Isanti City Council Approves New Cannabis Dispensary Amid Concerns Over State Tax Changes
- Meeting Overview:
The Isanti City Council meeting was marked by the approval of a new cannabis dispensary license for Northern Crown LLC, amidst discussions about the impact of recent state tax changes on local businesses. Other topics included the awarding of a bid for a major intersection improvement project and the replacement of a key piece of city equipment. The council also addressed special event permits for upcoming community events and banking service proposals.
The council’s decision to approve the cannabis dispensary application came after a discussion regarding the potential implications of the state’s recent tax increase on cannabis products. The tax rate was raised from 10% to 15%, with local municipalities excluded from receiving any portion of the tax revenue. The mayor expressed dissatisfaction with this state decision, emphasizing the financial burden it would place on local agencies responsible for enforcement and regulation. Despite these concerns, the council moved forward with the approval, as the dispensary met all city code requirements and had already received pre-approval from the Office of Cannabis Management.
A representative from Northern Crown LLC clarified that the business would operate as a small, local dispensary selling pre-packaged products sourced from local suppliers, without on-site cultivation. This assurance aimed to alleviate concerns about odors and compliance with zoning regulations. The application was ultimately approved with a 4-1 vote, as one council member abstained due to concerns over the financial impact on taxpayers related to increased policing and administrative demands.
In other business, the council unanimously approved a bid for the Heritage Boulevard Intersection Improvements Project. The decision followed the receipt of six bids, all below the engineer’s estimate. The project was awarded to Aztec Asphalt Surface Technologies Corporation for $1,113,947.75. The city’s anticipated expenditure was lower than the initially budgeted $500,000, with an expected cost of approximately $170,000. Council members expressed appreciation for the competitive bids and the efforts of city staff in achieving substantial cost savings for taxpayers.
The council also decided on the replacement of a Ford 545D tractor, which had become inoperable due to a failure in the PTO shaft. After unsuccessful attempts to source replacement parts, the council opted to purchase a new John Deere 5075E cab utility tractor through a state bid program, at a cost of $65,481.86. The decision was made to retain the old tractor for additional mowing capacity, with council members acknowledging the robust construction of older models compared to newer ones. The unanimous decision to purchase the new tractor included provisions for additional equipment such as turf tires and a loader.
The meeting further addressed special event permits for the Isanti Firefighters Rodeo Association’s annual rodeo and the North 65 Chamber of Commerce’s Jubilee Days event. Both events were approved, with council members noting the positive community impact and the valuable contributions of volunteers. The rodeo is expected to attract approximately 11,000 attendees, while Jubilee Days will feature a parade and Kids Day, drawing around 10,000 and 3,000 participants, respectively.
Lastly, the council reviewed proposals for banking and depository services, a notable decision for the city’s fiscal operations. Five institutions submitted proposals, with Falcon National Bank and Security Bank and Trust Company emerging as top contenders. Considerations included the financial stability of the institutions, the range of services offered, and the potential for expanding services to meet future city needs. Ultimately, a motion to extend the current agreement with Falcon National Bank for another year was made, but procedural challenges led to a decision to table the discussion until the next meeting for further investigation into the terms of an extension.
Luke Merrill
City Council Officials:
Steve Lundeen, Jeff Holmgren, George Hemen, Nicholas Pedersen
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Meeting Type:
City Council
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Committee:
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Meeting Date:
06/17/2025
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Recording Published:
06/18/2025
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Duration:
59 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Isanti County
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Towns:
Isanti
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