By Dan Solovitz

On July 1, Minnesota legalized the public sale of limited doses of THC: 5mg per dose, 10 doses per package. Dispensaries that had been selling legal non-intoxicating CBD products before that date moved into action to add products for their customers that could also include THC, the chemical in cannabis that produces a high.

On July 20, citing caution and the need for further data, the Cottage Grove City Council moved to impose an Interim Use Ordinance, or moratorium, on any expansion of the cannabis industry within city limits for one year.

For local businesses already engaged in the sale of cannabis products, the decision has quickly changed their future outlook. While they are allowed to continue selling previously-stocked CBD/THC options to the public, additional product development has been abruptly halted. Local dispensaries in the city must now adhere to the new guidelines, regardless of any already-existing plans for growth they may have had prior to July 20.

“We develop and sell products, both in wholesale and retail settings. We’ve been working on products for months that we’re not going to be able to release now,” said Tyler Thompson, owner of Highnorth Dispensary in Cottage Grove.

“It’s kind of a double- edged sword for us. On the one hand, I agree that maybe there should be more licensing necessary to sell these products, especially now with THC. It does restrict what we’re able to do though, and that’s really going to affect the customers more than anybody. We’re able to restock the products that we already have, but we can’t expand our selection. What I’d anticipate is that it’s going to be frustrating for the consumer. They’re going to want new items and products and we’re not going to be able to deliver that in the same way we would have without the moratorium,” Thompson said.

Dan Fredine, co-owner of Cottage Grove-based MN

See MORATORIUM Page 2

The City of Cottage Grove recently imposed a one-year interim ordinance ‘prohibiting the establishment of new uses or expansion of existing uses related to cannabis and nonintoxicating cannabinoid (CBD) Sales, Testing, Manufacturing or Distribution.’ Contained in full on page 4 this week, the local interim city ordinance was made in response to developments at the State Capitol. Staff photo. MORATORIUM

FROM PAGE 1

Hemp Company, agrees that a degree of regulation is not necessarily a bad thing.

“I’m in favor of companies being licensed to sell these products,” he said. “You’ve got to have a license to sell cigarettes, you’ve got to have a license to sell beer, and you have to ID people. You not only have to be 21, you need to have a valid ID on you at the time of sale. Maybe that’s a good thing. With something like this, I can see a need for some restriction. I’m looking at it with open eyes and an open mind, so that we don’t have a ‘Wild Wild West’ of CBD and THC.”

While there seems to be some agreement on understanding the benefits of regulation, there are concerns regarding the brief timeframe in which the local decision was made. In the weeks prior to the decision, other Minnesota cities passed measures to step back and take some time to survey the data from surrounding communities, notably Marshall, Robbinsdale, and St. Joseph. For local dispensaries, the Cottage Grove City Council’s decision seemed to come without warning.

“We didn’t have any notification beforehand, no idea this was even on the City Council’s agenda. We were caught off guard, with no room to prepare. We weren’t at the meeting because we didn’t know it was happening. We were aware of some cities imposing moratoriums, but we had never been notified Cottage Grove was even considering it. So we were aware of the issue being brought up in other municipalities, but the City Council had never made it apparent to us explicitly that they were looking at doing that,” said Thompson. “I’m sure we had the opportunity to speak at that meeting, had we known, but we weren’t told they were going to vote on something that was going to change our business model.”

Suggesting a need for more in-depth outreach, Fredine said, “I hope the City Council will talk to some of the people who have already done the research they are looking for.”

If the moratorium is reinstated again after one year, it’s possible some local companies may consider relocation.

Thompson said, “It’s hard to foresee. If it’s something where neighboring cities don’t have the same situation, and we have customers that are fleeing the city in order to go shop somewhere else because they have new products, sure, our hand could be forced.”

According to the dispensary owners, the majority of local CBD customers tend to represent the 35-70 age group, citing the alleviation of general discomfort, muscle pain and difficulty with sleep. THC products draw slightly younger, mostly between 25-65 years of age.

Fredine said, “We’d like to try to help educate the community, so that when the topic is being discussed, at least there’s been some homework behind it.”

Thompson suggested, “We’re able to educate the public a little bit, and I think that we could do the same thing with our local lawmakers too, because naturally there is confusion if you’re not well-versed in the industry. We could be a resource to help figure out what’s realistic for regulation. We want to make sure we’re following the rules that they present, and we also want to make sure they’re giving us realistic guidelines that don’t hinder our place in the market.”