HomeMy WebLinkAbout2022/07/18 - ADMIN - Minutes - City Council - Study Session Official minutes
City council study session
St. Louis Park, Minnesota
July 18, 2022
The meeting convened at 7:50 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Nadia
Mohamed, and Margaret Rog.
Councilmembers absent: Larry Kraft
Staff present: City Manager (Ms. Keller), Building and Energy Director (Mr. Hoffman), Police
Chief Harcey, City Attorney (Mr. Mattick)
1. Options for regulation of food and beverage sales with hemp -derived THC
Mr. Hoffman presented the staff report.
Councilmember Mohamed stated she has two major concerns with the sale of THC .
She noted when this has become legal in other areas, there is a large number of white business
owners that make a huge profit and those affected and in prison for selling THC, don’t have
access to that business. She does not want to live in a community where this would be allowed,
or this inequity is allowed, and wants to make sure everyone has access to sell this. She stated
this needs to be addressed. She also asked about taxes from sales on THC and how this would
be handled by the city. She would like to address both concerns before developing an
ordinance and would want to structure the business license to address these things .
Councilmember Rog asked if she is comparing THC and marijuana to crack and cocaine, one
being legal and different ramifications.
Councilmember Mohamed stated not necessarily, adding that one group uses a specific type of
drug, and the other group does not. She stated there are some racial discriminations behind it
and when it comes to this type of business, studies show that legalized marijuana benefits
those who have not been affected to the extent that BIPOC communities have. She added the
majority of dispensaries around the country are not owned by people of color. She stated the
city should strive to be equitable with that.
Councilmember Brausen clarified the concern is that those who have been convicted of
marijuana offenses are then not allowed to get business licenses to sell, and there is disparate
impact, with more bipoc communities being affected and arrested.
Councilmember Mohamed stated a BIPOC resident may not have the funds to open a facility
like this as well, so it is not equitable, and she does not want this to happen related to licensing.
Chief Harcey stated there is some guidance from the state on alcohol and tobacco, but the state
gave no guidance on the sale of this product, so staff would like guidance from the council. He
added there would need to be guidance as to disqualification of a license .
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Ms. Keller stated the regional work group on this issue is convening and this could be discussed
there.
Councilmember Dumalag added she has heard of reparations being used for licensing fees as
well. Mr. Hoffman stated funds to the city would come from annual licensing fees.
Councilmember Budd asked if the licensing fees are prohibi tive for the small business owners.
Mr. Hoffman stated licensing usually goes to established businesses such as gas stations and
liquor stores.
Councilmember Rog asked what the city is trying to prevent with a moratorium. Mr. Mattick
stated the moratorium would freeze activities until rules are in place, but he added the council
is not compelled to create rules in this instance. He stated if rules are created, a system will be
put in place including background checks, locations, and selling only to those 21 and older.
Mr. Mattick stated some feedback he has received is that tobacco and liquor have many
regulations, while THC does not at this point. This, along with being sure it is sold in a
responsible manner and in a location that is acceptable, are the type of policy questions being
looked at in other communities.
Mr. Hoffman stated if council agrees to a licensing program, staff will work on this and asked if
a moratorium would be needed.
Councilmember Brausen stated he brought up the idea of a moratorium last week, but is no
longer in favor of it, adding he sees it can be regulated the same as tobacco and liquor .
Councilmember Rog agreed.
Mayor Spano stated he supports the sale of these products in the community . He noted a
moratorium, however, may still be needed in the interim until the licensing process is in place
to discuss some of the issue brought forward by Councilmember Mohamed and give council
time to explore further.
Councilmember Budd stated she likes the idea of business licensing as it is a good regulatory
tool. However, it would need to address the issues Councilmember Mohamed raised as well.
She stated she would like this issue related to the BIPOC community concerns included in the
policy and process.
Councilmember Rog agreed.
Ms. Keller asked if there would be downstream effects of a moratorium if it were enacted. Mr.
Mattick stated a moratorium is not a forever tool, it is for temporary use.
Councilmember Rog asked if the city works toward a racially conscious licensing process with
the target date of September, in the interim what would the enforcement options be with the
under 21 group. Chief Harcey stated there is no law prohibiting possession and added he is
unclear about criminal violation if selling to someone under 21, noting it is not clear at this
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point. He stated the city’s licensing process could set up a civil and criminal penalty of sale to
those under 21.
Mr. Mattick stated it could be noted as a misdemeanor, and beyond that a civil lawsuit.
Councilmember Rog asked about pre-packaged foods that could have THC inside and who
regulates those food items. Mr. Hoffman stated that would be the Department of Agriculture .
He stated it is an edible food and beverage at this point and could be sold as a pre-packaged
food item.
Councilmember Rog asked if there is a legal level of THC, for example for driving. Chief Harcey
stated there is no level and it could be subjectively decided, as there is no legal number .
Councilmember Mohamed asked if additional items could be added after the license process
was implemented. Mr. Hoffman stated if council would like to develop a business license there
would be drafts and an adoption process, but it could also be amended later.
Councilmember Mohamed stated she would be in favor of having parameters and wants to
discuss the police background check. Chief Harcey stated he would send that information.
Councilmember Mohamed stated she would want to discuss this further.
Mr. Mattick stated he has a moratorium template available if council decides to pursue this,
and it could be adopted at the next council meeting.
Councilmember Rog asked how land use would be part of the moratorium. Mr. Mattick stated
communities are looking at doing a moratorium on many issues such as the business license, or
land-use, or as a store to incorporate into their sales.
Councilmember Dumalag asked about land use and noted there could be a large business that
applies for a license, causing increased competition for a smaller business, if the land-use were
not used. Mr. Mattick stated that the city does need to account for this, and this could be done
with the licensing process.
Councilmember Rog asked why staff recommended not doing the moratorium. Mr. Hoffman
stated that staff felt a THC licensing program would be easy to implement since business
licensing exists already. He added time spent on the moratorium might be better spent on
putting the licensing program in place.
Councilmember Brausen stated he now is opposed to the moratorium.
Mayor Spano stated he still supports the moratorium.
Councilmember Mohamed stated she is saying yes to the licensing and wants to address the
inequities as well as continued review of the licenses to be sure it is meeting city criteria.
Councilmember Dumalag stated yes to business licenses and no to a moratorium.
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Councilmember Budd agreed.
Councilmember Rog supports the business licensing as well.
Mr. Hoffman stated staff will be back in September with a draft ordinance to implement a
licensing program.
Councilmember Mohamed stated she would also like to review what funds from the licensing
should be used for.
Mayor Spano stated he has concerns about the licensing being the same as what is in place for
other issues, and this is a different item. He also asked what options are available around fund
raising from the licensing fees.
Mr. Mattick stated sale of THC cannot be taxed and the fees need to be used to administer the
licensing, so without tax or additional fees on the licensing, he does not know where the
additional funds will come from.
Deputy Chief Kruelle also noted an educational component or program that can be included in
the licensing process and fees may be able to be included here. Deputy Chief Kruelle stated
police concerns are around supply issues, bad batches, selling to minors, and overdoses as
potential problems. He stated police would want to understand these issues also.
Chief Harcey stated police need to understand the potential dangers and how to regulate that
and demand responsible sales locally.
The meeting adjourned at 9:00 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Jake Spano, mayor
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