Facing zoning challenges, Baker elevator may not become cannabis dispensary after all
February 1, 2026
BAKER, Minn. — According to the owner of the grain elevator in Baker, plans to turn the building into a cannabis dispensary could change.
Scott Dahms, who has owned the building since 2017, has faced headwinds from county zoning requirements while pursuing
plans to turn the building into a cannabis business.
When asked whether he still plans to put a dispensary in the elevator, he replied “Probably not.”
“We’re probably going to do something a little bit crazier,” Dahms said.
He did not elaborate on what “crazier” might mean.
Last year, Dahms pursued an ordinance change to add cannabis businesses as a conditional use in agricultural service center zoning districts. Baker, an unincorporated community about 16 miles southeast of Moorhead, is one of six of such districts across Clay County.
The Clay County Commission
approved the request
4-1 in October. Previously, the county only permitted cannabis businesses as a conditional use in highway commercial and limited highway commercial zoning districts.
While the ordinance now allows cannabis businesses in the zone, Dahms’ elevator property does not meet setback requirements from residences or the minimum lot size for businesses in Clay County. In recent months, Dahms has attempted to overcome those obstacles, but has faced opposition.
As Dahms pursues exceptions to Clay County zoning rules, he has also put the building up for sale. According to an
online listing with Park Co. Realtors,
the building is listed for $325,000.
“Nothing’s done yet, so I mean, all those options have to remain open,” Dahms said.
In November, Dahms took a request to the Clay County Board of Adjustment, which hears requests from property owners who want to vary from standards laid out in the Clay County Development Code. He requested a variance to reduce the residential setback for a cannabis business in the elevator from 500 feet to 250 feet, but was denied.
Dahms is appealing the decision in court.
During meetings Tuesday, Jan. 27, he was met with more roadblocks. The Board of Adjustment denied two variance requests, while the Clay County Planning Commission voted not to recommend an ordinance amendment to change setback requirements for cannabis businesses and minimum lot sizes for commercial businesses.
Dahms’ argument for the variances and ordinance changes included the fact that the grain elevator and its small lot predates today’s zoning requirements. Agricultural service center zones have compact parcels near rail lines, highways and small communities, Dahms said.
“Proximity was the point — smaller lots, closer relationships between uses and reuse of existing properties were normal and expected,” Dahms said during the Planning Commission meeting.
Dahms asked the Clay County Board of Adjustment to reduce property line setbacks to establish a commercial business and to reduce the minimum lot size for commercial use.
During a public hearing on the requests, multiple residents of Baker voiced their opposition to Dahms’ plans to turn the elevator into a cannabis business. Neighbor Rick Donovan said most neighbors were opposed to it.
“People in Baker didn’t move here because there was a pot dispensary, a bar, a C-store, anything like that,” Donovan said. “Most of the people moved to Baker because there wasn’t any of that.”
After hearing from residents, the Board of Adjustment denied the property line setback variance. Dahms requested the board table the minimum lot size request to consider at a later date, saying the variance request was not for a cannabis business.
The variance permit application submitted to Clay County Planning and Zoning for the minimum lot size request said Dahms requested the variance “for a conditional use cannabis business.”
Dahms told The Forum his requests to the Board of Adjustment on Tuesday were not related to a cannabis business, but just a commercial business in general, he said.
“So now Clay County is setting the precedent that it’s like if you have a grain elevator, it only can ever be used as a grain elevator,” Dahms said.
Later Tuesday, the Clay County Planning Commission recommended the denial of Dahms’ request to change the zoning ordinance for agricultural service center zones.
Dahms asked the ordinance be changed to reduce the setback for cannabis businesses from adjacent residential properties from 500 feet to 250 feet in agricultural service center zones. He also requested the minimum commercial lot size be reduced from 1 acre to 0.5 acres in agricultural service center zones.
Many of the same residents spoke in opposition to Dahms’ plans in the second meeting.
Dilworth City Council member Dave Steichen, who serves on the Clay County Planning Commission, said the board has approved other cannabis businesses because they seemed like the right fit for their situations.
“This does not seem like a good fit on so many levels,” Steichen said of Dahms’ proposal.
The Clay County Commission will have the final say on the ordinance changes. According to Clay County Planning and Zoning Director Matt Jacobson, a date has not yet been set for the decision.
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