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The Mounds View Vision <br />A Thriving Desirable Community <br />Item No: 8A <br />Meeting Date: June 22, 2026 <br />Type of Business: Council Business <br />City Administrator Review: _____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Nyle Zikmund, City Administrator <br />Item Title/Subject: Municipal Cannabis Agreements <br />Introduction: <br />Council directed staff to explore opportunities for a Municipal Cannabis Retail operation <br />in 2024. By December of 2024, staff and the Mayor explored and interviewed three <br />entities interested, Red Pine, MN Roots and Joni. MN Roots was the chosen entity <br />whom then visited with the entire council at their December 2, 2024 workshop. <br />Background: <br />Since that time, the City has applied for – with the assistance of MN Roots, and secured <br />a Municipal Retail License. MN Roots/Great White spent well over a year searching for <br />and working thru retail site locations, settling on Mounds View Square, but only after <br />new ownership occurred and they were open to the space. <br />For the past two months, staff, legal, and audit have been drafting and refining <br />agreements that are still in final review at the packet deadline and will be distributed at <br />the meeting Monday night. <br />Discussion: <br />The three documents that need to be approved are: 1) Management Service Agreement <br />which details the responsibilities and duties of the City and Great White/MN Roots. 2) <br />Commercial Sublease which lays out the agreement between Mounds View <br />Square/Ventures Mounds View LLC. This agreement details the lease between <br />Mounds View Square and Great White and then additionally the City of Mounds View as <br />the sublessee given it is the City who owns the license. 3) Staffing, Branding and <br />Consulting Agreement which sets forth the details on the operation and process by <br />which revenue generated is used to pay all bills and the remainder is distributed to <br />Great White and the City of Mounds View. <br />All revenue generated from all sales will be deposited in a City of Mounds View banking <br />account that is yet to be set up, but ready to set up at Village Bank in Blaine. <br />Legal will review the documents Monday night and detail the provisions and protections <br />for the current council/city and future councils/city with respect to operations. <br />Strategic Plan Strategy/Goal: <br />A progressive city that is welcoming and desirable destination to all ages and cultures, <br />who seek progress through partnership, and a place where residents can live, work and <br />play safely and show pride in the community.