HomeMy WebLinkAbout2025-03-24 PACKET 06.1. (LEAFLINE)
STAFF REPORT CASE:CUP2025-009
ITEM: 6.1
PUBLIC MEETING DATE: 3/24/25TENTATIVE COUNCIL REVIEW DATE: 4/16/25
APPLICATION
APPLICANT:Leafline Labs, LLC
REQUEST:A conditional use permit to allow the use of its facility for the growth,
manufacturing, and processing of adult use cannabis as a medical
cannabis combination business.
SITE DATA
LOCATION:8235 97th Street South
ZONING:I-2,
GUIDED LAND USE:Industrial
LAND USEOF ADJACENT PROPERTIES:CURRENTGUIDED
NORTH:IndustrialIndustrial
EAST:IndustrialIndustrial
SOUTH:IndustrialIndustrial
WEST:IndustrialIndustrial
SIZE:N/A
DENSITY:N/A
RECOMMENDATION
Approval, subject to the conditions stipulated in this staff report.
COTTAGE GROVE PLANNING DIVISION
Planning Staff Contact:Samantha Pierret, Senior Planner; 651-458-2825; spierret@cottagegrovemn.gov
Application Accepted:3/11/202560-Day ReviewDeadline:5/10/2025
City of Cottage Grove Planning Division 12800 Ravine Parkway SouthCottage Grove, MN 55016
Planning Staff Report
Leafline Labs
Planning Case No. CUP2025-009
March 24, 2025
Proposal
Leafline Labs (Owner), has submitted an application requesting a Conditional Use Permit to allow
the property at 8235 97th Street South to grow, manufacture, and process adult use cannabis as
a Medical Cannabis Combination Business. They would continue to grow, manufacture, and
process medical cannabis on-site. The proposed application would rescind the existing CUP,
which was approved in May 2022 as Resolution 2022-075, to produce medical cannabis products.
Location Map
Review Schedule
Application Received: February 26, 2025
Acceptance of Completed Application: March 11, 2025
Planning Commission Date: March 24, 2025
Tentative City Council Date: April 16, 2025
60-Day Review Deadline: May 10, 2025
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 2 of 16
Background
The existing Leafline Labs facility was approved and constructed in 2014
legalization of the production and use of cannabis for some medical purposes. Leafline Labs was
selected as a manufacturer by the Minnesota Department of Health (MDH) as one of two licensed
medical cannabis producers in Minnesota. The facility houses growing and processing functions
They currently employ 65 cultivation employees
serving over 55,000 Minnesotans currently registered to use cannabis for medicinal purposes.
The approved site plan in 2014 planned for a future expansion on the site. In 2022, a Conditional
Use Permit and Site Plan Review were approved to allow construction of structure additions in
two phases. Phase I was constructed while Phase 2 was not constructed and is not proposed to
be constructed as part of this Conditional Use Permit request.
Minnesota legislation passed in 2023 created an adult use cannabis marketplace. The statute
under which the Applicant is currently licensed to be a pharmaceutical medical cannabis manu-
facturer will be repealed on December 1, 2025. To account for these changes at the State level
and to allow the Applicant to manufacture, cultivate, test, and process cannabis for medical and
recreational purposes in accordance with the Medical Cannabis Combination Business license
from the newly created State of Minnesota Office of Cannabis Management, a new CUP has been
applied for.
cannabis license types including performance standards, setbacks, and uses allowed in each
zoning district. Medical Cannabis Combination Businesses include the cultivation and manufac-
ture of cannabis and hemp products. These businesses may package these products for sale to
customers, patients, or another licensed cannabis business. A new Conditional Use Permit will
also ensure conformance with new city zoning regulations.
The Applicant is not expanding its operations on site. There will be no substantive changes to
current cultivation, production, manufacturing, or processing operations. The only change will be
allocating products to the medical and recreational cannabis markets instead of just the medical
market. The Conditional Use Permit is being applied for to ensure compliance with state and local
statutes and rules and not due to any operational changes. Any future expansions proposed on
the site will require a separate planning application.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 3 of 16
2022 Floor Plan
Planning Considerations
Conditional Use Permit
The purpose of a Conditional Use Permit is to authorize and regulate uses that may be beneficial
in a specific instance to the general welfare of the community yet ensure that such uses are not
detrimental to surrounding property and are consistent with the stated purpose of the zoning
district.
The permit shall be approved solely for the proposed use of a particular site, not for a particular
person or firm. When granting a Conditional Use Permit, the City may impose conditions as it
deems necessary to serve and protect the health, safety, convenience, and general welfare of the
community.
When evaluating any proposed conditional use permit, the Planning Commission shall consider
the following findings:
1. Compliance with and effect upon the Comprehensive Plan, including public facilities and
capital improvement plans.
2. The establishment, maintenance or operation of the conditional use will promote and en-
hance the general public welfare and will not be detrimental to or endanger the public
health, safety, morals or comfort.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 4 of 16
3. The conditional use will not be injurious to the use and enjoyment of other property in the
immediate vicinity for the purposes already permitted, nor substantially diminish and impair
property values within the neighborhood.
4. The establishment of the conditional use will not impede the normal and orderly develop-
ment and improvement of surrounding property for uses permitted in the district.
5. Adequate public facilities and services are available or can be reasonably provided to
accommodate the use which is proposed.
6. The conditional use shall, in all other respects, conform to the applicable regulations of the
district in which it is located.
