Albert Lea council set to review 3 cannabis dispensaries at meeting

ALBERT LEA, Minn. (FOX 9) - After denying what could have been the first non-tribal, recreational cannabis shop to open in Minnesota, the Albert Lea City Council is now slated to review three cannabis businesses this week for registration.

Albert Lea cannabis shop rejected

The backstory:

At the council's last meeting in July, members rejected a motion to approve registration for Jacob Schlichter and his cannabis shop, The Smoking Tree.

Some members expressed displeasure with the state cannabis law and the lack of control over cannabis businesses for local governments. Speaking during the debate, some council members acknowledged the decision to deny the registration for Schlichter likely violated the law, and could result in the state cutting aid to the city as a penalty.

Even the city attorney acknowledged the decision would likely spark an expensive lawsuit the city would likely lose. The motion failed on a 3 to 4 vote.

Three cannabis businesses up for vote

What we know:

The agenda for the council's upcoming meeting on Monday includes consideration of two new cannabis businesses along with a reconsideration of Schlichter's business.

Along with The Smoking Tree, the council will consider registrations for:

• Matchbox Farms, a retail shop owned by Christopher Garcia of New Mexico. Garcia received his state license on July 24 and his business will be located at 2316 Hendrickson Road.
• Black Husky, a shop owned by Cristina Aranguiz of Washington state. She received her license on July 29 and would do business out of a location at 2706 Ekko Avenue.

Big picture view:

Under state law, the city is required to allow at least two cannabis shops. In council documents, however, the city manager says the city doesn't believe it's compelled to "rubber stamp" business registrations.

While the law mandates the city to allow two businesses in Albert Lea, officials write the Office of Cannabis Management "cannot compel the City to approve one license over another, only that we eventually approve our mandatory minimum if given the opportunity."

The council documents also propose the city change its process of reviewing registrations to include a criminal background check.

Concerns about criminal history

Dig deeper:

The city council's agenda packet raises concerns about Schlichter's criminal history, specifically a 2016 case in which Schlichter was convicted in Minnesota of contributing to the need for child protection, a gross misdemeanor.

Schlichter, then 20, was accused of bringing a 16-year-old girl from Texas to Minnesota. The girl was reported as missing in Texas and discovered at Schlichter's home by authorities. According to court documents, the girl told police she met Schlichter online when she was 12, and they later began a romantic relationship, against the wishes of the girl's mother.

Schlichter was ultimately sentenced to probation in the case. He also faced charges in Texas for harboring a runaway, but the case was ultimately dismissed.

The other side:

According to council documents, the city manager says staff reached out to the state about Schlichter's conviction but were told that the state was not allowed to consider the arrest in their decision to grant a license.

City officials say both Garcia and Aranguiz volunteered to have background checks and were cleared.

According to the council documents, the city manager is recommending the approval of Garcia's and Aranguiz's registrations but recommending against Schlichter.

The documents read: "The type of crime that was plead down to a gross misdemeanor involved sex with a minor. More concerning is the fact the applicant has shown disdain or inability to follow lawful orders and legal requirements. This would include violations of probation by having continued contact with minors. Statements to the press about opening regardless of registration. Most recently, a new restraining order against the licensee within the last week."

FOX 9 was unable to find court records on the "new restraining order" referenced in the council documents.