Wayzata approves cannabis retail zoning framework unanimously
The Wayzata Planning Commission unanimously approved zoning amendments on Nov. 4 that will allow cannabis retail businesses in certain commercial areas of the city. The decision sets the stage for the city to potentially open its own municipal dispensary while also complying with state requirements to allow at least one private cannabis retailer.
The Planning Commission voted 6-0 to approve zoning text amendments that designate specific commercial zones—C2, C3, and C3A districts—as locations where cannabis retail businesses can operate. The amendments prohibit other cannabis operations like cultivation, wholesale, and delivery as primary businesses, though manufacturing could be allowed under certain conditions.
City Manager Jeff Doll explained the financial motivation behind the proposal. "Ultimately how do we come up with different ways to pay for the city services that everybody wants but not have it directly impact the property taxpayers," Doll said, noting that a profitable municipal dispensary could reduce the burden on residents' property taxes.
The discussion revealed a careful balancing act. State law requires Minnesota cities to allow at least one non-municipal cannabis retailer, even if the city opens its own dispensary. The City Attorney emphasized this constraint: "You can't limit it to one zone with no rentable property. You have to reasonably have some places where these businesses could locate." This prevents the city from using overly restrictive zoning to effectively block private competitors.
One commissioner raised concerns about proximity to sensitive uses. Commissioner Planton worried about placing cannabis retail near The Retreat, a residential treatment facility that has a 500-foot buffer zone under state rules. However, the amendments use the maximum buffers allowed by state law, and the commission determined this approach complies with legal requirements.
Commissioner Elg noted the importance of not being too restrictive. "I don't want to do that. I want to work within the spirit of what the state of Minnesota is requiring of us," Elg said, warning that limiting zoning options too severely could give a single landlord excessive control over whether a business could actually operate.
The City Council will now consider the specific buffer distances and number of licenses allowed in the city's licensing code. Public comment on the zoning amendments can be mailed to Wayzata City Hall, 600 Rice Street East, Wayzata, Minnesota 55391.
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Votes (1)
Zoning Text Amendments for Cannabis Business Regulations
Dissent: None
Moved by Commissioner Elg [1:41:39] · Seconded by Commissioner Schwabie [1:41:45]
Planner Weber outlined the proposed zoning text amendments, recommending C2, C3, and C3A districts for non-municipal cannabis retail, and prohibiting cultivation, wholesale, transportation, and delivery as primary businesses, while allowing manufacturing as a conditional use. He clarified the application of maximum state buffers and their measurement from building footprints for sensitive uses like 'The Retreat.' Public comment questioned buffers between municipal and non-municipal dispensaries. Commission discussion revolved around the city's legal obligation to allow at least one retailer, concerns about the proximity of retail to 'The Retreat,' and the potential for landlord control if zoning options were too limited. The City Attorney clarified the difference between changes to the zoning ordinance and business regulations (including buffers) and the potential legal challenges if the city's regulations were unduly restrictive, emphasizing the need for balance and compliance with state law.
Notable Quotes (5)
Ultimately how do we come up with different ways to pay for the city services that everybody wants but not have it directly impact the property taxpayers which unfortunately right now uh because that is the there's very very limited other options to produce Revenue um that's who gets the burden so dispensary if it's profitable could lessen that burden so that's that's an example of of an initiative that we're looking at.
The state still requires that we allow one at least one non Municipal cannabis retail so even if we allowed the municipal cannabis retail there still has to be the allowance for one non-municipal.
Council was sort of wrestling with that balance so where in the city does it make the most sense given the buffers that the state allows us to do I we can't limit it to you know one zone with no rentable property I mean you have to have reasonably have some places where these businesses could locate.
I'll still go back to my concern that we have a treatment facility and then we're um putting this cannabis retail so close to that.
I mean that's one way to keep it out because uh to planners wyers um comment it's one one landlord and they could make the rent so high that we would never have one but yeah to me that's I don't want to do it's not business friendly at all yeah and I don't I don't want to do that I want to you know work within the Spirit of what the state of Minnesota is requiring of us.
Ordinances & Resolutions (9)
Zoning district undergoing potential amendments and community engagement
City document outlining strategic goals including diversifying revenue and sustaining community character
City ordinance currently regulating edible cannabinoid products
State-provided guidance informing the city's cannabis regulations
State law governing cannabis legalization, city's regulatory authority, and buffer maximums
The specific amendments under consideration by the Planning Commission
Required for large-scale projects like Westway Condos and Moments WZetta
Required for construction, currently under review for 910 WZetta Boulevard and on hold for Moments WZetta
The section of city code where buffer zones and the number of allowed licenses will be addressed by the City Council
Source document
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Zoning Text Amendments for Cannabis Business Regulations
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