St. Cloud City Council Approves Recreational Cannabis Sales for RISE Dispensary

(KNSI) – The St. Cloud City Council voted 5-2 Monday night to allow RISE Dispensary to expand its medical cannabis business to include recreational marijuana sales, ending more than a month of deliberation over zoning concerns.

The amendment to the Plaza 15 Planned Unit Development permits LeafLine Labs, operating as RISE at 3800 3rd Street North, to sell adult-use cannabis alongside its existing medical products. The dispensary has served the community since 2016.

The decision hinged on whether the location’s zoning classification was appropriate for cannabis retail. The city restricts such businesses to C5 Highway Commercial zones, but RISE operates within a PUD created in 2007, well before recreational or medical marijuana was legalized in Minnesota.

LeafLine attorney Carol Moss spoke to the council and said this wouldn’t be an issue if not for the PUD. “This store is smack in the middle, [of a C5 Zone]. The gift shop that’s right next to us, that shares our entryway, our parking lot, our drive-in, our back area, that store is zoned C5. So, if we were just 30 feet to the left or right, we would be appropriately zoned.”

The area has been zoned for highway commercial use since the 1970s.

Moss emphasized that denying the amendment would significantly impact the business, not simply maintain the status quo. With Minnesota’s new cannabis law, LeafLine holds a Medical/Business Combination license that allows both types of sales. “This will have a negative effect on the store as more stores come online, experience has shown that the number of medical patients that will come goes down. And that is why we have a percentage of their sales that can go into the adult use market in order to offset that loss.”

The Office of Cannabis Management confirmed that no pure medical-only license is available under state law.

Police Chief Jeff Oxton presented data showing the dispensary has not created safety issues. His department analyzed calls for service in the two-block area around RISE, comparing the year before and after it opened. “Just to see if there was any difference, and that’s what this chart shows you. So these are just general calls for service. This means what we’re sent to, and you can see we actually saw a decrease in the year from the year before to the year after, when that business was open.”

Council Member Karen Larson supported the amendment, distinguishing this case from a similar request the council denied earlier this year for a different location. “The argument that this area is surrounded by C5, is effectively C5, I think is a very strong one unlike the previous consideration where we were looking at a little C5, potential little C5, dot in the middle of a residential area. So, the true character of this location is commensurate with C5.”

Members previously denied Wild Weed a similar PUD amendment request for a location at 2102 8th Street North. That property, surrounded by residential areas in a C2 district, was more than 3,500 feet from properly zoned C5 areas. A Google search of the store shows it’s permanently closed, although they appear to be selling some inventory online.

Council Member Scott Brodeen expressed initial concerns but acknowledged the lack of documented problems, while Council Member Tami Calhoun praised RISE’s business model and commitment to customer education and safety.

When called for a vote, council members Calhoun, Brodeen, Larson, Dave Masters and Hudda Ibrahim supported the change. Council members Mike Conway and Mark Johnson voted against.

The RISE St. Cloud location employs more than 40 people, including 26 St. Cloud residents, and serves approximately 5,000 registered medical patients. The store does not count against the city’s limit of six cannabis retail licenses.

The St. Cloud Planning Commission had previously recommended approval by a 5-0 vote in September.