Clay County Commission
Dan Haglund
In a somewhat surprise move, the Clay County Board of Commissioners voted 4-1 on Tuesday to approve an ordinance change to allow a cannabis business in Baker, Minn.
The business, known as Elevated Dispensaries and owned by Scott Dahms, will be located in the small town’s former grain elevator. The dispensary will accompany an already successful bed-and-breakfast in the building 12 miles southeast of Moorhead on Highway 52.
The board’s dissenting vote came from Commissioner Jenny Mongeau.
Dahms was seeking a petition for a text amendment to the Clay County Land Development and Subdivision Ordinance.
The purpose of the now-approved petition is begin allowing cannabis businesses as a conditional use in the Agricultural Service Center Zoning District.
“It was a pleasant surprise,” Dahms said.
Now Dahms must acquire a conditional use permit from the board before opening the cannabis business.
Matt Jacobson, Clay County’s Director of Planning and Zoning, laid out Dahms’ proposal in an extended public hearing.
Dahms purchased the dilapidated and vacant Baker, Minn., elevator in Clay County nine years ago with hopes of converting it into something usable. He currently operates a popular bed-and-breakfast there, with accommodations for up to 20 people. The place is rented nearly every weekend.
The Dahms petition request cited several reasons for inclusion.
The first is historical preservation of the elevator. The grain elevator is described as an iconic agricultural structure that should be preserved and repurposed.
Second, economic development. The small town with 45 people would see a business with a projected $1 million in first-year revenue, $75,000 to $100,000 per year in local and state taxes generated, and the potential to attract visitors to nearby communities. One caveat: Clay County would not receive any sales tax revenue from cannabis businesses.
Dahms’ third point is the adaptive reuse of the elevator, positioning it as a “modern Agricultural Service Center” through cannabis cultivation and retail.
The fourth point would be as a Rural Revitalization Model, with the potential to replicate this adaptive reuse approach in other rural areas. So, basically a business template in the new age of retail cannabis.
The current cannabis zoning districts are permitted as conditional use only in Highway Commercial and Limited Highway Commercial.
The Agricultural Service Center (ASC) Zoning Districts are comprised of small, unincorporated communities. The purpose of these districts is to support rural residential, commercial, industrial and agriculture industry to supplement the agricultural economy of the county.
Dahms countered the idea of the current limited geographical areas of suitability.
“Fairness and countywide equity,” Dahms said. “Restricting cannabis to only to Highway 10 corridors creates an economic monopoly in one area while excluding all six ASC towns. This is not equitable countywide.”
Dahms went on to explain that the small rural communities have deteriorated because they no longer have much for economic viability anymore, and his business model would be one antidote.
As far as suitability, approximately 23 of 259 parcels (8 percent) meet the criteria of 500 feet set back from residences, daycares, residential treatment facilities and parks/playgrounds, and only one of the parcels not meeting the minimum 1 acre requirement.
Virtually all “suitable” parcels would be greenfield development.
The only small community which would not have any parcels meeting the requirements is Rustad, which is about 6 miles south of the Moorhead city limits.
The recommendation for approval is based on factors including the potential to revitalize and diversify Agricultural Service Center economies, and it could be considered similar to other conditional use permits like bars, restaurants and commercial entertainment.
The main recommendation for denial would be that the parcels identified are overwhelmingly rural, and could create land use conflicts, especially with nearby residences. That and more than 90 percent of parcels would not qualify.
Commissioners David Ebinger and Ezra Baer cited both thoughtful planning and the potential for increasing local taxes as reasons for supporting it.
The Clay County Planning Commission recently voted 6-2 to deny the text amendment, mainly due to the limited number of qualifying parcels. But Dahms brought it to the Board of Commissioners anyway, in hopes they would see his side of things. And it worked.
Dahms’ business still has to meet the variance requirements of the county on minimum lot size and setback, along with the conditional use permit.
The new ASC zoning law will affect the towns of Kragness, Averill, Downer, Rollag and Rustad, along with Baker.