7. The conditional use complies with the general and specific performance standards as spec-
ified by the Zoning Code.
The proposed use of Medical Cannabis Combination Business on the subject property is con-
sistent with the findings above as described in the following report.
Zoning and Comprehensive Plan
The parcel at 8235 97th Street South is located within the Cottage Grove Business Park and is
zoned I-1, General Industry. Manufacturing, production, testing, or processing of cannabis, whole-
sale with product on-site, warehousing, and cultivation (indoor or outdoor) are all conditional uses
in the I-2 District.
Existing Conditions
The site consists of a single structure. The east portion of the structure was constructed in 2015,
and the west addition was constructed in 2022. No changes to the structure footprint or parking
area are proposed with this conditional use permit request.
Existing Site
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 5 of 16
State of Minnesota Cannabis Requirements
Minnesota Statute 342 was passed in 2023 and amended in 2024 creating an adult use cannabis
market. This includes the creation of the Office of Cannabis Management (OCM) which now over-
sees the cannabis licensing and enforcement process including adult use cannabis, medical can-
nabis, and lower-potency hemp edibles. OCM has also been tasked with rulemaking to establish
final state regulations governing the adult-use cannabis market. Draft rules have been published
ipated these rules will be
formally adopted by the end of quarter one 2025.
There are thirteen cannabis license types recognized by the State. Leafline is proposing to tran-
may cultivate cannabis and manufacture cannabis and hemp products, and package such prod-
ucts for sale to customers, patients, or another licensed cannabis business. The application
window for adult use cannabis operations closed on March 14, 2025. Med Combo businesses are
not a capped license type (where only a specific number of licenses will be issued across the
state); therefore, upon a successful preliminary process with OCM, Leafline may obtain local gov-
ernment zoning approvals. After the local government confirms a business meets all local zoning
regulations and other local rules/ordinances OCM will perform a full pre-license inspection. If the
inspection passes, the Applicant must pay license fees to the State of Minnesota. After fees are
received the business will be a fully licensed cannabis business. Leafline is one of only two
licensed medical cannabis manufacturing operators in the state and does not foresee any issues
obtaining preliminary approval from OCM.
City of Cottage Grove Cannabis Ordinance Requirements
City Code Title 11-4-18 details Cannabis Uses and Lower-Potency Hemp Edible Uses perfor-
mance standards.
E. Indoor Cultivation: Any cannabis or lower-potency hemp cultivation that involves indoor culti-
vation in an enclosed building must comply with the following:
1. A minimum of twenty (20) contiguous acres is required if located in the I-1 or I-2 zoning
districts.
The property in question is approximately 21.84 acres and is zoned I-2.
lines.
The business operates in an existing structure currently used for medical cannabis growing, pro-
cessing, and manufacturing. The existing structure is approximately 76 feet from the south
property line and approximately 105 feet from the north property line at its closest points. These
distances exceed the minimum I-2 setback of 60 feet from rear property lines and 50 feet from
front yard property lines. The building is considered an existing non-conformity since Title 11-8-
18 standards were adopted after the building was constructed; no footprint changes are proposed.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 6 of 16
Existing Setbacks
3. There must be a landscaped or screened buffer within the setback area which may
consist of a berm, trees, or combination thereof.
The site was developed between 2015 and 2022 including planting 158 trees, preservation of
existing trees, and planting over 200 shrubs. No additional landscaping is proposed. The site
contains a well-established vegetative buffer on the north, south, and east sides. Trees and
shrubs were planted northwest of the building during the 2022 expansion. There is no landscaped
or screened buffer on the west side of the property. It was determined in 2022 that there was not
enough room outside of the utility easement for trees.
2022 Site Restoration Plan
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 7 of 16
4. If greenhouses or hoop houses are allowed in the zoning district, interior lighting and
ventilation conditions may be imposed as part of the conditional use permit.
The applicant is not proposing to use greenhouses or hoop houses at this time. Any future use of
greenhouses or hoop houses must be considered as an amendment to any conditional use permit
issued.
F. Manufacturing, Production, Testing, or Processing of Cannabis Wholesale (if products stored
on-site), Warehousing must comply with the following performance standards:
1. No exterior storage is allowed, including storage of products in semis or trailers that are
parked outside of an enclosed building.
No exterior storage is proposed. The existing conditional use permit also contains Condition #5
-
ited. This condition is included as part of this conditional use permit.
2. All mechanical, odor suppression equipment, and trash enclosures must comply with
City Code Sections 11-3-8 and 11-3-9.
Any new mechanical or odor suppression equipment must comply with these standards. No trash
enclosure changes are proposed. The existing conditional use permit also contains Condition #14
screened as required in City Code Title 11, Chapter 6, Section 3, Solid Waste Storage and Title
This condition is included as part of this con-
ditional use permit.
G. Performance Standards:
1. Hours of operation for retail sales of cannabis or lower-potency hemp edible products
are permitted from 10:00 a.m. to 10:00 p.m., seven (7) days a week. Retail sales of
lower-potency beverages at on-sale intoxicating liquor establishments or off-sale exclu-
sive liquor stores with a valid city registration and state license are permitted during the
hours of operation associated with the intoxicating liquor establishment.
The Applicant is not proposing to conduct retail sales on the property and is not a licensed liquor
establishment.
2. On-sale intoxicating liquor establishments and off-sale exclusive liquor stores with a
current lower-potency hemp edible city registration and a state license may sell lower-
potency hemp edible beverages but no other lower-potency hemp edible products.
