Albert Lea council adopts cannabis retail registration rules, keeps 'first-come' selection and initial two-license limit

The Albert Lea City Council on May 27 adopted Ordinance 25-1-41, a second-reading ordinance that sets the city's process for registering, selecting and revoking retail cannabis licenses in the city.

City staff told the council they removed specific dollar amounts from the ordinance and will place license fees in the city's fee schedule so the ordinance text remains consistent with changing state rules. Staff also said the ordinance adds explicit grounds for denial and revocation, clarifies how relocation of an existing retail cannabis business counts against the city's numerical limit, and establishes a clear time stamp procedure for selection.

The measure matters because the Office of Cannabis Management (OCM) controls state licensing but the city must register retailers locally; the adopted text says the city will use the timestamp associated with the state's final approval/registration notification as the basis for the city's "first-come, first-served" selection for available local slots.

During debate, councilors pressed staff on fairness and legal risk. Several council members said they preferred alternatives to purely time-based selection but staff and the city attorney said other scoring criteria had been struck down in comparable jurisdictions and that time/date provides the most objective, least-discretionary metric. The city attorney warned that while any limit could invite litigation, minimizing discretionary criteria strengthens the city's defense.

Council members discussed setting an initial cap of two retail locations (the minimum allowed under state statute for Albert Lea's population) with the option to expand later. Councilors acknowledged the cap affects market scarcity and that the council can revisit the limit as experience and state rules evolve.

The ordinance also requires a complete application to be submitted at least 10 calendar days before the council meeting to allow staff time to vet zoning and compliance items. Staff explained registration will be verified against the state's final approval date/time rather than who arrived at city hall first.

Public commenters at the start of the meeting urged the council to consider local business impact and fair fees. Colin Meinhardt, who said he represents Bridal Blue Sky Cannabis Company and that his family owns the Meinegan's/Trumbull's property, described plans to open a retail dispensary and estimated job creation and economic effects. Another commenter, Jerry Collins, urged modest fees and a merit-based selection approach to prevent large, well-financed operators from dominating the local market.

Council approved the ordinance on a roll-call vote with all members voting "aye." The council also approved publishing the ordinance summary and directed staff to place fee amounts in the fee schedule.

Next steps: staff will publish the ordinance summary as required and finalize the fee schedule entries that establish the exact license and event fees.