This Minnesota city is running its own weed store

ribbon cutting at anoka cannabis company

Minnesota remains a trailblazer in the cannabis space. From the birth of the hemp-beverage boom to tribal cannabis compacts, the Land of 10,000 Lakes has been setting new standards for the emerging industry. Now, Minnesota has done it again with the opening of the first municipally-run cannabis dispensary in the state—and one of the first in the country.

RELATED: You can now drink weed at this major U.S. arena

Anoka Cannabis Company is breaking new ground as a city-owned and operated adult-use retailer. The vast majority of cannabis retail licenses in America are held by businesses or individuals. The city of North Bonneville in Washington state opened a city-run dispensary in 2015, but it ultimately closed.

anoka cannabis company products
A selection of Anoka Cannabis Company products. Photo: Rachelle Gordon / GreenState

Minnesota has several cities pursuing municipal cannabis licensure. It’s a rare approach to legal weed sales and almost unheard of in the nascent industry.

“It’s fun, it’s exciting, and it’s scary to be first,” Kevin Morelli, the enterprise operations director for the City of Anoka, told GreenState. “[Our store] is a model for a lot of communities.”

The dispensary had its soft opening on Thursday, welcoming adults 21 and over to shop for flower, pre-rolls, drinks, and beverages. Brands like Oliphant, Campfire Cannabis, Blncd, and Legacy Cannabis were on display, along with a range of glass smoking accessories and apparel. It’s also one of the first solar-powered dispensaries in the state, with up to 88 percent of the store’s energy coming from the sun.

RELATED: ‘Shocking’: Minnesota cannabis leaders decry arrest of Nekima Levy Armstrong for ICE protest

At a ribbon-cutting ceremony prior to opening, city lawmakers and staff gathered to celebrate the city’s milestone.

“This is truly a historic day,” said Mayor Erik Skogquist.

anoka mayor speaks at anoka cannabis company
Anoka Mayor Erik Skogquist speaks at the opening of Anoka Cannabis Company. Photo: Rachelle Gordon / GreenState

The City of Anoka’s decision to own and operate its own cannabis business is modeled on its existing municipal liquor store model. When prohibition ended, several communities across the state opted to take alcohol sales into their own hands. 100 percent of profits are reinvested in the city, supporting public parks, community improvements, and tax breaks for citizens.

“The Anoka model ensures that the benefits of legalization directly improve the quality of life for all the people who live right here,” Skogquist added.

RELATED: New hemp bill in Congress could bring big changes

Morelli said he’s excited for the city to offer a safe and inviting cannabis store for its thousands of adult residents and to showcase the plant in a professional and welcoming setting.

“We’re hoping to educate the community; break that stigma that marijuana still has, fresh out of prohibition,” Morelli concluded.

rachelle gordon

Rachelle Gordon is the editor of GreenState. An award-winning cannabis journalist, Emerald Cup judge, and Budist critic, Rachelle began her weed writing journey in 2015. She has been featured in High Times, CannabisNow, Beard Bros, MG, Skunk, and many others. Rachelle was the recipient of the Cannabis Journalist of the Year award at the 2025 Emjays and the Community Cultivator trophy at the 2024 Women's Canna Awards. She is also the two-time host of the California Cannabis Awards at the California State Fair. Follow Rachelle on Instagram @rachellethewriter