MOORHEAD — The first roadblock was cleared for a project that would put a cannabis dispensary and growing operation in a grain elevator in rural Clay County.

Clay County commissioners approved a request for an ordinance change that would allow for a cannabis business to be set up in an old grain elevator in Baker, Minnesota. Members voted 4-1 to approve a request to add cannabis businesses as a conditional use in agricultural service center zoning districts. Commissioner Jenny Mongeau voted against the change.

The request was made by architect Scott Dahms, who hopes to turn his Baker elevator into a cannabis retail and growing operation. Baker is an unincorporated town about 16 miles southeast of Moorhead between Sabin and Barnesville.

Dahms said he was surprised by the decision. Earlier, the Clay County Planning Commission had made a recommendation for the Clay County Commission to deny the request.

“It was a pleasant surprise,” Dahms said.

Alyssa Goelzer / The Forum

Before the business can open in the elevator, Dahms must secure a conditional use permit from the Clay County Commission.

Prior to the change approved Tuesday, Clay County only permitted cannabis businesses as a conditional use in highway commercial and limited highway commercial zoning districts. Under the county’s cannabis zoning ordinance,
adopted in June 2024,
cannabis businesses must meet certain setbacks from residential areas and schools.

Commissioners heard from Dahms, a business partner and a couple county residents before acting.

Alyssa Goelzer / The Forum

Dahms asked commissioners to approve the request in the spirit of fairness and to restore communities with agricultural service center zones.

“This amendment is about restoring ASC (agricultural service center) towns to their original purpose, bringing back economic viability and preventing further decline,” Dahms said.

The change affects more than just Baker. Agricultural service center zoning districts are scattered throughout Clay County in the communities of Kragnes, Averill, Downer, Rustad and Rollag.

Alyssa Goelzer / The Forum

Neighboring property owner Tim Thompson said he was not for or against a cannabis business in the elevator, but praised Dahms’ work to renovate the elevator thus far. Dahms
purchased the Baker elevator in 2017
and converted parts of the structure into livable space, which served as his home for a time. Today, he lists the building as an
Airbnb.

“As far as craftsmanship and intent, he did what I would consider impossible inside of there,” Thompson said.

Alyssa Goelzer / The Forum

Commissioners questioned Dahms about his business proposal before their vote. Dahms explained he plans to have a dispensary with high-quality products, a grow operation in the elevator’s vertical space and a lounge where low-dose cannabis products can be consumed.

Commissioner David Ebinger said Dahms changed his opinion about the proposal.

“It sounds like a thoughtful, well-thought-out business model, and I’m assuming he’s got the financial capacity to make this happen,” Ebinger said.

Commissioner Ezra Baer noted that increasing the business property tax base in Clay County benefits residents across the county.

Mongeau, the sole dissenting vote, said she was torn on the change, with concerns about affecting rural communities while being flexible with businesses.

“I think there are opportunities and benefits, but I do feel like there are some challenges in us doing a blanket-wide change to what is allowed in the service center,” Mongeau said.

Alyssa Goelzer / The Forum

Dahms still has some challenges ahead for his business proposal. The elevator property does not meet setback requirements from residences or the minimum lot size for a cannabis business. Both requirements will require a variance approved by the County Commission, along with a conditional use permit.

“We still have a battle ahead of us, but we’ll take one step at a time and go from there,” Dahms said.