocannabinol created from cannabidiol but does not include cannabis concentrate, cannabis products, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products. Cannabinoid means any of the chemical constituents of hemp plants or cannabis plants that are naturally occurring, biologically active, and act on the cannabinoid receptors of the brain. Cannabinoid includes but is not limited to tetrahydrocannabinol and cannabidiol. Cannabis Business means any of the following licensed under Minnesota Statutes Chapter §342: (a) cannabis microbusiness; (b) cannabis mezzobusiness; (c) cannabis cultivator; (d) cannabis manufacturer; Item 6. Page 22 Page 1  (e) cannabis retailer; (f) cannabis wholesaler; (g) cannabis transporter; (h) cannabis testing facility; (i) cannabis event organizer; (j) cannabis delivery service; and (k) medical cannabis combinationmacrobusiness. Cannabis Retail Business means any of the following licensed under Minnesota Statutes, §342: (a) cannabis mezzobusiness; (b) cannabis microbusiness; (c) cannabis retailer; and (d) medical cannabis combinationmacrobusiness. Cannabis Concentrate means: (a) The extracts and resins of a cannabis plant or cannabis flower; (b) The extracts or resins of a cannabis plant or cannabis flower that are refined to increase the presence of targeted cannabinoids; or (c) A product that is produced by refining extracts or resins of a cannabis plant or cannabis flower and is intended to be consumed by combustion or vaporization of the product and inhalation of smoke, aerosol, or vapor from the product. (d) Cannabis concentrate does not include hemp concentrate, artificially derived cannabinoid, or hemp-derived consumer products. Cannabis Flower means the harvested flower, bud, leaves, and stems of a cannabis plant. Cannabis flower includes adult-use cannabis flower and medical cannabis flower. Cannabis flower does not include cannabis seed, hemp plant parts, or hemp-derived consumer products. Cannabis Lounge means a portion of the premises of a Cannabis Microbusiness licensed or endorsed by the State of Minnesota Office of Cannabis Management for on-site consumption of edible cannabis products and lower-potency hemp edibles. Cannabis Mezzobusiness means a business licensed to perform any or all of the following within the limits established by Minnesota Statutes, §342.29: (a) Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as adult-use cannabis flower or for use in adult-use cannabis products; (b) Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as medical cannabis flower or for use in medical cannabinoid products; (c) Make cannabis concentrate; (d) Make hemp concentrate, including hemp concentrate with a delta-9 Item 6. Page 23 Page 2  tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight; (e) Manufacture artificially derived cannabinoids; (f) Manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp derived consumer products for public consumption; (g) Process medical cannabinoid products; (h) Purchase immature cannabis plants and seedlings and cannabis flower from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler; (i) Purchase cannabis concentrate, hemp concentrate, and synthetically derived cannabinoids from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products; (j) Purchase hemp plant parts and propagules from a licensed hemp grower licensed under Minnesota Statutes, Chapter 18K; (k) Purchase hemp concentrate from an industrial hemp processor licensed under Minnesota Statutes, Chapter 18K; (l) Package and label adult-use cannabis flower, adult-use cannabis products, lower- potency hemp edibles, and hemp-derived consumer products for sale to customers; (m) Sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; and (n) Perform other actions approved by the Office. Cannabis Microbusiness means a business licensed to perform any or all of the following within the limits established by Minnesota Statutes, §342.28: (a) Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant; (b) Make cannabis concentrate; (c) Make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight; (d) Manufacture artificially derived cannabinoids; (e) Manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp- derived consumer products for public consumption; (f) Purchase immature cannabis plants and seedlings and cannabis flower from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler; (g) Purchase hemp plant parts and propagules from an industrial hemp grower licensed under Minnesota Statutes, Chapter 18K; (h) Purchase hemp concentrate from an industrial hemp processor licensed under Minnesota Statutes, Chapter 18K; (i) Purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use Item 