“A Patchwork of Prohibition: Cities and Counties Block Cannabis Businesses in Minnesota”
In the wake of Minnesota’s legalization of recreational cannabis in 2023, entrepreneurs like Greg Lien, a fourth-generation farmer, are finding it increasingly difficult to navigate the complex web of local regulations and ordinances. Lien, who owns Endless Summer Farms in Silver Bay, had spent over a year preparing for a microbusiness license, only to have his plans derailed by the city’s decision to block all cannabis businesses.
The city’s ordinance states that it will not issue a registration or license to any retail cannabis business, temporary cannabis event, or other cannabis business. Lien’s business is not a dispensary, but the city’s decision has left him with no other option but to abandon his plans.
This is not an isolated incident. Across the state, cities and counties are finding creative ways to block cannabis businesses, often citing concerns about zoning, land use, and public health. The Minnesota Office of Cannabis Management (OCM) has acknowledged that local governments have the authority to regulate cannabis businesses, but many entrepreneurs are finding it difficult to comply with the ever-changing landscape of local regulations.
The OCM has issued 16 microbusiness licenses, but many more are waiting in the wings, frustrated by the lack of clarity and consistency in local regulations. The agency’s executive director, Eric Taubel, has expressed confidence that the state’s cannabis market will “get going pretty smoothly,” but many entrepreneurs are not so optimistic.
The situation is particularly challenging for social-equity applicants like Lien, who are struggling to find a location that meets the city’s strict zoning requirements. The OCM has acknowledged that local governments have the authority to regulate cannabis businesses, but many entrepreneurs are finding it difficult to comply with the ever-changing landscape of local regulations.
As the cannabis industry continues to evolve in Minnesota, it remains to be seen how the state will address the growing concerns of entrepreneurs and small business owners. In the meantime, the patchwork of prohibition continues to grow, leaving many cannabis businesses in limbo.
