Current Issues

My Position

I support the legalization of marijuana and recognize that a dispensary can be a legitimate business opportunity. However, my concern is not whether a dispensary exists in Osseo — my concern is the level of financial risk the city has taken on to operate one.

When a private business opens, the owners and investors assume the financial risk. In this case, the City of Osseo is borrowing millions of dollars to fund the project, which means taxpayers ultimately carry the responsibility if the business does not perform as expected.

Economic development is important, but it must be approached carefully. City investments should be based on thorough financial analysis, realistic projections, and a clear understanding of both potential benefits and risks.

Understanding the Financial Risk

“Is this the right level of financial risk for a city government to take on, and are we comfortable with who carries the risk if projections are not met?”

The city is considering a loan of up to $4 million, though likely closer to $2.6 million, to fund the project.

The projected financial performance of the dispensary has been presented as a potential revenue opportunity for the city. However, based on the available projections, the timeline for recovering the city’s investment appears much longer than what many residents would expect from a business venture.

Details:

• Initial investment: approximately $2.6 million in borrowing
• Loan term: 12 years
• Interest rate: approximately 6.75%
• Interest paid over the course of the loan: $1.13 million
• Estimated annual loan payments: significant ongoing financial obligation
• If the business does not generate enough revenue to cover expenses and debt payments, the responsibility ultimately falls on the city — aka the taxpayers.

Any economic development investment comes with uncertainty, and a responsible decision requires looking at both the potential benefits and the potential risks. While a city-owned dispensary may create a new revenue opportunity, there are several factors that should be carefully considered.

The cannabis retail market is becoming increasingly competitive. Several dispensaries are already operating or planned within close proximity to Osseo, which raises questions about whether the market can support additional locations and whether projected sales assumptions are realistic. Unlike a private business owner who evaluates market demand before investing, the City of Osseo has committed public funds and taxpayers ultimately bear the financial risk if revenue projections are not achieved.

The industry is also still evolving. Changes in state and federal regulations, licensing requirements, taxation, product availability, or other legal factors could impact the ability of dispensaries to operate successfully. Supply chain, testing facility challenges and regulatory changes could affect inventory, pricing, and customer demand.

Location is another important consideration. Successful retail businesses depend heavily on visibility, accessibility, convenience, and customer traffic. Compared with competing locations that may be easier for customers to access are located along higher-traffic corridors, Osseo’s location may present additional challenges in attracting enough customers to meet financial projections.

Finally, experience from other states shows that cannabis retail is not without risk. Markets that legalized cannabis years before Minnesota have seen some dispensaries close after initial growth as competition increased, operating costs changed, and the market matured. The long-term success of any dispensary is not guaranteed.

Recognizing these risks does not mean dismissing the potential opportunity. It means asking the important questions before committing taxpayer dollars and throughout the planning process: Are the projections realistic? Is the risk appropriate for a city government? And are we confident that this investment will benefit residents without creating an unexpected financial burden?

I asked the council at the town hall what they were doing to check the numbers and projections. I asked if they were doing the same research the residents were doing and presenting. I asked how much money we’ve already spent on the project. They could not answer. This is unacceptable! We trust the city to do the due diligence and analysis throughout the project to ensure this idea remains beneficial.

Listening to Residents

Some residents support the project because:

• They believe cannabis is a legal product and should be available.
• They see an opportunity for the city to create a new revenue source.
• The success of this business can reduce the pressure on property taxes.
• A new business may bring in new customers to other businesses in Osseo.

Other residents have expressed concerns, including:

• The potential impact on the city’s identity and small-town character.
• A preference for more family-oriented businesses and development.
• Concerns about having this type of business near where families live and gather.
• Disagreement with marijuana legalization itself.
• Concern that taxpayers could be responsible if the business does not meet expectations.

These viewpoints represent real concerns from members of our community. Good leadership requires listening to all sides, considering the facts, and making decisions that protect the long-term interests of residents.

The unfortunate reality is the city waited too long to engage with the residents. They failed to do proper due diligence and update analyses throughout the project. If new information suggests the project may fail, the city leaders need to take a step back to reassess. Accepting sunk cost now is cheaper than failing to pay a loan in the future.

Moving Forward

The decision by the city on how this project proceeds or not will be decided long before the election. As mayor, I will work with whichever plan is in place to ensure it is managed responsibly and do everything in my power to prevent it from affecting our property taxes.

As mayor, I would support economic development that strengthens Osseo while protecting taxpayers. That means:

• Being transparent about financial commitments and risks.
• Asking difficult questions before committing taxpayer dollars.
• Evaluating whether city investments provide an appropriate return for the level of risk involved.
• Evaluate forecasts and risks throughout the duration of planning to ensure it remains a positive opportunity.
• Ensuring residents understand both the opportunities and potential consequences of major decisions.
• Discussing the opportunity with residents prior to making commitments.

Osseo should be open to new opportunities, but we must also be responsible stewards of public funds. Economic development should build our community — not create financial uncertainty for the residents who call Osseo home.

24/7 Operations Require Careful Staffing and Cost Planning

Our police department operates 24/7/365. The staff typically operates on 12 hour shifts and need 2 police on staff at all times. After accounting for vacation, sick leave, etc this calculates to needing a minimum of 10 full-time employees, with 11-12 employees providing a more sustainable operation that can handle absences, and turnover without relying on overtime. This calculation does not take into account the part time and reserve officers the city employs. If we include that in our calculation, I believe we would find 10 full time offers would cover our needs.

My Position

Police department spending has increased dramatically over recent years. The police department budget makes up approximately half of the city budget. Why?

Increases in fulltime staffing with benefits is a significant increase in cost. Additional vehicles and technology has also added a lot to our budget. Is all of this necessary?

As mayor, I would take a deep dive into this budget to question the spending and find opportunities to reduce the budget.