ROCHESTER — At least half of the cannabis retail businesses Olmsted County registers this year are expected to grow and sell from a single location.

With 62% of hopeful cannabis retailers seeking a microbusiness license, county commissioners voiced support Thursday for using that number to determine the ratio of business types in local lotteries for
registering the county’s first 14 cannabis businesses.

It means half of the
county’s 14 planned registrations
will go to businesses allowed to grow, buy and sell cannabis with a single retail location in the state.

“We can do that lottery first,” Olmsted County Public Health Associate Director Sagar Chowdhury said during
a special commissioners meeting Thursday,
noting the microbusiness licenses will be the first issued in the state.

Since there is no cap, all qualified state applicants are expected to receive licenses from the Minnesota Office of Cannabis Management, making them eligible to apply for county registration.

County registration will provide some local oversight for businesses throughout the county, with the exception of Byron and Pine Island, which opted to establish their own registration processes. .

The first lottery day could also include the selection of a single medical cannabis combination registration, which would allow a business to grow and sell medical and recreational cannabis from a single site.

Overlooked in early county discussions, the state hasn’t capped the combination licenses, but Chowdhury said only six applications were received, making it unclear whether anyone would seek such a registration locally.

If no combination business registrations are sought, the single county registration is expected to be added to the microbusiness lottery.

Lotteries for two other retail registrations — mezzobusiness and retail cannabis — will be held after the state conducts its own lotteries to select license holders.
Those drawings are set for June and July.

The state has capped the two categories that offer options for multiple stores, and statewide applications point to an anticipated four retailer registrations and two mezzobusiness options in Olmsted County.

A mezzobusiness license allows growing, buying and selling from up to three retail outlets in the state, while a cannabis retailer license bars growing but allows selling cannabis products from up to five locations.

Chowdhury said any mezzobusiness or cannabis retailer wanting to open more than one storefront in the county would need to submit individual applications for each location, with the lottery determining whether they can register multiple locations.

County commissioner Bob Hopkins pointed out the timing of the two sets of lotteries is likely to give the microbusinesses an advantage locally, since a lottery for those registrations could be held before the application process is completed for the second lottery.

“It puts the mezzobusinesses and retailers at a disadvantage by coming to the market later,” he said.

Commissioners noted the advantage will be limited, since the lotteries are likely to be held within a month of each other, with Chowdhury suggesting the first local lottery would likely occur in June.

In preparation for that, county commissioners are slated to finalize related ordinance updates Tuesday, during their regular 6 p.m. meeting in board chambers of the city-county Government Center.

Ahead of the commissioners’ decision, Chowdhury said Public Health is working with Southeast Minnesota TruRoots Alliance to
hold a virtual focus group
from 10 a.m. to 12:30 p.m. Saturday to gather input from prospective cannabis retail business owners and others who preregister for the meeting at
tinyurl.com/32tye55s.

“I do anticipate support,” he said, referencing past discussions with potential retailers that helped guide policy recommendations. “I also anticipate there might be some concerns that we have not considered. I want to hear those voices.”

On Thursday, Maren Schroeder of Bold North Holdings LLC voiced some concerns about the overall state and local process, but she told commissioners the continued engagement is appreciated.

“I’m really optimistic that we can come to a resolution that works for businesses,” she said.