The Anoka Cannabis Company, which is owned and operated by the city of Anoka, opened in February. The city of Brooklyn Park is considering a similar operation, if a feasibility study suggests it would make financial sense.
(Photo courtesy the city of Anoka)
City leaders are exploring whether it makes financial sense to open a municipal cannabis shop in Brooklyn Park.
The Brooklyn Park City Council, acting as the Economic Development Authority, voted Aug. 17 to approve a financial and market feasibility study for a city-owned cannabis dispensary. The study will cost up to $25,200.
The city is hiring cannabis consultant Point Seven Group to gather information needed to evaluate whether and how a municipal cannabis retail operation could serve Brooklyn Park residents, generate sustainable revenue and advance equity goals.
“The goal of the feasibility study is to provide information that would help to make a decision as to whether to move forward on a license application when the application window opens again,” said Jennifer Erickson, senior project manager in the city’s economic development and housing division.
Minnesota legalized recreational cannabis use for adults in 2023. The state’s Office of Cannabis Management is responsible for licensing, regulation and oversight of the cannabis industry. Municipalities are allowed to apply for one license to operate a cannabis retail business, subject to the state’s licensure requirements.
The license application window is currently closed, and the OCM has not announced when it will reopen. Once a city applies and receives a preliminary application approval from OCM, it has 18 months to complete the final steps to be issued a cannabis business license. Conducting a study will help city leaders evaluate whether to apply for a license when the window opens.
The city’s license would not count against the number of retail cannabis licenses allowed in the city, which is seven. According to the city, five licenses have been awarded or are in process, and three of those businesses are open or soon to be open in Brooklyn Park.
According to OCM, 13 cities across the state have applied for a retail cannabis license. Anoka was the first to open its retail business, the Anoka Cannabis Company, earlier this year. Construction for a municipal dispensary in Osseo is expected to be complete in late November. Saint Anthony Village is planning to open later this summer, and Grand Rapids is planning to open next summer. Blaine is also considering a retail store that would be operated by the Anoka Cannabis Company.
Some cities planned to move forward and have since canceled or paused their plans, including Elk River.
Erickson noted that Anoka had shared its numbers for their first five months of retail cannabis operations. She said they are bringing in around $375,000 to $475,000 per month in gross revenue, which comes out to around $33,000 per month in net profit after expenses.
“Anoka is a different location so we don’t want to base our numbers on that, hence the reason for conducting a feasibility analysis that would be specific to Brooklyn Park,” Erickson said.
Point Seven is a woman-owned, management consulting firm focused on the regulated cannabis industry. The firm has provided consulting services to other Minnesota cities, including Anoka, Wayzata and Grand Rapids, covering market research, financial modeling, operations and site planning.
“I’m really excited that we’re going to do this thoughtfully, look at a market analysis and try to understand how we can add to the community [and] not take away from other people operating these businesses,” City Council Member Nichole Klonowski said.