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Isanti council approves Northern Crown LLC cannabis registration amid state tax change
Summary
The council approved a cannabis product registration for Northern Crown LLC at 108 Main Street E after the applicant described a small retail-only operation; council and staff discussed state law changes that raise the tax and remove local allocations and clarified zoning and security limits.
The Isanti City Council on June 17 voted to approve a cannabis product registration for Northern Crown LLC for a small retail microbusiness planned at 108 Main Street E. The applicant, Matthew Vanill, testified the shop will be retail-only and that all products will arrive prepackaged from licensed growers and manufacturers.
City staff told council the applicant had submitted the required written pre-approval. During discussion staff and council highlighted a recent state change increasing the tax rate on cannabis from 10% to 15% and removing the allocation of those taxes to local municipalities. That change prompted concern among council members about lost local revenue and the city bearing enforcement costs without the anticipated tax benefit. A council member described the change as politically and practically disappointing for municipalities.
Applicant Matthew Vanill said the proposed store would not cultivate on site and that inventory would be acquired from growers and suppliers. He said the owners intend to source locally when practical and noted banking and licensing remain points of ongoing work. Corey Prescott, who identified herself as the applicant’s relative, said the business would be a family venture and emphasized a local focus on sourcing.
Council members asked staff to confirm zoning limits and whether cultivation would be disallowed in the proposed location; staff clarified cultivation is restricted to industrial zones and the proposed Main Street location was limited to retail operations by city ordinance and zoning. Council also discussed security procedures, an ID check and a buzzer system required by state rules that staff reviewed.
A motion to approve the registration was moved, seconded and carried with four yes votes and one abstention. The council recorded the abstention as a protest against the state-level change that removed local tax revenue rather than as a denial based on ordinance noncompliance.
Next steps: staff will issue the registration notice to the applicant and monitor compliance with city ordinance and any applicable state conditions.
