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HomeMy WebLinkAbout07/10/2025 EDAC Minutes CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: July 10, 2025 TIME STARTED:8:00 a.m. TIME ENDED:9:36a.m. MEMBERS PRESENT:Andrew Cravero, Blakely LaCroix, Patrick Kohler, Nathan Vojtech, Barbara White, Chad Wagner, Suzy Guthmueller, Randy Rennaker, Sam Bennett MEMBERS ABSENT: Chris Spenner STAFF PRESENT: Michael Grochala, Marissa Ertel 1. CALL TO ORDER Mr. Vojtech called the Economic Development Advisory Committee meeting to order at 8:00 a.m. on July 10, 2025. 2. APPROVAL OF MINUTES Mr. Cravero made a motion to approve the May 1, 2025 meeting minutes. Motion was supported by Mr. LaCroix. Motion carried 9-0. 3.DISCUSSION ITEMS A.Municipal Cannabis Dispensary Minnesota Statutes, Chapter 342, adopted in 2023 and amended in 2024 authorizes the cultivation, manufacturing and sale of cannabis products. The City adopted amendments to Chapters 617 (Licensing) and 1007 (Zoning) in early 2025 establishing regulations for the registration of cannabis business and zoning requirements. Both state law and City Code Chapter 617 allows for the City to operate a municipal cannabis store. A license for a municipal cannabis store is in addition to the registration limitations of 1 per 12,500 residents. 13 cities are reported to have applied for a municipal cannabis retail license, including Anoka communities Anoka and Blaine. The City Council recently discussed the possibility of establishing a municipal retail store as a potential revenue generator. On June 23, 2025, the City Council authorized the preparation of a Feasibility/Market Study to evaluate the potential viability of a municipal Economic Development Advisory Committee July 10, 2025 Page 2 store by Great White Companies MN, LLC. The study is anticipated to be presented to the City Council at their works session on July 7, 2025. 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. However, no decisions have been made by the City Council, at this time, other than to study the opportunity. Bill Parker with Great White Companies, LLC was present to discuss the feasibility study and answer questions regarding the viability of the operation and cannabis retail business in general. Mr. Bennett had questions regarding the $125.00 amount in the draft feasibility study. Mr. Parker explained this would be the average spend per user per month. Mr. Cravero spoke about the projected salaries and Mr. LaCroix had questions regarding whether the presented salary would be feasible. Mr. Parker stated that with the projected number of consumers this would be a reasonable projection. Mr. LaCroix also had concerns regarding traffic around a future cannabis retailer. Mr. Parker stated this is one of the main areas that they investigate when looking for a future store. Mr. Bennett wanted clarity on how much the City would be involved. Mr. Grochala stated that the City Council would want a non-complete clause, but other than that the City would be hands off. Mr. Wagner wanted to know whether the City would get a portion of the sin tax. Mr. Parker explained that the State recently passed legislation that removed the percentage that would be retained by the municipality. Mr. Rennaker asked for more clarity on how the federal law factors in and what this would mean for the municipal store. Mr. Parker explained that the current administration is being pushed to classify cannabis from schedule one to schedule three. Moving to schedule three would mean this would not be just a cash-based system. Mr. Vojtech had questions about whether this would be strictly a recreational license. Mr. Parker explained that the way the state set up the licensing, it would not make sense to get a medical dispensing license. Mr. Vojtech questioned if there was a reason the City didn’t have a municipal liquor store. Mr. Grochala explained that since there are already several liquor stores in the city it wouldn’t be beneficial, with cannabis the City would be getting in at the ground floor. Mr. Kohler had concerns about the medical impacts of cannabis. Mr. Parker explained that since cannabis is still classified as schedule one there have not been many studies regarding the medical impact of regular cannabis use. Economic Development Advisory Committee July 10, 2025 Page 3 The Board had more questions about how the money brought into the City would be used. Mr. Grochala explained that the City Council is still in early discussions about the municipal license, but this is something that would be considered by the Council. 4. PROJECT UPDATES Mr. Grochala updated the committee on current City projects. 5. ADJOURNMENT Ms. Guthmuellermade a motion to adjourn the meeting at 9:36 a.m. Motion was supported by Mr. LaCroix. Motion was carried 6-0. Respectfully submitted, Marissa Ertel, Community Development Administrative Assistant