SAUK RAPIDS (WJON News) -- Sauk Rapids city leaders are considering leasing a city-owned building to a cannabis producer.

During its meeting on Monday night, the city council will vote on a lease agreement for the former G & J Awning building.

The city bought the building back in 2021 because it is adjacent to the Government Center and they wanted to property in case there is a need for potential future expansion. In the meantime, they want to lease it out.

They are working with a cannabis producer that will grow it and prepare it for distribution. There will be no retail on the site.

The producer will still need to apply for and be granted a Conditional Use Permit by the city to move forward with the project, which they are planning to bring to the Planning Commission in June.

The five-year lease has a rent of $6,375 per month with a four percent annual escalator. This is $75,500 annually and $382,500 over the five years.

The building does need to have improvements made to its power and HVAC.

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