The business is not an on-sale or off-sale liquor establishment.
3. No cannabis or lower-potency hemp edible use is allowed as part of an Adult Use
Establishment, as defined in City Code Section 3-14-2.
The business is not an adult use establishment.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 8 of 16
4. No retail sales are allowed in the Agricultural or Industrial zoning districts.
The Applicant does not propose to conduct retail sales on-site.
5. No on-site consumption is allowed in the Agricultural or Industrial zoning districts.
The Applicant does not propose to have on-site consumption.
6. Cannabis and lower-potency hemp edible uses shall not violate federal laws, state laws,
or any provisions of City Code. Cannabis and lower-potency hemp edible uses shall
not be a public nuisance or violate Chapter 4, Section 8 regarding odors. The city may
impose odor suppression or odor mitigation conditions as part of the conditional use
permit.
The business has been the subject of various odor complaints since construction of their expan-
sion. The Applicant hired an outside consultant, Byers Scientific, to conduct an odor assessment
in February 2025. The consultant recommended various mitigation measures which the Applicant
intends to utilize. Odor mitigation is discussed in more detail below. Conditions regarding odor
mitigation are also included in the recommendation.
7. Distance Restrictions: Distances from a cannabis use or lower-potency hemp edible
use are measured from the storefront of a cannabis or lower-potency hemp edible retail
use to the property line of all other cannabis or lower-potency hemp edible uses:
a. There must be at least 1,000 feet between each cannabis or lower-potency hemp
edible use.
The business in question is over 3,500 feet from the nearest cannabis or lower-potency hemp
edible use (Grove Tobacco, 8599 West Point Douglas).
b. The location of all cannabis uses must comply with the following:
i. More than 1,000 feet from a school as measured from property line of the
school to the cannabis business.
The property is 3,647 feet from the nearest school (South Washington Alternative Learning
Center, 8400 East Point Douglas).
ii. More than 500 feet from a day care that is in the B1, B2, B3, PB, or MU
zoning district as measured from property line of the day care to the
cannabis business.
The property is over 3,500 feet from the nearest day care in the B-1, B-2, B-3, PB, or MU Districts
(KinderCare Daycare Center, 8453 East Point Douglas).
iii. More than 500 feet from a residential treatment facility, as measured from
the property line of the facility to the cannabis business.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 9 of 16
The property is not within 500 feet of any residential treatment facilities.
iv. More than 500 feet from an attraction within a public park that is regularly
used by minors, such as, but not limited to a playground, athletic field,
athletic court, picnic area or permanent restrooms, pavilion or park build-
ing, disc golf features, as measured from the location of the public park
attraction to the cannabis business.
The business is not located within 500 feet of any of these features. The nearest parks are Denzer
Park (10270 Hadley Avenue) and Pine Glen Park (9701 Hamlet Avenue).
c. Outdoor and indoor cultivation must be more than 1,000 feet from a residential
zoning district or residential use as measured from the cannabis use property
line to the property line of the nearest residential zoning district or residential
use.
The property is over 2,000 feet from residential zoning districts and uses.
d. Manufacturing, production, testing, or processing of cannabis, wholesale (if
products stored on-site) or warehousing must be setback a minimum of 1,000
feet from a residential zoning district or residential use as measured from the
cannabis use property line to the property line of the nearest residential zoning
district or residential use.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 10 of 16
The property is over 2,000 feet from the nearest residential zoning district or use.
8. Signage restrictions
No signage changes are proposed with this conditional use permit. Any sign changes will be re-
viewed for compliance with City Code.
9. Cannabis uses must meet the minimum parking requirements for each type of use as
stated in City Code 11-3-
location, the use that requires the largest number of spaces must be met.
In 2014, 102 parking spaces were constructed on-site where 111 were required (11-3-9: 1 space
required per 250 square feet of office space, 1 space per 400 square feet of manufacturing space,
and 4 spaces plus 1 space per 2,000 square feet of warehousing). The reduction in spaces was
approved given the minimal traffic to the site and proof of parking was submitted to ensure addi-
tional parking could be added if necessary. In 2022, 15 additional parking spaces were to be
added with the Phase I expansion and proof of parking for 55 stalls was provided. No additional
parking must be added with this conditional use permit as the footprint is not changing and the
scope of activity on site is not changing.
10. A security plan must be submitted to and approved by the Director of Public Safety to
address security issues in order to protect the public health, safety, and welfare. The
security plan must include, but is not limited to addressing issues surrounding parking,
traffic, securing of monetary transactions, building security and alarm systems both in-
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 11 of 16
ternal and external, screening, lighting, window and door placement, landscaping, age
verification devices, and hours of operation.
This is included as a recommended condition. raft rules proposed for adoption in-
clude required security measures that will be verified by OCM. Security measures and specific
standards are included for alarm systems, video surveillance, lighting, locks, and an immediate
response protocol that must be initiated within 30 minutes after a security event occurs. Cannabis
businesses must also establish protocols for testing and maintaining security measures at least
once every 90 days by a contracted outside resource and promptly repair any deficiencies. Secu-
rity measures must also be implemented to protect business assets, facilities, regulated products,
workers, visitors, and the community. Cannabis businesses must develop and implement security
measures to guard against theft and diversion of cannabis clones, plants, seedlings, flower, plant
parts, concentrates, and products.
