Albert Lea’s controversial cannabis licensee is taking his fight from City Hall to the courthouse. Jacob Schlichter — granted a coveted “social equity” license by the state but rejected by the city council — is suing Albert Lea, claiming politics and personal disagreements are keeping him from opening his dispensary.
Schlichter, the owner of The Smoking Tree, filed a petition Sept. 8 in Freeborn County District Court, asking a judge to overrule the council and force the city to issue his registration.
In his petition, Schlichter argues the council’s actions violate both Minnesota law and the city’s own ordinance, which require registration on a first-come, first-served basis for qualified applicants. The lawsuit claims the council denied his license “purely on politics” and not on the merits of his application.
“Petitioners have been damaged by Respondents’ failure to issue them a registration, which has prevented them from realizing the revenue and profit expected from operating a business that sells cannabis,” the filing states.
City leaders maintain they have discretion to deny based on character and compliance concerns and cited Schlichter’s criminal record, probation violations, and a fresh restraining order as reasons for denying him.
Council rejects license despite state approval
Schlichter received a microbusiness license with retail endorsement from the Minnesota Office of Cannabis Management (OCM) on July 17. He submitted his application to the city the same day, making him the first in line under Albert Lea’s ordinance.
But when the council voted on July 28, his application failed on a 4-3 vote. At the time, Albert Lea City Manager Ian Rigg said the decision was not an “affirmative denial,” but a pause to address “unresolved concerns” about Schlichter.
When the council met again on Aug. 11, they declined to hold a second vote for Schlichter’s business registration. Instead, two other dispensaries were approved during the meeting — the only two the council is required to register under state law.
Rigg told councilors that concerns about Schlichter “have not been resolved and only worsened,” adding: “The type of crime that was pled down to a gross misdemeanor involved a romantic relationship with a minor” when Schlichter was 20 and the individual was 16, “but had started four years prior while the individual was 12 years old.”
“More concerning is the fact that the applicant has shown disdain or inability to follow lawful orders and legal requirements,” added Rigg. “This would include violations of probation, having contact with minors at the high school, statements to the press about opening regardless of registration, and most recently a new restraining order against the licensee within the last week.”
Schlichter previously told Fox 9 that once he obtains cannabis products, he plans to sell them regardless of not having city registration.
“My entire business is literally on the line because of it,” Schlichter told MPR News. “Tens of thousands of dollars down the drain if none of this goes my way, and that doesn’t include the legal fees.”
City pushes back, says lawsuit unnecessary
Albert Lea officials say they will fight Schlichter’s petition.
“The city denies the claims asserted by Mr. Schlichter and will vigorously defend its obligations to protect the residents of Albert Lea,” City Manager Ian Rigg said in a statement to Alpha News.
In a letter to the judge filed Sept. 9, the city’s attorney argued Schlichter’s lawsuit should be thrown out because he already has another case pending in the Minnesota Court of Appeals. That appeal, known as a certiorari review, is the proper legal route for challenging a city council decision in this case, according to the letter.
State arts grant recipient
Even as his cannabis license fight plays out in court, Schlichter has recently benefited from another stream of public funding.
According to a post from the Albert Lea Art Center, Schlichter was awarded a $10,000 Creative Support for Individuals grant from the Minnesota State Arts Board for fiscal year 2025. The grant is funded by the state’s Arts and Cultural Heritage Fund, a voter-approved program supported through legislative appropriations.
