Melamoods nears state inspection; council weighs options as alternate downtown applicant lags

City staff updated the East Grand Forks City Council on two microbusiness cannabis applicants, telling members that one applicant appears close to final state approval while the other remains behind schedule.

At the council meeting, staff said Melamoods (listed in the packet as the applicant for 3003rd Avenue Northeast) has completed building renovations, received a certificate of occupancy from the building official and submitted its site registration to the Office of Cannabis Management (OCM). Staff told council they were hopeful Melamoods would receive final state inspection and licensing steps quickly and that the item could be placed on the June 2 council agenda for the local registration required to open.

By contrast, the downtown applicant Red Iris LLC has submitted a plan set only recently and staff said they could not confirm whether the property had transferred or whether the company had closed on the purchase. Staff reminded the council that preliminary registrations issued in September 2025 included a six‑month timeline to secure state licensure, with an option for a single 90‑day extension. That extension would take the deadline to June 1, and staff asked council whether to enforce the timeline, offer the slot to the alternate, or provide additional direction.

Council members noted practical limits for forcing a change if the property remains under the initial applicant’s control (some councilors said a purchase agreement was in place), and city attorney Mr. Gad said he was reviewing options and discussing them with Red Iris’s attorney. Council members asked staff to continue outreach and to return with recommendations; staff said Melamoods is likely to be an action item at next week’s council meeting if the OCM inspection is confirmed.

No local registration was approved at the work session; staff will report back with state inspection results and legal recommendations regarding the downtown slot.