Osseo, a small city in Minnesota, is putting off plans for a municipal dispensary.
The city has already $725,000 on a vacant building to house the city-run retailer and had planned to use a $4 million tax abatement bond to help fund the venture, which was intended to raise revenue and help offset taxes in the city.
But, according to KSTP.com, those plans have been put on hold after several Osseo residents expressed concerns about the city owning and running an adult-use cannabis dispensary.
Last year, Osseo city officials authorized the purchase of a former newspaper office and finalized plans to turn it into a city-run dispensary. The city partnered with Voyageur, a third-party management firm, to run the retail store.
City officials had been working with the Red Pine Group on the project but decided to go with Voyageur after some Osseo City Council members said they were not impressed with Red Pine's presentation on the project, calling the contractor "aloof."
Through the agreement, workers at the city-run dispensary would be employees of Voyageur and not the city of Osseo.
While Osseo's city-run dispensary remains in limbo, other Minnesota cities have moved ahead with similar plans. The City of Anoka, Minnesota earlier this year cut the ribbon and opened the Anoka Cannabis Company, which it said was the first municipal cannabis dispensary not only in the state, but the only currently operating, city-managed dispensary in the U.S.
"Our residents want a safe, vibrant, and well-maintained community while keeping taxes as low as practicable. Anoka Cannabis Company allows the City of Anoka to do just that. We aim to safely control the sale of a regulated substance, set a high bar for others to follow, and use profits to lessen taxpayer burdens while further investing in the community,” said Mayor Erik Skogquist in a statement. "These opportunities rarely come along, and in Anoka, we are capitalizing on it to make sure that all 18,000 residents see the benefits."
Construction of the nearly 3,000-square foot facility began in May 2025. The building incorporates security measures, including a secure sally port, more than 35 cameras throughout the property, and reinforced glass windows. Additionally, solar panels will generate 88% of the dispensary’s electrical needs. Sales will begin on February 6th.
