Two cannabis-related businesses along Highway 65 NE moved a step closer to opening after the East Bethel City Council on Dec. 8 approved conditional use permits for a hemp edible business and a cannabis microbusiness.

The first conditional use permit was requested by Ramadan Hussein, owner of Smoke Saloon, for a hemp edible business at 18429 Highway 65 NE, City Planner Grace Gerard said. The property is guided commercial and zoned B-3 Highway Commercial.

Hussein currently holds a cannabis license from the city.

The permit allows the sale of lower-potency hemp edibles at Smoke Saloon, Gerard said. Hemp edible sales are a conditional use within the B-3 zoning district. Approval of the permit does not guarantee the applicant will receive required licensure from the state Office of Cannabis Management.

The Planning Commission recommended approval.

Council Member Brian Mundle asked whether hemp was classified separately from cannabis. Gerard said East Bethel’s city code defines the two as different types of businesses. Because the hemp and microbusiness locations are within 1,000 feet of each other, she said, the distance buffer does not apply.

The second conditional use permit approved by the council was for a cannabis microbusiness at 18447 Highway 65 NE.

Gerard said Brittney Yares, owner of 5D Dispensary, applied for the permit. The site is also guided commercial and zoned B-3 Highway Commercial.

The existing business sells “holistic wellness products,” according to the business’s website.

The Planning Commission also recommended approval.

Council Member Tim Miller asked City Attorney Jacob Saufley whether the CUP would remain with the property if the business failed.

Saufley said a CUP runs with the land, meaning another business could occupy the space but would still need to complete the regulatory process with the state.

“But they would be able to skip this step, because they would already have zoning approval,” Saufley said. “Now, in reality, it may not have been along the timelines that line up with state law and statute regarding CUPs and the termination of a CUP, and while they do run with the land, they will terminate for non-use or abandonment.”

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