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DAKOTA <br /> <br />February 22, 2002 <br /> <br />Mr. Dave Potvin <br />Northbound Liquor <br />19348 Evans Street <br />Elk River, MN 55330 <br /> <br />Dear Dave: <br /> <br />Enclosed please find four copies of the Northbound Liquor Store study to determine the feasibility <br />of opening a second municipal liquor store in Elk River. One location (Site 1000) was tested at <br />the northwest quadrant of Joplin and U.S. Highway 10 on the outbound side of the highway on <br />the west side of Elk River. <br /> <br />This property should be available for immediate development, but these projections assume that <br />the second store will not likely be constructed until mid 2004 to allow for a reduction of the debt <br />load from the construction of the existing store. One size of 4,000 sales area square feet (8,000 <br />total square feet) was tested for this location. <br /> <br />There are numerous market changes affecting the trade area. Currently, the cities of Monticello <br />and St. Francis are constructing additional space for their municipal stores and Rogers is expected <br />to start construction within the next year on a replacement unit that will be located adjacent to the <br />Super Target that is now under construction. In addition, Riverview Liquor in Ostego may have a <br />much needed remodel. Wiser's Liquor in Ramsey has been open for approximately six months <br />and for the projections, this store will have a matured image in the marketplace. A second <br />scenario is included to show the effects on the Northbound Liquor Stores by the addition of wine <br />sales in the grocery stores in the trade area. <br /> <br />A second municipal liquor operation allows Northbound Liquor to better compete with its <br />improved sister municipal liquor stores to the south and southwest, and remain competitive in the <br />marketplace. A second store will also expand Elk River's gross sales by approximately <br />$1,200,000 annually. <br /> <br />Thank you for selecting Dakota Worldwide for this market study. It was a pleasure meeting with <br />you and the rest of the city's staffa few weeks ago. Please call if you have any questions or if <br />Dakota Worldwide can be of further assistance. <br /> <br />Sincerely, <br /> <br />Len Sage <br /> <br />Enclosures <br /> <br /> 4801 81st Street, Suite 105 · Minneapolis, MN 55437 <br /> <br /> Telephone 952.835.4505 · Fax 952.835.4461 <br />Internet: www. dakotaww, com E-mail: dakotaww~dakotaww, com <br /> <br /> <br />