Local units of government proceeding with caution
regarding retail sale of prospective new cash crop
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By Justin R. Lessman

Local units of government in Jackson County are proceeding with caution regarding the retail sale of a prospective new cash crop.

Minnesota lawmakers legalized adult-use cannabis in August 2023, initially expecting cannabis retailers to be able to open in Minnesota cities and townships in early 2025.

Though retail cannabis businesses must be licensed by the state of Minnesota, they are also required to register locally before beginning sales to customers. Cities and townships that retain registration authority will be required to provide applicants with a form, verify the business meets zoning requirements, verify the applicant was approved for a license from the state, verify if registration limits would be exceeded, verify applicants are current on property taxes and conduct annual business compliance checks.

State law allows local units of government that retain cannabis registration authority to adopt an ordinance limiting the number of licensed retail cannabis businesses to one per 12,500 residents.

Last month, the Jackson County Board of Commissioners did all it could to restrict the number of retail cannabis businesses that set up shop within county borders.

The Lakefield City Council earlier this year decided to retain registration authority over prospective cannabis retailers with an eye toward setting the registration bar high. And the Jackson City Council last month likewise retained registration authority in order to maintain control over how many retailers it might allow in Jackson and where it might allow them to set up shop.

Allowing the minimum
Jackson County commissioners last month approved a county cannabis business ordinance limiting the number of retail cannabis business registrations within their jurisdiction to the minimum allowed by state law — that being one.

The limit will apply to all cities and townships within Jackson County that do not establish their own ordinances governing retail cannabis registrations and instead delegate registration authority to the county.

Commissioner James Eigenberg of Heron Lake spoke in favor of limiting the number of such businesses in the county as much as allowed by state law.

“I still view this as a real negative thing,” he said of legalized cannabis sales, “and most of the people I represent do too. One is enough, if that’s what we’re obligated to do.”

Commission chair Don Wachal of Jackson said he tended to agree, adding townships and cities in Jackson County that think differently could certainly establish their own ordinances allowing however many they wanted.

“I don’t want to limit what other jurisdictions do, but for the county, one is enough,” Wachal said.
Commissioners also adopted several cannabis-related amendments to the county development code and approved a 2025 fee schedule establishing retail registration and reregistration fees, as well as a fee for cannabis event registration.

Board members remarked they had done their part to prepare the county for the state’s anticipated launch of its retail marijuana market in early 2025, though it appeared the state itself would likely not be ready any time soon.

“It’s still a work in progress, I feel,” Wachal said.

Retaining control

Lakefield City Council members decided earlier this year they wanted to retain registration authority over prospective cannabis retailers so they could have a say in what kind of a business might set up shop in town.

Or not, said council member Brent Pavelko.
“My personal thought is to not have them here,” he said of retail cannabis businesses. “The only way I’d support it is if I was somehow forced to.”

And if that were the case, he added, he would also support setting a significant registration fee.

“Set the fee and make it very high — maybe $15,000,” he said. “That would discourage that type of business, or at least we’d make some money.”

Lakefield Mayor Stephen Condon has also said he would “prefer we not have” retail cannabis businesses in Lakefield.

Having a say

Jackson City Council members last month also decided to retain registration authority over prospective cannabis retailers, expressing a desire to be able to control where such a business might set up shop.

“I feel we want to retain that,” council member Nathan Peterson said of registration authority, adding he’d like the council to have a say in where any such business locates within the city.

Jackson City Attorney Brad Anderson said he thinks the decision for the city to retain registration authority is a wise one, especially since the rules governing such businesses have yet to be finalized at the state level.

“You can always give it up in the future,” he said of registration authority, “but why give up something we don’t even have rules for yet?”

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