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EAST GRAND FORKS – The East Grand Forks City Council gave its first approval to new cannabis zoning and business codes during its meeting Tuesday night.
Cannabis has been legal in Minnesota since 2023 and the first lottery license is expected in December. East Grand Forks has had a moratorium in place since 2023 to give the city time to create the ordinances and to get more information from the state on how it can regulate cannabis locally. In short,
the city has very limited ways beyond its zoning and planning to regulate cannabis establishments.
The whole city will be limited to two cannabis retail establishments total in the downtown and highway commercial zones. It will also create buffer zones around schools of 550 feet and 300 feet from parks, daycares and residential use facilities. Up to 1,000 feet in buffer is allowed by Minnesota law, which in East Grand Forks would conflict with the other state requirements.
“Due to just the way our city is laid out, if we (went to the max buffer distance allowed) there wouldn’t be any location in the city of East Grand Forks to actually have a retail business,” City Attorney Ron Galstad said. “Five hundred and fifty feet to 300 feet from those types of zones would allow for businesses to be in the downtown business district or in the commercial highway.”
Cannabis establishments beyond retail, like manufacturing and distribution, will also be allowed in the industrial zones, but no outdoor cultivation will be permitted. These types of businesses will be considered permitted uses, meaning they wouldn’t have to apply for a special permit with the city. The city will be notified that a new business will go in from the state, where it needs to get a license from the Office of Cannabis Management.
“We already have very specific conditions that are already in place,” Community Development Director Nancy Ellis told the council. “We have so many regulations on them having to be licensed, so from certain locations, etc., so we’re going with just a permitted use.”
Once the ordinance receives its second reading,
it will become part of the city’s code ahead of the moratorium expiring at the end of the year.
The council also approved transitioning the city the current Blue Cross Blue Shield plan to an ICHRA plan. The individual coverage health reimbursement account
– or ICHRA – that the city is considering works differently than the current setup.
The city would give employees a certain amount that the city is willing to reimburse, similar to how it covers a portion of the premium in a group insurance plan. However, unlike a group plan — where everyone is using the same provider — employees, through a vendor, find a plan that fits their needs in the individual market, and the costs are paid through an ICHRA. An ICHRA system also means that employees over 65 would have to use Medicare.
The city will be contracting with Gravie Incorporated to facilitate the open market style of plan that ICHRA allows. Gravie acts similarly to the MNsure marketplace and handles much of the administrative work of the insurance. City staff voted 43 to 33 to approve the switch.
In other news, the council:
Approved an agreement with LiveBarn to continue streaming hockey games at the Civic Center, VFW Memorial and Blue Line Club arenas. The new agreement is for three years.Approved amendments to the ambulance service territory subsidy agreement with Altru Health System and Polk County. The new agreement splits all funds in a 50/50 cost share for the amount levied unlike the previous split of all funds from townships going to Altru and only 50% of city levied dollars going to Altru. “}]] The council also approved moving the city to a new health insurance plan. Read More
