Anoka opens country’s only city-owned dispensary

Anoka opened the first city-owned cannabis dispensary in Minnesota on Thursday, Feb. 5.

Anoka Cannabis Co., at 839 E. River Road, is also the only municipal marijuana retailer operating in the United States, Mayor Erik Skogquist said.

The 2023 law that made marijuana legal in Minnesota allows cities to open one publicly owned store within their boundaries.

Other cities have considered opening a municipal dispensary, but Anoka was first out of the gate. The city started building the dispensary next to a municipal liquor store last May, before it had even secured its license.

“Once we made the decision, it’s like all right, let’s do this,” Skogquist said.

Many cannabis businesses have struggled to open, facing roadblocks in renting space or a slow-to-roll-out state licensing system.

Anoka’s store had to delay its grand opening by two weeks to ensure it had enough supply. The cannabis flower, gummies and drinks are grown and made by the Mille Lacs Band of Ojibwe and Prairie Island Indian Community, Skogquist said.

The new store cost just under $3 million to build, the mayor said, and is expected to bring in between $1 million and $2 million a year.

The dispensary’s website proudly proclaims: “Profits from your purchase stay in the city of Anoka.” The profits will go back into the city’s budget, though they haven’t been allocated to a specific purpose yet. Skogquist said they may be used similarly to the liquor store proceeds, which support public parks or help offset larger tax increases.

Anoka Cannabis Co. will be open by reservation only Friday, Feb. 6, through Sunday, Feb. 8, then will fully open its doors Monday, Feb. 9.

The city hopes to help educate consumers and “set a high bar” for how a dispensary can operate, Skogquist said.