Dayton City Zoning Code
1001.15 CANNABIS
BUSINESSES.
Subd. 1 Purpose and Intent. The purpose of this section is to preserve and protect the public health, safety, welfare, neighborhood character, and minimize negative community impacts by enacting effective regulatory and enforcement controls through minimum land use requirements for State-licensed cannabis businesses within the City of Dayton.
Subd. 2 Definitions. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this section.
Subd. 3 Minimum Buffer Requirements
(1) The City of Dayton shall prohibit the operation of a cannabis business within 100 feet of a school measured from nearest property boundaries.
(2) Pursuant to Minn. Stat. 462.367 subd. 14, nothing in this section shall prohibit an active cannabis business from continuing operation at the same site if a school moves within the minimum buffer zone.
Subd. 4 Zoning and Land Use
(1) All cannabis-related Uses shall adhere to the following standards:
a. All cannabis licensed businesses and properties within the City of Dayton shall adhere to the guidelines established by Minn. Stat. 342, the standards within this section, and any other applicable provisions of the Dayton City Code, Zoning Ordinance and Subdivision Ordinance,
b. The facility shall display its state issued license on the interior of the facility, visible to the public, at all times.
c. At the facility, any and all cultivation, manufacturing/processing, storage, display, sales or other distribution of cannabis shall occur within an enclosed building and shall not be visible from the exterior of the building.
d. All principal use cannabis licensed facilities shall have an odor mitigation system installed to eliminate or lessen any potential odor pollution created at the facility.
e. No person or facility shall dispose of cannabis or cannabis-containing products in an unsecured waste receptacle not in possession and control of the licensee and designed to prohibit unauthorized access.
f. Outdoor storage is prohibited for all cannabis-related uses herein.
g. No cannabis or paraphernalia shall be displayed or kept at the facility so as to be visible from outside the premises.
h. No cannabis or lower-potency hemp business shall be allowed within any residential zoning districts.
i. Home Occupations and Home-Extended Businesses for all cannabis and lower-potency hemp licensed operations are prohibited.
j. Signage for such businesses shall be guided by Section 1001.20 of the Dayton City Code.
(2) Cannabis cultivation. Cannabis businesses licensed or endorsed for cultivation (medical or recreational) are allowed as a permitted principal use in the following zoning districts:
a. A-1 (Outdoor Cultivation Only).
b. I-1 (Indoor Cultivation Only).
c. I-2 (Indoor Cultivation Only).
(3) Cannabis delivery service.
a. Cannabis businesses licensed for delivery service are allowed as a permitted principal use in the following zoning districts:
1. B-4.
2. I-1.
b. Accessory use. Cannabis businesses licensed for microbusiness, mezzobusiness, retail, medical cannabis combination business, transportation, or wholesale, can obtain a license or endorsement for delivery service as an accessory use at that same location.
(4) Cannabis manufacturer.
a. Cannabis businesses licensed or endorsed for cannabis manufacturer (recreational or medical) are allowed as a permitted principal use in the following zoning districts subject to manufacturing-specific standards established in the Zoning Ordinance:
1. LI.
2. I-2.
(5) Cannabis mezzobusiness.
a. Cannabis businesses licensed or endorsed for cannabis mezzobusiness are allowed as a conditional principal use in the following districts.
1. B-4.
2. I-1.
3. I-2.
b. Cultivation as part of a cannabis mezzobusiness shall not occur outdoors.
(6) Cannabis microbusiness.
a. Cannabis businesses licensed or endorsed for cannabis microbusiness are allowed as a conditional principal use in the following districts.
1. B-4.
2. I-4.
3. I-2.
b. Cultivation as part of a cannabis microbusiness shall not occur outdoors.
(7) Cannabis retail.
a. Cannabis businesses licensed or endorsed for cannabis retail (medical or recreational) are allowed as a permitted principal use in the following districts:
1. GMU-1.
2. GMU-2.
3. GMU-3.
4. GMU-5.
5. B-2.
6. B-3.
b. Cannabis businesses licensed or endorsed for cannabis retail (medical or recreational) are allowed as a Conditional principal use in the following districts:
1. GMU-4.
2. I-1.
(8) Cannabis testing facility. Cannabis businesses licensed or endorsed for cannabis testing facility are allowed as a permitted principal use in the following districts:
a. B-4.
b. I-1.
c. B-P.
(9) Cannabis transportation.
a. Cannabis businesses licensed or endorsed for transportation are permitted as a principal use in the following zoning districts:
1. B-4.
2. I-1.
b. Accessory use. Cannabis businesses licensed for cultivation, delivery, manufacturing, microbusiness, mezzobusiness, wholesaling, processing or testing can obtain a license or endorsement for transportation as an accessory use.
(10) Cannabis wholesale.
a. Cannabis businesses licensed or endorsed for wholesaling are allowed as a permitted principal use in the following districts, subject to specific standards for wholesale uses established in the Zoning Ordinance:
1. I-1.
2. B-P.
a. Cannabis businesses licensed or endorsed for wholesaling are allowed as a conditional principal use in the following districts, subject to specific standards for wholesale uses established in the Zoning Ordinance:
1. B-4.
(11) Lower-potency hemp edible manufacturer.
a. Hemp businesses licensed or endorsed for lower-potency hemp edible manufacturer are allowed as a permitted principal use in the following zoning districts subject to manufacturing-specific standards established in the Zoning Ordinance:
1. I-1.
2. I-2.
b. Accessory use. Lower-potency hemp edible manufacturing licenses or endorsements can be obtained and operated at the same location as a Brewpub, Brewery or Microdistillery.
c. Lower-potency Hemp Edible Manufacturing and Cannabis Manufacturing licenses may be located on the same property.
(12) Lower-potency hemp edible retailer.
a. Lower-potency hemp edible retail businesses as a principal use are subject to the same zoning ordinance regulations as a cannabis retail principal use.
b. Businesses where tobacco, liquor, and/or cannabis retail licenses are held are allowed to hold a lower-potency hemp edible retailer license as regulated by Minn. Stat. 342.
(13) Medical cannabis combination business. Cannabis businesses licensed or endorsed for cultivation are allowed as a conditional principal use in the following districts.
a. B-4.
b. I-1.
c. I-2.
(14) Medical cannabis processor. Cannabis businesses licensed or endorsed for medical cannabis processor are allowed as a permitted principal use in the following zoning districts:
a. I-1.
b. I-2.
(15) Temporary cannabis events. Temporary Cannabis Events shall be subject to Chapter 93 of the Dayton City Code regarding Large Assemblies.
a. Temporary cannabis events shall not occur on properties zoned Residential.
Subd. 5 Local Government as a Cannabis Retailer
(1) The City of Dayton may establish, own, and operate one municipal cannabis retail business subject to the restrictions in this chapter.
(2) The municipal cannabis retail store shall not be included in any limitation of the number of registered cannabis retail businesses.
(3) The City of Dayton shall be subject to all same rental license requirements and procedures applicable to all other applicants.
(Ord. 2025-02, passed 1-14-2025)
(Prior Code, § 1001.12, subds. 1 and 4) (Am. Ord. 2010-06, passed 3-23-2010; Am. Ord. 2010-23, passed 12-14-2010; Am. Ord. 2012-09, passed 10-9-2012; Am. Ord. 2014-10, passed 7-8-2014; Am. Ord. 2018-13, passed 4-10-2018; Am. Ord. 2020-07, passed 2-24-2020; Am. Ord. 2024-09, passed 6-25-2024)
