Wayzata moves to open city-run weed dispensary
The City of Wayzata is considering opening its own recreational cannabis dispensary sometime next year.
On Tuesday, Wayzata’s City Council and mayor approved a contract with Colorado-based consulting firm Point7 to draft a business plan for the possible municipal dispensary.
This would be the city’s third city-run business – it already operates a liquor store and The Muni bar and grill. Emily Goellner, Wayzata’s community development director, presented the contract to the council, saying that the demand for cannabis is expected to be very strong.
Goellner said the dispensary’s first goal would be to diversify the city’s revenue to benefit property taxpayers.
Minnesota recently passed a new cannabis law to allow cities or counties to own and operate their own stores selling the drug. If Wayzata decides to open the dispensary, it might very well be a pioneer among cities across the nation. Only one city has ever successfully run a municipal cannabis dispensary for a period of time. North Bonneville in Washington was initially successful when it opened in 2015 but later struggled to break even as more privately owned retail shops opened. The store closed in 2021.
Goellner said she has been communicating with 47 other cities in Minnesota who are interested in opening dispensaries. It isn’t clear yet which cities are having those conversations. Cook County reportedly has been considering a municipal dispensary but received complaints from private businesses that don’t want to compete with a publicly-owned store.
In Wayzata’s council meeting, council members expressed not wanting to contend with the lack of control they would have if a private enterprise opened the first dispensary in Wayzata. Minnesota’s Office of Cannabis Management has reported that Minnesota will need at least 381 dispensaries to meet state law requirements.
Only one council member voted against the contract with Point7 – Councilmember Alex Plechash – who said he felt conflicted about Wayzata’s government promoting use of the drug.
“On the other hand…is it better for us to be in control rather than a private enterprise?” Plechash said.
After questioning if Point7 was the right firm for the job, Wayzata Mayor Johanna Mouton decided to support the contract, saying that the $15,000 was worth the investment, stressing that she expected thoroughly detailed information.
Goellner noted that Minnesota had a lack of experienced business consultants in this industry, which is why they decided to go to Colorado.
After Point7 drafts the business plan for Wayzata, the council plans to decide in June on whether or not they want to keep considering the path of a municipal dispensary.
–This article was originally featured in the St. Paul Business Journal
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