FAQ: Municipal Cannabis Dispensary

The City of Grand Rapids is moving forward with the development of a municipal cannabis dispensary.  The following are common questions and answers related to the facility.

• Does the City pay property taxes on the dispensary property?  Yes.  We currently estimate that the initial property tax will be around $12,000/annually.  The property currently pays $3,604.
• Does the City have to collect sales and use tax?  Yes.
• How can the public be assured that there will be accountability in the business? 
  • The cannabis industry is highly regulated with systems that closely track product inventory and point of sale records.
  • The city owned dispensary is an enterprise fund within the city accounting system.  By state law the books will be independently audited on an annual basis.
  • There will be up to forty security camera views throughout the dispensary.  The cameras must be accessible by the state for viewing.
  • ID verification is required for every purchase to prevent underage access.
• How many employees will the dispensary employ?  Currently we are estimating the following:
  • Two full-time employees (manager and assistant manager) Click Here for current Job Posting
  • Six part-time budtenders
  • Three part-time check-in clerks
• Have other cities in Minnesota opened dispensaries?  Yes.  The city of Anoka opened a dispensary in February of 2026.  There are also seven other cities in the process of opening dispensaries.
• Why is the city opening a dispensary?  To generate a new revenue stream.  In order to keep property taxes the most affordable, the city has had to make difficult budget cuts to things like playground equipment and library services.  One hundred percent of the profits from the dispensary will stay in the city and be utilized to make investments that will make our city stronger and more sustainable.
• Where will it be located?