The city of Albert Lea has now approved two cannabis businesses, but the first person to apply for a city license was denied once again. 

During Monday night's meeting, City Council members approved licenses for The Matchbox Dispensary and another called Black Husky.

But for the second meeting in a row, the council denied a license for The Smoking Tree owner Jacob Schlicter. 

The council cited a misdemeanor on his record for the denial and pointed to clean background checks for the other two applicants, saying Schlicter "has shown disdain or inability to follow lawful orders and legal requirements."

Schlicter expressed frustration late last month when the council first rejected his business. He had already secured building space, renovated it and paid a city fee to open his doors as soon as the city approved his registration — a move he thought would be perfunctory.

"It kind of just feels like they're moving the goal post at the last second," Schlicter said at the time.  

At the previous meeting, city staff told the council denying Schlicter a permit to operate runs afoul of state law and could open the door to lawsuits and endanger $6 million in state funds the city receives in local government aid.

The legal framework approved by the Minnesota Legislature gives cities some tools to regulate cannabis businesses, like where and when they can operate and restricting proximity to parks and daycares. But law prohibits local governments from banning cannabis retail stores from their communities; there must be one dispensary for every 12,500 residents. Albert Lea adopted a limit to have two businesses in their city and set other ordinances related to cannabis businesses.