Albert Lea City Council Advances Cannabis Ordinance Amendment

The Albert Lea City Council has approved the first reading of an amendment to its cannabis and tobacco ordinance, proposing an increase in the number of cannabis retail registrations from two to four. This decision aims to expand opportunities for local businesses, although it faced opposition from certain council members.

During the council meeting on Monday, Mayor Rich Murray and Third Ward Councilor Ted Herman voted against the amendment. Murray expressed his concerns regarding cannabis, stating, “I still believe it leads to other things, and I represent that part of the community that believes the same thing, so I will stand strong with them.”

In contrast, Sixth Ward Councilor Brian Anderson supported the increase, emphasizing the importance of allowing the free market to operate effectively. He remarked, “The idea that us limiting it to two is going to help the free market seems counterintuitive to me.”

The council had previously approved registrations for two cannabis companies: Matchbox Farms and Black Husky. Both companies have yet to open their doors. Chris Gracia, an executive with Matchbox Farms, shared that since receiving approval in August, his family has relocated to Minnesota in preparation for their store’s opening. Initially targeting an October launch, Gracia now anticipates opening by June 2024 due to supply chain challenges.

Gracia noted that Matchbox Farms was among the first licenses approved by the Office of Cannabis Management. At that time, only one cultivator had received approval, creating difficulties in securing adequate product supply. He explained the lengthy process of growing, harvesting, and testing cannabis products, which has contributed to delays in launching retail operations.

As of now, Gracia mentioned there are 12 licensed cultivators and 109 retailers across the state, but only five nontribal dispensaries have commenced operations. He expressed concern over the current market’s inconsistent supply, stating, “When we open our store, we will hire 15 to 20 people, and I can’t in good conscience hire with the potential of running out of product in a few weeks.”

Gracia urged the council to reconsider expanding the number of licenses until there is more clarity on the local cannabis market. He suggested revisiting the issue in January 2027 to avoid saturating the market, which could negatively impact business owners, employees, and residents alike. “If you saturate this market, it’s not going to be good for anybody,” he warned.

Anderson disagreed with Gracia’s position, advocating for additional licenses to enhance competition and market viability. He pointed to the Office of Cannabis Management’s commitment to providing product availability in the coming months.

The council also discussed the status of Black Husky, the second approved company, noting a lack of updates regarding its operations and potential ownership changes. Mayor Murray expressed concerns about tribal nations potentially entering the local market, which could further complicate the landscape for existing retailers.

The proposed amendment aims to align the cannabis ordinance with existing alcohol licensing regulations, providing a clearer framework for approval, denial, or revocation of licenses. As the local cannabis market continues to develop, the council’s decision reflects ongoing efforts to balance regulation with economic opportunity.