Minnesota to launch first municipal cannabis dispensary in 2026

This article has been updated.

A government-run cannabis store in Osseo, Minnesota is expected to open in mid-2026.

It could be the second municipally owned dispensary in the state. Ground broke in May on another city-owned store in Anoka earlier this year.

In Osseo, the city-owned shop will occupy the 7,480-square-foot former Osseo Press & News headquarters, MinneapoliMedia reported.

Should local governments sell adult-use cannabis?

The City Council approved an initiative in November that gives municipalities a way to enter the cannabis industry under a public-private partnership model.

Osseo has partnered with Minnesota-based cannabis retail management firm Voyageur Cannabis Services to oversee daily operations.

The collaboration is expected to generate revenue for local services while reducing the tax burden on residents.

“It was an attempt to be responsive to the residents and try to find ways to help fund government that [does] not fall on the backs of the people living here,” Osseo Mayor Duane Poppe told CCX Media.

Under Minnesota’s adult-use cannabis regulations, Osseo will hold the state cannabis license and collect profits from the shop.

Voyageur will handle staffing, training, compliance and inventory management, ensuring the business meets state standards.

In addition to the municipal cannabis store, Osseo has approved the opening of private retailer Roz Chunks.

The dual approach is expected to drive economic activity while offering residents greater access to legal cannabis products.

Which Minnesota city will be the first to open its marijuana store?

It would be only the second known non-tribal example of a government-run cannabis retail outlet in the U.S.

A publicly owned marijuana store operated in North Bonneville, Washington, from 2015 to 2021, and a growing number of tribal governments run cannabis outlets in the state, where tribal products can also be sold in privately owned, state-regulated stores.