HERMANTOWN — The way now appears clear for a proposed marijuana-growing operation to be built in Hermantown.

On Monday night, Hermantown city councilors voted 4-0, with Brian LeBlanc absent, to approve a special-use permit for the construction of a facility designed to raise cannabis in an indoor setting at 4599 Abrahamson Road.

Rob Mansell and his partners aim to construct a 2,700-square-foot indoor farm on a 40-acre site. Mansell explained that only about 5-1/2 acres of the property are considered buildable, due to surrounding wetlands. The site’s remote “out of the way” location is part of what Mansell said drew his team to the property.

Jimmy Lovrien / Duluth News Tribune

Hermantown Community Development Director Eric Johnson said wetlands present on the parcel have already been delineated, and he assured city councilors the proposed development has been designed so as to avoid disturbing them.

The fledgling operation, dubbed Up North Growery, initially is projected to produce about 450 pounds of cured and dried cannabis flower per year, plus another 135 pounds of high-quality leaf/bud to be rolled into joints. Any leftover vegetation will be composted on site for reuse.

The business will have no on-site retail component. Rather, its output will go directly to supply product for a Duluth retail operation expected to open at 502 N. Sixth Ave. E. by late summer. Eventually, Mansell said it could scale up to serve other Minnesota outlets as a wholesale provider.

But Mansell said he and his partners don’t aim to get too big, preferring to serve a “boutique market” focused on quality rather than maximum volume.

Construction of the grow facility likely will begin in February, according to Mansell.

Johnson told councilors Up North Growery has pledged to abide by all rules set forth by the Minnesota Office of Cannabis Management, which will license its operation.

The facility will be subject to round-the-clock video surveillance and will be outfitted with a comprehensive alarm system.

Access to the building will be possible solely via metal security doors equipped with badged access, designed to track the comings and goings of individual staff members.

The automated facility is expected to require no more than five workers on premises at any time.

Mansell said that once a concrete slab is poured and the building shell goes up, preconfigured production units — many of them arriving in shipping containers — will arrive and will be conjoined “sort of like Legos” within the structure.

Although he declined to discuss financial details, Mansell acknowledged the project will require an investment “north of $1 million.”

While his two fellow investors remain “silent partners,” Mansell said all three of them grew up in the Duluth area.

Mansell’s own background is in real estate, with “almost 20 years in the business.” When one of his partners first asked if he’d be interested in opening a cannabis retail business, Mansell said he was a hard “no” to the idea. But when they arrived at a plan to vertically integrate a shop with a production facility, Mansell warmed to the proposal.

He said the configuration should offer top-to-bottom control to ensure the consistency, quality and cost of product.

Bob King / Duluth Media Group file photo

During a public comment period at Monday’s council meeting, no one spoke against Up North Growery. The only testimony came from resident Sarah Lofald, who voiced support for the project. While she initially had questions and concerns about the operation, Lofald said Monsell and his partners put her at ease with their detailed plans.

“I was quite impressed with his knowledge and passion to make sure that they would grow a quality product that was safely produced in an environmentally friendly and organic way,” Lofald said, adding: “This is how businesses who want to invest in our community should act — with excitement and passion and openness and transparency and a willingness to speak openly with the public about their projects.”

She contrasted the “open book” approach of Mansell and his team to the secrecy that she said has surrounded
controversial plans for a large data center
to be developed in the southwest corner of Hermantown.

Mansell said Up North Growery intends to raise cannabis using a “living soil” method of production. He explained that this approach more closely mimics natural growing conditions, relying on microbes and insects to break down organic matter and provide nutrients, rather than relying on large quantities of artificial inputs.

He said this method of production is more costly and labor-intensive but yields a better product, both in terms of taste and “terpene profile” — the aromatic quality and effect of the cannabis crop.

Although Up North Growery probably will begin with about three varieties of cannabis in its lineup, Mansell said he expects it to quickly expand to offer upward of 100 strains.