City of Cottage Grove Registration Requirements
City Code Title 3-13, Cannabis Business and Lower-Potency Hemp Edible Business Regulations,
was adopted in 2024. With the legislative and statutory changes, local units of government in
Minnesota must verify cannabis businesses comply with local zoning regulations before OCM will
issue a license. In Cottage Grove, all businesses licensed by the OCM must register with the city.
Registrations are issued upon City Council approval. The Applicant must be in compliance with
Title 3-13 and all zoning requirements, pay the registration fee, be current on all property taxes
and assessments, have a state license issued by OCM, and be current on payment of all other
City fees and charges. Under City of Cottage Grove rules, only after OCM issues a license will a
local registration be brought to the City Council for approval. This approval must be obtained
before commencing operations.
-
revoked, or terminated. All registered businesses must be open to inspection by local law enforce-
ment or other authorized city official during regular business hours. City registrations must be
annually renewed. Before renewal, the city may enter and inspect the business to ensure compli-
ance with zoning ordinance, state laws, and Title 3-13.
Odor Mitigation
As a part of the CUP approval in 2014, the Applicant indicated they would provide appropriate
odor mitigation control system as well as an odor mitigation plan. The system they installed in-
cluded a carbon filter within their exhaust system to avoid noxious odors or creating dangers to
people within the vicinity. The odor mitigation plan requires monitoring of odor in three locations:
within the exhaust stack, just outside the building, and at the property line. The mitigation plan
also allows the city the ability to take odor measurements at any time within the facility or property.
The Applicant is required to notify the city if a nasal ranger reading is above 2 dilution-to-threshold
(D/T, odor concentration in the air) 2 or 3
on the below monitoring location map. If a nasal ranger reading is at or above 4 D/T, the property
owner is required to replace the carbon filters as a part of the odor mitigation system. The required
monitoring locations were not updated upon completion of the building expansion in 2022.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 12 of 16
Monitoring Location Map 2022
City staff has fielded multiple
odor complaints related to the fa-
cility and the operations since
construction of the expansion in
2022. Leafline staff have contin-
ued to conduct nasal ranger
readings on a regular basis
however, readings submitted to
the city have indicated no odors
present. The Applicant hired
Byers Scientific to conduct a site
visit in February 2025 and ana-
lyze existing odor mitigation
equipment and processes and give recommendations for improvements. Some mitigation
measures were identified that will be addressed immediately including turning off economizer
mode on rooftop air recirculation units and inspecting each RTU or air handling unit to ensure it
is also not operating in economizer mode, installing a meteorological station providing real-time
hyper-localized weather conditions, ensure exhaust from vacuum pumps in oil processing labor-
atory are plumbed to the existing exhaust system which is currently treated with molecular filtra-
tion, and take exhaust out of service in the sanitation room if it is not necessary or install molecular
filtration. Leafline will also be establishing an Odor Task Force to conduct proactive inspections
of engineering controls and areas where air is released from the building and immediately assem-
bling in response to community odor observations and conducting a thorough investigation.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 13 of 16
Leafline Filtration Systems February 19, 2025
Some longer term recommendations were also included such as outfitting Reception 112 with two
small molecular filtration recirculation systems to remove odor prior to any release via the front
entry, installing two molecular filtration units in the main hallway to remove odors at the source,
installing an updated molecular filtration system on the primary exhaust system, and utilizing
vapor-phase technology to treat emissions with a curtain of odor neutralizer. Each of these options
has a cost and lead time associated with obtaining equipment.
At this time, Leafline will install and enact equipment and processes that can be accomplished in
short order. If odor continues to be a nuisance, the Applicant will install and utilize some of the
longer-term recommendations from Byers Scientific. Conditions are included in this CUP regard-
ing odor mitigation.
Public Hearing Notices
The public hearing notice was published in the St. Paul Pioneer Press and mailed to the 8 property
owners within 500 feet of the property on March 13, 2025.
Recommendation
That the Planning Commission recommend that the City Council rescind Resolution 2022-075
and approve a Conditional Use Permit for the existing Leafline Labs pharmaceutical manufactur-
ing facility at 8235 97th Street South to operate as a Medical Cannabis Combination Business as
defined in MS 394, subject to the following conditions:
1. No retail sales shall take place on site.
2. No adult use cannabis products shall be cultivated, manufactured, processed, or stored
on-site until licensure is approved by the State of Minnesota Office of Cannabis Manage-
ment. Proof of licensure shall be submitted to the City of Cottage Grove.
3. The Applicant shall maintain licensure from the State of Minnesota Office of Cannabis
Management as a Medical Cannabis Combination Business. The Applicant shall maintain
an air permit from the Minnesota Pollution Control Agency, if applicable. The Applicant will
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 14 of 16
provide the City with their license number, a copy of their air permit, and air permit number,
if applicable.
4. Based on the Byers Scientific report completed on March 11, 2025, the Applicant must
enter into an odor mitigation plan as approved by the Community Development Director
within 45 days of approval of a CUP or June 15, 2025, whichever comes first. The odor
mitigation/maintenance plan shall include:
Facility Information
Name of facility
Name, phone number, and email address of facility owner
Name, phone number, and email address of primary contact for facility operator of
licensee
Physical address of facility
Mailing address of facility, if different from physical address
Facility type and license type
Facility hours of operation
Description of facility operations
Emergency contact information
Facility Odor Emissions Information
Facility Floor Plan
o Should include a facility floor plan with locations of odor-emitting activities and
emissions specified.
o Relevant information may include but is not limited to, the locations of doors,
windows, ventilation systems, and odor sources.
