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When you talk to people in different Minnesota cities about how they are preparing for the arrival of recreational cannabis sales sometime next year you will find many different approaches. 

The Minnesota Legislature set most of the rules about cultivation and sale of recreational marijuana in spring 2023. However, the state left several key decisions within local control, including whether cities can allow more than a set minimum of shops.  

In southern Minnesota, Mankato is preparing carefully — and cautiously. 

The city council passed a trio of ordinances, one which  limited the number of high-level cannabis retailers to four. This follows the state statute setting a minimum of one retailer for every 12,500 residents. There are no limits on the number of smaller cannabis businesses. 

The city also prohibited cannabis businesses within a 1,000 foot restricted zone around schools and 500 feet around licensed day cares, residential drug treatment facilities and parks that have features attracting young people. These are the largest buffer zones allowed under state law. Some neighboring cities are going with less restrictive zones of about 300 feet. 

City manager Susan Arntz said Mankato is taking a cautious approach to cannabis. 

“We would set it at our minimum threshold to see how it goes, and give the state the continued time to work on improving the rules and the legislation around the cannabis activity in our state,” Arntz said. “Because if we had no set limit or set a higher limit, it would be harder in the future to change the regulation to something less.”

High-potency retailers are limited to several areas in Mankato, mostly concentrated on the east side. Lower potency, hemp-derived products such as edibles and beverages that are already legally being sold aren’t covered by this rule. 

But, Arntz said cities are still navigating a changing landscape and some are still seeking guidance ahead of the retail market opening in Minnesota. 

“Clarity about what happens if someone violates the law,” he said. “Not necessarily our local code, but what happens if they violate the law. The penalties aren’t real clear.”

About 24 miles away, the city of Le Sueur is sees recreational cannabis as an opportunity. For city leaders, the cannabis industry aligns with agribusiness and that’s something in which the town is well-versed. 

City administrator Joe Roby said they keeps tabs on cannabis legislation as they are updated in the state. They also started conversations with the planning and zoning commissions and the community — specifically about land use. 

“Our goal was to position ourselves really early on in the conversation to say yes, as often as we could for the benefit of the community, to welcome this new industry,” Roby said. “We’re a lot like other communities in greater Minnesota, where we’re really well positioned to participate.”

Recently, the Minnesota Valley Cannabis Company purchased the old Green Giant building to renovate it for cannabis processing.

Roby said those proactive conversations the city had early helped set the tone for the type of relationship they hope to have with future entrepreneurs seeking properties. 

“As long as we stay on our toes in this new frontier, we’ll continue to stay well positioned for it,” he said. “I think I’ve really heard nothing but really positive things from the community at large about our city welcoming this new business and I think that’s great.”

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But, this new business is operating in a rapidly changing environment. On Wednesday, the state Office of Cannabis Management announced it’s scrapping the social equity license lottery planned a few weeks ago. Instead it will create an open licensing process early next year for social equity and general license applicants. 

Distributing those licenses may stretch into spring or later. That will likely delay the goal of getting the cannabis retail market open by early 2025. 

Hannah Yang

Author

The Minnesota Legislature set most of the rules about cultivation and sale of recreational marijuana in spring 2023. However, the state left several key decisions within local control, including whether cities can allow more than a set minimum of shops.

Minnesota cities take different approaches to recreational cannabis market

A cannabis seedling with the sky in the background

Ann Arbor Miller for MPR News

Liam James Doyle for MPR News

Hannah Yang | MPR News

A colorful mural says "Greetings Le Sueur"

Minnesota cities take different approaches to recreational cannabis market

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