The Fairmont City Council on Monday reviewed a feasibility study for a proposed municipal cannabis retail store that projects about $2.4 million in annual sales if the store opens in 2027.
Andrew Livingston, with Vincente, the consulting firm hired by the city, said the study looked at market trends, customer demand, competition and operating costs. The study estimates about 4,500 cannabis users within the region, including customers from northern Iowa where recreational cannabis sales are not legal.
Livingston said Fairmont could become a regional hub for cannabis sales, despite some smaller competition expected in the area. The study projects sales could eventually level off around $2 million annually as competition increases.
The proposed 5,000 square foot store would cost just under $2 million to develop and employ about six people. Consultants estimate the city could eventually see about $500,000 annually in revenue, with nearly $2 million in positive cash flow by 2035. City officials said revenue could potentially help fund future street improvement projects without additional bonding.
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