First-ever city-run cannabis shops are being built in Minnesota. FOX 9's Corin Hoggard has the story.

Minnesota

Thirteen cities in Minnesota are preparing to open government-run cannabis retail stores, a first-of-its-kind initiative in the United States. These cities, including Elk River and Anoka, are applying for retail licenses and plan to operate the stores under strict regulations similar to those governing municipal liquor stores.

City officials say the profits from these cannabis shops will be reinvested into local communities, funding projects such as parks and recreational facilities. The cities will not have a monopoly on cannabis sales and will face competition from private retailers. Education on cannabis use will also be a focus as the cities move forward with their plans.

Cannabis shops run by MN cities being built

Well, 13 Minnesota cities are in line to launch their own cannabis retail businesses. They're blazing a new trail in this country where no other state has a city-run pot shop. Fox 9's Corin Haugard talked with a couple of them today to see why government wants to get in to the cannabis business. This construction site behind me is designed to be the state's first government-run cannabis retailer and that means it would be the only cannabis retailer run by a government entity in the entire country. Minnesota cities may actually be well positioned to do this because of what's right next door, a municipal liquor store. Using marijuana for decades meant hiding from the government to consume an illegal product. But legalization in Minnesota will now let the government become your local dealer. It's an interesting concept, isn't it? I mean, how far we've come with the normalization of this product in general is something that was always taboo. Elk River is one of 13 cities to apply for a retail license from the Office of Cannabis Management. They have to follow almost all the same rules as regular retailers, with one exception. They can sell marijuana and hemp-derived THC products in the same store. The cities already run municipal liquor stores, which Elk River City Administrator Cal Portner says has them in good practice for making sure all the rules and regulations are followed. We've not had illegal sales to minors or anything such as that, and that's important for us and for our community. Unlike with the liquor store, cities cannot enforce a cannabis monopoly, so they'll have competition. In Elk River and Anoka, they're planning to put a focus on cannabis education, but they also want to make sure it's a profitable business. Elk River makes almost a million dollars a year at its liquor stores. Anoka projected a profit last year as well. And cannabis profits will benefit local taxpayers. Almost all of our income from this is going to be going right back into the city in situations such as levy breaks and making of new parks, recreational facilities, that kind of stuff. Elk River's hoping to choose a spot and break ground on their cannabis retail store by January and maybe open a smaller store before then. This space right here is set to open in December. In Anoka, Corin Haugard, Fox 9.

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