East Grand Forks City Council weighs extension for proposed cannabis retailer at 302–304 Demurs Avenue

City staff and council members on June 2 discussed whether to grant an extension that would allow the selected cannabis licensee and the property buyer to finish closing, remediate discovered hazards and complete renovations at 302–304 Demurs Avenue.

Reed, a city staff member, told the council that Red Iris LLC was chosen in a lottery for one of the city’s retail cannabis licenses and that Chicago Atlantic signed a purchase agreement for the property on Sept. 15, 2025. Reed said the buyer has pursued extensive due diligence since then and discovered asbestos in the building and structural issues with the roof that would require engineering work before rooftop HVAC units could be installed. He also said utility lines serving the building run along neighboring walls and the developer is negotiating easements or rights with adjacent owners to ensure uninterrupted service.

“The company has every desire and intent on closing on the property,” Reed said, and “they expect they will be able to close within the next 30 days.” He said building plans were submitted to Miss Ellis’s office for plan review on May 22 and that fire code officials had received the plans and begun their review by the day before the meeting. Reed described a construction timeline in which, after contractor selection, renovations could be substantially complete in about 90 days; he said the developer estimates roughly $2.5 million in renovation work and plans to remove upstairs apartments to convert the structure to retail and supporting office space.

A council member identified in the transcript as Mr. G urged the council to use its authority under the city charter and local ordinance to grant an extension, arguing the ordinance’s timing provisions were intended to create urgency but did not bar an extension when a lottery winner is actively pursuing the project. “It would be my recommendation … to at least consider it,” Mr. G said, pointing to substantial investment and progress by the developer.

Council member Dale Helms said he was sympathetic to the developer’s efforts but preferred a shorter, conditional extension to preserve pressure to finish. “I would be willing to grant an extension, but I think I would rather look at it like a 90-day thing … to kind of keep the pressure on,” Helms said, adding that any short extension should be tied to demonstrable progress toward completion.

Vice President Tim Riupel also said he supported allowing work to continue and warned that licensing delays commonly come from the state Office of Cannabis Management rather than local construction schedules. “I can’t see them delaying on that. It’s that OCM what I’m concerned about,” Riupel said.

Several council members emphasized the local economic benefits of renovating the downtown building and removing asbestos. Staff said Chicago Atlantic has put plans out for contractor bids and that, once renovated, the developer would submit a site registration to the Office of Cannabis Management, triggering local planning review and a final state inspection before a license could be issued.

Reed told the council the developer was on notice because the current extension had expired June 1. City staff will draft an actionable resolution for the council to consider at a noticed meeting; no formal extension vote occurred at the June 2 work session. Reed said he would work with Mr. G (Ron) to prepare a resolution for the next meeting.

The council took one formal action at the end of the special meeting: a motion to adjourn moved by Riupel and seconded by Helms, which passed unanimously.

What’s next: staff will circulate a draft resolution for the extension and the council will schedule a noticed meeting to vote on it. The timeline for state-level licensing remains dependent on the Office of Cannabis Management.