Albert Lea City Council stands firm against the Smoking Tree, approves two other cannabis dispensaries

Just two weeks after rejecting a license application for cannabis microbusiness the Smoking Tree, the Albert Lea City Council stood by its earlier decision.

The council on Monday voted to deny the license again. However, the council approved two other cannabis microbusinesses in the city: Matchbox Farms MN’s Matchbox Dispensary, operated by father-and-son duo Chris Gracia Sr. and Chris Gracia Jr., and Black Husky, operated by Cristina Aranguiz. The business owners volunteered background checks that revealed no issues, Albert Lea City Manager Ian Rigg said.

Nearly every seat was filled on Monday night — including extra chairs brought in for audience members. A handful of community members spoke against allowing cannabis dispensaries in Albert Lea, while a few spoke in favor, including Matchbox Farms owner Gracia Sr. A representative for Aranguiz made a similar request.

“People have different opinions, and we respect that,” Gracia Sr. said. “Our goal is not to change anyone’s beliefs but to operate in full compliance with Minnesota law and every ordinance the city puts in place.”

The council voted 6–1 to approve registering Matchbox Farms, with Albert Lea Mayor Rich Murray voting no. It also approved Black Husky 5–2, with Murray and Council Member Keith Van Beek voting against.

The OCM previously accused Aranguiz of being “the face of a scheme to use hundreds of straw applicants to gain unfair advantage” in a social equity license lottery that was canceled in November. She subsequently sued the OCM, challenging the denial of her application. However, in late July, a three-judge panel of the Minnesota Court of Appeals dismissed the case.

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“It won’t be long before we have a lot of different options,” Gracia Jr. said.

Rigg cited the Smoking Tree owner Jacob Schlichter’s “violations of probation, having contact with minors..., statements to the press about opening regardless of registration, most recently, a new restraining order against the licensee within the last week,” as reasons for the denial. Schlichter did not attend the council meeting.

The Minnesota Star Tribune found no court records of a recent restraining order against Schlichter.

However, he was convicted in 2017 in Austin, Minn., of a gross misdemeanor — reduced to a misdemeanor — for “contributing to the need for child protection or services,” according to court records. Authorities accused the then-20-year-old of allegedly driving his 16-year-old girlfriend from Texas to Minnesota.

He was sentenced to two years of probation in August 2017 but violated the conditions, according to court documents. A judge imposed further conditions in 2018 for the violations, including banning Schlichter from contact with minors and from using controlled substances or alcohol.

Schlichter declined to comment on the charges.

The resolution to approve Schlichter’s license failed for lack of a motion, as no member formally proposed it.

He opened his shop on Aug. 3 despite the council’s denial two weeks ago “because it seemed like the right thing to do.” Though Schlichter didn’t have cannabis products to sell, he still talked with customers and sold clothing.

The Minnesota Office of Cannabis Management (OCM) had previously granted him state approval. Rigg said City Attorney Joel Holstad reached out to the OCM regarding Schlichter’s background.

“Simply put, it did not impact their decision, as they were not even allowed to let it impact their decision,” he said.

He recommended that the city conduct criminal background checks for cannabis business owners.

“It is just sloppiness and passing the buck to local governments,” Rigg said. “I urge all local governments to take a hard look and rely on their own criminal history background checks to bring this process in parity with alcohol licenses.”

Holstad, Albert Lea’s attorney, said the city has little liability for any particular action, “as long as we are not openly defying [the state’s] authority to direct licensees.”

The vote came the same day President Donald Trump said he is considering reclassifying marijuana to a lower federal schedule, which could ease restrictions nationwide in the coming weeks.