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The Albert Lea Planning Commission on Tuesday voted to recommend approval of a series of ordinance amendments tied to the zoning of adult-focused businesses, including cannabis, off-sale liquor, tobacco and sexually-oriented businesses.

The recommendation came after the state approved the legalization of recreational marijuana in 2023 and allowed new types of cannabis businesses to open in 2025. The city has been under a moratorium on the creation of new tobacco, off-sale liquor, sexually-oriented business and cannabis licenses as it studied how to regulate the businesses equitably.

It has looked at issues such as the placement of the cannabis businesses and regulating them with parity in regards to the other business types, along with design standards for the businesses, security and even odor control.

The city has conducted several meetings with various groups to receive input on the recommendations, including in a public open house and in presentations with the Freeborn County Family Collaborative, Albert Lea Police Department, Albert Lea Parks and Recreation Board, the Albert Lea-Freeborn County Chamber of Commerce Board and various service clubs.

Building Official and Zoning Director Wayne Sorensen said Tuesday he was quite intimated when he first took on the issue earlier this year.

He said some of the top comments during the public meetings have been setbacks requirements for these businesses from other buildings such as schools, day care facilities, churches and others, as well as the number of licenses that will be given out in the city.

Sorensen said all the groups they started with agreed to start small on the number of licenses, as you can’t go backward and reduce later. The state will ultimately approve applicants for licenses.

The commission reviewed the updates for each zoning type within the city and where the various types of cannabis businesses will be able to be located.

Low-potency retail of cannabis is already allowed in all zoning districts, except for residential and the I-2 and I-3 districts, and under the recommendations, other cannabis retail, including medical retail, will be allowed in the B-2 Community Business District and the I-1 Limited Industrial District.

Regular cannabis retail, manufacturing, warehousing and cultivation would not be allowed in the diversified central district, which includes the downtown and west of the downtown.

No exterior cultivation will be allowed by businesses throughout the city.

Multiple cannabis business uses would be allowed in the I-2 Industrial District, including for a manufacturer, wholesaler, testing facility, medical cultivator or medical processor, among others. No retail will be allowed in this district, and interior cultivation would be under a conditional permit.

Various types would be allowed in the I-1 District, including general retail, wholesaler, testing facility and medical retail. A few types would be allowed with conditional use permits, including micro business and mezzo businesses with and without retail.

The commission also reviewed ordinance updates for signs for cannabis businesses. The businesses will be limited to two signs on the property, including one wall sign and one freestanding sign, or else two wall signs. Each sign is limited to 24 square feet, and no internally-lit signs will be allowed. Signs would instead be lighted by downcast, night sky compliant lights. Freestanding signs will not be more than 20 feet in height.

Regarding windows at the businesses, the front of the buildings for cannabis-related businesses, liquor stores and predominantly tobacco retail would be required to have a maximum of 10% of the lineal ground floor in see-through windows. That window space could be tinted or frosted, and cannabis or hemp products, liquor, tobacco or related paraphernalia would no be visible through the windows. Sexually-oriented businesses will have no see-through windows, and all windows must be 100% frosted or tinted.

Under the recommendation, all of the adult-focused business types would have setbacks of a minimum of 1,000 feet from a school or 500 feet from a day care, residential treatment facility or attractions within a public park regularly used by minors. They would also have to be 500 feet from places of worship and related religious activities.

These distances would be based on structure locations and not property lines.

Two people who have applied for their cannabis retail licenses spoke in front of the commission during the public hearing.

Colin Minehart, who has been in the restaurant business since 1983 and owns MineAgain’s, said he would like to change course and open a retail cannabis business in the former Trumble’s building with his son and daughter.

He said they submitted their business plan to the state and anticipate a $1.6 million payroll with 50 to 60 new jobs. He talked about work they’ve already done to make it successful and referenced security, odor control, fire exits and developing a training program.

“This is a huge investment for the city and the hundreds of cars we’ll bring into town every day,” Minehart said, noting the business will draw people off the interstate from other communities.

He stated they are working to meet all the elements of the proposed ordinances; however, he would need a variance to the part with the sign ordinance. He also asked for clarity on the setback requirements.

Jerry Collins of Big Dream Organics said he echoed much of what Minehart said, noting that he and Minehart will be drawing off of different ends of he interstate. He said the population of north Iowa is already making the road trip to his store.

The ordinances will be taken up by the Albert Lea City Council for final approval at its Sept. 9 meeting.