6. Page 24 Page 3  cannabis products, lower-potency hemp edibles, or hemp-derived consumer products; (j) Package and label adult-use cannabis flower, adult-use cannabis products, lower- potency hemp edibles, and hemp-derived consumer products for sale to customers; (k) Sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; (l) Operate an establishment that permits on-site consumption of edible cannabis products and lower-potency hemp edibles; and (m) Perform other actions approved by the Office. CBD means a compound of the cannabis plant known as cannabidiol. Intoxicating Hemp Product means any product that is intended to be eaten or consumed by humans, contains a cannabinoid other than CBD in combination with food ingredients, and is not a drug, and meet the requirements to be sold under Minnesota Statutes, §151.72 or after March 1, 2025, the requirements under Minnesota Statutes, Chapter §342. This does not include any product intended to be consumed by combustion or vaporization of the product, by inhalation of smoke, aerosol, or vapor from the product or through injection or application to a mucus membrane or nonintact skin. A product intended to only contain CBD but which may contain less than trace amounts of tetrahydrocannabinol (THC) as an unintended result of the manufacturing process is not considered an Intoxicating Hemp Product. Intoxicating Hemp Product Retailer means a business that sells Intoxicating Hemp Products at retail. In state law, as amended from time to time, these businesses are licensed as Lower Potency Hemp Edible Retailers. Premises means the area from which a Cannabis Retail Business sells Adult Use Cannabis Products or an Intoxicating Hemp Product Retailer sells Intoxicating Hemp Products and for an On-Site Intoxicating Hemp Product Retailer and Liquor Store, the area for which the licensed premises is identified pursuant to its license issued under Minnesota Statutes, Chapter 340A. Liquor Store means a business licensed pursuant to Minnesota Statutes, Chapter 340A to sell alcoholic beverages in original packages for consumption off the licensed premises only. Moveable place of business means any form of business operated out of a truck, van, automobile, or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions. Movable Place of Business does not include On-Site Intoxicating Hemp Product Retailers selling Intoxicating Hemp Products at a location pursuant to a caterer's permit. Medical Cannabis Combination MacroBbusiness means a business licensed to perform any or all of the following within the limits established by Minnesota Statutes, §342.15: (a) Grow cannabis plants from seed or immature plant to mature plant, and harvest adult- use cannabis flower and medical cannabis flower from a mature plant, package and Item 6. Page 25 Page 4  label cannabis flower for sale to other cannabis businesses, and sell immature cannabis plants and seedlings and cannabis flower to other cannabis businesses; (b) Make cannabis concentrate; (c) Make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight; (d) Manufacture artificially derived cannabinoids; (e) Manufacture medical cannabinoid products; (f) Manufacture, package, and label adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption; (g) Purchase immature cannabis plants and seedlings, and cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, a medical cannabis cultivator, or another medical cannabis macrobusinesscombination business, a lower-potency hemp edible manufacturer, or a lower-potency hemp edible wholesaler; (h) Purchase hemp plant parts and propagules from an industrial hemp grower licensed under Minnesota Statutes, Chapter 18K; (i) Purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler, a medical cannabis processor, or another medical cannabis macrobusinesscombination business; (j) Purchase hemp concentrate from an industrial hemp processor licensed under Minnesota Statutes, Chapter 18K; (k) Package and label medical cannabis and medical cannabinoid products for sale to medical cannabis processors, medical cannabis retailers, other medical cannabis combination businesses, and patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient; (l) Package and label adult-use cannabis flower, adult-use cannabis products, lower- potency hemp edibles, and hemp-derived consumer products for sale to customers; (m) Sell medical cannabis flower and medical cannabinoid products to patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient; (n) Sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; and (o) Sell lower-potency hemp edibles to lower-potency hemp edible retailers and lower- potency hemp edible wholesalers; and (p) Perform other