Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Cannabis Funding topic
No spam. Unsubscribe anytime.
Council approves $525,000 interfund loan from liquor fund to cannabis fund to cover dispensary startup costs
Summary
Finance Director Deborah Maloney presented a $525,000 interfund loan to cover cannabis dispensary renovation, inventory and wages; Council approved Resolution 26-050 5-0. Repayments are planned initially in lieu of rent with a conservative 10-year repayment plan, though faster payoff is possible.
Finance Director Deborah Maloney told the Council that startup expenses for the city's cannabis dispensary must be incurred before revenues begin and recommended an interfund loan of $525,000 from the liquor fund to the cannabis fund to bridge the gap. Maloney said the loan amount reflects renovation, inventory, and wage estimates and that projections were modeled on Anoka data adjusted for St. Anthony's population and dispensary size.
Maloney described the proposed repayment approach: the cannabis fund will repay the liquor fund in place of rent payments until the loan is repaid; staff conservatively expect a 10-year schedule but said faster repayment is possible. "This sum was reached by evaluating costs for the dispensary renovation, inventory, and wages," Maloney said. City Manager Charlie Yunker framed the city's entry into cannabis as experimental and noted the City would not use levy funds for this loan. Councilmember Lona Doolan moved approval, Councilmember Jan Jenson seconded, and the Council approved Resolution 26-050 by a 5-0 vote.
