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Council puts cap at 2 retail cannabis businesses

The Albert Lea City Council on Monday approved the ordinance regulating licensing for cannabis businesses, restricting the maximum number of retail cannabis establishments to two in the city.

It is still unclear when the state will begin issuing licensing, as the issue has been a moving target, City Manager Ian Rigg said.

Councilors asked what would happen if a third cannabis business wanted to open a retail location in the city, and Rigg said the council would have to amend the ordinance for that to be possible with both a first and second reading again — something that would take three to six weeks.

City staff have consistently stated it would be easier to start out small and increase numbers if there are successful outcomes and tolerances rather than start too big and have to scale back. The state is requiring the city to allow at least two retail establishments with a goal of limiting the distance people would have to drive to a cannabis shop and reducing illicit sales.

Albert Lea Mayor Rich Murray asked about the financial benefits for the city to having the retail businesses in the community, and Rigg said there would be an additional 10% on top of regular sales tax that would be distributed to the city, county and the state, with 1% of that going to the city and 1% going to the county.

First Ward Councilor Rachel Christiansen thanked all those who had been a part of developing the ordinance, noting staff put in extensive work, meeting with various groups and looking at guidance provided by the state. She said taking a conservative approach now doesn’t prevent the council from changing the ordinance in the future.

Rigg said it would not be unlikely that the city have to revisit the ordinance in six to 12 months once it receives more input from the state, noting there are still many unknowns.

Sixth Ward Councilor Brian Anderson said he supported the ordinance as it would provide a framework for the city.

Third Ward Councilor Jason Howland agreed and said he thought it was a good baseline, or starting point.

Second Ward Councilor Larry Baker said he would be in favor of opening the ordinance up to more retail establishments in the future if the time comes.

The council previously approved zoning requirements for the various cannabis businesses.

Rigg said the council will discuss setting maximum licenses for other adult-themed businesses at a meeting in November, including licenses for liquor, tobacco and sexually-oriented businesses.

The measure was approved unanimously, 7-0.

In addition to the number of retail establishments that will be allowed, the ordinance approved the most restrictive hours of operation as possible.