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November 26, 2024 St. Anthony Council Work Session - 4 Councilmember Jenson referred to capital allocation costs up to $500,000. He is in favor of opening a dispensary. He noted with the police department expansion another building expansion or a new building is needed. He asked whether we have monies available for this. City Manager Yunker stated the liquor fund has a large balance. The stores are 20 years old and some rehab is needed. It is too early to determine if those funds could/should be used for the police department. Councilmember Jenson asked if neighboring cities are seeking licenses. Liquor Manager Larson stated Columbia Heights is looking at a dispensary. Councilmember Doolan asked how the illegal markets would impact St. Anthony. Mr. Erley stated he has not heard any specifics on illegal markets. Councilmember Randle stated he is not in favor of this but if we are going to do it, we should be able to control it which would cut down on some of the illegal sellers. Mayor Webster stated we can control the quality of the product. Councilmember Jenson stated we own the liquor store locations and is it recommended to lease or buy property. Mr. Larson stated he does not like to pay lease rates but it may be the best thing to lease for the first 5 years. Mr. Larson stated a lawsuit that was filed is slowing down this process. This will allow more time for processing but he believes people want to buy products legally. Councilmember Jenson asked if there are systems in place to ensure that the integrated supply chain is selling product that is not laced with something else. Mr. Erley stated there are systems in place to ensure quality products. Councilmember Elnagdy asked if medical marijuana vendors have first dibs on recreational products. Mr. Erley stated there is no preference for those sellers. She asked if there were more growers or will St. Anthony be able to buy the same products as the medical growers produce. Mr. Erley stated there are 13 growers' licenses and 23 mezzo licenses. There may be some supply chain issues. Councilmember Doolan asked about security in the stores and is the level of security for a dispensary the same as for a liquor store. Mr. Erley stated it is increased for cannabis dispensary. Costs for increased security are included in the $500,000. She asked if there is different training necessary for staff and Mr. Erley stated it would be more training. Councilmember Jenson stated he is glad Mr. Larson wants to proceed cautiously. Councilmember Doolan noted this involves smoking and the goal of the Council is to reduce smoking. She would like to understand more as the industry grows will this decrease liquor sales. Mayor Webster stated this would be diversifying and research is showing long-term alcohol use would be decreasing. Mr. Larson stated alcohol consumption is generational. Mayor Webster thanked Mr. Erley and Mr. Larson for their presentation. Future Work Sessions: The next Work Session will be held on December 10, 2024, in the Council Chambers at 5:00 p.m. 5