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HomeMy WebLinkAboutResolution 10069 - 2025/03/03 RESOLUTION NO. 10069 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING MEMORANDUM OF UNDERSTANDING WITH MNROOTS/GREAT WHITE COMPANIES REGARDING OPERATION OF A MUNICIPAL CANNABIS RETAIL STORE,AUTHORIZING CITY ADMINISTRATOR TO SUBMIT CANNABIS BUSINESS APPLICATION, AND AUTHORIZING PAYMENT OF $2,500 APPLICATION FEE WHEREAS, the City of Mounds View (the "City") intends to obtain a cannabis retailer license from the Minnesota Office of Cannabis Management (the"OCM") to operate a municipal cannabis retail business; and WHEREAS, the OCM has only scheduled a single application window within which the City may apply for a cannabis retailer license, and that window closes on March 14, 2025; and WHEREAS, the City has determined that it is in the best interest of the City, the use and protection of public dollars, and the health, safety, and wellness of the people of Mounds View,to contract with an independent contractor with experience with retail cannabis business operations to provide services at the single municipal cannabis store that will be operated by the city of Mounds View; and WHEREAS, to meet the application requirements, the City desires to enter into the memorandum of understanding ("MOU") with Great White Companies, LLC ("GWC"), establishing the framework of the relationship between the City and GWC to ensure the necessary information is submitted to the OCM as part of the cannabis business application; and WHEREAS, the cannabis business application requires that the highest-ranking non- elected official be identified in the application; and WHEREAS,the application fee for a retail cannabis license is two-thousand five-hundred dollars ($2,500); and WHEREAS, the City Council anticipates that there may be changes in guidance and best practices during the licensing application window and subsequent review period, and the City Council desires to provide City staff with the necessary authority to submit additional application materials and information as recommended by GWC and deemed necessary by the City Administrator in consultation with the City Attorney; and WHEREAS,the City Council has reviewed the MOU and finds that the execution thereof, the submission of the cannabis business license application, and the payment of the application license fee are necessary to establish the City's municipal cannabis store. Resolution No. 10069 Page Two NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Mounds View,Minnesota that the MOU is approved in substantially the form presented to the City Council on the date of this Resolution, subject only to modifications that are approved by the City Administrator in consultation with the City Attorney and do not alter the general substance of the agreement. NOW,THEREFORE, BE IT FURTHER RESOLVED,by the City Council of the City of Mounds View, Minnesota that the proper City staff and officials are authorized to execute the final version of the MOU, submit the application for a municipal cannabis retailer, and take all actions necessary to perform the City's obligations under the MOU as a whole,-and all reasonable actions that comply with the intend of this resolution. Adopted this 3rd day of March, 2025. d in, Mr ATTEST: N e Zi und, City Administrator MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made and is effective as of March 3, 2025, by and between the City of Mounds View, a Minnesota municipal corporation (the "City") and Great White Companies, LLC, a Minnesota limited liability company, and its successors and assigns ("GWC"). The City and GWC may be jointly referred to herein as the "Parties" and each of them, a"Party." WHEREAS,pursuant to Minnesota Statute § 342.32. subd. 5, a city may"establish, own, and operate a municipal cannabis store subject to the restrictions in this chapter"; and WHEREAS, pursuant to Minnesota Statute § 342.14, subd. 7, the Office of Cannabis Management ("OCM") "must issue a license to a city or county seeking to establish, own, or operate a single municipal cannabis store authorized under section 342.32, subdivision 5, if the city or county: (1) submits all information required by the office; (2) meets the minimum requirements under section 342.18 ,subd. 3; and (3) pays the applicable application and license fee; and WHEREAS, Minnesota Statute § 342.18, subd. 3 requires that an applicant must include information in their application regarding: "(1) security and record keeping; (2)employee training plan; (3)business plan and financial situation; (4)labor and employment practices; (5)knowledge and experience; and(6) environmental plan;" and WHEREAS, the OCM has released its application guidelines, which provide that "[m]unicipalities may seek to enter into agreements with non-governmental entities to operate a municipal retail cannabis store. These agreements must be disclosed as part of the application process. Depending on how these agreements are structured a non-governmental entity that operates a municipal cannabis retail location subject to an agreement with the municipality may be subject to the application and license limitations in Minnesota Statutes, section 