The Brief
13 Minnesota cities have applied for licenses to set up cannabis retail stores.
Cities can’t enforce a monopoly, but they’re the only retailers who can sell both cannabis and hemp-derived THC products.
Cities voting to launch cannabis retailers are hoping that they’re profitable soon and can help fund services or reduce tax levies.
(FOX 9) - The government is getting into the marijuana market.
Government dealer
City Hall cannabis
In total, 13 Minnesota cities are in line to launch their own cannabis retail businesses, blazing a new trail in this country, where no other state has a city-run pot shop.
A building under construction in Anoka is designed to be the state’s first cannabis retailer run by a city government and the only one in the country.
But Minnesota cities may be well positioned to do it because of what’s right next door — a municipal liquor stores.
Out of hiding
Go to the government
Using marijuana, for decades, meant hiding from the government to consume an illegal product.
But legalization in Minnesota will now let the government become your local dealer.
"It’s an interesting concept, isn't it?" said Elk River city administrator Cal Portner. "I mean, how far we've come with the normalization of this product in general. It's something that was always taboo."
Elk River is one of 13 cities to apply for a retail license from the Office of Cannabis Management, here are the others:
City of Mounds View
City of Anoka
City of Elk River DBA Cannabound
City of Osseo DBA Osseo Municipal Cannabis Store
City of Byron
City of Owatonna DBA Owatonna Cannabis Dispensary
Saint Anthony Village Cannabis Dispensary
Grand Rapids Municipal Dispensary
City of Buffalo
City of Blaine
City of St. Joseph DBA St. Joseph Municipal Dispensary
City of Wyoming
City of Lauderdale
They have to follow almost all the same rules as regular retailers with one exception: They can sell marijuana and hemp-derived THC products in the same store.
The cities already run municipal liquor stores, which Portner says has them in good practice for making sure all the rules and regulations are followed.
"We’ve not had legal sales to minors or anything such as that.," he said. "And that's important for us and for our community."
Seeing green?
Push for profit
Unlike with liquor stores, cities cannot enforce a cannabis monopoly, so they’ll have competition.
In Elk River and Anoka, they’re planning to put a focus on cannabis education, but they also want to make sure it’s a profitable business.
Elk River makes almost $1 million a year at its liquor stores.
Anoka projected a profit last year as well.
And cannabis profits will benefit local taxpayers.
"Almost all of our income from this is going to be going right back into the city in situations such as levy breaks, and the making of new parks, recreational facilities, that kind of stuff," said Stephanie Rietz, the Anoka Cannabis supervisor.
What's next
Elk River is hoping to choose a spot and break ground on their cannabis store by January, but they might open a small store even before then.
The Anoka store is set to open in December.
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