In East Grand Forks, 149 applicants vie for two cannabis retailer licenses

The city said applicants from around the country applied to open up shop.

The Minnesota Star Tribune
August 7, 2025 at 6:14PM
John Reitmeier takes a call from a customer at his desk in Canna Corners in Crookston, Minn., last summer. (Aaron Lavinsky/The Minnesota Star Tribune)

John Reitmeier opened Canna Corners in East Grand Forks, Minn. with his business partner two years ago in anticipation of this moment to sell recreational cannabis flower.

But now Reitmeier and associate Casey Hammer are up against 148 other applicants to see if they will be one of two retailers selected during a lottery later this month.

“Glancing at some of the applications that came in, it looks like they came in from all over the country,” said city clerk Megan Nelson.

The city will review applicants before the lottery Aug. 21, held in city council chambers. Nelson said the majority of applicants — more than 100 — came in Wednesday, the last day the application window was open. She added some were local applicants, like Canna Corners.

Reitmeier takes issue with his local business being on equal footing with larger companies that have never stepped foot in Minnesota, let alone East Grand Forks.

“The whole thing with Minnesota getting cannabis was the fact that it was supposed to be for the mom-and-pop Minnesota residents,” he said. “If we knew right away that we were up against unlimited money from Chicago, St. Louis and New York, we would have never done this. We’ve got our heart and soul in this business.”

Josh Collins, spokesman for the state’s Office of Cannabis Management (OCM), said Minnesota couldn’t limit out-of-state applicants.

“States that attempted to limit licenses to in-state businesses ran afoul of the Commerce Clause [of the Constitution] and those provisions were struck down,” Collins said in an email. “Knowing that, Minnesota’s cannabis law did not attempt to limit out-of-state businesses to our market.”

Reitmeier said losing to a local in the lottery is one thing. “But now we’re up against 148 other people that have no connection to our part of the world … This is a money game now.”

He and Hammer opened the location in East Grand Forks and Thief River Falls 2 ½ years ago after opening the first location in Crookston in 2022. They sell mostly THC drinks and gummies.

Business partners Casey Hammer, left, and John Reitmeier stand on Reitmeier’s land last summer outside Crookston, Minn. Reitmeier's Canna Corners stores sell “Bud’s Soda Pop,” a THC-infused, made from Minnesota-grown hemp and sugar beets. (Aaron Lavinsky/The Minnesota Star Tribune)
Canna Corners in Crookston, Minn. (Aaron Lavinsky/The Minnesota Star Tribune)

Under state statute, cities may limit cannabis retailers, microbusinesses and mezzobusinesses — which would allow the holder to grow, process and sell cannabis products on a relatively limited scale.

If a city or county has a population under 12,500, they are required to allow at least one retail registration. If the population is between 12,501-25,000, they would be required to allow at least two.

East Grand Forks’ population is around 9,000.

It adopted an ordinance in December 2024 that limits the number of retail businesses to two: one in the downtown commercial district and one in the highway commercial district.

East Grand Forks is not limiting licenses for the number of low-potency hemp edible retailers; however, those must be located in the commercial districts and outside a “cannabis buffer zone.”

Collins, with the state OCM, said that how a local government selects businesses to receive a limited number of retail registrations is not specified in statute.

Olmsted County also established a lottery to allow up to 14 retailers, the minimum under state law. It held its first lottery Thursday with eight licenses drawn for 11 applicants.

East Grand Forks is still accepting applications for other cannabis businesses including cultivators, manufacturers, wholesalers, transporters, testing facilities, event organizers and delivery services.

(Sign up for Nuggets, our free weekly email newsletter about legal cannabis in Minnesota.)

Staff writer Trey Mewes contributed to this report.

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about the writer

Kim Hyatt

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Kim Hyatt reports on North Central Minnesota. She previously covered Hennepin County courts.

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