City Council Meeting Date: September 3, 2024
To: Mayor and City Council
City Administrator
From: Lynette Peterson, City Clerk
Mark Elliott, Chief of Police
Title
Consider Cannabinoid License for Froggz LLC DBA Froggz, at 307 Water Street South
Body
Action Requested:
Staff recommends a motion to approve a cannabinoid license for Froggz LLC DBA Froggz, at 307 Water Street S., subject to the following conditions:
1. Successful completion of a background check;
2. Applicant must hold an on-sale liquor license in order to be granted a cannabinoid license for on-site consumption; and
3. Police Department walk through prior to opening.
Summary Report:
Nate Bram, Nicolas Erickson and Perry Bruget, Froggz LLC, have applied for a cannabinoid license for 307 Water Street S.
The Police Department has completed the necessary background check. Areas of concern were noted in the investigative report. The license approval is subject to the conditions noted above which includes the successful background check. A Police Department walk through/meeting is done with all new license applications for liquor and tobacco (including cannabinoid) to view the premises and discuss applicable code enforcement items. City cannabinoid licenses run from August 1 through July 31. This license will begin once the establishment opens and expires July 31, 2025.
The state legislature made law changes to Cannabis and cannabinoid regulations to go in to effect when the state Office of Cannabis Management opens, but for this licensing period there are no changes that apply to city licensing as the Office has not opened for regulation yet. Once the office is up and running and regulations are in place, the City of Northfield will review their licensing and make changes to comply accordingly. The OCM is expected to open for regulatory oversight sometime in 2025.
Information from the State of Minnesota Office of Cannabis Management:
Local role in license approval process
Local governments play a critical role in the licensing process, serving as a near-final approval check on cannabis businesses nearing the awarding of a state license for operations. Once an applicant has been vetted by OCM and is selected for proceeding in the verification process, they are then required to receive the local government’s certification of zoning compliance and, if applicable, retail registration before operations may commence.
Local retail registration
Once the licensing process begins, local retail registration applies to cannabis retailers or other cannabis/hemp businesses that are seeking a retail endorsement. Local governments issue a retail registration after verifying that the business:
• Has a valid license or license preapproval issued by OCM
• Paid a registration fee or renewal fee to the local government
Initial registration fees collected by a local government may be $500 or up to half the amount of the applicable initial license fee, whichever is less. Renewal registration fees may be $1,000 or up to half the amount of the applicable renewal license fee, whichever is less.
• Is found in compliance with state law and local ordinances
• Is current on all property taxes and assessments for the proposed retail location
Once the license is approved, police department staff will meet with the new license holder on site to review the ordinance regulations and inspect the establishment. Compliance checks will be conducted during the license period on all licenses.
If liquor license is approved, staff recommends approval of the cannabinoid license.
Alternative Options:
Per City Code Sec. 30-63, “the City Council may either approve, approve with conditions, or deny the license or it may delay action for a reasonable period of time as necessary to complete an additional investigation of the application or the applicant it deems necessary.” The entire Chapter 30 Article III Sale of Edible Cannabinoid Products can be viewed through the link as Attachment 1.
Financial Impacts:
The license fee is $1,500.00.
Tentative Timelines:
N/A