Minnesota Cities Consider Municipal Cannabis Shops
In a move that could blaze a new trail in the country, 13 Minnesota cities are considering opening municipal cannabis stores. Elk River is among the cities that have applied to run these shops, which would be the first of their kind in the United States.
City Administrator Cal Portner believes that Elk River’s approach is a way to make the most of a situation. “I don’t sense that our council is enthusiastic about the law to legalize, but they’re accepting of reality,” he said.
One of the main appeals of municipal cannabis shops is the potential revenue they could generate. The revenue could be used to benefit the community, and the city’s liquor stores have a proven track record of compliance.
Elk River has two municipal liquor stores, and plans to be one of the first in the country to have municipal cannabis shops. The city’s experience with liquor sales gives them confidence in their ability to run a successful cannabis shop.
The city’s two liquor stores generate nearly $1 million in revenue each year, and keep profits within the community rather than sending them to out-of-town corporations.
Minnesota is one of the few states that has a defined path for cities to pursue municipal cannabis shops. The state’s established model for liquor sales gives city administrators like Portner confidence in the feasibility of municipal cannabis shops.
The city’s experience with hemp-based THC products in liquor stores has also given them a head start in understanding the products and customer service side of the business.
While the city is still waiting for approval from the state’s Office of Cannabis Management, they are already planning for the future. They are considering a building to house both cannabis sales and one of their two municipal liquor stores.
The city’s mayor, Adam Scepaniak, and other officials from cities on the list confirmed that they are still waiting on OCM approval to get their cannabis licenses. Plans are taking shape in the interim, with St. Joseph, Elk River and others looking into possible locations for cannabis retail.
Not all cities are embracing the idea of municipal cannabis shops. Albert Lea, for example, has stopped a privately run cannabis store from opening, citing concerns about enforcement, liability, and responsibility.
The city’s decision to adopt zoning restrictions on where cannabis businesses are allowed is a more middle-ground approach. This strategy, combined with caps on the maximum number of businesses allowed to operate, is being implemented by almost all cities.
The cap is an area of contrast between the state’s cannabis and liquor muni regulations.
