Experiment with city-owned marijuana retail begins in Minnesota

A Minnesota city opened one of a handful of government-run cannabis stores on Thursday.
Published: February 5, 2026

The first municipally owned cannabis store in Minnesota to open for business had a soft launch on Thursday.

The Anoka Cannabis Co., located in a suburb north of the Twin Cities of Minneapolis and St. Paul, opened its doors to “cannabis industry insiders” ahead of welcoming walk-in customers next week, Minnesota Public Radio reported.

Similar to state-run liquor sales, government-run cannabis retail is a model largely unused in the United States.

Opposition to state-run cannabis sales has thwarted adult-use legalization proposals in other states.

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But government-run cannabis may find a foothold in Minnesota, where non-tribal adult-use marijuana sales began in September.

How many Minnesota cities have government-run cannabis stores?

Anoka is one of 12 Minnesota cities to apply for a permit from state regulators, MPR reported, though some communities have already abandoned plans to open a store.

A cannabis store in Osseo, located in a former newspaper building, is attempting to open for business by the summer.

Osseo is contracting with a third party, Voyager Cannabis Services, to operate the store, whereas Anoka is running the store itself, MPR reported.

In St. Joseph, a cannabis store is ready to open but still waiting for final permitting from the state Office of Cannabis Management, St. Joseph Mayor Adam Scepaniak told MPR.

In Anoka, where ground broke on the city-run retail store last May, officials are sourcing cannabis products from tribal cultivators at the Prairie Island Indian Community and Mille Lacs Band of Ojibwe, according to MPR.

Cannabis operators in the state-regulated system can obtain product from tribal producers via state compacts signed by Gov. Tim Walz.

Does city-run marijuana retail work?

Canada’s federally legal cannabis industry includes some government-owned cannabis businesses.

A city-owned marijuana store opened in Washington state in 2015.

Believed at the time to be the first city-owned cannabis retailer in the U.S. and possibly the world, The Cannabis Corner in North Bonneville lasted until 2021.

In Anoka, revenue from legal marijuana sales may “help fund city parks and reduce the tax levy,” MPR reported.

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