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<br /> <br />City Council Minutes <br />December 15, 2025 <br />--------- <br />Page 10 of 13 <br />that he does not agree with adding the property to the $500.000 for the cannabis store because the <br />property is the property and stated that they could get someone in there easily, and these costs are not <br />only presented to them but to the whole city, and he doesn't think that the $500,000 number is true, <br />along with other Council members. <br /> <br />Mr. Stremcha reiterated that the market value for that property is not what they purchased the lot for; <br />they intended to purchase the lot at a premium with the intention that they would receive the <br />additional revenue from Cannabound to help offset those sales and investment in the lot. <br /> <br />Councilmember Beyer stated the revenue from Cannabound would not come for two-three years. Mr. <br />Stremcha stated that it is relevant and that it would be the same for Northbound; they do not intend to <br />recoup the Northbound investment in the first year of business. He explained it is a loan, no different <br />than a bond, that they would build the building and have a 10-20 year repayment event of that <br />investment. He further explained that the expectation for Cannabound to have a 100% recoup <br />investment is the same equation as Northbound, and it is not feasible. <br /> <br />Councilmember Beyer also stated that we don't know what the state of Minnesota will be taking in <br />taxes right now. They may decide they need to take more. <br /> <br />Mr. Stremcha answered, saying that whatever the state were to issue the sales tax to be is what they <br />would have to pay, and that it would not affect the purchasing power of the product, it is a sales tax. <br /> <br />Mayor Dietz questioned how to separate out Cannabound and the liquor store for the purchasing of <br />the land, because either way, we would have to have purchased the whole piece of property. Mr. <br />Stremcha explained that we went in knowing that we were paying a premium and knowing that they <br />would have a better chance of recouping costs and investment over time. <br /> <br />Mayor Dietz stated that he thinks the only out-of-pocket expense was for the cannabis manager's wages <br />and insurance. <br /> <br />Councilmember Beyer asked the Council if they could agree that they could come up with some ideas <br />of what they could do, and doesn't think they can solve everything tonight. <br /> <br />Councilmember Grupa stated that he is not rushing into anything, but whatever you want to discuss, so <br />we can move forward we can. He suggested keeping the building the same size as it is currently <br />proposed. <br /> <br />Mayor Dietz asked the Council if they agreed to build a new building. The Council agreed, except for <br />Councilmember Beyer, who wants to make sure we are doing it the right way, and stated, as he said in <br />the meeting before, that they are going to bond 8.2 million, and it is going to be paid for with <br />installment payments. Councilmember Beyer asked Mr. Stremcha what the amount would be for the <br />installment payments. Mr. Stremcha explained that he does not have that number on him right now, but <br />explained that the intention would be a 15–20 year bond repayment schedule, depending on the <br />interest rates at the time. Councilmember Beyer stated that now we are going to have a bond payment <br />and was questioning how it will affect the money coming out of the liquor store fund to the general <br />fund and parks and recreation fund, which helps to lower taxes. <br /> <br />Mayor Dietz explained that there was money that was going to be 2 to 2.8 million dollars that was <br />going to be used to do repairs to Northbound that would come out of the liquor store fund in addition