Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />through the downtown and School Street areas), many others feel neglected or feel forced <br />to go to Big Lake or Otsego; <br /> <br />2. <br /> <br />Capture the business of the customers going up North but not going up Highway 169 <br />(i.e., those going towards St. Cloud). According to the current liquor store manager, the <br />Anoka liquor store business increased dramatically when our Northbound Liquor store <br />was moved only 1-1/2 miles further from Highway 10. Apparently, having easy access to <br />the store is VERY important to those people going "Up North." This doesn't even <br />account for those individuals coming North on 101 and turning West on 10. As the old <br />real estate adage goes: LOCATION, LOCATION, LOCATION. <br /> <br />3. <br /> <br />Efficiencies of Scale. With two locations, overall cost savings can occur, both internally <br />(we would only need one Manager and could probably share some employees between <br />the two stores) and externally (better wholesale costs if we buy in larger quantities). <br />More "exotic" liquors could be stockpiled less, as there would be the ability to transfer <br />inventory between stores. <br /> <br />4. <br /> <br />Increased revenue. My understanding is that Northbound Liquors has averaged profits <br />of about $300,000 per year, which currently helps keep taxes lower by transferring <br />moneys to the General Fund and by paying for some of the City's capital improvements. <br />I fully expect we could probably expect similar profits from another store (maybe not <br />immediately, but soon, especially with the projected growth of the City). These are <br />revenues that would also be used to help the City - perhaps by being earmarked for <br />capital projects, like a community center, a pool, equipment, roads, etc. <br /> <br />5. Reduce or avoid taxes. As discussed at 4., there will be additional revenues. These <br />could keep our real estate taxes low. In addition, there has been some discussion about <br />imposing a Y:z % sales tax for a community center. It would seem that the increased liquor <br />store revenue might make the sales tax increase unnecessary if properly earmarked. I <br />have heard it commented that the liquor store revenue is merely just another tax. I <br />disagree. The liquor store provides good service and product for a fair price and for <br />which there is a demand. If we don't supply the demand, someone else will, to the City's <br />financial detriment. <br /> <br />The cons to having the second liquor store on West side: <br /> <br />1. <br /> <br />Up front capital cost. Obviously, this is an issue; however, there are up front capital <br />costs to all improvements to the City (and to all businesses). When it is determined with <br />reasonable certainty that the second liquor store will make a profit after debt service (and <br />I fully expect that may already be the case), we should start planning to move forward. <br /> <br />Page 2 of 5 <br />