Specific Odor-Emitting Activities
o Should describe the odor-emitting activities or processes that take place at the
facility, the sources of those odors, and the locations from which they are
emitted.
Phases of Odor-Emitting Activities
o Should describe the phases of the odor-emitting activities that take place on the
facility with what frequency they take place, and the duration of the activities.
Odor Mitigation Practices
Administrative Controls
o Procedural Activities
Should describe activities such as building management
responsibilities.
o Staff Training Procedures
o Recordkeeping Systems
Should include a description of the records that will be
maintained (e.g. records of purchases of replacement
carbon filters, performed maintenance tracking, docu-
mentation and notification of malfunctions, monitoring of
administrative and engineering controls).
Engineering Controls
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 15 of 16
o Provide evidence that engineering controls are sufficient to
effectively mitigate odors for all odor sources.
Include evidence that engineering controls meet at least
one of the following:
Controls are consistent with accepted and avail-
able industry-specific best control technologies
designed to effectively mitigate odors for all odor
sources; and/or
Controls have been reviewed and certified by a
professional engineer or certified industrial
hygienist.
o Components of engineering controls:
System Design
Should describe the odor control technologies
that are installed and operational at the facility
and to which odor-emitting activities, sources,
and locations they are applied.
Should describe critical design factors and crite-
ria, with supporting calculations presented as
appropriate.
Operational Processes
Should describe the activities being undertaken
to ensure the odor mitigation system remains
functional, the frequency with which such activi-
ties are performed, and the roles/titles of the
personnel responsible for such activities.
Maintenance Plan
Should include a description of the maintenance
activities that are performed, the frequency with
which such activities will be performed, and the
roles/titles of the personnel responsible for
maintenance activities.
The activities should serve to maintain the odor
mitigation systems and optimize performance.
o Timeline for implementation of odor mitigation practices:
Approval of odor control plan by City
Purchase and installation of engineering controls
Inspections and approvals by City
o Complaint tracking system:
Responsible staff, mechanism for receiving odor-related
complaints, how and by whom such complaints will be
addressed, and how the odor complaint and response
will be recorded.
Planning Staff Report Case No. CUP2025-009
Leafline Labs CUP
March 24, 2025
Page 16 of 16
5. The facility shall be ventilated so that all odors cannot be detected by a person with a
normal sense of smell at the exterior of the facility or at any adjoining use or property.
Growing, manufacturing, or processing cannabis products must comply with all applicable
laws and shall not produce noxious or dangerous gases or odors or otherwise create a
Applicant shall
provide to the City verification from a qualified industrial hygienist that the facility provides
appropriate odor control systems so as not to produce any noxious or dangerous gases or
odors or create any dangers to any person or entity in or near the pharmaceutical manu-
facturing and processing facility. An odor maintenance plan must be submitted to the City
6. Odor monitoring shall be conducted at three property line locations no less than daily and
the data provided to the City at the end of each week. The Applicant shall conduct odor
monitoring immediately if an odor is detected by a member of the public, surrounding busi-
ness, or city official. Results of odor monitoring in response to such complaints shall be
promptly forwarded to the City. Dilution-to-threshold ratio as measured at the property line
shall not exceed 7 odor units or above.
7. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited.
8. Irrigation shall be provided for all sodded and mulched landscaped areas. Irrigation must
also be provided to each landscape island interior to the parking lot. The grass area for
be
maintained.
9. The property owner must allow City personnel to enter upon the property to maintain, re-
pair, and inspect all public utility systems that exist on the property. Flushing the fire hydrant
10. All mechanical and odor suppression equipment and trash enclosures must be screened
as required in City Code Title 11-3-8, Trash Enclosures and Title 11-3-9, Mechanical Equip-
ment Screening Requirements.
11. A security plan must be submitted to and approved by the Cottage Grove Director of Public
Safety including all items required in Title 11-4-18 G 10 prior to beginning adult use
cannabis production activities.
12. The Applicant shall register with the City of Cottage Grove in accordance with Title 3-13
prior to commencing operations for adult use cannabis. Registration shall be renewed as
required in Title 3-13-9.
13. The facility shall comply with State of Minnesota Rules Relating to Adult-Use Cannabis
upon adoption.
Prepared by: Attachments:
Application and Narrative
Samantha Pierret, AICP Odor Analysis and Recommendations from Byers Scientific
Senior Planner
W RITER’S D IRECT D IAL N O.:(952)746-2187
E-M AIL:CMOSS @H JLAWFIRM.C OM
March 11, 2025
Samantha Pierret, AICP VIA EMAIL ONLY
Senior Planner
City of Cottage Grove
12800 Ravine Parkway
Cottage Grove, MN 55016
spierret@cottagegrovemn.gov
Re: Conditional Use Permit Application, LeafLine Labs
Our File No.: 37087.0002
Dear Ms. Pierret:
In response to your letter dated, February 27, 2025, please find enclosed and submitted on behalf
of LeafLine Labs:
Byers Scientific Report dated March 11, 2025;
Correspondence from LeafLineLabs,outlining its odor mitigation actions;and
LeafLine Labs’ Odor Mitigation Team Plan.
LeafLine Labs’ correspondence outlines the immediate action it is taking based on Byers
Scientific’s recommendations, along with potential long-term actions. LeafLine Labs is committed
to working with Cottage Grove to ensureit meets the odor mitigation standard in the current CUP,
and in Ordinance § 4-8-1.B.
