GRAND RAPIDS — The city of Grand Rapids will apply for a municipal cannabis license, the first step in opening a city-owned dispensary.
The City Council unanimously approved an agreement with Voyageur Cannabis Services at its meeting Monday, Feb. 10, to prepare and submit a license application on the city’s behalf.
Voyageur is a Minneapolis-based cannabis consulting and operations management company. It has ties to the leaders of HWY35, the large grow operation being developed in Grand Rapids.
Voyageur will prepare and submit a municipal cannabis application on behalf of the city at a maximum cost of $3,000. The money will come from the community development budget.
The city has not committed to opening a dispensary, nor has it committed to working with Voyageur in any other capacity.
Voyageur Management Consultant Patrick Hurley presented to the Council in November 2024, detailing its services as a dispensary operator and estimating how much the city may make working with them.
If the municipal were the only dispensary in Grand Rapids, Voyageur estimated an annual net income for the city of over $1 million. The city is required to issue a local registration to at least one eligible retailer. If another dispensary were in the city, the estimated income drops to the $600,000-$800,000 range.
Community Development Director Rob Mattei explained to the Council that, if the city were to license a municipal dispensary, the city would plan to simply be the license holder.
“I think it’s important to make sure it’s kind of clear also the scenarios that we would develop — if the Council wants to continue to move forward with looking at this — would probably involve a developer that builds out an existing building or builds a building, so the city doesn’t have that upfront capital expense of building and owning a building,” he said.
The city would then rent the building from the developer and contract with an operator.
“In doing that we pass on the expense of our rent to the operator,” he said. “ … So that what comes out in the end that revenue for the city is true revenue.”
An operator, such as Voyageur, would handle staffing, inventory and regulatory compliance, plus things like security and supply chain management.
“The Grand Rapids municipal cannabis dispensary would not just [be] a business venture but a community-focused initiative designed to enhance public safety, contribute significantly to our local economy, and uphold our community values,” Voyageur’s presentation stated.
The Council was open to the idea in November but had — and still has — a lot of questions.
“Certainly is interesting to think about another revenue stream,” Mayor Tasha Connelly said at the November work session. “But I also think it comes with a lot of other — you know, it’s a first.”
Voyageur estimated the municipal store could open five months after a license is issued. The application window opens Feb. 18. Municipal licenses are not subject to a lottery and will be reviewed on a rolling basis, according to the state Office of Cannabis Management.
The Minnesota city has not committed to operating a municipal dispensary, but the application is the first step in the process if it chooses to do so. Read More
