By Red Iris Pulls Out of East Grand Forks
Red Iris LLC, a cannabis business approved to open a dispensary in East Grand Forks, will not come to the city. Real estate company Chicago Atlantic told the city the purchasing agreement for the location was being terminated.
Chicago Atlantic also said Red Iris was no longer pursuing a license with the Minnesota Office of Cannabis Management, City Administrator Reid Huttunen said.
The city was not given an official reason for the termination, according to the InForum report. Huttunen said he was told there was some issue with the licensing, and Red Iris would not have been able to get full licensure from the state.
Red Iris had planned to move into the property previously occupied by the Spud Jr. restaurant. Mayor Mark Olstad said MNBowl chose not to renew the lease on the Spud Jr.
property and that the location was not a decision made by the city.
Red Iris and Skol MN LLC were both granted preliminary registration approval in August 2025 through a lottery selection.
Backup Applicant Faces Resistance
When Red Iris and Skol MN were chosen, alternate businesses were also selected in case either did not go through with the application. Boreal Elite LLC, a Washington-based company, was chosen as the alternate for Red Iris.
Huttunen said representatives from Boreal Elite and from MNBowl LLC, the owner of the property, had reached out about giving preliminary approval to Boreal Elite instead.
Mayor Mark Olstad said he does not believe Boreal Elite should get a license to open a dispensary. “I don’t feel we should go and issue this preliminarily with them,” Olstad told the InForum. “We wanted two; we have two.”
Most other council members agreed with Olstad. Council member Dale Helms said MNBowl also sold the former Burger King location to White Earth Nation though the city wanted to limit the number of dispensaries.
“He kind of overloaded us a little bit that way,” Helms said, according to the InForum. “I don’t feel bad about this at all. I think we should stick with the two we have and be happy.”
City Ordinance and Next Steps
East Grand Forks originally created its cannabis ordinance to only allow two dispensaries. White Earth Nation opened a third dispensary in May called Waabigwan Mashkiki, as several Indigenous tribes have agreements with the state government allowing them to open dispensaries in other communities regardless of ordinances limiting the number allowed.
Skol MN is still working on opening its business. Council member Don Casmey asked whether there could be legal ramifications of not allowing Boreal Elite to apply for a license.
Council President Brian Larson brought up the idea to reengage the committee that created dispensary regulations and ordinances. “That would involve a pause, of course, to do our due diligence here,” Larson told the InForum. “I don’t see any reason why we would rush into this approval either; I don’t sense support for it.”
Huttunen said he would present to the council what he discovers from the committee.
