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Kenyon council discusses expanding municipal liquor operations, debates low-dose THC sales and authorizes registration
Summary
Councilors weighed repurposing the former NAPA building for an expanded off-sale liquor store, discussed selling low-dose THC beverages and gummies under state registration, and approved motions allowing staff/operator to pursue registration and preliminary building expansion work.
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Kenyon — Councilors discussed plans to repurpose the former NAPA building as a larger off-sale liquor store and authorized two actions: permission to pursue building expansion planning and formal approval for the operator to proceed with state registration to offer low-dose THC beverages and gummies in an off-premise retail setting.
The liquor-store operator told the council the city-owned building could allow larger purchases and expand wine and other merchandise selections. He and councilors also raised the possibility of selling low-dose THC drinks and gummies in the off-sale area only (not at the bar). Several council members warned that pursuing a municipal cannabis dispensary license carries trade-offs: a municipal cannabis license would affect other licensing options and in some cases limit the city from holding multiple related licenses.
Megan Smith (county contact) was cited in the discussion about application windows and municipal licensing; councilors noted an application period was closing March 15 with other municipalities applying. One councilor summarized the legal constraint: if the city pursues municipal cannabis control it could restrict other private license opportunities depending on how licenses are allocated.
Councilors approved a motion to give Matt permission to begin expansion planning for the NAPA building (quotes and preliminary designs), and later voted to allow the operator to move forward with the state registration required to sell low-dose THC products in an off-premise store. The registration must be completed before any THC product sales occur.
Council asked staff to research permitting, ADA access, architectural needs and cost estimates for the building conversion and to report back with quotes and recommendations. No decision was made tonight to change the municipal ownership status of the building; council authorization was limited to planning steps and registration permission.