actions approved by the Office. Office means the Office of Cannabis Management. Off-Sale Intoxicating Hemp Product Retailer means a business that sells Intoxicating Hemp Products for off-site consumption. Item 6. Page 26 Page 5  On-Site Intoxicating Hemp Product Retailer means a business with an on-sale liquor license pursuant to Minnesota Statutes, Chapter 340A and which sells Intoxicating Hemp Products that are intended to be consumed as a beverage, for on-site consumption. Sale means any transfer of goods for money, trade, barter or other consideration. THC means the chemical compound of the cannabis plant tetrahydrocannabinol. SECTION 2: AMENDMENT “Section 22-222 Registration Required” of the Marshall Municipal Code is hereby amended as follows: AMEN DMEN T Section 22-222 Registration Required (a) Intoxicating Hemp Products. Businesses may only sell Intoxicating Hemp Products to customers, for on-site or off-site consumption, if one of the following two conditions apply: (1) For on-site consumption, an On-Site Intoxicating Hemp Product Retailer must be registered with the city before making sales to customers and must have an active on-sale liquor license pursuant to Minnesota Statutes Chapter 340A or an On-Site Intoxicating Hemp Product Retailer without an active on-sale liquor license must be registered with the city and provide proof of liability insurance as required by section 340A.409., and once the Office begins licensing, On-Site Intoxicating Hemp Product Retailers must be licensed by the Office pursuant to Minnesota Statutes Section 342.10 as a lower-potency hemp edible retailer, as that term is defined by Minnesota Statutes Section 342.01, and as those sections are amended from time to time. Once the Office begins licensing, oOn-site consumption of intoxicating hemp product edibles and Adult-Use edibles are allowed by licensed Cannabis Microbusinesses. (2) For off-site consumption an Intoxicating Hemp Products Business must be registered with the city before making sales to customers and once the Office begins licensing, must be licensed by the Office pursuant to Minnesota Statutes Section 342.10 as a lower-potency hemp edible retailer, as that term is defined by Minnesota Statutes Section 342.01, and as those sections are amended from time to time, to sell product retail. (b) Adult Use Products. Only Cannabis Retail Businesses may sell Adult Use Cannabis Products. A Cannabis Retail Business must have an active license issued by the Office pursuant to Chapter 342 of Minnesota Statute Statutes which allows it to sell Adult Use Cannabis Product at retail, and also must be registered with the city before making sales to customers. (c) Hours of Operation. Cannabis Retail Businesses and Intoxicating Hemp Product Retailers are limited to retail sale between the hours of 10:00 a.m. and 9 p.m., seven Item 6. Page 27 Page 6  days a week. On-site Intoxicatingon Hemp Product Retailers are limited to the same hours for retail sale as the hours associated with their on-sale liquor license. (d) No city-issued registration is required for a business selling medical cannabis as part of the Minnesota’s Medical Cannabis Program described in Minnesota Statutes, § 152.22 to 152.37 or for a Liquor Store. SECTION 3: AMENDMENT “Section 22-225 Limit On Registrations” of the Marshall Municipal Code is hereby amended as follows: AMEN DMEN T Section 22-225 Limit On Registrations (a) Intoxicating Hemp Product Retailer. The City has not established a limit on the number of Intoxicating Hemp Product Retailer registrations. (b) On-Site Intoxication Hemp Product Businesses. The City has not established a limit on the number of On-Site Intoxicating Hemp Product Retailer registrations other than requiring these businesses to have up-to-date on-sale liquor license or proof or liability insurance as required by section 340A.409 and approved by the office. (c) Cannabis Retailer Businesses. The City has established a limit of two (2) Cannabis Retail Business registrations available at one time. In the event that an applicant provides verification of preliminary approval by the Office or the city receives notice for certification from the Office and the granting of the additional application would create more than two registered Cannabis Retail Business in the City, the City shall respond to the Office within 30 days that the applicant does not comply with city code and recommend denial by the Office. A Cannabis Retail Business operating under a tribal compact or a tribally issued license or registration (“tribal cannabis retailer”) need not register with the City. The tribal cannabis retailer registration will count toward the number of available city