Minnesota has been doing cannabis differently from its peers for a while now. In 2023, it regulated hemp in a way that ensured that natural cannabinoids like hemp-derived delta-9 THC were still allowed—as a result, hemp drinks boomed in the state. In March 2025, Minnesota implemented tribal compacts that allowed tribes to operate off-reservation and to work with non-tribal entities. Now, in August, Minnesota is blazing trails again: 13 of the state’s cities are considering opening municipal dispensaries, something no other state in the country is doing.
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MinnPost said the following cities are applying to run municipal cannabis stores, according to the Minnesota Office of Cannabis Management (OCM): Anoka, Blaine, Buffalo, Elk River, Grand Rapids, Lauderdale, Mounds View, St. Anthony Village, St. Joseph, Osseo, Owatonna, and Wyoming. Seven of the 13 of these cities are located in the Twin Cities metropolitan area.
Part of the appeal for the cities considering this novelty is the potential revenue from cannabis sales, as well as where that money can go. They are also confident in their ability to facilitate safe sales. According to the MinnPost, Elk River City Administrator Cal Portner said, “Our liquor stores never fail compliance tests, whether for tobacco or liquor. We feel we can do the same thing within the cannabis industry.”
Minnesota already has municipal liquor stores—nearly $1 million of Elk River’s annual budget is from their sales. As of 2023, the state saw 176 of its cities running liquor stores, combining for $31.6 million in net profits during the year. Some of the state’s liquor stores already sell hemp-based THC products, giving government officials confidence in their weed-selling experience.
“We’ve had practice time basically to understand the products and understand the customer service side to it,” Portner told MinnPost.
Portner said it’ll probably take years for cannabis sales to turn a profit for participating cities; according to MinnPost, an estimate projects Elk River to lose $184,698 in the experiment’s first year. Still, governments are hopeful for the future potential for earnings.
Last week, St. Joseph’s mayor, Adam Scepaniak, along with other city officials, confirmed that they are still waiting on license approvals. In the meantime, cities are considering locations for the forthcoming dispensaries. Elk River is considering having one building house both their cannabis sales and one of their municipal liquor stores.
This model has been tried before. In 2015, North Bonneville, Washington, opened a municipal dispensary, but it ended operations in 2021. Pennsylvania’s May legalization attempt included a provision to begin government-run cannabis sales, but the bill died in the Senate.
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Minnesota has been blazing its own trail in terms of cannabis for a while now, and it still continues to make strides. If opened, these 13 municipal cannabis shops may mark the beginning of the government’s destigmatization of weed, as they see the potential economic benefits.