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Mounds View City Council March 3, 2025 Special Meeting Page 2 1 of the State, given their lack of guidance at this time. 2 3 Mayor Lindstrom stated he was aware there were other competitors out there trying to work with 4 municipalities. Ms. Libby reported this was the case,noting she was not aware of any city that was 5 trying to pursue a municipal license on their own. 6 7 Mayor Lindstrom opened the meeting for public comment. 8 9 Brian Amundsen, 3048 Woodale Drive, questioned how much due diligence the City has done 10 with respect to municipal cannabis. He understood the Council viewed this partnership as a 1 1 revenue source. He discussed how the City opted not to pursue a municipal liquor store in the past 12 and he hoped this was out of a moral obligation. He was of the opinion it was not morally right for 13 the City to be getting into the cannabis business. He stated Great White's LLC was established in 14 July of 2022, but in March of 2024, its license status was terminated. He questioned why the City 15 was choosing to partner with this company given that they could not properly file for an active 16 status with the State. He reported if the OCM didn't have proper guidance available, perhaps the 17 Council should wait to take action on this item. 18 19 Mayor Lindstrom closed the meeting for public comment. 20 21 Ms. Libby explained if you do not renew your business license every year the State now dissolves 22 businesses. She indicated she was uncertain what happened with Great White,but they were caught 23 and now the business was on a schedule to have their license renewed. She reported now was the 24 time to take action because there will be no extensions or window openings in 2025 or 2026. She 25 commented no new applicants will be brought in until the OCM feels comfortable. She discussed 26 how community crime and drug use was going down in State's that legalize cannabis because 27 people were using products that were regulated. 28 29 Mayor Lindstrom stated he believed cannabis is a net positive being legal and potentially would 30 take away from other treatment opportunities. He explained he trusted the City Attorney to work 31 out the minute details going forward. He reported cannabis would be sold in Mounds View one 32 way or another going forward. From a financial standpoint, he explained the City had not spent 33 any money to date. He commented further on how the municipal cannabis would provide a new 34 revenue street for the City, which would be beneficial in this tight economy. He stated he would 35 support going forward with the municipal cannabis license. 36 37 City Administrator Zikmund explained staff met with Joni,along with MN Roots and also explored 38 the Red Pine Group. He added that these are the three major players in the Twin City that they are 39 aware of at this time. He stated the agreement with MN Roots had a 60/40 revenue split while the 40 Red Pine Group was proposing a 75/25 revenue split. He noted Joni had not provided a revenue 41 split option for the City. He reported each vendor had ensured there would be no cash outlaid on 42 the City's behalf up front. 43 44 Council Member Gunn asked if a store could be up and running in 18 months. Ms. Libby reported 45 she could have a shop up and running quite quickly once the State's had regulations in place. Mr. 46 McCalpa commented on the timeline that was followed for his medical marijuana establishment.