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City Council Regular Meeting Minutes <br />February 24, 2026 <br />Page 3 <br />1 statement, and value of municipal liquor operations. He presented the sales and profit <br />2 comparison of 2025/2024, five-year profit history, consumption trends and outlook, market <br />3 outlook, and 2025 accomplishments. He encouraged residents to visit the website for more <br />4 information. <br />5 <br />6 Councilmember Elnagdy recognized that alcohol sales have been decreasing nationwide and <br />7 noted that there was not a large decline for the municipal stores. She recognized the work of <br />8 staff. Mr. Larson commented that he was happy to see the second half of the year rebound. He <br />9 stated that he believes that alcohol sales will continue to be different from the past, but believed <br />10 the municipal stores will continue to have success. <br />11 <br />12 Councilmember Doolan appreciated the leadership of Mr. Larson. <br />13 <br />14 Councilmember Randle commented that the numbers for the stores have been great for years and <br />15 admired the leadership provided by Mr. Larson, especially during these changing times. <br />16 <br />17 Councilmember Jenson recognized the success over the years, which he attributes to the clean, <br />18 organized, and welcoming stores and staff members. <br />19 <br />20 Mayor Webster agreed that there is a great culture and sense of belonging when you walk into <br />21 the liquor stores. She was excited about the vision the team has created for how the stores can be <br />22 community hubs. She stated that the leadership of Mr. Larson has shown the Council how they <br />23 can continue to adjust to the trends to continue to serve the community. She also recognized the <br />24 contribution the liquor stores provide to the general fund. <br />25 <br />26 C.Retail Cannabis Update <br />27 <br />28 Liquor Operations Manager Larson shared Minnesota industry news and presented the cannabis <br />29 sales forecast and an overview of the vision for cannabis and liquor retail. He provided an <br />30 update on the planned renovations for the Village Muni, Marketplace, and Silver Lake Village <br />31 cannabis/liquor retail locations, and additional information on the scope, budget, and timeline of <br />32 the project. <br />33 <br />34 Councilmember Elnagdy asked for a licensing update. Mr. Larson replied that the low-dose <br />35 hemp licensing has been secured. He stated that the cannabis licensing continues to move along, <br />36 and he had no concerns that the City would not receive the license. <br />37 <br />38 Councilmember Jenson asked if a supply chain has been developed for cannabis. Mr. Larson <br />39 replied that the City of Anoka and other cannabis businesses have secured supplies. He stated <br />40 that as stores continue to open, it will be interesting to see if the supply chain can keep up. He <br />41 noted that currently, the Native Americans are doing most of the cultivation and would most <br />42 likely supply the store. <br />43 <br />44 Councilmember Doolan commented that it appears that cannabis is a less costly business to run, <br />45 compared to liquor, but will only take up one quarter of the store. Mr. Larson replied that there <br />46 is much more inventory and overhead for the liquor store compared to the cannabis operation.