LINO LAKES—A feasibility study for a possible municipal cannabis dispensary in Lino Lakes will be conducted by Great White Companies LLC following council approval in a majority 4-1 vote.
A community-based feasibility study will help illustrate the potential market and highlight projected sales for the city of Lino Lakes. According to City Administrator Karen Anderson, the cost of the study will be a $2,500.
“One of the discussions that we had earlier, brought up the topic ‘Is there an actionable item that could provide us the ability of gaining (some) finance?’ which would allow us to put those revenues towards another source,” Mayor Rob Rafferty said.
Adult-use cannabis was legalized by the state Legislature in 2023 and signed into law in 2024. In response to the legalization of cannabis in the state of Minnesota, cities are required to amend their zoning codes to reflect the changes that have been set by the state.
The law also created the Office of Cannabis Management (OCM) to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market and the consumer hemp industry. The OCM will be responsible for licensing cannabis businesses. There are 13 different types of business licenses.
Council Member Tony Cavegn said that since, by law, the city has to allow cannabis stores, it should see if there is a way to benefit from them.
“This is a revenue source that we haven’t had the opportunity at before. It certainly should be looked at to see if there is revenue available. It would need to be, I think, significant for us to move forward, but there is really no reason not to,” he said.
While the law provides certain means of oversight by local units in government, the city cannot ban a cannabis business outright or limit operations in a manner beyond those provided in state law. The city can, however, limit the number of retailers and businesses with retail endorsements allowed within the community. The law requires cities to allow once license per 12,500 people. Based on the city’s population, Lino Lakes is entitled to two licenses.
Council Member Dale Stoesz said he is opposed the feasibility study and the idea of having a municipal cannabis dispensary because he believes it could create conflict for the city.
“I believe that having the enforcement side to cannabis as well as profiting from cannabis creates a conflict for the city… I don’t think that selling cannabis is one of the core services that our city is supposed to provide,” he said.
The results of the study were presented to the City Council at a work session on Monday, July 7.
