07-14-25 - City Council Agenda - Laserfiche WebLink

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CITY COUNCIL WORK SESSION STAFF REPORT ITEM D STAFF ORIGINATOR: Michael Grochala, Community Development Director WORK SESSION DATE: July 14, 2025 TOPIC: Municipal Cannabis Retail Store BACKGROUND The City Council is considering the possibility of establishing a municipal retail store as a potential revenue generator. On July 7, 2025, the City Council reviewed the draft Market/Feasibility study prepared by Great White Companies, for a municipal retail store. While not final, the report indicated an opportunity for significant revenue generation from a retail operation. Staff is working with Great White Companies, to complete the report. However, the council expressed interest, with some reservation, of continuing the evaluation. Under state law, the City is required to allow two privately owned retail stores. A municipal store license would be in addition to those. While the state license application process is currently closed, staff anticipates another opportunity in the following months. The City's Economic Development Advisory Committee (EDAC) discussed a municipal cannabis store at it's July 10, 2025, meeting. The EDAC generally supported moving forward with the following recommendations: • Consideration should include a plan for how revenues would be used and benefit residents of Lino Lakes as part of the development process. • Consideration should include development of a process in the annual budgeting/levy process to show residents the impact on property taxes. • Provide an opportunity for public comment on the establishment of a municipal retail operation. The EDAC also provide staff with additional considerations for incorporation into contractual documents should the project move forward. If the City moves forward, it would likely be under a public/private partnership whereby a private entity would own and operate the store and profit share with the City. Under this 1 Page 5 of 240