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HomeMy WebLinkAbout2026_04-13_CCP_STUDYCOUNCIL STUDY SESSION MEETING City Hall Council Chambers April 13, 2026 AGENDA 1. Call to Order - 6:00 p.m. 2. Council Miscellaneous Discussion Items 3. City Manager Miscellaneous Discussion Items a. Priority Project Update b. Cannabis Registration Update 4. Adjournment Page 1 of 5 1 City Council Meeting| April 13, 2026 Kat Ellgren, Deputy City Clerk Cannabis Retail Registration Lottery & Process Update 2 Background •The Brooklyn Center Ordinance Establishing Adult Use Cannabis Regulations went into effect On May 24 th, 2025. •The ordinance limited the total number of Cannabis Retail Registrations to 1 registration per 12,500 residents which resulted in 3 registrations. •City Council decided to award the available registrations through a lottery process instead of a “first come, first served” award model. •After multiple staff meetings and preparation, the City staff updated the City’s website to include an Adult Use Cannabis page. The Cannabis Retail Registration application went live in this section November of 2025. •In conversations with staff, the Office of Cannabis Management (OCM) has stated their approval of the lottery method. 1 2 Page 2 of 5 2 3 Background Continued… •On March 23, 2026, the City Clerk’s Office reviewed and pre-approved the first complete application for a Cannabis Retail Registration. •Final provisional approval and acceptance started the 30-day countdown to the first lottery drawing. •Currently, there are 2 complete applications, and one incomplete application pending in the City Clerk’s Office. •Potential applicants wishing to be included in the lottery have until April 22, 2026, to submit their application, including fees and all supporting documentation. 4 Proposed Lottery Process •Council decided on a lottery during a work session early 2025. •There will be 3 separate lotteries, one for each of the 3 retail registrations. •Each lottery will be held at a separate upcoming City Council meeting, using a bingo cage. •The lottery equipment will be on display in the Council Chambers prior to each drawing to ensure transparency. •Each applicant is automatically issued a registration application number by iMS. The last two digits of this number will be their assigned lottery number. (Example: registration number Can26-0013 will be ball number 13) •There will be one ball per applicant. •Only one registration will be awarded per meeting. 3 4 Page 3 of 5 3 5 The First Lottery •During the City Council’s Study Session on April 27th, 2026, the Mayor will pick a ball from the bingo cage. The selected number will be granted the first Brooklyn Center Cannabis Retail Registration. •Applicants will be invited to attend the meeting, but are not required to be present to win. •The selected Applicant will be sent an email within 24 hours of the lottery to notify them of their Registration award. The City Clerk will issue a provisional Cannabis Retail Registration. •Once the OCM awards the applicant with their Cannabis Retail License, the City’s provisional registration becomes a final registration. •Provisional Retail Registration is tied to the OCM’s approval. •The Provisional Registration will have a temporary one-year expiration that will be updated to match the expiration of the business’s OCM license to meet Minn. Statute 342.22, subd. 3 6 Post-Lottery Next Steps •Remaining applicants will be sent an email within 24 hours of the lottery notifying them that they did not receive the first registration, and that their application will be closed and all fees refunded unless they inform the office of the City Clerk within 14 days of the email that they wish to keep their application open. •If any applicants chose to keep their applications open, a second lottery will be scheduled a minimum of 90 days after the first. Any new applications will have until 6 days prior to the lottery date to join the second lottery. This process will repeat for the third lottery. •Should no application choose to stay open, a second lottery will not be scheduled until a new application is received and passes provisional approval. The second lottery will be scheduled 90 days from the date of provisional approval. •After the third lottery, any unselected applications will be closed, and applicants will receive fee refunds. The City Clerk’s Office will establish a waiting list for any applicants wishing to be notified, in the event a registration becomes available. 5 6 Page 4 of 5 4 Alternate Methods 7 Compressed timeline: 30 days between lotteries instead of 90. Pros: Issues registrations at a faster pace Cons: Doesn’t give as much time for applicants to enter the lottery. Alternate Lottery Method: First lottery will pull multiple winners until all 3 registrations are granted. A second lottery would be held following the original process if all 3 registrations were not granted. Pros: Issues registrations at a faster pace. Cons: Applicants can be trying to secure the same address. Doesn’t give as much time for applicants to enter the lottery. Removing the lottery and following first come, first serve basis. Pros: Benefits applicants who completed the provisional approval quickly. Cons: Requires an Ordinance change to remove the lottery. The first issuance would happen no earlier than June 22, 2026. Questions for Council: 8 •Does the Council wish to continue with the lottery? •How often does Council want lotteries held? •If a registration becomes available, does the Council wish to continue to use the lottery process or move to a waiting list/first come, first serve model? 7 8 Page 5 of 5