In a packed City Council Chambers on Monday, the Albert Lea City Council voted against reconsidering the registration for the owner of The Smoking Tree, while approving licenses for two other out-of-state cannabis dispensary owners.
Chris Gracia of New Mexico plans to open Matchbox Farms at 2316 Hendrickson Road, while Cristina Aranguiz of Washington state will launch Black Husky at 2706 Ekko Ave. Despite his general opposition to recreational cannabis, Mayor Rich Murray voted against both businesses. Fifth Ward Councilor Keith Van Beek supported Matchbox Farms but opposed Black Husky, citing a preference for Minnesota ties in cannabis dispensary approvals.
City Manager Ian Rigg explained that the Office of Cannabis Management (OCM) cannot require a city to approve a specific license, only that municipalities must eventually approve at least two registrations. Rigg noted concerns over limited background checks for applicants and suggested implementing criminal checks for cannabis dispensary operators, similar to alcohol licensing.
The rejection of The Smoking Tree stemmed from owner Jacob Schlichter’s 2017 gross misdemeanor conviction, which conflicted with the city’s ordinance prioritizing public health and safety. Schlichter, who had been the first state-approved cannabis dispensary license holder in Albert Lea, faced charges involving a 16-year-old runaway. Although the charge was later reduced to a misdemeanor, city leaders expressed discomfort with his history and public behavior following the denial.
Mayor Murray criticized the state for allowing such applications to advance, saying the city was doing “the uncomfortable thing” by rejecting the registration to protect residents.
Opinions on cannabis legalization varied, but several councilors emphasized that the city supports responsible business growth. Third Ward Councilor Jason Howland stressed that if a cannabis dispensary follows both state and local rules, it should be approved, and advocated for increasing the number of dispensaries from two to as many as five to prevent monopolies in a border city.
Other councilors highlighted Albert Lea’s pro-business track record, pointing to projects like the $90 million Vortex Cold Storage facility. First Ward Councilor Rachel Christensen called the approval process a “moving target” but affirmed the city’s commitment to balancing safety with economic opportunity.
During public comment, Gracia said his cannabis dispensary would operate in full compliance with Minnesota law, offering safe, tested products to adults while contributing to the local economy. As a disabled Marine Corps veteran with family ties to Minnesota, he pledged to run a transparent, respectful, and community-focused business.
With these new approvals, Albert Lea moves forward in shaping its cannabis industry—balancing opportunity, regulation, and public trust as the market for legal cannabis dispensary operations grows.