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Rapid City dispensary operators urge change to cannabis transfer restrictions at committee public comment
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Summary
Three medical cannabis business representatives told the Legal and Finance Committee the city's licensing resolution prevents license transfers and ties operators to landlords; they asked that the city calendar language changes quickly so businesses can relocate or sell licenses when needed.
Three representatives of licensed or prospective medical cannabis businesses used the committee’s public-comment period on July 2 to urge the city to amend language in a 2024 city resolution that they say prevents transfers of medical cannabis licenses and constrains business operations.
Kitrick Jeffries, who said he represents Puffy’s dispensaries, handed out Resolution 2024-079 (the city’s medical cannabis licensing resolution passed in October 2024) and asked the committee to strike language that prevents transfers. “I would just like a definitive answer at next week’s council meeting on what our route or businesses would choose to go,” Jeffries said, asking the committee to calendar the item for the next council meeting so licensees have clarity about a one‑year construction/opening deadline for new locations.
Emmett Reichstoffer, who identified himself as representing Genesis Farms (a Box Elder-based licensee with two Rapid City locations), said the language “ties our hands” and prevents businesses from relocating as they outgrow existing space. Reichstoffer told the committee that other industries — restaurants, retail, liquor-license holders — are not subject to comparable transfer restrictions and cited Sioux Falls as a nearby example that allows transfers.
Brian Anderson, who said he runs West River Farms in Rapid City, said his operation is negotiating an asset sale but is constrained by the moratorium and by a lease that the landlord is seeking to extend. He said he and his partners seek the same scheduling and regulatory certainty so they can complete an asset-sale transaction.
No council action occurred during the meeting. Committee staff said the committee would calendar items tied to specific agenda items at the time those items are considered by council; speakers asked that the transfer-language change be placed on the council calendar as soon as possible so licensees subject to construction deadlines can plan.
Details from public comment
- The speakers referenced Resolution 2024-079 (medical cannabis licensing), adopted October 2024, and asked the city to remove the language that prohibits transfer of licenses or locations. - Businesses said the city currently limits transfers of medical cannabis licenses and that the restriction can leave operators unable to move if a building is destroyed or if landlords refuse to renew leases at reasonable rates. - One speaker said a Rapid City cannabis establishment had a fire in Brandon (outside Rapid City) and used the example to illustrate the practical need for transfer rights. - Speakers indicated they accept the intent of a moratorium on new licenses but want the transfer prohibition struck or amended to allow relocations and asset sales; they asked the committee to calendar the change quickly so pending construction timelines and asset-sale negotiations can proceed.
Speakers asked the committee to send the item to the next city council meeting for consideration; the committee did not take formal action on the licensing language during the July 2 meeting.
