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The Albert Lea City Council on Monday approved ordinance amendments tied to the zoning of four types of adult-focus businesses, including cannabis, off-sale liquor, tobacco and sexually-oriented businesses.

The approval 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 for a few months on the creation of new tobacco, off-sale liquor, sexually-oriented business and cannabis licenses as it studied how to regulate the businesses equitably.

The ordinance inserts the 13 Minnesota-defined cannabis businesses into appropriate city zoning districts and added sections to address setbacks from places typically associated with minors and families, including schools, daycares, treatment facilities, parks, athletic fields and buildings regularly used for worship or gatherings.

It also includes standards on design and signs for the businesses.

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

Under the ordinance, all of the adult-focused business types will 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 will also have to be 500 feet from places of worship and related religious activities.

Second Ward Councilor Larry Baker asked about Colin Minehart, who spoke at the first reading of the ordinance and who was a few feet shy of the required 500-foot setback from an in-home day care, and if that would be taken into consideration.

Wayne Sorensen, Albert Lea building official and zoning director, said under the ordinance he would not have the authority to sign off for Minehart, but Minehart could ask for a variance, during which he would have to prove a practical difficulty.

City Manager Ian Rigg said Minehart recognized he would have to ask for a variance, and whether that meets the definition needed will be determined later.

The Board of Appeals recommendations ultimately come before the City Council for a vote.

Third Ward Councilor Jason Howland asked if a business opens up and is in compliance and then after the fact a daycare opens next door, whether the business would be grandfathered in.

Sorensen said the city would not be able to restrict the business, and it would have full rights.

The city 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.

The ordnance amendments passed 7-0.

In other action, the council:

• Approved the fall Hometown Pride Clean-up Day as Oct. 12. On that day, people can dispose of most items for free or a reduced rates. No commercial garbage will be accepted, and proof of city residence will be required.

Brush/yard waste, household garbage and demolition debris will be free; appliances, sofas and mattresses will be $10; other furniture pieces will be $5 and passenger cars will be $3. Regular rates apply for rims and electronics.

• Accepted a $26,400 grant from the Office of Traffic Safety for participation in the Toward Zero Deaths program. The grant reimburses the city fo costs assigning officers to participate in next year’s enforcement waves.

Funding will be shared with the Freeborn County Sheriff’s Office.

• Declared the Mexican Independence Day celebration as a community festival, which allows on-sale businesses to participate without a caterer’s permit.

• Approved a Broadway Ridge grant agreement with Linda Knudsen at 129 S. Broadway for reimbursement of 50% of costs associated with brick repair of her building.

The cost was $1,100, so Knudsen will be reimbursed $550.

• Took action on city assessments on eight tax-forfeited properties.

Rigg said given that the value of the property is limited, staff recommended a reduction in the assessments on the property to encourage private development.

Assessments will be reduced to $2,500 on properties at 822 W. Clark St. and 719 Alcove St. and $5,000 at 710 Valley Ave. and 720 Minnesota Ave. Assessments will remain the same at 405 Court St. for about $54,738; 705 Madison St. at $24,992; 816 S. Newton Ave. at $5,885; and 721 St. Thomas Ave. at $908.