Genesis Farms representative asks Watertown to reconsider cannabis license-transfer ban

Emmett Rystroffer of Rapid City, speaking during the City of Watertown public comment period, urged the council to consider revisiting the city’s existing ordinance that prohibits transfer of medical cannabis licenses. Rystroffer identified himself as representing Genesis Farms and said his company would be interested in operating in Watertown if transfers of existing licenses were permitted.

Rystroffer told the council he has worked with other South Dakota cities on ordinance language and changes. "Watertown is one of a handful of communities that strictly prohibits the transfer of the licenses," he said. He described a local license holder who wishes to retire and said ‘‘we would like to come to Watertown if there's a way to do that through a license transfer, but right now the ordinance would not allow that.’’

He cautioned the council against informal workarounds used elsewhere and said Genesis Farms would prefer a transparent process: "We don't think folks should do workarounds. You should come to public comment like this and express interest and that sort of thing."

Rystroffer asked for an opportunity to talk with staff and stakeholders and said he would follow up by email. The council did not take any formal action on the request during the meeting; staff or council members did not report a planned agenda item or timeline for revisiting the city’s ordinance during that session.

Why it matters: If the council chose to amend the ordinance to allow license transfers, it could enable local business transactions that would keep medical cannabis retail operations within Watertown rather than shifting customers to Brookings or Sioux Falls, as the commenter characterized demand.

Next steps: No staff report or council referral was recorded at the meeting; Rystroffer said he planned to provide follow-up information to city staff and requested a stakeholder conversation.