A representative from Byers Scientific will be in attendance at the March 24, 2025 meeting, along
with a representative from LeafLine Labs to answer and address the Planning Commission’s
questions or concerns.
Very truly yours,
HELLMUTH & JOHNSON
Carol R. M. Moss
Attorney at Law
CRM/st
Enc.
March 11, 2025
Mr. Deke Fischer
GTI Cottage Grove MN
8235 97thStreet South
Cottage Grove, MN 55016
Re:"¸¤±² 3¢¨¤³¨¥¨¢Ȟ 3¨³¤ 6¨²¨³ 2¤¯®±³
Dear Mr. Fischer:
I am writing on behalf of KGM Enterprises, Inc. d/b/a Byers Scientificto briefly
outline observations from my site visittoGTI-CottageGroveMNGTI-) commercial cannabis
cultivation, processingand manufacturingfacilityinthe Cityof Cottage Grove, Minnesota(City
in lieu of
,
to an investigation and determination of the source of the alleged odor(s).
" ¢ª¦±®´£
On February 19, 2025, I conducted a site visit to the Facilityin response to a request from
Green Thumb IndustriesRegional Director Jeff Armstrong. The request was driven by a pending
permit application for the Facility.
During the site visit, I met with representatives from Facilities Management, Ned Pierson,
Quality Control, and Ryan Winchester, as well as the General Manager, Deke Fischer, to
better understand current odor enforcement, historical odor observations, as well as regulations
that the Facility is subject to.During this meeting, I learned the following:
o It was reported that community odor observations are not communicated consistently or in
a timely mannerby the City. Iwas informed that the City does not adhere to a particular
SOP to communicate alleged odor observations and neither the address of the alleged
observer nor even a general geographic area is provided by the City, which would greatly
assist GTI-CG in its efforts to investigate odor observations.
o It was shared that there have beenthree (3) reported odorobservations from City
enforcement in the last 90 days.
o Apparently, the most recent odor observation location was shared after a GTI-CG
representative asked for more information. The location was reported as being at
thth
100and 90streets.
o GTI-CG isrequired to maintainan odor abatement plan (OAP)that was initially established
Leafline Industries. I confirmed with Facility
management that the OAP is actively managed. Thisappeared to beconfirmed by inspecting
several Nasal Ranger logs.
o The OAP requires bi-monthly site walks with designated areas where a Nasal Rangerodor
detection devicemust be utilized and results documented. I understand thatRyan
Winchesterhas been trained by the City and is currently designated as the primary GTI-CG
contact to use and document results.It was shared that the threshold for compliance is a 2:1
ratio.
o It was shared with methat City enforcement does not use a Nasal Ranger,but rather their
agents use their noses and a 0 to 5 scale when deployedto investigatepotential fugitive
odor. In experience, such scales can be very subjective and potentially
inaccurate.
o The City has apparently not offeredany details about the three(3)recent odor observations
that have been received, only one of which was within the last three months. Unfortunately,
the time that has passed makes proper investigation of these claimsnearlyimpossible.
o I learned that GTI-CG does not currently track hyper-localizedmeteorological conditions,
which is a crucial tool for a proper odor investigation.
o Finally, it was shared with me that a proposed residential constructionprojectjust south of
the Facility will become the closest group ofpotentialresidential odor receptors. The
engineering control recommendations set forth below consider this information.
Observations
th
While traveling via vehicle on 100StreetSwith windows down, I detected cannabis-
relatedodor. Uponarrival at the Facility, I detected cannabis-related odor while on the east side of
the main parking lotcorner as well as a faint and fleetingodor at the front doorof the Facility. The
odor is best describedas a combination of cultivation and extraction processes. The wind pattern in
the areaat that time (based on anemometer readings)would support the detection of these odors
coming from the Facility.
While reviewing the rooftop units designed forairrecirculation, it was discovered that
some may be programmed to operate in economizer mode. While this mode provides excellent
energy savings, it also exhausts interior air directly outside. Depending on the area served (e.g.,
cultivation, drying), this could result in the potential for significant odor release. Economizer mode
is typically activated in late spring, early summer, and early fall. While it may not be the cause of the
most recent odor observations, it could have contributed to past observations. Verifying that these
units are not programmed to switch to economizer mode is recommended.
As part of the site inspection, I
understand intended airflow, including adjustments for temperature and relative humidity. The
Facility employs a common approach for cannabis operations, with approximately 95% of the air
recirculated through dedicated rooms and corridors. There are two (2) primary exhaust sources
one treated with a molecular filtration unit and the other untreated.
I was given a complete tour of the Facility. I visibly inspected the interior construction of the
building,including how walls are finished and connected to the roof deck as well as how the various
corridors and areas of the building are connected to each other. I observed the structure and
interior envelop of the Facility to be in a such condition that it would not appear to present
opportunity for excessive odorous emissions.
%¦¨¤¤±¨¦ #®³±®«²
As noted above, GTI-CG currently has an engineering control on the primary exhaust system
with a cartridge-style prefilter and molecular filtration housing. The molecular filtration housing
design indicates an understanding of the requirement to slow down air flow to increase residence
timewith the activated carbon media. This is a critical variable allowing odorous compounds
sufficient opportunity to be adsorbed by the media.With that said, the current activated carbon
media selection is not optimal for cannabis-related odor and does not allow for third-partytesting
and verification of remaining life. Such testing helps operatorsproactively manage the engineering
control to reduce both waste and the opportunity for odor break through due to saturated media.
