Cannabis questions face Olmsted County, Rochester candidates ahead of new retail options

ROCHESTER — Cannabis retailers will be able to open next year , and guidelines for limited local oversight continue to unfold, with Rochester's plans needing to be tweaked Monday.

Shifting interpretations of regulations mean Olmsted County commissioners and Rochester City Council members elected on Nov. 5 could face additional cannabis-related policy decisions during their first months in office.

Olmsted County commissioners have taken a conservative approach to local guidelines regarding the sale of recreational cannabis , which are being supported by the four candidates seeking to fill two contested seats.

"We're heading into new territory for the state, for the counties, for cities, and anytime you start something new there's a lot of learning to take place and you might need to set some guardrails," said April Sutor , who is challenging Gregg Wright for the District 3 commissioner seat.

As the incumbent, Wright said he demonstrated a guarded approach when agreeing to limit the number of county-regulated cannabis retailers to 14, which is the lowest amount allowed under the state legislation approved last year.

"I supported it," he said. "I think nobody knows the needs going forward, and that's why we took a very conservative approach on this."

Cannabis retail businesses are expected to be allowed to open on March 1, 2025.

In the District 6 race to fill the final two years of Commissioner Sheila Kiscaden's term, both first-time candidates said the county is on the right track, based on the information that's currently available.

"I do think they are headed in the right direction to some extent," Tawonda Burks said, adding she'd like to see the state provide added flexibility for the county to ensure state-issued licenses benefit local businesses, rather than out-of-state companies.

Sagar Chowdhury, associate director of Olmsted County Public Health, recently told county commissioners approximately 40% of equity-based applications for state licenses are from outside Minnesota.

Bob Hopkins , who is also seeking the District 6 seat, said local efforts remain a work in progress, largely because the state is shifting oversight responsibility to counties with limited funding.

"I support the county's decision to go with the minimum number of licenses, and I'm pleased that the city has decided to adhere to that number as well," he said.

In July, Rochester City Council members expressed a desire to limit the number of allowed retailers to 10 , with the expectation that the county would register and oversee the businesses.

An updated interpretation of Minnesota Office of Cannabis guidelines requires the city to decide between setting its own restrictions or turning registration responsibilities over to the county.

As a result, if the city opts to limit businesses to 10 within city limits, it must be responsible for oversight. If the city authorizes county oversight, all of the county's 14 businesses could be allowed to open in the city. At this point, the county could not dictate limits for specific cities, towns or townships, Chowdhury said.

Rochester Deputy City Clerk Christiaan Cartwright said in a report to the council that 12 businesses are seeking pre-approval to operate in Rochester.

The City Council is slated to determine Monday whether it wants to restrict the number of businesses or give the county authority to register businesses and provide related oversight.

Candidates for four council seats on the Nov. 5 ballot said they support giving local registration and oversight responsibility to the county.

"We looked into it, and I think following the county's lead and working together with them is the best idea," said Shaun Palmer , who is seeking the council president's seat but will also have a vote Monday and the current Ward 5 council member.

His opponent for the council president seat, Randy Schubring , said he also sees benefit in allowing the county to maintain oversight, adding that he's not worried about the potential for a few more businesses being allowed in city limits since state requirements will shift upward with population growth.

"We're going to get to 11, 12 and 13 pretty quickly, so why don't we stretch ourselves and make sure that we're covering the regulatory burden we have," he said. "Then, we can make sure that it's adding to the tax base of Rochester."

In Ward 4, where incumbent Kelly Rae Kirkpatrick will be the only other candidate involved in Monday's council decision, both candidates support a cautious approach.

"I really prefer the jurisdiction to be with the county, collaborating with the city," Kirkpatrick said, citing the related expense. "I don't want the city to have jurisdiction over the management of cannabis."

Andy Friederichs , who is challenging Kirkpatrick in the largely southeast Rochester seat, said he supports the cautious creation of new businesses, as long as they aren't causing new problems related to use of cannabis.

"If it's 10 or 14 places selling, I don't know that it impacts people's habits," he said, supporting the option of county oversight.

Candidates in Ward 6 agreed county oversight is the preferred option.

Mark Schleusner said the option will reduce city expenses while maintaining a conservative approach.

"It makes sense when starting something new," he said. "It is new, and people aren't going to know how it is doing until there's some time under our belts."

His opponent, Dan Doering , agreed a slow start is needed but pointed to a willingness to make changes in the future, if they are supported by residents.

"This might be a good start for our community," he said. "I imagine it would expand beyond that, and as long as people are abiding by the policies set forth by the state of Minnesota, I would have no problem."

First-time Ward 2 candidates also voiced support working with the county, rather than creating a unique city process.

"In light of 2025 budget planning, I would hesitate to add new city staff time for oversight of registered cannabis businesses, and it seems like a smart coordination of limited resources to turn this responsibility over to the county," Nick Miller said.

Tripp Welch said having a singular process for registrations and oversight throughout the county makes sense as retail cannabis businesses prepare to open next year.

"I appreciate the go-slow-and-let's-learn approach," he said.