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St. Peter council adopts new cannabis registration fee schedule after staff briefing
Summary
City staff described statutory fee caps and administrative costs, and after council questions about inspections and local revenue, the council unanimously adopted revisions to the 2025 fee schedule to add registration categories and fees for local cannabis retailers.
St. Peter City staff presented a proposed update to the city's 2025 fee schedule and the council unanimously approved the change after questions about staffing and revenue.
Steven Winkler, a city staff member who drafted the memorandum in the packet, told the council the modification (packet p.39'p.42) adds registration categories for five types of retail cannabis operations and aligns local registration charges with statutory caps. "Initial registration fees" for most retailers are capped at "$500" and renewal fees at "$1,000," he said; he added that low'potency hemp edible retailers have lower statutory caps ("initial registration fee is $250, and the maximum renewal amount is $125"). Winkler explained the city could elect to charge lower amounts but that fee revenue helps cover inspections, reporting and staff time.
Council members pressed staff about how many additional inspection and compliance hours the new registrations will require and how the city's charges compare with other local fees. One council member noted that liquor license fees in the city are about $1,600, and another warned that the state had pulled local revenue sharing for cannabis taxes: "It's 0 now," the member said, arguing the city should avoid setting fees intended to be restrictive and instead encourage local business entry.
Winkler and other staff acknowledged the statutory framework limits local control over cannabis operations but allows the city to collect registration fees to recover administrative costs. After discussion, the council moved and seconded the resolution to modify the 2025 fee schedule (packet p.42); the Clerk called the roll and each member present voted aye.
The ordinance and fee changes will appear in the city packet for implementation; the council did not specify detailed per'license fee figures beyond the statutory maximums discussed and staff alternatives in the memorandum. Any future adjustments to the schedule may be brought back to the council for further review.
