How Rochester's decisions could ban cannabis retailers in other parts of Olmsted County
Apr. 26—ROCHESTER — Future decisions by local elected officials could end up effectively banning the retail sale of cannabis in Olmsted County in some or all communities outside Rochester if the first businesses open in Rochester.
When
the Minnesota Legislature legalized recreational cannabis
use by anyone 21 and older, it ruled that local governments must allow at least one retailer per 12,500 residents.
"That would mean 13 in the county," Olmsted County Deputy Administrator Travis Gransee. "If the city were to decide to take all 13 and the (county) board decided to limit it to one per 12,500, it would in essence prohibit businesses in smaller cities."
Such a limitation would likely depend on how initial licenses roll out.
Commissioner Laurel Podulke-Smith, who sits on the state's Cannabis Advisory Council, said the Minnesota Office of Cannabis Management will ultimately determine who can obtain retail licenses, with local governments setting some allowable restrictions on the numbers allowed.
The county and other local governments can also restrict businesses from being close to schools, parks and other areas used by children, but they cannot ban them completely.
If the owner of one of the first 13 licenses awarded wants to set up a retail business in an authorized retail space outside Rochester, the county wouldn't be able to prohibit it and neither would smaller communities or townships.
However, if the owners of the first 13 licenses seek to set up business in Rochester, and the City Council allows more than the minimum required businesses, the county wouldn't be required to accept more businesses.
As a result, the impact in the rest of the county could hinge on future Rochester City Council actions, including whether the city limits the number of cannabis retailers to 10, which would be the minimum the city is required to accept under state regulations.
"Then, in theory, we would have to allow three in the county," Commissioner Mark Thein said of the potential for the city to limit the number of retailers.
Olmsted County Public Health Director Denise Daniels said that uncertainty will require a bit of a wait-and-see approach.
"We can't control where the first 13 applications come in from," she said.
Podulke-Smith said interest seen throughout the state would likely point to most applications being submitted for Rochester-based businesses.
"The applications will largely exceed the city's ability to approve them," she predicted.
Daniels said she believes such an outcome would be welcomed by cities like Byron and Stewartville.
"None of our small municipalities want it right now," she said, referencing discussions with city officials outside Rochester.
County staff are meeting with their Rochester counterparts every other week to continue discussions related to the future roll out of local regulations, and many specific decisions remain on hold while
the Minnesota Legislature and state cannabis office continue to hammer out statewide rules
.
"They are still writing rules," Olmsted County Administrator Heidi Welsch said of state officials. "There's a bill in the Legislature to write the rules."
Podulke-Smith said the state could begin issuing temporary licenses this summer through a lottery to focus on priority applicants, but final licensing be delayed until March 2025.
The Rochester City Council has passed an ordinance
delaying the establishment of cannabis businesses
until the start of 2025. County commissioners have not taken similar action, but they did
ban use in public space
s.
When it comes to setting future policies around numbers and acceptable locations, Gransee said the number of unknown factors in the state process suggests the county would benefit from making local restrictions as stringent as possible, at least until new businesses get started.
"Where we start on this doesn't need to be where we end on this," he said, adding that it's easier to relax existing restrictions than tighten them in the future.
