5.2. SR 08-09-1999 - Laserfiche WebLink

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August 2, 1999 Page 2 . In discussions with Mr. McKee, staff indicated its strong preference for Allina to locate on the south side of Highway 10 at the future realigned and signalized intersection of Waco and Highway 10. This project would provide a great entrance into the community, would anchor the west business park, and would require the completion of the frontage road system. IDtimately, this site was rejected by Allina. I don't believe the city should sell its lot outright and a concern exists with the option to "switch" lots with Allina. This concern is that during the planning and review process it will be discovered that three acres is not large enough for the Allina project and that the city property will again be necessary for the project to happen. There are other Elk River properties available for this project, but Allina either does not like those sites as much as our property and the Hartman property or is not willing to pay the owner's asking price. The Hartman property, including the city site, is the best location at the best price for Allina, but it is not the only available site. If both Allina options for our liquor store site are not acceptable to the City Council, I believe that Allina will continue looking for an Elk River site in order to do what is best for their long term future. . It should be noted that if the city does not find either option from Allina to be acceptable, then it can expect future pressures to sell this site to other businesses hoping to locate within the community. Until we actually construct Westbound, there will be other requests for our lot because it is a great commercial site. The City Council took an excellent long term planning step in obtaining this good piece of property for its Westbound Liquor Store. Liauor Store Backeround State law allows municipalities to own and operate liquor stores for the primary purpose of regulating and controlling liquor traffic. Municipal ownership eases the job of controlling liquor because it generally reduces the number of stores in the community. Additionally, voters can exercise greater influence over liquor policies through the election of public officials. Finally, municipal liquor stores enable all taxpayers to enjoy the profits of the liquor industry through reduction in taxes by the transfer of liquor store profits into the general fund. In a quick check of the city records, it was discovered that the city has been involved in a municipal liquor operation since at least 1946. . Over the last ten years, the Elk River municipal liquor store has averaged a net profit, including interest revenue, of $303,109. Of this amount, an \ \ Elkriver \ sys \SHRDOC \ADMIN\ALLINA.DOC