342.185. similarly, depending on the structure of the private partnership and the services provided, employees of the private entity may be subject to background check requirements in Minnesota Statues, section 342.15"; and WHEREAS,the City intends to apply for a municipal license during the OCM's licensing cycle,which is the only licensing cycle currently scheduled,that opened on February 18,2025 and closes on March 14, 2025; and WHEREAS, the City intends to obtain a cannabis retailer license and has determined that it is in the best interest of the City, the use and protection of public dollars, and the health, safety, and wellness of the people of Mounds View, to contract with an independent contractor with experience with retail cannabis business operations to provide services at the single municipal cannabis store that will be operated by the city of Mounds View; ; and WHEREAS, GWC is such a cannabis consultant and desires to provide such services to the City. 1 DOCSOPEN\MU2 10\317\101215 5.v3-2/27/25 NOW, THEREFORE , the City and GWC enter into this MOU for the reasons set forth above : 1 . INTRODUCTION . This MOU sets forth a summary of the essential terms of the contemplated contractual relationship between the City and GWC but is not exhaustive of all the terms the Parties will require in the final agreements between them, when the Parties, upon successful negotiations, agree to all terms . It is the Parties ' intent that this MOU provide an outline for the preparation of the definitive documents between the Parties as to the subject matter hereof (the "Definitive Documents") and is specifically entered into to provide the OCM with adequate information necessary to meet the application requirements for a municipal cannabis license. 2 . PURPOSE , The City desires to obtain a cannabis retail license and has determined that it is in the best interest of the City to enter into a relationship with GWC as described herein. Thereby, the Parties desire to enter into an agreement or agreements as part of the Definitive Documents whereby GWC shall provide consultant services , branding services, staffing services, and related services as allowed under Minn. Stat . § 342 . 1851 subd . 1 (g), paragraph 6 under the designation "True party of interest does not include . " By entering into the Definitive Documents, the Parties agree that GWC, nor its affiliates or assigns, shall have the right to exercise control over the City' s cannabis business, the right to receive some or all of the City' s revenue, gross profit, or net profit, nor obtain any ownership or control of the City' s business . 3 . CONTROL OF CANNABIS BUSINESS . The City shall , at all times, retain control , as it is defined in Minnesota Statues , section 342 . 185 , subd . 1 (b) over the cannabis business . GWC will operate as a consultant and advise the City on best practices related to the operation of the cannabis business . GWC will also operate as a service provider operating the cannabis business at the direction of the City. GWC agrees to provide management services of the cannabis business, but such management shall not be independent and shall be at the direction of the City and pursuant to City- adopted policies and procedures . At no time with GWC gain any ownership of the cannabis business or municipal cannabis license. 4 . PHYSICAL LOCATION . The Parties acknowledge and understand that the location of the cannabis business, including any property interests held by each Party, is subject to change as a final location is determined . 5 . DEFINITIVE DOCUMENTS . Upon licensure by the OCM of the City, the Parties shall work expeditiously and in good faith to negotiate and enter into the Definitive Documents . The Parties agree that the Definitive Documents shall include agreements for consultant services, branding services, staffing services , and related services as discussed above, and any other documents necessary to complete the transactions contemplated therein . The Parties shall work together with regard to any third parties to ensure performance of the covenants contained with the Definitive Documents . 2 DOCSOPEN\MU210\317\ 1012155 .v3 -2/27/25 6 . AMENDMENT . The City Manager of the City of Mounds View may approve amendments to this MOU as necessary to timely respond to inquiries from the OCM related to the application for a municipal cannabis retailer license. 7 . MISCEL,LANEOUS . The Parties shall not be deemed to be in a relationship as partners by virtue of this MOU nor shall either of them be deemed to be an agent, representative, trustee, or fiduciary of the other. Neither Party shall be any authority to bind the other to any agreement, except as set forth herein . Each party shall be responsible for its own fees and expenses incurred in connection with this MOU . This MOU may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Facsimile signatures and electronic typed signatures shall constitute original signatures , IN WITNESS WHEREOF, the Parties have executed this MOU as of the day and year first above written : The City of MoqnA Vie G at 1 e Companies , LLC : Zach Lindstrom By: rtis W ite ts; Mayor s : CEO BryyleZi ndty Administrator 3 DOCSOPEN\MU210\317\ 1012155 .v3-2/27/25