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St. Joseph council authorizes MOU to pursue municipal dispensary application with Red Pine Group
Summary
The council voted to authorize the mayor and city administrator to execute a memorandum of understanding with Red Pine Group so the city can submit a municipal dispensary application; councilors clarified the MOU is not the final contract and can be withdrawn before a contract is signed.
At the meeting, city staff told the St. Joseph City Council the Office of Cannabis Management required an application for a municipal dispensary and that the city's preferred operating contract with the Red Pine Group may not be finalized in time for the application deadline.
David (city staff) explained the city received a draft agreement shortly before the meeting and that, following guidance from the Office of Cannabis Management and other municipalities, a memorandum of understanding (MOU) would suffice for the application. He said the MOU contains the principal points about who will perform which duties while the final contract remains under negotiation.
Council members questioned what the MOU would commit the city to and whether the city could back out before signing a final contract. David and others said the MOU is a working document, the final contract would be subject to further review and approvals, and the council could decide not to sign a final agreement if it chose to do so.
The mayor moved to approve a resolution authorizing the mayor and the city administrator to execute the MOU; the council seconded the motion and voted 'aye.' The motion carried, authorizing staff to sign the MOU so the city can proceed with the municipal dispensary application.
The council did not approve any final operating contract at this meeting; staff said the draft contract still required attorney review and mutual agreement between the parties before it would become binding.