!¨± 3ampling
Byers recommended GC/MS analysis of a series of air samples to establish baseline odor
concentrations from the identified primary sources at the Facility and to assess the effectiveness of
existing engineering controls. One set of air samples was collected from the decarboxylation
exhaust before the molecular filtration unit and another sample was taken post-filtration, as shown
below.
It is important to note that other intake sources connected to the main exhaust were not sampled or
accounted for in this sampling event. Additionally, exterior air samples at the exhaust point could
not be taken due to subfreezing temperatures. Byers is coordinating with GTI-CG to schedule the
remaining air samples as soon as possible. The results of the air sample analysis are pending with
an independent third-party laboratory and will be provided upon receipt.
!¨± " « ¢¤
During the site visit, I conducted a series of field tests throughout the Facility utilizing a
handheld anemometer. The below readings are in feet per minute.
The extraction room was demonstrating a
net neutral environment which is good.
However, cannabis-related odors were
perceivable outside of the lab. Additional
engineering controls have been
recommended to sequester these odors.
Positive pressure from building B to
building A at a rate of about 216 feet per
minutewas observed. This imbalance
creates an opportunity for cultivation
odor to be pushed into building A, which
is currently dedicated to oil
processing/extraction. This further
supports the deployment of additional
molecular filtration in the hallway
The solventless roomhad a negative
pressure reading inside the room and is
not currently considered a primary odor
source. Byers is not currently
recommending engineering controlsfor
this room.
Additional air balance findings worth noting:
Flower Room 4 had a very strong interior odor but anemometer readings to the
hallway had a net neutral reading and there was no real detectable odor of
flowering or cultivation activities in the main hall.
The emergency exit that sits along the West wall as part of building B demonstrated
negative pressure in the hallway. It appeared to be drawing in about 400to 500
feet/minute into the building.
Dry Room 3 had a net neutral reading and exhibited more of a greenery/plant-based
odor.
Recommendations
Based on the site visit, beloware Byerspreliminary recommendations for the Facilityinclude the
following:
)¬¬¤£¨ ³¤«¸ !¢³¨® ¡«¤
1.The Facility could benefit from establishing an internal Odor Task Force composed of
representatives from operational departmentsthat may contribute to internal odor sources or
emissions released from the building.
4 ²ª &®±¢¤ 2¤²¯®²¨¡¨«¨³¨¤²Ȁ
The Odor Task Force would be responsible for:
Conducting proactive inspections of engineering controls and areas where air is released
from the building.
Immediately assembling in response to community odor observations and conducting a
thorough investigation.
2¤¢®¬¬¤£¤£ )µ¤²³¨¦ ³¨® 0±®¢¤²²Ȁ
If an odor observation is reported, the task force could take the following steps:
a.Review Operational Activities:
o Recap all activities and standard operating procedures (SOPs) before, during,
and after the time of the odor observation to identify potential contributors.
b.Inspect Engineering Controls:
o Verify the proper operation of all engineering controls at the time of the odor
observation.
o Confirm that systems have been maintained according to protocol.
c.Analyze Meteorological Conditions:
o Assess wind direction and speed before, during, and after the odor observation.
o Determine if meteorological conditions support the reported odor observation
(e.g., whether the alleged receptor was upwind or downwind).
d.Document Findings:
o Compile a short report summarizingall findings.
o Submit the report internally and, if directed by compliance/legal, provide it to
the City as part of the F
community engagement.
By implementing this initiative, GTI-CG woulddemonstratea proactive approach to odor
management, regulatory compliance, and community responsibility.
*!² ¯ ±³ ®¥ ³§¤ ¯®²³ ²¨³¤ ¨²¯¤¢³¨® ¬¤¤³¨¦Ǿ ¨³ ¶ ² ±¤¯®±³¤£ ³§ ³ '4) ¶¨«« ¨¬¯«¤¬¤³ ³§¨²
±¤¢®¬¬¤£ ³¨® !3!0
2.The Facility should be outfitted with a meteorologicalstation providing real-time hyper-
localized weather conditions with WI-FI remote monitoring capability. Such a unit should allow
GTI-CG to track meteorologicalconditions over set periods of time, so that in the event of a
reported odor observation, GTI-CG can understand whether the alleged odor receptorwas
upwind or downwind at the exact time of the alleged odor observation. Below is an option for
such a weather station.
a.https://www.amazon.com/Ambient-Weather-WS-2000-Station-
Monitoring/dp/B07GRBY9NP/ref=sr_1_1_sspa?dib=eyJ2IjoiMSJ9.4gYOLNBSOtAqkk9tz
YTIzKfMwQiC65R1Bn-FUfr4H3m0e3WyK8coCwsaqGLYdl14I9k9W0-
Oq9hKSeiN7PhfsWuvupT6nz2qV2HKEdjfdz6Xc1d5d4QsuXNrlBX-
GHkEF_VoIpudqZ21mGJj0q8NveSBaHtOKQVUmFG_LjzwgwpeovZ4XBtSdwmQlr1So6Mi
RMULnK6O_tAFo9RsL2bdMgy47jcn_vXEYbXWb-
PDynbGdGRo3sOSMhPzydern5jNr2kWboSg2ReyN7Az2GCn7aAWSdayK1bKwKAZM1A
PkXY.pcsjNVFU8VDfG-
atFo3AIDEKD9MAyGMkHLVWS80WkyU&dib_tag=se&keywords=wifi%2Bweather%2B
station&qid=1740527621&sr=8-1-spons&sp_csd=d2lkZ2V0TmFtZT1zcF9hdGY&th=1
*!² ¯ ±³ ®¥ ³§¤ ¯®²³ ²¨³¤ ¨²¯¤¢³¨® ¬¤¤³¨¦Ǿ ¨³ ¶ ² ±¤¯®±³¤£ ³§ ³ '4) ¶¨«« ¨¬¯«¤¬¤³ ³§¨²
±¤¢®¬¬¤£ ³¨® !3!0
3.There are three (3) vacuum pumps that are currently operating in the oil processing laboratory
that are venting inside the lab. The exhaust from these pumps is known to contain microscopic
oil droplets that not only contribute to a foul odor inside the lab, but are also generally
considered to pose a potential inhalation hazard. Byers recommends the exhaust from these
units is plumbed to the existing exhaust system which is currently treated with molecular
filtration.
