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The Mounds View Vision A Thriving Desirable Community DOCSOPEN\MU210\317\1012532.v2-2/27/25 Item No: 1 Meeting Date: March 2025 Type of Business: Council Business City Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 10069 – Approving MOU with MN Roots and authorizing Application to State and $2,500 fee for Cannabis License Introduction: The City has been exploring/working on a Municipal Cannabis store since fall of 2024. Staff met with MNROOTs and Joni and has received communication from other “partners” – Red Pine, Mille Lacs Band. Council directed staff to continue working with MNROOTs. The Application Period is now open for licenses until March 14, 2025, and K & G has been working in MNROOTs on the Memorandum of Understanding/Legal Agreement through which MNROOTs will provide consultation and management services to the City related to the municipal cannabis store. Discussion: The attached resolution approves the MOU, authorizes the City Manager to submit the application, and approves payment of the $2,500 application fee. The enclosed MOU outlines the relationship between the City and MNROOTS. This is a precursor to the full management services agreement, of which the Council has previously reviewed a draft, and other agreements related to the ultimate location of the cannabis business. The purpose of the MOU is to agree to the standards and items that MNROOTS has advised are necessary for the application and will be provided to the OCM with the application. Primarily, the MOU seeks to establish that the City, as the licensee, will retain control over the license and the business itself, but will be contracting with MNROOTS to advise the City on the management best practices and will also operate as a service provider in operating the business. If the license is granted to the City, the City has 18 months to execute/open a retail store. The license is specific to retail sales and the operation is regulated by the Office of Cannabis Management. Strategic Plan Strategy/Goal: A progressive city that is welcoming and desirable destination to all ages and cultures, who seek progress through partnership, and a place where residents can live, work and play safely and show pride in the community.