Island Peži, the cannabis dispensary in Prairie Island Indian Community (PIIC), opened in June 2024 to immediate success.
“We were profitable from day one,” said Treasurer of Prairie Island CBH, Inc. Kim Campbell.
Being the closest dispensary to the Twin Cities and one of the earliest locations where Minnesota residents could buy cannabis flower had already set up the business for success, even in the uncertain regulatory environment for cannabis in the state post-legalization.
Island Peži (pronounced pay-zhee), the name of both the dispensary and one of the inhouse brands sold there, comes from the Dakota word for “grass.”
Even before cannabis was legalized in Minnesota, there was interest within the PIIC to open a cannabis dispensary: “For years it was waiting and watching,” said Campbell.
Once it was obvious that legalization was moving forward in St. Paul, members of the PIIC began working with Honest Cannabis consultants, Jacobson Law Group as legal consultants, and Aim Law Limited Partnership as Tribal cannabis legal counsel in order to develop a Cannabis Regulatory Ordinance and Cannabis Regulatory Commission.
“The ordinance and regulations were crafted using a multi-faceted approach, integrating time-honored industry standards, insights from both recreational and tribal cannabis markets, and the community’s customs and standards of excellence. This blend of expertise and cultural values resulted in a comprehensive and cohesive regulatory framework designed to support a safe, accountable, and sustainable cannabis enterprise,” according to a statement from the board of Prairie Island CBH inc.
Like the Cannabis ordinance rolled out in Hastings at the end of 2024, the goal of the PIIC Cannabis Regulatory Ordinance was to start conservative in their approach so that their rules wouldn’t necessarily have to change when state regulation is eventually unveiled.
“We think right now, what we have is more stringent than maybe what the state’s actually going to have […] so that when the state regulations and ordinances come out, that we won’t hopefully have to change anything,” said Campbell.
Much of the drama playing out in the Office of Cannabis Management surrounding social equity licenses, pre-approval and the launch of state licenses at large has not affected Island Peži, in no small part because the PIIC already had their own set of regulations and ordinance in place, according to Campbell.
In addition, the 11 tribes in Minnesota are working with the State to develop a compact on how they can do business outside of reservations. Distribution is a key interest for Campbell: “It’s going to be a big part of what our corporation does,” in order to provide the Island Peži product across the state.
Another intricacy of the patchwork legalization of cannabis across the United States is how state-legal cannabis products or consumption run into federal law. For example, Island Peži has explicitly not been integrated into gaming establishments like Treasure Island Resort and Casino, just across the parking lot from the store.
“We will not ever take the chance with the casino being shut down,” said Campbell.
When Island Peži opened, because of how early it was in the Minnesota cannabis scene, much of the product sold came from other reservations, specifically White Earth: “We relied heavily, almost completely dependently on White Earth with their Waabigwan products because they were the only ones that had flower at the time,” said Campbell.
Initially opening the store, the intent was not to have seeds to sale. That pivot came in part due to shortages in supply as well as availability of land, what Campbell calls “the business park,” a series of open fields and greenhouses that were able to grow cannabis onsite.
Since the pivot to producing their own product via the Island Peži brand, another focus on what else to keep in stock has been on social equity.
“Pretty much everything in our case is woman-owned, veteran-owned, people-of-color-owned, LGBTQ-owned. We’ve tried to support those brands and bring that in,” Campbell said.
For Campbell, who came to Island Peži with a business background ranging from restaurants to floral shops to a general store, “It’s operated pretty much like any other business,” comparing it to a mix of retail and a bar. Otherwise working with vendors, branding, and acquiring the equipment to support the store isn’t necessarily unique to the cannabis industry. So much so that before working with Island Peži, Campbell was setting up an elder meal program and the orders for kitchen supplies were switched several times with the orders from Island Peži.
The background in business is an aspect of cannabis legalization that has often been overlooked as businesses struggle to find partners willing to provide the industry with insurance, point-of-sale software, banking resources and more. Product testing has been a particular sticking point for many dispensaries in Minnesota.
Because Minnesota currently lacks state-certified testing facilities for non-medical cannabis, many dispensaries have relied on trusted local brands like Surly or Fulton to ensure that what is on the label is actually in the product.
At Island Peži, all products undergo a six-panel lab test in a California state-certified lab. These tests ensure “that all cannabis products meet rigorous testing benchmarks, including potency, pesticides, heavy metals, microbial contamination, residual solvents, and mycotoxins,” according to a statement from the board of Prairie Island CBH inc.