*!² ¯ ±³ ®¥ ³§¤ ¯®²³ ²¨³¤ ¨²¯¤¢³¨® ¬¤¤³¨¦Ǿ ¨³ ¶ ² ±¤¯®±³¤£ ³§ ³ '4) ¶¨«« ¨¬¯«¤¬¤³ ³§¨²
±¤¢®¬¬¤£ ³¨® !3!0
4.Each RTU or air handling unit should be inspected to verify that it is not programmed to
operate in economizer mode. As discussed in more detail above, generally speaking,
economizer mode allows the unit to use outside air to cool the area and in the process, allows
warmer air from inside the building interior to be exhausted outside, releasing any potential
odors with it.
*!² ¯ ±³ ®¥ ³§¤ ¯®²³ ²¨³¤ ¨²¯¤¢³¨® ¬¤¤³¨¦Ǿ ¨³ ¶ ² ±¤¯®±³¤£ ³§ ³ '4) ¶¨«« ¨¬¯«¤¬¤³ ³§¨²
±¤¢®¬¬¤£ ³¨® !3!0
5.The sanitation room has a dedicated exhaust, which does not have an engineering control. This
exhaust should be taken out of service if it is not necessary or in the alternative, inline
molecular filtration should be added.
*!² ¯ ±³ ®¥ ³§¤ ¯®²³ ²¨³¤ ¨²¯¤¢³¨® ¬¤¤³¨¦Ǿ ¨³ ¶ ² ±¤¯®±³¤£ ³§ ³ '4) ¶¨«« ¨¬¯«¤¬¤³ ³§¨²
±¤¢®¬¬¤£ ³¨® !3!0
,®¦¤± 4¤±¬
6.Reception 112 should be outfitted with two(2)small molecular filtration recirculation systems
designed to remove odor prior to any releasevia the front entry.
*$´¤ ³® ²´¯¯«¸ ¢§ ¨ ¢®²³± ¨³²Ǿ «¤ £ ³¨¬¤ ¨² ¤²³¨¬ ³¤£ ³ ΐΕ ¶¤¤ª²ȁ "¸¤±² ¨² ¢³¨µ¤«¸
²¤¤ª¨¦ «³¤± ³¨µ¤ ¬®«¤¢´« ± ¥¨«³¤± ¶¨³§ ³§¤ ² ¬¤ ¢ ¯ ¡¨«¨³¨¤² ¥®± ³§¤²¤ ¯¯«¨¢ ³¨®²ȁ
7.Due to the concentrated odors generated in the oil processing and extraction rooms, Byers
recommends strategically placing two (2) MT-2 Molecular Filtration units in the main hallway.
These units will operate 24/7 to capture and remove odors at the source, preventing migration
throughout the facility. Additionally, the main building exhaust system (item #7), which also
operates 24/7, will serve as asupplemental engineering control to further mitigate odor
dispersion.
*,¤ £ ³¨¬¤ isestimated ³ ΘΏ £ ¸² ¥³¤± ±¤¢¤¨¯³ ®¥ £®¶ ¯ ¸¬¤³
8.The primary exhaust system for the Facility needs an updated molecular filtration system.
Given the number of inputs and variability of potential concentration of odorous gasesin the
exhausted air stream, Byersis recommending a dual engineering control. This design would
allow for molecular filtration to address as much odor as possible prior to the heat recovery
system, and then anadditional identical molecular filtration system post-heat recovery system
for a second treatment of air prior to exhaust to atmosphere. These molecular filtration systems
would be slightly oversized to reduce face velocity, increase residence time, and optimize the
potential removal of odorous gases for both systems.
ȴ,¤ £ ³¨¬¤ isestimated ³ ΑΔ-ΒΏ £ ¸² ¥³¤± ±¤¢¤¨¯³ ®¥ £®¶ ¯ ¸¬¤³ȁ
9.Finally, as an additional odor control measure, Byers is recommending deployment of its
patented vapor-phase technology at an agreed upon location on theexterior of the Facility.
Vaporized odor neutralizer would be distributed via
that will feed a ported piping network designed to encircle the Facility roof such that all
emissions would be treated with a curtain of odor neutralizer.
ȴ,¤ £ ³¨¬¤ isestimated ³ ΘΏ £ ¸² ¥³¤± ±¤¢¤¨¯³ ®¥ £®¶ ¯ ¸¬¤³ȁ
Please let me know if you or anyone fromyour company has any questions or concerns regarding
the above.Otherwise, please contact me at your earliest convenience to discuss how your
company would like to proceed.
Sincerely,
Josh Rembusch
Vice President