registrations. Tribal cannabis retailers must comply with any and all regulations on tribal cannabis retail locations set forth in state law or under a tribal compact or a tribally issued license or registration. A Medical Cannabis Combination Business selling product at retail must register but the registration will not count towards the City’s limit on number of registrations. (d) First Come, First Served. Applications for registration will be processed on a first- come, first-served basis based on the City receiving a complete application and payment of all fees. Applications will be considered complete when all materials in Subd. 22-223 are received by the City and include all required information. SECTION 4: AMENDMENT “Section 86-106 I-1 Limited Industrial District” of the Marshall Municipal Code is hereby amended as follows: Item 6. Page 28 Page 7  AMEN DMEN T Section 86-106 I-1 Limited Industrial District (a) Intent; scope. This section applies to the I-1 limited industrial district. This I-1 district provides a location for nonnuisance type manufacturing and/or less intensive commercial uses such as wholesale activities, with only incidental outside storage. (b) Permitted uses. The following uses shall be permitted in the I-1 industrial district: (1) Ambulance and taxi service, bus, and rail stations or terminals. (2) Animal hospitals. (3) Auto parts and accessories sales. (4) Automobile garages and repair shops, with no long-term outside storage of vehicles or equipment. (5) Automobile parking lots and garages. (6) Building materials sales and storage and lumberyards. (7) Business or professional offices. (8) Camera and photographic supplies manufacture. (9) Cannabis related businesses as follows: lower potency hemp edible retailers, lower potency hemp edible manufacturers, cannabis retailers, cannabis delivery services, lower potency hemp edible wholesaler, cannabis wholesalers, cannabis transporters, and cannabis testing facilities, as defined by state law and licensed by the Minnesota Office of Cannabis Management; cannabis lounges and businesses allowing off-sale retail sales must be located at least: a. 500 feet, when measured in a straight line from the center of the primary building of a school, as defined in Minnesota Statutes, section 120A.22, subd. 4, excluding a home school, to the property line of the property in which the registered establishment is located. The primary building of each school is established in a map that will be published by the City. (10) Carpenter and cabinet shops, plumbing and heating shops, and janitorial services. (11) Cartage and express facilities. (12) Cartography, bookbinding, engraving, publishing, job printing, lithographing and copying. (13) Commercial greenhouses, nurseries or tree farms. (14) Contractor's offices shops and yards for plumbing, heating, glazing, painting, paper hanging, roofing, ventilating, air conditioning, masonry and electrical and refrigeration supplies and other (15) Construction related trades when completely enclosed within a building. (16) Electrical and electronic products manufacture. (17) Electrical service shops. (18) Fallout shelter. (19) Farm equipment sales and service. (20) Farm, feed and seed supply stores. Item 6. Page 29 Page 8  (21) Garage and storage of motor vehicles. (22) Governmental service buildings. (23) Household goods repair and service shops. (24) Ice plant. (25) Industrial truck and equipment sales and service shops. (26) Jewelry manufacturer. (27) Kennels. (28) Leather goods. (29) Medical, dental and optical equipment manufacture. (30) Mobile home and camping trailer sales. (31) Musical instruments manufacture. (32) Railroad rights-of-way. (33) Rentals of industrial type equipment. (34) Research, experimental or testing stations. (35) Self-storage warehouse. (36) Soft drink and bottling establishments (enclosed). (37) Storage or warehousing, when completely enclosed within a building. (38) Telephone exchange. (39) Trade schools. (40) Transformer and booster stations, transmitters and other utility stations. (41) Trophy and award manufacturing or assembling. (42) Water supply buildings, reservoirs, wells, elevated tanks and similar essential public utility structures. (43) Wholesale business and office establishments. (c) Permitted accessory uses. The following uses shall be permitted accessory uses in the I-1 industry district: (1) All uses customarily secondary to the uses permitted in subsections (a) and (b) of this section. (2) Off-street parking and loading as regulated by article VI of this chapter. (3) Solar energy collectors and systems serving the individual property. (d) Conditional uses. All conditional use permits