City council unanimously denies CUP for cannabis retail store

The Worthington City Council just said no Monday to a conditional use permit request for another cannabis dispensary in the community.

NB2A Investments, LLC (Roy’zzz Premium Cannabis) requested the CUP to allow for the operation of a cannabis retail store at 507 S. Shore Drive. The CUP had been previously approved last week by the Worthington Planning Commission, with councilman Chris Kielblock casting the lone no vote.

On Monday, however, council members unanimously voted against the CUP request. A primary reason cited for the decision was the proposed location of the store across the street from the JBS Fieldhouse, which is heavily utilized by youth and families alike, and also near a city park and bike trail. 

Four conditional use permits for cannabis retail stores have already been granted by the city council over the past few months. The city, under state statute, is only required to have one active registration per 12,000 citizens — a fact that was pointed out by Nobles County Attorney Braden Hoefert during Monday's meeting. While some council members had previously stated that not placing a limit on the number of such businesses would keep them from picking one over another — and subsequently allow the forces of competition to eventually reduce the total number of such retail stores — the proposed location for the latest CUP request seemed to pre-empt that rationale Monday.

In another cannabis-related matter Monday, the council approved an ordinance establishing which zoning districts permit the sale of lower- potency hemp edible products. It then set the state-required local registration fees for low‐potency hemp edible retailers at $125 for the initial registration and $125 for annual renewal. These are the maximum fees allowed under state statute.

Monday's Worthington City Council meeting began with three public hearings.

The first hearing was for the proposed assessment for a 27th Street improvement project that encompasses 1,300 feet to 2,570 feet west of Trunk Highway 5. After that was approved, separate public hearings for property tax abatement requests for J Briones Construction and Dan Wagner Construction took place, and both requests were granted. J Briones Construction plans to build two new homes on Sutherland Drive, and Dan Wagner Construction plans a new duplex on Sterling Avenue.

In another matter, the council selected a new health insurance provider for 2026 for the city as it opted to go with BlueCross BlueShield. City Administrator Steve Robinson explained that the commitment to the current health insurance carrier, Public Employees Insurance Program (PEIP), expires at the end of 2025. The city's insurance broker, National Insurance Services, issued requests for proposals on the city's behalf.

Robinson noted that BlueCross BlueShield's 2026 rates are 13.8% lower than the current 2025 rates for similar coverage offered through PEIP. He added that BlueCross' proposed rates represent a total decrease in the employer's share of annual health insurance premiums of $184,961 compared to the city's current 2025 rates and do not require more than a one-year commitment.

Among other business Monday, council members re-appointed Trent DeGroot as chief of the Worthington Fire Department. Also re-appointed were 1st Assistant Chief Bryan Spittle, 2nd Assistant Chief Cory Greenway and Secretary Dayton Williamson.