Dabney: Minnesota must take renegade city council to task for blocking a legal weed business

Opinion editor’s note: Strib Voices publishes a mix of material from 11 contributing columnists, along with other commentary online and in print each day. To contribute, click here.

•••

Minnesota legalized adult-use cannabis with fanfare and broad public support. Two years later, what once felt like a progressive step toward equity-focused cannabis businesses and economic inclusion now feels stuck in limbo. Are we backsliding before we even get started?

In Albert Lea, what was poised to be Minnesota’s first non‑tribal cannabis dispensary has hit a hard wall. Jacob Schlichter secured one of the first microbusiness licenses issued in June from the Office of Cannabis Management (OCM) and registered his shop, The Smoking Tree, with the city soon after.

But on July 28, the Albert Lea City Council voted 4-3 to block his final approval despite state law expressly forbidding cities from denying a license if applicants meet OCM standards and city zoning rules. Some city officials cited morality, local control and discomfort with the rapid state rollout.

The move contradicts Minnesota statute, meaning the city risks legal action and the possible loss of local government aid as a result. The action also brings to a head a conflict between state and municipal powers.

This local standoff raises a bigger question: Is Albert Lea the only city standing in the way of legal cannabis businesses opening for business — or is this the first crack in a broader resistance movement?

State law requires that cities allow at least one cannabis license per 12,500 residents, though they can regulate locations through zoning. So zoning has become a preferred tool of local pushback — not by halting the statewide rollout directly, but by making it much harder for businesses to secure compliant real estate. Cities are imposing large buffer zones around schools and parks, slowing progress for individual operators who are forced to navigate a shrinking map, pursue costly variances or wait on uncertain rezoning decisions — draining time and capital in the process.

State Rep. Jessica Hanson, DFL-Burnsville, recently warned legislators that some municipalities are intentionally misinterpreting state laws, using zoning authority to restrict cannabis businesses beyond legal boundaries, and even boasting about finding ways to “outwit the state.”

Albert Lea’s decision, then, isn’t just a local hiccup — it’s a litmus test for Minnesota’s entire cannabis framework. If a city can defy a lawful state license, block a compliant business and escape consequence, what message does that send to entrepreneurs, social equity applicants and investors?

The state has already awarded hundreds of preapproval licenses — many to social equity applicants hoping to build businesses and reinvest in their communities. When local governments obstruct those paths, they undercut the very goals legalization was meant to achieve. Worse, it chills future participation, especially in rural or underserved areas where these businesses could have the greatest impact.

I believe cities should retain control over reasonable siting and community safety. Setbacks from schools, limited signage and hours-of-operation restrictions are valid local concerns. But when a municipality outright blocks a business that is fully licensed and compliant, it crosses a legal and ethical line.

If more cities follow Albert Lea’s lead, Minnesota’s already sluggish rollout will slow even further. Licensing has already been hampered by lawsuits, pre-approval system reversals and turnover at the OCM. Each local denial also increases the risk of lawsuits that could strain municipal budgets and public trust.

Meanwhile, businesses are bleeding money as they wait. Operators must pay rent on leased storefronts with no clear timeline for opening. Security systems, seed-to-sale software, written standard operating procedures, rezoning costs, construction buildouts, insurance, payroll and marketing all demand significant up-front capital. With no retail revenue in sight, even well-prepared small businesses are burning through their budgets just to stay afloat.

Schlichter’s situation in Albert Lea illustrates this exact struggle.

“My family has lived in Albert Lea for two generations, and we’ve spent months preparing to open — paying rent, installing a security system, making renovations,” he said in a phone conversation. “It’s a scary position to be in. I’ve already spent significant money — money I could’ve used to further my education.

“When I got my license from the OCM, I felt a huge weight lifted. It meant all that stress might finally be worth it. But then the city’s decision blindsided me. Minnesota shouldn’t have a patchwork approach to cannabis where each city makes its own rules. That would be like needing a different driver’s license every time you enter a new town.”

Legalization doesn’t stop with the signing of a bill. It requires robust follow-through. The OCM must improve communication with cities, provide clear guidance on zoning and prevent local overreach. Local control has a place — but it must not become an excuse to violate state law.