Minnesota Month Puff: 96 Cannabis Retail Licenses, $4,500/lb Wholesale Pricing

Minnesota Cannabis Retail Market Update – February 2026

Minnesota’s cannabis retail market crossed a major threshold in February 2026 – 96 adult-use retail licenses issued statewide, with Anoka launching the nation’s first city-owned dispensary and wholesale pricing surging past $4,500 per pound amid tight supply. New siting restrictions are advancing in the legislature while tribal nations push retail expansion off-reservation. From municipal feasibility studies to county-level fee schedules, local governments across the state are formalizing Minnesota cannabis retail frameworks faster than most expected.

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Top Headlines This Month

• 🏛️ 135 cannabis business licenses issued statewide – 96 adult-use retail sites
• 💰 Wholesale flower spikes above $4,500/lb as supply shortage tightens market
• 🏪 Anoka opens Minnesota’s first city-owned cannabis dispensary February 5
• 📋 H.F. 3505 introduced to prohibit certain cannabis business locations
• 🤝 Prairie Island Band plans off-reservation dispensary in Mankato

🏛️ Statewide: 135 Licenses Issued, 96 Retail Sites Operating

The Minnesota Office of Cannabis Management confirmed 135 cannabis business licenses issued statewide as of mid-February, including 96 adult-use retail sites now licensed across the state. The numbers signal rapid buildout since the market launch, with 1,400+ applicants holding preliminary approval and waiting to advance through the licensing pipeline. Wholesale flower pricing remains elevated at $4,500+ per pound, roughly double unregulated per-gram pricing, reflecting a supply-constrained early market with strong pricing power for incumbents.

The gap between 40-59 operating retailers (reported at end of 2025) and 96 licenses issued by February indicates accelerating activation. As more of the 1,400+ applicants convert preliminary approvals into active operations, the supply-demand dynamic will shift. Early movers benefit from scarcity pricing and limited competition, but retailers entering later should plan for tighter margins as inventory expands and price compression sets in.

🏪 Anoka: First City-Owned Dispensary Opens February 5

Anoka Cannabis Company held its ribbon-cutting February 5, 2026, making it the first municipally owned cannabis dispensary operating in Minnesota. The 3,000-square-foot facility at 839 East River Road sits adjacent to the city’s liquor store, with about $2.7 million invested in construction, a secure sally port, 35+ cameras, and solar power projected to supply roughly 88% of electricity. Products are supplied by the Mille Lacs Band of Ojibwe. Appointment-only sales ran February 6-8, with walk-in service beginning Monday, February 10. Net profits return to the city for parks, infrastructure, and services.

The municipal ownership model positions Anoka to control retail operations directly, capture revenue that would otherwise flow to private operators, and reinvest profits locally. The city emphasized education, compliance, and community benefit as core priorities. Thirteen candidates applied during the first hiring window. Hours are Monday-Saturday 10:00 a.m.-9:00 p.m., Sunday 11:00 a.m.-5:00 p.m.

📋 H.F. 3505: Proposed Bill to Restrict Certain Cannabis Business Locations

H.F. 3505 was introduced February 19, 2026, to amend Minnesota Statutes 2024, section 342.24, by adding a subdivision prohibiting certain locations of cannabis businesses. The bill text does not specify which locations would be restricted – language details remain pending as the measure advances through committee. The introduction signals potential new siting constraints for retailers and cultivators if enacted, with site selection and zoning compliance planning affected depending on final buffer distances, facility types, or land-use categories included in the amendment.

The timing is notable: the bill arrives as 96 retail sites are already licensed and 1,400+ applicants hold preliminary approval. If the amendment passes with retroactive application or short compliance windows, existing approved sites may face relocation pressure. If it applies only to new applications, the pipeline could slow. Retailers and site developers should monitor committee hearings for specific buffer language, grandfather provisions, and effective dates.

🤝 Prairie Island Band Plans Off-Reservation Dispensary in Mankato

Prairie Island CBH, Inc. announced plans for an off-reservation adult-use cannabis dispensary in Mankato under the brand “Island Peži,” with development plans being finalized in collaboration with Mankato city officials. The enterprise will meet state standards for testing and customer verification, with oversight by the Tribe’s independent Cannabis Regulatory Commission aligned with Minnesota Office of Cannabis Management requirements. The Mankato location expands Prairie Island’s retail footprint beyond reservation boundaries, leveraging the Tribe’s existing compliance infrastructure and regulatory framework to serve the broader state market.

Off-reservation tribal retail operations combine sovereign regulatory authority with state-aligned standards, creating a hybrid model that can move faster than traditional municipal licensing while maintaining compliance credibility. Prairie Island’s approach – independent tribal oversight matched to state OCM requirements – positions the Mankato dispensary to operate with strong regulatory alignment and community partnership. No specific opening date was announced, but collaboration with city officials indicates site selection and zoning steps are underway.

💰 Fairmont Approves $7,560 Feasibility Study for Municipal Dispensary

The Fairmont City Council approved a $7,560 contract with Vicente on January 26, 2026, to conduct a feasibility study on a municipally owned and operated cannabis retail store. The 3-1 vote (Council Members Lubenow, Kotewa, and Maynard in favor; Hasek opposed; Kawecki absent) follows an RFP process launched in March 2025 that drew 19 proposals. Vicente was selected after interviews with three finalists. The study will analyze publicly available traffic and customer data, with emphasis on Fairmont’s proximity to Iowa (where adult-use cannabis remains illegal) and the Interstate highway system.

The feasibility phase is a structured first step – no retail ordinance or licensing decision has been made. The council’s consultant selection and contract approval indicate serious consideration of the Anoka model, with potential revenue and economic impact analysis expected in the coming months. If the study supports municipal retail, Fairmont could advance an ordinance and licensing framework later in 2026, positioning the city to capture retail margins and reinvest locally rather than relying on private operators and tax-only revenue.

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The Bottom Line

Minnesota’s cannabis retail market hit 96 licensed sites in February 2026, wholesale pricing holding above $4,500/lb, with Anoka proving the municipal ownership model, and new siting restrictions advancing in the legislature. Tribal nations are expanding off-reservation retail, cities are studying municipal dispensaries, and 1,400+ applicants are converting preliminary approvals into active operations. The next quarter will show whether supply catches demand or if early-mover pricing power extends into mid-2026.