Leafline Labs seeks new conditional permit for dual medical and recreational cannabis operations

In the heart of Cottage Grove, city officials gathered under the bright lights of the council chamber to discuss a pivotal moment for local business and community health. The focus of the April 16, 2025, City Council meeting was a conditional use permit application from Leafline Labs, a key player in Minnesota's medical cannabis industry.

Leafline Labs, which operates on a 21.8-acre site at 90 Seventh Street, is seeking to adapt its operations to align with new state regulations that will allow it to sell products in both the medical and recreational cannabis markets. This shift comes in response to the Minnesota legislature's establishment of an adult-use cannabis marketplace, which is set to take effect later this year. The company has been operating under a conditional use permit since 2014, with updates made in 2020 and 2022, and is now required to secure a new permit to comply with the upcoming changes.

During the meeting, Samantha Perret, a representative for Leafline, outlined the company's plans, emphasizing that there would be no significant changes to their operations or product offerings. The primary adjustment will be the ability to sell products to a broader audience, including recreational users. Perret assured the council that Leafline meets all city performance standards and has addressed previous concerns regarding odor complaints from nearby residents. The company has engaged Bayer Scientific to implement immediate and long-term odor mitigation measures.

Council members expressed their support for Leafline's application, acknowledging the company's commitment to being a responsible corporate citizen in Cottage Grove. Carol Moss, an attorney representing Leafline, reiterated the company's dedication to addressing community concerns and maintaining a positive relationship with the city.

As the council deliberated, they noted the importance of ensuring that Leafline's transition to a dual-use cannabis business aligns with both state and local regulations. The Office of Cannabis Management is currently reviewing applications for compliance, and Leafline is optimistic about receiving the necessary approvals.

The meeting concluded with a sense of anticipation for the future of cannabis business in Cottage Grove, as the council prepares to vote on the conditional use permit. With the deadline for compliance looming in December 2025, the outcome of this application could significantly impact the local economy and community dynamics in the coming years.