For better or worse, retail marijuana businesses will soon be part of Carver County’s economic and social landscape.

On June 5, Minnesota will conduct its first lottery to award cannabis licenses to prospective businesses throughout the state, including cultivators and manufacturers. Preference will be given to “social equity” applicants, veterans and others during the first round.

A second lottery will occur in July to issue remaining licenses for general retail businesses.

Since adult-use recreational marijuana was approved by the Minnesota Legislature in 2023, local municipalities have been preparing for the eventual arrival of pot shops and growers. In recent months, communities throughout the southwestern metro area have adopted ordinances to regulate future cannabis businesses and rules for consumption of the products by customers.

Carver

According to Erin Smith, community development director for the city of Carver, just one cannabis-related business is expected to operate within that community’s borders. State law requires that cities and towns allow the establishment of such cannabis dispensaries, and the minimum number of available licenses must equal one per 12,500 residents. Communities can, however, regulate where the businesses can locate.

Carver’s ordinance creates a 1,000-foot buffer zone from schools and a 500-foot buffer from daycares located in freeway commercial zoning districts, including Carver Elementary, Next Steps Learning Center and O2B Kids. There is no established buffer in Carver’s central business district.

Additionally, operational hours for retail establishments will be limited to 10 a.m. to 10 p.m. daily.

“We did outreach to the Carver business community and held a community-wide listening session that guided the ordinance that was adopted by the City Council,” Smith reported.

Victoria

According to Victoria Economic Development Director Jenn Brewington, the city will allow up to two retail establishments to operate within its Central Business District.

“While the county will be responsible for licensing, the city will retain full authority over zoning regulations for these businesses,” Brewington said. “The City Council is supportive of this approach.”

Victoria officials are currently working with a prospective business owner who has submitted a license application and is actively progressing through the required steps with Minnesota’s Office of Cannabis Management.

“We have received a strong level of interest from individuals looking for potential locations, and we anticipate that at least one business may open by the end of the year,” Brewington said. “We have also been cautious and deliberate in considering where these businesses may be located, as some community members have expressed concerns about proximity to schools, daycares and community parks.”

Chanhassen

Chanhassen will be home to a maximum of three marijuana businesses, according to City Manager Laurie Hokkanen. She said the city expects the first local dispensary to begin operating later in the summer at the earliest.

“If a selected license holder wants to open in Chanhassen, they must apply for a license from Carver County,” Hokkanen explained.

According to the city’s recently adopted regulations, cannabis business must be located no closer than 500-feet from schools or residential treatment facilities located in commercial districts. Already established Chanhassen businesses that eventually secure a license to sell cannabis will be grandfathered in and not subject to the newly established buffer requirement.

Retailers will be permitted in the Highway Business, Central Business and General Business districts. Manufacturing, cultivation and testing facilities will only be permitted in Industrial Office Park districts. Lower-potency hemp edible retailers are allowed in all the above zones, plus the Neighborhood Business district.

Marijuana establishments must follow certain operational rules, including allowing no odors or smoke to escape the facility where the business is housed. No outdoor storage of product is allowed, and on-site consumption of cannabis must be indoors and only allowed if a business holds an appropriate license.

The city also adopted several security requirements that all cannabis business owners must adhere to, including professionally monitored burglary alarm systems on all access points; 24/7 surveillance cameras with 30-day video storage; adequate exterior lighting and deadbolt locks; and additional security measures (e.g., guards, fencing) as determined by city staff.

“The city has delegated cannabis retail licensing authority to Carver County, provided that the county maintains the city’s cap of three retail licenses,” Hokkanen said. “The city retains authority over zoning, compliance checks (to be conducted by the Carver County Sheriff’s Office) and event permitting.”

According to the city ordinance, scheduled cannabis events will require a specific license and must be held at locations with an existing liquor license, subject to city approval.

Chaska

The City Council adopted a new cannabis ordinance that restricts the number of licenses to the required minimum of three.

“Unfortunately, we do not have control over which businesses receive licenses, as that decision is made through the state’s lottery system,” Chaska Mayor Taylor Hubbard said. “I’m a bit disappointed that we don’t have a say at the local level in which businesses are awarded licenses by the state. We have some businesses that are already active and well-established in our community that are interested in adding cannabis to their operations. It would be great to support them, especially compared to businesses that are new to the area and haven’t built connections here yet.”

Once a business wins state approval through the state lottery, local licenses will be issued on a “first come, first serve” basis, Hubbard noted. Cannabis businesses in Chaska will be required to register with the city and will be subject to annual compliance checks. Retailers will be required to install video and audio surveillance equipment.

Temporary cannabis events will be allowed in the city, but a city-issued permit is required.

Dispensaries will be restricted to commercially zoned areas with no additional restrictions. Hours of operation are set to be the same as liquor retailers — 8 a.m. to 10 p.m. Monday through Saturday and 10 a.m. to 9 p.m. on Sundays.

Hubbard said community sentiment about the pending establishment of cannabis businesses has been mixed.

“Some folks are excited, others have concerns, and many are still figuring out what it all means,” she said. “No matter where people stand, our role as a city remains the same: to prioritize the safety of our residents and ensure that all cannabis retailers and users are following the rules and staying in compliance as we move ahead.”

The Chaska City Council has adopted an ordinance prohibiting smoking (for both tobacco and cannabis) in public places, with the exception of golf courses. However, the consumption of edibles is allowed in public places.

According to Kevin Wright, Chaska communications manager, it likely will be several more months before a cannabis business opens in Chaska.

Carver County

On May 20, the Carver County Board approved a cannabis ordinance limiting the number of total cannabis retail establishments in the county to 10.

According to the county’s Chief Communications Officer Ari Lyksett, the Carver County Health and Human Services emphasizes there are numerous health and safety concerns associated with legalized marijuana sales, including “impaired driving, risks to youth brain development, accidental ingestion by children, potential harms during pregnancy and breastfeeding, lung irritation from smoking or vaping, and emerging concerns around long-term and cardiovascular health.”

County Sheriff

Carver County Sheriff Jason Kamerud said he expects future cannabis businesses to operate similarly to liquor stores, distilleries and tobacco shops.

“I am not overly concerned about the businesses themselves,” he said. But he added that there are concerns among law enforcement personnel as marijuana use likely will increase.

“Impaired driving is a major concern for us,” he explained. “We have taken steps to better train deputies to detect THC impaired driving. We will continue to prioritize impaired driving in our enforcement efforts, and work with the County Attorney’s Office to rigorously prosecute offenders. I believe we are well-positioned to mitigate any of the predicted adverse impact.”

Kamerud noted that the Carver County Sheriff’s Department plans to launch an awareness campaign related to marijuana laws, responsible use and local ordinances to educate the public about the emerging industry.

“I would encourage people to research credible sources to know the specifics of the laws before marijuana use,” he said. “And I would like the public to help promote responsible use.”