Lino Lakes Updates Cannabis Zoning Rules as Statewide Market Expands

Lino Lakes Updates Cannabis Zoning Rules as Statewide Market Expands

LINO LAKES — The City of Lino Lakes has updated its zoning ordinance to align with Minnesota’s legalization of adult-use cannabis, establishing where cannabis businesses may operate and what local rules they must follow. The changes, adopted by the City Council earlier this year and refined through ongoing Planning and Zoning Board discussions, are designed to balance business opportunity with community safeguards.

Key Zoning Provisions

The revised ordinance, adopted in March 2025, spells out which zoning districts permit specific cannabis activities:

• Retailers: Cannabis retail shops are a permitted use in several Planned Commercial Districts and may also be conditionally permitted in certain Mixed Development Districts. This mirrors how the city zones liquor and tobacco stores.
• Cultivation, Manufacturing, and Processing: Cannabis cultivation, delivery, processing, testing, wholesaling, and manufacturing are permitted in Planned Industrial Districts. On-site consumption of edibles — comparable to a brewery taproom — is allowed as an accessory use in these districts.
• Microbusinesses and Mezzobusinesses: These new state license types, which allow multiple activities under a single license, are subject to district rules based on their specific state endorsements. For example, a retail endorsement would place a microbusiness in a commercial district, while a cultivation endorsement would locate it in an industrial or agricultural district.

Local Regulations

Beyond zoning, Lino Lakes has enacted a series of regulations for cannabis operations:

• Registration & Licensing: Cannabis businesses must register with the city and hold state licenses from the Minnesota Office of Cannabis Management (OCM). The city charges a $500 registration fee for retail applications.
• Hours of Operation: Retail sales are limited to 10 a.m. – 9 p.m. daily.
• Store Limits: With a population of about 22,000, Lino Lakes must allow at least two cannabis retailers, as required by state law (one per 12,500 residents). The city has also floated the idea of a municipally owned cannabis store.
• Proximity Restrictions: Businesses must be at least 1,000 feet from schools, 500 feet from residential treatment facilities, and 500 feet from attractions in public parks commonly used by minors, such as playgrounds or athletic fields.
• Odor Control: All cannabis facilities must install ventilation systems to ensure marijuana odor is not detectable at the property line.

State Law Context

Minnesota legalized adult-use cannabis in 2023, later refining the law in 2024 and 2025. The OCM oversees licensing and regulation. Two notable license types created under the law include:

• Microbusiness License: Allows cultivation of up to 5,000 square feet indoors or a half-acre outdoors, along with one retail location. No statewide cap exists, and the application fee is $500.
• Mezzobusiness License: Permits cultivation up to 15,000 square feet indoors or one acre outdoors, and up to three retail stores. These licenses are capped and distributed via lottery. The application fee is $5,000.

What’s Next

The Planning and Zoning Board continues to review text amendments to ensure the ordinance reflects state law and addresses the complexities of licensing categories. Any new amendments will return to the City Council for approval.

With Minnesota’s cannabis market expected to expand rapidly in the coming years, Lino Lakes’ ordinance positions the city to regulate growth while ensuring community standards remain in place.

Minneapolimedia