13 Minnesota Cities Apply to Open Municipally Run Cannabis Stores

While most states with legal marijuana have left retail to private businesses, OCM has created a path for cities to take a more active role—mirroring the state’s long-standing model of municipally run liquor stores. According to OCM, the following cities have submitted applications to operate municipal cannabis outlets:

Anoka

Blaine

Buffalo

Byron

Elk River

Grand Rapids

Lauderdale

Mounds View

St. Anthony Village

St. Joseph

Osseo

Owatonna

Wyoming

These cities would join 176 others in Minnesota that already operate municipal liquor stores. The potential to apply the same model to marijuana sales is appealing to city leaders looking for both community control and a share of the economic upside. Municipal shops, they argue, could ensure compliance and offer a more responsible retail environment.

While projected startup costs are steep—some cities expect losses in the first year due to investments in inventory, staffing, and infrastructure—supporters believe the long-term benefits will outweigh the risks. Several cities are already scouting locations, with some exploring shared retail space for cannabis and alcohol sales under distinct brand identities.

Minnesota legalized recreational marijuana on August 1, 2023, allowing those 21 and older to possess up to two ounces of marijuana in public and up to two pounds at home. The law also established a licensed and regulated system of cannabis businesses, with retail sales expected to begin sometime this year.

Only one government-run cannabis shop has ever opened in the United States: In 2015, North Bonneville, Washington, opened The Cannabis Corner.