13 Minnesota Cities Plan to Open First Municipal Cannabis Stores in U.S.

6 August 2025

Thirteen Minnesota cities are moving to open municipally owned cannabis stores, a first-of-its-kind initiative in the United States that builds on the state’s history of city-run liquor operations. The applications, filed with the Office of Cannabis Management, include communities ranging from large suburbs like Blaine to smaller cities like St. Joseph and Wyoming.

The move comes as recreational marijuana sales prepare to launch in Minnesota. City leaders say their goal is twofold: to ensure strict compliance with state regulations and to capture economic benefits for local residents.

In addition to compliance, cities hope to use cannabis revenue for public good, as it could be reinvested into property tax relief, new parks, and recreational facilities.

The list of municipal applicants includes: Anoka, Blaine, Buffalo, Byron, Elk River, Grand Rapids, Lauderdale, Mounds View, Osseo, Owatonna, St. Anthony Village, St. Joseph, and Wyoming.

Municipal cannabis stores will be subject to nearly all the same rules as private retailers, but they have a unique advantage: the ability to sell marijuana and hemp-derived THC products in the same location. In a competitive market where cities cannot enforce a cannabis monopoly, officials see this dual-sales capability as an edge.

• NOTE: The only other example of a government-run cannabis store in the U.S. was in North Bonneville, Washington, which operated from 2015 to 2021. Minnesota’s initiative could test whether such a model can work on a broader scale, potentially influencing other states’ cannabis policies.