Baxter opts to allow 2 cannabis stores

December 23, 2024

BAXTER — In a split vote, the Baxter City Council approved its cannabis ordinance and increased the number of stores allowed to two.

The council met Tuesday, Dec. 17, for its last regular session of the year. The state deadline for cities to have their cannabis ordinances in place to allow for different types of cannabis businesses and uses is Jan. 1, 2025.

Josh Doty, community development director, said
after the City Council discussion on Dec. 3
, the city attorney confirmed the city could pick any number of stores to allow. The state requires one store be allowed per population of 12,500.

Doty said the council could pick two, three or four or any number of stores going up. He noted the city attorney, based on her experience, noted a lot of communities are taking a conservative approach as it is more difficult to go backward than it is to lessen requirements for the future and add more stores later.

Council member Jeff Phillips asked Doty to explain the rationale behind the staff recommendation for one store. Doty said the rationale is probably similar to the attorney’s as when the city has dealt with caps before, they’ve started conservatively. He noted the city’s mobile vending ordinance as an example that started with a five-vendor cap and later found that wasn’t necessary and they eliminated the cap.

Mayor Darrel Olson said the city’s planning commission also was in favor of starting small.

“We can always get bigger,” Olson said, adding the planning commission noted more can be added later, and the city could go with the setbacks and see what happens.

“I agree with that, too,” Olson said.

“I wholeheartedly agree with that, I’m of the opinion that we start small,” Council member Connie Lyscio said.

“I would prefer a larger number than one, whatever that may be, two or three,” Phillips said.

“I’m also in the vote of two or three,” Council member Zach Tabatt said. “I can accept two, but I’m opposed to the creation of government imposed monopolies. Just — I know we’re a small town, people can go elsewhere, but I just don’t like doing that.”

“I agree with that,” Council member Mark Cross said, who also spoke of not wanting to create a monopoly.

Olson said it’s a matter of differing philosophies and in full transparency, he’d prefer no stores, but that is not going to be an option.

The council voted 3-2, with Olson and Lyscio opposed, to go with an ordinance option with a cap of two retail cannabis stores in the city.

Applicants apply to the state for a license and then later the business would need to get city approval, which is where the city’s ordinance and regulations on zoning and setbacks would come into play.

The state cannabis law passed in 2023 and created time for local units of government — cities and counties — to have codes in place, such as zoning ordinances regulating hours of operation and where a cannabis business may locate in terms of physical distance to a school or day care, residential treatment facility or a place regularly used by minors such as a public park or athletic fields. The city’s ordinance states no cannabis retailer license or endorsement can be within 1,000 feet of a school, 500 feet of a day care, residential treatment facility or an attraction within a public park that is regularly used by minors.

Patrick Sundberg, owner of Jack Pine Brewery and the incoming city council member elected to start in January as Phillips leaves, brought up a potential issue. He said the hours of operation with a 9 p.m. closing time created a potential issue as low-potency hemp is available in many locations, and the primary place may be liquor stores and smoke shops. Sundberg recommended adjusting the closing time requirement to 10 p.m. to align with liquor laws.

Sundberg said he does a lot of business with liquor stores and they would have to carve out space in their business and then only sell that particular product until 9 p.m. while the store can sell alcohol until 10 p.m.

Another condition in the ordinance was that no cannabis or lower-potency hemp edible product be visible from the exterior of the building. Sundberg said he has large windows at Jack Pine and liquor stores do as well, which could create an issue if something is visible from the exterior.

Cross said it was a valid question noting the outside visibility if someone was parked in the right spot.

Kelly Steele, Baxter assistant city administrator, said the city can go to the 10 p.m. closing time as that is allowed under state law and would be an easy adjustment. Steel said for the visibility question, the city should consult with their attorney.

Doty said the code could be amended. He was concerned with meeting the January deadline to have the ordinance in place, although noted with delays at the state level there would likely be more time.

Tabatt said the problem becomes how tight are they reading the exterior, which could be visible through the glass doors. The council agreed to change the closing time to 10 p.m. instead of 9 p.m. to align with liquor sales.

Renee Richardson, managing editor, may be reached at 218-855-5852 or renee.richardson@brainerddispatch.com. Follow on Twitter at @DispatchBizBuzz.

 

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