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Councilmember Jenson stated that he likes the design concepts and asked if staff is leaning towards one. Liquor Operations Manager Larson explained that the pictures are just examples of fixtures inside the building, and they are still working with the architect to incorporate the changes to the outside of the building. Councilmember Jenson referenced the estimate, noting that quotes have not yet been received, and asked what would happen if the quotes exceeded the budget. He suggested that they obtain quotes sooner rather than later so that they are not surprised at the ultimate cost. Mayor Webster recognized that they want to do this project right, and this transformation of the stores is necessary. She stated that quotes may be higher and wanted the Council to recognize that this is a needed and necessary project. Councilmember Jenson asked if it is necessary to have the project completed prior to the planned summer event. Liquor Operations Manager Larson replied that the goal is to complete the project prior to that time, but all the people who will be attending have also gone through these types of projects and understand the process. Councilmember Jenson asked whether the low-dose hemp products would continue to be sold on the liquor side of the operations or whether that would be moved to the cannabis portion of sales. Liquor Operations Manager Larson replied that municipal dispensaries can also have low-potency products, and therefore, they would plan to offer those items on both the liquor and cannabis sides of the business. Councilmember Jenson asked for more information related to the sampling of different products. Liquor Operations Manager Larson stated that they do currently offer sampling events for low-potency drinks, but was unsure if they would be able to offer sampling of cannabis flower. He confirmed that smoking would not be allowed inside the building. He stated that they could offer educational information, and people could sample the product in their home. Councilmember Doolan stated that she likes that cannabis was moved to Marketplace, as there is easier access from the highway and an opportunity to reach shoppers. She also liked that there would only be two buildings to maintain long-term, the focus on education, a discrete entrance and kiosk, and the comprehensive planning and branding. She stated that the questions or concerns that she would have are related to the timing and reliability of supply, margins for THC beverages compared to alcohol and related profit shifts, unknowns about THC labeling, competition with medical dispensaries, national regulation, and State licensing changes. She asked if there would be a phased-in rollout for the rebranding, recognizing that the highest priority would be the implementation of the cannabis retail location rather than the second location rebranding. She stated that she is comfortable moving forward, beginning with Marketplace. She asked if the events and outreach resulted in higher sales. Liquor Operations Manager Larson replied that they host those events, have a good time, and they result in good sales. He stated that he wants to provide an environment where they back up the concept of shop local. Mayor Webster commented that the summer event will be a great opportunity for marketing and media attention, which will be a positive outcome for the store and the community. She stated that it is her understanding that the money for the renovations and rebranding would be taken from the liquor store fund and would be paid back to the fund balance through future profits from the stores. Liquor Operations Manager Larson confirmed that the fund balance has been built up in anticipation of the project. 4