for the I-1 district may only be issued if the proposed use meets the specific requirements of this section and also meets the general regulations as outlined in article VI and meets the eligibility for conditional use permits as specified in article II, division 2. The following uses may be allowed in the I-1 industrial district by conditional use permit: (1) Automobile and truck sales or used car lots. (2) Billboards or advertising signs complying with the following conditions: a. The size may not exceed 750 square feet and the height shall not exceed 45 feet anywhere along a divided highway and 30 feet elsewhere anywhere along a divided highway and 400 square feet in size and 30 feet in height elsewhere. b. There shall be no more than two sign panels per side, and the sign length shall not exceed 55 feet. c. Such signs shall not be located closer than 800 feet to each other (300 feet if located on the opposite side of the street), closer than 300 feet Item 6. Page 30 Page 9  to any residential district, public park or K-12 school building, and closer than 30 feet to any building. d. Sign support locations shall meet standard zoning district setback requirements. e. The digital sign owner shall make the sign available to the city, for free, for public safety messages in addition to emergency messages. (3) Brewpubs and microbreweries. (4) Cannabis related businesses as follows: cannabis cultivators (indoor only), cannabis event organizers, cannabis manufactures, cannabis lounges, cannabis microbusinesses, cannabis mezzobusinesses, and medical cannabis combinationmacrobusinesses, as defined by state law and licensed by the Minnesota Office of Cannabis Management. a. Cannabis lounges and businesses allowing off-sale retail sales must be located at least 500 feet, when measured in a straight line from the center of the primary building of a school, as defined in Minnesota Statutes, section 120A.22, sudb. 4, excluding a home school, to the property line of the property in which the registered establishment is located. The primary building of each school is established in a map that will be published by the City. b. Cultivating and manufacturing areas in the above listed cannabis related businesses shall not exceed 5,000 SF. c. Assembly areas in the above listed cannabis related businesses shall not exceed 1,000 SF. (5) Day care facility serving any number of individuals. (6) Heliport. (7) Meat and butcher shops and cold storage lockers, with limited slaughtering. (8) Municipal or other governmental administration buildings, police and fire stations, community centers, public libraries, museums, art galleries and post office stations. (9) Other industrial uses of the same general character as listed in subsection (b). (10) Overnight campgrounds. (11) Parks and recreational areas owned or operated by governmental agencies. (12) Public, parochial or other private elementary, middle, junior high or senior high schools offering a curriculum equivalent to the public school system, and not operated for profit. (13) Recyclable materials processing when completely enclosed within a building. (14) Utility stations and structures. (e) Height, yard, area, lot width and lot coverage regulations. Height, yard, area, lot width and lot coverage regulations for the I-1 district are as follows: (1) Height regulations. No building shall hereafter be erected to exceed 75 feet in height. (2) Front yard regulations. a. There shall be a front yard having a depth of not less than 25 feet except as otherwise provided in this section. b. There shall be a front yard having a depth of 35 feet on a lot or plot Item 6. Page 31 Page 10  that abuts a thoroughfare as shown on the adopted city thoroughfares plan, except that an 80-foot setback shall be required when the council determines that a service road is necessary. (3) Side yard regulations. a. There shall be two side yards, one on each side of a building, each having a width of not less than ten feet. b. No building shall be located within 20 feet of any rear lot line abutting a lot in any of the classes of residence districts. (4) Rear yard regulations. a. There shall be a rear yard having a depth of not less than 25 percent of the lot depth or a maximum required rear yard of 25 feet. (5) Lot coverage regulations. Not more than 50 percent of the total area of a lot shall be covered by buildings. No lot coverage restrictions apply in the downtown district. (f) General regulations. Additional regulations in the I-1 limited industrial business district are set forth in article VI of this chapter. (Code 1976, § 11.16; Ord. No. 401 2nd series, § 1, 10-19-1998; Ord. No. 410 2nd series, § 3, 2-16-1999; Ord. No. 