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The City of Albert Lea approved its first two cannabis dispensaries in a majority vote on Monday evening. It comes two weeks after the council drew statewide attention for rejecting a licensed cannabis business owner in apparent defiance of state law.

The city council granted registrations to Christopher Gracia, who owns Matchbox Farms at 2316 Hendrickson Road, and Cristina Aranguiz, who owns Black Husky at 2706 Ekko Ave. Gracia’s business was approved by a 6-1 vote and Aranguiz’s business by a 5-2 vote.

Gracia and Aranguiz are among the first 10 people in the state to complete the Office of Cannabis Management’s licensing process to sell recreational cannabis. All 10 are licensed as microbusinesses, meaning they can grow cannabis and operate a single retail location.

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Several community members spoke to the council in opposition, and some in support of cannabis. Albert Lea currently allows for a maximum of two cannabis retailers – the minimum requirement under state law. Minnesota mandates municipalities permit one cannabis retailer per 12,500 residents.

At the council meeting two weeks ago, Mayor Rich Murray was among the council members who expressed frustration that the city has little say in implementing state law.

“It seems like just two years ago, we were locking people up for this very thing, smoking cannabis, and now we're promoting it. I do not like the way that the state legislature and governor has rammed this down our throats without any very little say in the whole process, all because they're hungry for more revenue", Murray said on July 28. 

On Monday night, he voted against both licensees.

“There is an incorrect perception by many in the public that this council and other leaders of the city do not want new businesses to come to Albert Lea,” said councilor Jason Howland on Monday. “We, as a council and all city leaders, want to see this city grow and we welcome new businesses to our community. But the best way to combat and not perpetuate that negative perception — don’t prevent legal, licensed and regulated businesses from opening in Albert Lea.”

Others on the city council who were reluctant to support cannabis sympathized with residents in opposition. Councilor Rachel Christensen encouraged Gracia and Aranguiz to be contributors to Albert Lea the best they can.

“For those that are in our community who are very concerned about this, we’re just going to have to do better, to reach the people that are in crisis, to find ways to do better, to do more. And yes, that’s unfortunate that we have to do that, but this is the world we live in,” she said. 

A third microbusiness license holder, Jacob Schlichter of The Smoking Tree, was denied reconsideration for registration. 

The city council narrowly rejected registration for Schlichter’s business on July 28

 after lengthy discussions about lack of control under state cannabis laws and public health concerns. 

On Monday, city manager Ian Rigg did not recommend reconsideration because Schlichter had a 2017 criminal conviction for a misdemeanor involving a minor.

“It should be known that concerns brought to the attention of elected officials and staff have not been resolved and only worsened,” said Rigg. “More concerning is the fact that the applicant has shown disdain or inability to follow lawful orders in legal requirements.”

In the weeks since his denial, Schlichter spoke with MPR News several times, saying he was considering opening his store against council wishes and feeling optimistic about being granted registration. 

“It sets a dangerous precedent that any of these local governments that don’t like this, well, what if they vote against everyone else now, you know, and now what? What does that say about these governments? You know, it breeds instability, and it makes people afraid to invest in a business in their community,” Schlichter told MPR News on July 31 before he stopped replying to further questions. He did not speak at the council meeting.

On Monday, city manager Rigg also proposed the city adopt additional requirements after the two retailers open, including conducting background checks on their own licensees and expanding their ability to deny registrations based on criminal history. The Office of Cannabis Management requests criminal history checks for all license applicants, but misdemeanors are not disqualifying.

He also recommended the city consider expanding the number of licenses after the two retailers are in operation.

“I urge all local governments to take a hard look and rely on their own criminal history background checks to bring this process in parity with alcohol licensing,” Rigg said.

The council did not take immediate action on any of his proposals.

The Minnesota Office of Cannabis Management (OCM) says it has informed local governments and applicants that municipalities cannot prohibit the establishment or operation of a licensed cannabis or hemp business. Local governments are permitted to limit the number of licensed cannabis retailers and enact “reasonable restrictions” on a business’s location and hours of operation.

“The specifics of how a local government selects businesses to receive a limited number of retail registrations are not specified in statute and are up to the local government,” said Jim Walker, OCM’s public information officer.

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After drawing statewide attention for rejecting a licensed cannabis business owner in July, the city council approved two other applicants on Monday evening.

After blocking one, Albert Lea approves its first two cannabis dispensaries

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