The former D’s Thai restaurant in Marshall officially closed its doors on August 25. The property has been sold to new owners, who are looking at possibly opening a retail cannabis business in Marshall, EDA Director Lauren Deutz said Wednesday.

MARSHALL — A former restaurant property in Marshall could possibly become the site of one of the first retail cannabis dispensaries in the city, Marshall city staff said Wednesday.

During a Marshall Economic Development Authority tour, EDA Director Lauren Deutz said the new owners of the former D’s Thai restaurant property had registered with the city for a cannabis retail business.

“I know everybody has noticed that (D’s Thai) has closed. That building has also sold, and we are in the process of working with a business owner out of Sioux Falls,” for a potential cannabis store, Deutz said.

However, it could be a while before a dispensary opens on that property, said Marshall City Clerk Steven Anderson. The business owners would first need to go through the licensure process of Minnesota’s new Office of Cannabis Management. That process would include steps like a site inspection by the OCM, Anderson said.

The former D’s Thai restaurant, located on Susan Drive, announced in August that it would be closing its doors. The restaurant was originally a combination KFC and A&W location when it was built.

On Wednesday’s EDA tour, Deutz said the business interested in opening a dispensary in Marshall was Roy’zzz Premium Cannabis. “He is actually a pretty well-known medical cannabis retailer out of the Sioux Falls area,” she said. “What we’re excited about is, he runs a very clean operation. He’s got quite a few stores, he seems to know what he’s doing. He’s working with some consultants, but we’re in the process of getting that license. That’s state approval, not our approval.”

Deutz said a positive thing about the D’s Thai sale was that the new property owner was also interested in additional development in that area. “We are happy that he is actually looking at the site to do future development. He’s talked about adding an additional store for other types of retail, or a quick-service restaurant at that location,” she said. “We’re hopeful to see growth happen there.”

The city of Marshall does have regulations requiring cannabis retailers to register with the city. Those regulations also set limits for where in Marshall cannabis products may be sold – for example, not near schools.

Marshall has also limited the number of cannabis retailer registrations it will accept to two. Minnesota state statute requires cities to accept a minimum number of applications for cannabis retail operators, based on population. Two retail operators was Marshall’s minimum.

Marshall’s registration limit did not apply to retailers selling lower-potency hemp edible products. Edibles and THC-infused beverages are sold at Tall Grass Liquor in Marshall, and Brau Brothers Brewing Co. also produces THC-infused beverages.

Anderson said Marshall has currently filled both of its registrations for cannabis retailers. One applicant was the new owner of the former D’s Thai property, and the other applicant was the Marshall Smoke Shop. Both businesses will have to go through the process of getting licensed by the OCM.

The state’s process includes steps like a background check, before applications receive preliminary approval, Anderson said. Other steps include a state site inspection before the city would receive a zoning request from the OCM, he said.

Anderson said the city had received a lot of interest from potential cannabis retailers. “I received three (registration applications) in hand,” he said. But he had also received several phone calls a week, asking if Marshall had filled its quota for registrations.