Willmar Council adopts restrictive local cannabis retail ordinance, adds zoning rules

The Willmar City Council voted Feb. 3 to adopt a local ordinance that limits licensed adult-use cannabis retailers inside city limits to two locations, establishes buffer distances from schools, daycares and other protected uses, adds preliminary inspections and annual compliance checks, and amends the zoning code to identify permitted districts.

Operations Director Kyle Box told the council the ordinance would "allow 2 active cannabis retailers within the city limits," reflecting the state statute formula of one retail license per 12,500 residents. Box said the ordinance also "reserves the right" for the city to operate a municipal dispensary, which would not count toward the two-license minimum. He described several administrative provisions: a preliminary inspection once the state notifies the city, unannounced age-verification compliance checks, and minimum buffer requirements — 1,000 feet from a school and 500 feet from daycares, residential treatment facilities and public attractions.

City Attorney Robert (last name not specified) said the draft largely mirrors licensing frameworks the city uses for alcohol and tobacco and that council discretion would guide enforcement and penalties. He told the council the ordinance as drafted exercises the maximum local restrictions allowed under state law: "This ordinance is about as restrictive as the state would allow localities to be," including limiting the number of retailers and imposing the largest allowable protected-use buffers.

A letter from attorney Susan Burns, representing Hemponics and read into the record, asked the council for clarifications and several technical edits, including whether medical dispensaries would count toward the two-license limit, whether strict-liability provisions should be softened for employer responsibility for employee misconduct, and requests to remove references to federal law where that reference would be overbroad. Box and city staff said they would make several minor language corrections in response and recommended removing the federal reference in the prohibited-acts language; they also confirmed medical dispensaries and medical combination businesses would not count toward the two-license maximum.

Council members questioned timing and next steps. Box said the Minnesota Office of Cannabis Management (OCM) was not expected to begin issuing retail licenses until May or June, and that the city wants an ordinance on the record before the state begins issuing licenses. He also said the city may need to amend the ordinance later if the legislature or OCM changes rules.

The council adopted the cannabis retail registration ordinance with the noted amendments by a 7-0 vote, then voted 7-0 to publish the ordinance by summary. The council separately adopted an amendment to the zoning ordinance to allow licensed cannabis businesses in specified commercial districts (Central Business District and General Business Districts 1–3) and to reiterate the buffer requirements; that zoning amendment and its summary publication were also approved 7-0.

The ordinance includes: limits on registrations, a preliminary inspection before registration, annual unannounced compliance checks, minimum buffer distances for retail and temporary events, a prohibition on on-site consumption at temporary events, and a fee structure that would waive 2025 city fees for existing low-potency retailers if the state issues licenses in 2025.

Council members and staff noted the city may return to the council to amend the ordinance if state rules change or if additional clarifications are required.

The council packet includes an illustrative zoning map and the cross-referenced ordinance sections that staff said were updated to correct minor drafting errors raised during the hearing.

Votes at a glance: Adopt cannabis retail registration ordinance with staff amendments — passed 7-0. Publish by summary — passed 7-0. Adopt zoning ordinance amendment to permit licensed cannabis uses in identified commercial districts — passed 7-0. Publish zoning ordinance by summary — passed 7-0.

The ordinance and zoning amendment take effect as provided by city procedure and will be enforced subject to available local authorities and future state rulemaking.