The Mille Lacs Band of Ojibwe began construction in the cannabis sector in Minnesota in response to escalating demand. Reports indicate that the facility, spanning 500 square feet, cost millions of dollars to develop.
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Construction on Minnesota's Cannabis Industry
Through the production of cannabis, the Mille Lacs Band of Ojibwe is attempting to establish a foothold in the state of Minnesota. On Friday, Mar. 1, Mille Lacs Corporate Ventures, the company the band owns, announced that they have started construction on a cannabis-producing factory that would be 50,000 square feet.
The building will be located in Onamia, close to the Grand Casino Mille Lacs, owned by the tribe. Funded by the Mille Lacs Band, work started last fall and is expected to cost between $15 million and $20 million.
Additionally, the Mille Lacs Band of Ojibwe is trying to establish a presence in the cannabis farming market in Minnesota. As per Joe Nayquonabe, the commissioner of corporate affairs for the Mille Lacs Band and the chief executive officer of MLCV, it was essential for us to establish a footprint in the cannabis industry because more states and tribes are engaging in the industry.
Moreover, achieving retail readiness for the finished products will require an estimated five months. Monthly production at the facility is anticipated to be around 1,600 pounds of flower. Based on the estimates provided by Vicente LLP, a national cannabis law company, the cannabis market in Minnesota has the potential to produce yearly sales of up to $1.5 billion by the beginning of the next decade. According to Zach Atherton-Ely, serving as the vice president of strategic growth for the company., cannabis cultivation will assist the tribe in expanding more than just their gaming company.
As the new plant opens in the fall of this year, Atherton-Ely anticipates that it will increase revenue and create between thirty and forty skilled jobs. Additionally, Atherton-Ely noted that Mille Lacs Band has approved an ordinance and a set of cannabis restrictions that comply with Minnesota's cannabis legislation.
In August of 2023, Minnesota became the 23rd state to legalize marijuana that could be used for recreational purposes. However, the regulatory structure will take some time to build, and it is possible that in 2025, retail sales may begin.
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Minnesota's Cannabis Industry
A significant new marijuana market that will be built from the ground up is about to be launched in the state of Minnesota. A lengthy and complicated regulatory process is currently in progress before establishing the initial recreational dispensaries. Furthermore, the state's legislation for 2023 remains susceptible to revision in the coming months.
The Office of Cannabis Management (OCM) issued its initial recommendations to the legislature in the middle of January, with the next parliamentary session scheduled to begin on Feb. 12. In the process of establishing a vibrant cannabis market, the office intends to assist in easing a few of the obstacles that may arise.
In addition, it is actively working to alleviate bottlenecks in the supply chain to ensure that the supply of marijuana can meet the demand when retail stores open their doors. The removal of impediments for social equity applicants, individuals who have been convicted of cannabis-related offenses in the past, or their families is the focus of further recommendations under consideration.
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