As Minnesota prepares for the launch of legal recreational cannabis sales in 2025, thirteen municipalities across the state have taken an unprecedented step into the marijuana marketplace. Cities including Anoka, Blaine, Buffalo, and Elk River have applied to directly operate municipal cannabis shops, making Minnesota the first state in the U.S. where local governments will sell marijuana alongside private retailers.
The initiative draws inspiration from Minnesota’s long-established municipal liquor store model. Seven of the participating cities are located in the Twin Cities metro area, with others scattered throughout greater Minnesota. Anoka has already begun construction on a dedicated city-owned dispensary location, positioning itself at the forefront of this governmental retail experiment.
Revenue generation stands as the primary motivation behind the municipal cannabis strategy. Cities view cannabis sales as a potential funding stream for local services that could ultimately reduce property tax burdens. The approach also reflects local officials’ desire to maintain control over how cannabis is sold in their communities, rather than ceding the entire market to private businesses.
Minnesota’s cannabis regulatory framework, overseen by the newly established Office of Cannabis Management, permits these municipal ventures while maintaining competitive balance. While cities cannot establish monopolies, they do retain authority to regulate business locations, hours, and zoning requirements for all cannabis retailers. Private dispensaries will still receive licenses to operate alongside government shops.
“These cities aren’t reinventing the wheel,” notes one industry observer. “They’re applying decades of experience selling controlled substances through their municipal liquor operations to this new market.”
The municipal approach offers certain advantages. City-run shops may sell both cannabis and hemp-derived THC products, potentially offering a broader product range than some private competitors. Many participating municipalities have existing infrastructure and retail experience that could provide a first-mover advantage when sales begin. Cities like Roseville have established clear guidelines mandating annual registration and compliance checks for all cannabis businesses under their Business Registration Ordinance.
Local governments must allow at least one cannabis retailer per 12,500 residents, establishing a regulatory floor rather than a ceiling on availability. While moratoria on cannabis businesses were permitted until January 2025, cities can no longer prohibit dispensaries outright.
As both public and private cannabis retailers prepare for Minnesota’s green rush, this municipal experiment represents a distinctive approach to balancing public safety, local control, and economic opportunity in the rapidly evolving cannabis landscape. These municipal cannabis shops will need to comply with the same 500-foot distance requirement from schools, parks, and libraries as their private counterparts.
