City holds first reading on cannabis ordinance

The Tea City Council met Aug. 16, starting with executive session and then holding the first reading for an ordinance creating zoning regulations for cannabis establishments.

Ordinance 287 sets parameters for zoning for the four uses of cannabis - cultivation, testing, manufacturing and dispensaries. The proposed ordinance prohibits cannabis facilities in residential and rural service districts and must be licensed by the state. The proposed setbacks for a dispensary would be 300 feet from an educational institution, religious institution, childcare center, preschool, nursery or mental health facility and not within 500 feet of another dispensary.

Two members of the public commented on the ordinance. One noted that dispensaries would be in a lot different area than a manufacturing business would be.

Cannabis Industry Association of South Dakota executive director Ned Horsted addressed the council and thought the ordinance was a solid start. He felt Sioux Falls was taking the wrong path and being too expensive and restrictive.

The second reading for the ordinance is scheduled for Sept. 7.

The council also held a proposed resolution of necessity for Hagedorn Industrial Park. Mayor John Lawler noted that four properties were removed from the list because those properties had water and sewer hookups put in when they were developed.

The council heard from two property owners in the industrial park. One asked if the project would be complete this year. Lawler said the answer was complicated because the 272nd Street project is so far behind that it could affect this project. He also said they continue to look for other avenues for funding but haven’t found anything yet.

Another asked about the increased cost of the project from the initial estimate. Lawler said they were re-evaluating if they were going to go out for bids again. They are going through legal with the contractor.

The council approved the resolution of necessity.

The council approved the pay app for Visions Construction Group, Inc. for $49,400 for the law enforcement center.

They also approved the pay app from D & G Concrete in the amount of $941,993.32 for work on Gateway Boulevard.

The council also reviewed the 2022 appropriations. Finance officer Dawn Murphy noted that sales tax was up 27 percent from the same time last year. Building permits are on track to beat last year’s number. She also talked about the second penny. The council reviewed a list of potential future projects.