443, § 3, 11-6-2000; Ord. No. 590 2nd series, § 1, 2-19-2008; Ord. No. 606 2nd series, § 1, 3-10-2009; Ord. No. 650 2nd series, § 1, 3-27-2012; Ord. No. 655 2nd series, § 1, 5-22-2012; Ord. No. 694 2nd series, § 1, 5-12-2015; Ord. No. 719 2nd series, § 2, 5-9-2017; Ord. No. 753 2nd series, § 1, 7-28-2020) Cross reference(s)—Businesses, ch. 22. SECTION 5: AMENDMENT “Section 86-107 I-2 General Industrial District” of the Marshall Municipal Code is hereby amended as follows: AMEN DMEN T Section 86-107 I-2 General Industrial District (a) Intent; scope. This section applies to the I-2 general industrial district. This I-2 district provides a location for heavier industrial and manufacturing activities, without encroachment by incompatible use areas. (b) Permitted uses. The following uses shall be permitted in the I-2 industrial district: (1) Animal hospitals. (2) Auto parts and accessories sales. (3) Automobile and truck parking lots and garages. (4) Bottling establishments. (5) Building materials sales and storage and lumberyard. (6) Camera and photographic supplies manufacture. (7) Cannabis related businesses as follows: lower potency hemp edible Item 6. Page 32 Page 11  wholesaler, cannabis wholesalers, lower potency hemp edible manufacturers, cannabis transporters, cannabis testing facilities, cannabis manufacturers, and cannabis cultivators (indoor only), as defined by state law and licensed by the Minnesota Office of Cannabis Management. (8) Carpenter and cabinet shops, plumbing and heating shops, and janitorial services. (9) Cartage and express facilities. (10) Cartography, bookbinding, engraving, publishing, job printing, lithographing and copying. (11) Cleaning and dyeing. (12) Contractor's offices, shops and yards for plumbing, heating, glazing, painting, paper hanging, roofing, ventilating, air conditioning, masonry, electrical and refrigeration supplies. (13) Egg grading, sorting and wholesale business. (14) Electric light or power generating station. (15) Electrical and electronic products manufacture. (16) Electrical service shops. (17) Fallout shelters. (18) Farm equipment sales and service. (19) Farm, feed and seed supply stores. (20) Feed and seed processing. (21) Freight terminal. (22) Fuel and ice sales and storage. (23) Garages and storage, repair and servicing of motor vehicles. (24) Governmental service buildings. (25) Highway maintenance shops and yards. (26) Ice plant. (27) Industrial training schools. (28) Industrial truck and equipment sales and service shops. (29) Jewelry manufacturer. (30) Kennels. (31) Landscaping including outside material storage. (32) Leather goods. (33) Manufacturing, processing, and associated storage, servicing and testing. (34) Medical, dental and optical equipment manufacture. (35) Mobile home and camping trailer sales. (36) Musical instruments manufacture. (37) Printing. (38) Public utility structure (industrial). (39) Railroad rights-of-way. (40) Rentals of industrial type equipment. (41) Research, experimental or testing stations. (42) Soft drink and bottling establishments (enclosed). (43) Storage or warehousing, when completely enclosed within a building. (44) Telephone exchange. Item 6. Page 33 Page 12  (45) Trophy and award manufacturing or assembling. (46) Warehouses. (47) Water supply buildings, reservoirs, wells, elevated tanks and similar essential public utility structures. (48) Wholesale business and office establishments. (c) Permitted accessory uses. The following uses shall be permitted accessory uses in the I-2 industry district: (1) All uses customarily secondary to the uses permitted in subsections (a) and (b) of this section. (2) Off-street parking and loading as regulated by article VI of this chapter. (3) Solar energy collectors and systems. (d) Conditional uses. All conditional use permits for the I-2 district may only be issued if the proposed use meets the requirements of this section and also serving the individual property meets the general regulations as outlined in article VI and meets the eligibility for conditional use permits as specified in article II, division 2. The following uses may be allowed in the I-2 industrial district by conditional use permit: (1) Adult uses complying with the following regulations: a. The use must be contained within a building. b. No sign or exterior graphics permitted except for those written in letters of the English language. c. The use is not permitted within 2,000 feet of another adult use, establishment selling beer or alcoholic beverages, school, church, any residential use, library, park, daycare facility, or residential facility, as measured from property line to property line. d. This use must not be