At its May 19 meeting, the Hastings City Council unanimously approved a resolution establishing how the city will issue its limited cannabis retail business licenses, opting for a first-come, first-served approach to determine which business will be registered first once state licensing is finalized.
Assistant City Administrator Kelly Murtaugh presented the complex state licensing process to the council and outlined the proposed local selection procedure. The council approved the resolution following a detailed discussion that highlighted the intricacies of Minnesota’s newly emerging cannabis retail framework.
Under the approved process, the first business to fully complete Hastings’ local cannabis registration process—once it has secured a state license—will receive the city's sole cannabis retail registration, as currently limited by state law. The city ordinance allows for one retail cannabis registration per 12,500 residents, which restricts Hastings to just one such business for now.
Murtaugh led council members through a detailed chart provided by the Minnesota Office of Cannabis Management (OCM), which outlines the multi-stage process businesses must navigate to obtain a state license. These steps include initial application, preliminary approval, background checks, and final licensing. Local governments, such as Hastings, are only engaged in the process at key touchpoints—primarily to confirm zoning compliance and eventually register licensed retailers.
“There are capped and uncapped licenses,” Murtaugh explained, noting that cannabis retailers fall into the capped category, which limits how many licenses are issued statewide and subjects applicants to a lottery. A lottery for cannabis retailer licenses—limited to social equity applicants—will be held June 5. Another is expected in July for all applicants.
In contrast, micro businesses—which may also sell cannabis—are considered uncapped and are not subject to the lottery. Hastings currently has two businesses with special use permits in place: one pursuing a standard cannabis retail license (capped), and one applying as a micro business (uncapped). Both are required to follow the city’s registration process once they obtain state licensing.
Murtaugh recommended the council adopt a straightforward, fair process for determining which business receives Hastings’ first and only registration under the cap: whichever applicant is first to complete all city requirements, including having a valid state license, zoning compliance, and paying all city fees, will be recommended for council approval.
“Once everything is complete, the city will date- and time-stamp the application and forward it to council,” said Murtaugh. “If two applications are completed at the exact same time, we’d conduct a random drawing to determine priority.”
City staff emphasized this approach is meant to ensure fairness, avoid complications, and move applications forward efficiently.
“This process reflects our staffing capacity and desire to keep things as simple and equitable as possible,” said Murtaugh. “We’re already dealing with a very complex state system. We don’t need to make our local piece any more complicated.”
Council Member Lisa Leifeld commended the clarity of the approach and expressed her personal support for local ownership.
“I don’t love the idea of franchise-style cannabis retailers,” she said. “I’d rather see a homegrown, one-location shop rooted in the community.”
While city staff have not received direct feedback from the businesses that have applied for special use permits, they were notified in advance of the council’s discussion. Murtaugh said city staff are prepared to process applications efficiently and fairly.
“We’re modeling our intake on how we handle elections,” Murtaugh said. “Every application will be date- and time-stamped, and more than one staff member will review each for accuracy and completeness.”
The council approved the resolution unanimously following the presentation and discussion.
“Thank you, Kelly,” said Mayor Mary Fasbender. “We appreciate the effort your team has put into understanding and navigating this complex process, and for keeping the council and our residents informed.”
As Minnesota continues to roll out its cannabis licensing framework, Hastings joins the growing number of municipalities preparing for the arrival of retail cannabis. The city's proactive, transparent approach aims to strike a balance between fairness, simplicity, and readiness as applicants await state approvals.