As Minnesota’s cannabis industry comes into its own, cultivation and processing businesses are proving to be highly profitable ventures. But to reach that profitable stage, you’ll need the right facilities in place. Facilities that adhere to the strict regulations laid out in state statutes and that support efficient business operations by design.
In this follow-up to our Minnesota Retail Cannabis Construction Guide, we will focus on what goes into building for the other side of the cannabis industry - cultivation and manufacturing. Learn how to plan a build-out that will support long-term success for your cannabis operation.
Industrial Compliance & Site Infrastructure
Before you can cultivate or process a single plant, you need to ensure your facility is suitable to support your planned cannabis operation in the first place. Zoning, infrastructure requirements, and building codes all need to be carefully considered and followed.
Zoning Requirements
Zoning regulations are set at the local level, either by city, township, or county governments. And while these local governments aren’t allowed to ban cannabis businesses, they do have a high degree of regulatory authority over where, how, and when these businesses operate. To limit the risk of regulatory disputes, districts zoned for industrial and agricultural use are the safest bet. However, some municipalities like the city of St. Paul also allow smaller-scale cultivation businesses to set up shop in mixed-use and commercial districts.
Utilities and Infrastructure
Second, you’ll need to contact local electrical and water utilities to see if existing capacity can meet your projected operational needs. Cannabis cultivation can require hundreds of gallons of water per square foot annually, and thousands of kWh of electricity per pound of finished flower.
You will also want to determine if your facility has the right outputs to support planned LED arrays and industrial HVAC units. Standard 120V outlets are inadequate to support industrial-scale indoor cannabis cultivation equipment, which typically requires 480V hookups. If your chosen facility doesn’t yet have this infrastructure in place, the cost of adding it will need to be factored into your build-out budget.
The High-Hazard Distinction
Finally, you’ll need to determine what building classification your operations will fall under, as this has a significant impact on the level of build-out that may be required.
According to the Minnesota Office of Cannabis Management (OCM), most cannabis cultivation and processing facilities fall into a International Building Code (IBC) classification F-1 (Moderate-Hazard Factory Industrial). However, if your processing plant involves a significant amount of hazardous hydrocarbon solvents like butane or propane, this may shift your classification to H (High Hazard).
The build-out requirements for an H classification are significantly more stringent than those of an F-1 classification. They can include:
- Installation of a hazardous material exhaust system with a hydrocarbon detector and an emergency power supply.
- The creation of additional means of egress.
- Enhanced fire resistance for building elements and exterior walls.
Engineering the "Perfect" Controlled Environment
Once you’ve acquired a property that suits the requirements of your planned business, the next step is to plan a facility build out that gives you precise control over your cultivation and processing conditions.
Once again, this starts with strict adherence to state regulations. For cultivation operations (9810.2000) and manufacturing operations (9810.2102), state statutes require the submission of a plan with specific facility details, including a diagram of the proposed ventilation and air filtration systems. These systems are critical to a cannabis operation’s success in a number of ways.
Precision HVACD
To build a profitable cultivation business, your ventilation and air filtration plans need to go beyond basic climate controls. Precision HVACD adds dehumidification to the standard HVAC array, and is essential for preventing crop-killing mold and meeting the sanitary standards laid out in state statute 9810.2000 subp. 12.
Biosafety & Clean Rooms
Designing a cannabis product manufacturing facility for GPP (Good Production Practices) should include "gray-to-white" transitions, air showers, and antimicrobial surfaces for infused-product manufacturing.
Industrial Odor Mitigation
State and local agencies, including the Minnesota Pollution Control Agency, impose various regulations for mitigating odors and emissions from cannabis businesses. Advanced filtration and air pressure management systems can be used in high terpene-emission areas, such as flowering, drying, and processing rooms, to help keep volatile organic compounds (VOCs) under control.
Managing the Industrial Build-Out
Other elements that need to be outlined in your cultivation or manufacturing plan include:
- The total ‘canopy square footage’ your floor plan will support (Cultivation only)
- The security systems that will protect your operation 24/7 (Cultivation and Manufacturing)
A cannabis cultivator with an indoor facility may grow up to 30,000 SF of canopy, and that limit may be adjusted upwards depending on the OCM’s assessment of market demand. In other words, it’s wise to develop a floor plan that allows your business room to expand in the future, should regulations shift.
As for security, your build-out needs to include robust physical access controls to restricted areas, such as fences and locks. It also needs to have a wiring plan that supports adequate surveillance, lighting, and alarm systems throughout the facility.
Your Industrial Cannabis Partner
Building a successful cannabis facility is demanding. It requires a comprehensive understanding of the regulations in place. Deft coordination of multiple complex utility designs. Niche equipment ordered well in advance of construction to account for lead times, but not so early as to create problems if the permitting process doesn’t go as planned. For all this and more, expertise is indispensable. And expertise is exactly what Diversified Construction has to offer.
We have decades of experience executing complex industrial MEP (Mechanical, Electrical, Plumbing) systems. And we know exactly what it takes to turn your facility into a clean, precise, efficient, and profitable cannabis cultivation or manufacturing space. Let us help you bring your business online when you get in touch with our team today.