greater than 2,000 square feet in total building floor area and contained in one building on a lot, plot, or property. (2) Automobile and truck sales or used car lots. (3) Billboards or advertising signs complying with the following conditions: a. The size may not exceed 750 square feet and the height shall not exceed 45 feet anywhere along a divided highway and 30 feet elsewhere anywhere along a divided highway and 400 square feet in size and 30 feet in height elsewhere. b. There shall be no more than two sign panels per side, and the sign length shall not exceed 55 feet. c. Such signs shall not be located closer than 800 feet to each other (300 feet if located on the opposite side of the street), closer than 300 feet to any residential district, public park, or K-12 school building, and closer than 30 feet to any building. d. Sign support locations shall meet standard zoning district setback requirements. e. The digital sign owner shall make the sign available to the city, for free, for public safety messages in addition to emergency messages. (4) Brewpubs, microbreweries, and breweries. (5) Cannabis related businesses as follows: medical cannabis combinationmacrobusinesses, cannabis microbusinesses, and cannabis Item 6. Page 34 Page 13  mezzobusinesses, as defined by state law and licensed by the Minnesota Office of Cannabis Management. a. Cannabis lounges and businesses allowing off-sale retail sales must be located at least 500 feet, when measured in a straight line from the center of the primary building of a school, as defined in Minnesota Statutes, section 120A.22, subd.4, excluding a home school, to the property line of the property in which the registered establishment is located. The primary building of each school is established in a map that will be published by the City. b. Cannabis lounges and retail area parts of the above listed cannabis related businesses shall not exceed 10 percent of the total cannabis related building use area. (6) Cultivation, maintenance, and harvest of plants for the sale or other commercial use.Day care facility serving any number of individuals. (7) Processing, or storage and stockpiling of sand, gravel, stone or other raw material. (8) Greenhouses (commercial). (9) Gas stations. (10) Hazardous chemicals (processing/storage). (11) Heliport. (12) Junkyards, wrecking yards or auto salvage yards. (13) Meat and butcher shops and cold storage lockers. (14) Meat processing plants. (15) Municipal or other governmental administration or service buildings, police and fire stations, not including cannabis cultivators, and post office stations. (16) Other industrial uses of the same general character as listed in subsection (b). (17) Outdoor nurseries and tree farms. (18) Public service structures including power substations, gas regulator stations, sewage disposal plant, elevated tanks and water works. (19) Recyclable materials processing. (20) Restaurants. (21) Truck stops. (e) Height, yard, area, lot width and lot coverage regulations. Height, yard, area, lot width and lot coverage regulations in the I-2 district are as follows: (1) Height regulations. No building shall hereafter be erected to exceed 75 feet in height. (2) Front yard regulations. a. There shall be a front yard having a depth of not less than 25 feet except as otherwise provided in this section. b. There shall be a front yard having a depth of 35 feet on a lot or plot that abuts a thoroughfare as shown on the adopted city thoroughfares plan, except that an 80-foot setback shall be required when the council determines that a service road is necessary. (3) Side yard regulations. a. There shall be two side yards, one on each side of a building, each Item 6. Page 35 Page 14  having a width of not less than ten feet. b. No building shall be located within 20 feet of any rear lot line abutting a lot in any of the classes of residence districts. (4) Rear yard regulations. a. There shall be a rear yard having a depth of not less than 25 percent of the lot depth or a maximum required rear yard of 25 feet. (5) Lot coverage regulations. There are no lot coverage regulations. (f) General regulations. Additional regulations in the I-2 general industrial business district are set forth in article VI of this chapter. (Code 1976, § 11.17; Ord. No. 443, § 3, 11-6-2000; Ord. No. 590 2nd series, § 1, 2-19-2008; Ord. No. 606 2nd series, § 2, 3-10-2009; Ord. No. 622 2nd series, § 1, 7-27-2010; Ord. No. 655 2nd series, § 1, 5-22-2012; Ord. No. 685, § 1, 1-28-2014; Ord. No. 694 2nd series, § 1, 5- 12-2015; Ord. No. 719 2nd series, § 2, 5-9-2017; Ord. No. 753 2nd series, §§ 1, 2, 7-28-2020) Cross reference(s)—Businesses, ch. 22. Item 6. Page 36 Page 15