Up to seven cannabis retailers will be allowed in Woodbury next year, the lowest number legally possible.

State law requires cities to allow one licensed establishment for every 12,500 residents, which adds up to seven for Woodbury. “We can allow more registrations than that but not less,” City Attorney Kevin Sandstrom said. “That’s the minimum.” The city council last night then set that as the maximum number as well.

The council also set the registration process for retailers selling cannabis plants, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products.

Sandstrom said state statutes define the registration process. Once a retailer applies with the state the city will be notified. The retailer then applies to the city clerk and pays the required fee. If the application meets ordinance requirements, there’s no option to deny it. Licenses must be renewed annually.

The state Legislature approved adult-use cannabis businesses in 2023 but allowed cities to impose a one-year ban to consider their approach to regulation. Woodbury’s ban expires at the end of the year and its new rules will go into effect in January. That’s when the state Office of Cannabis Management is expected to give these businesses approval to launch. In October, the council restricted signage by cannabis and hemp businesses. The council has committed to reviewing the rules after one year.