5.2. SR 09-13-1999 - Laserfiche WebLink

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. . . 3. While there may be other very good locations for Allina, the same cannot be said for the second liquor store. In order to maximize sales, the store must be on the West side of town and on the North side of the street in order to get the most traffic heading "Up North." Having a signalized intersection is a great feature. The site we have is probably the only one left with those attributes. Again, prior planning put us in a excellent position for a second liquor store. 4. It has been mentioned that Allina would bring about 50 professionals to the town. While it's possible that 50 may eventually work here, I doubt even half would ever move into Elk River. The majority of professionals who work in Elk River currently do not live here - even those who work out of only one location. In Allina's case, many of the professionals will probably be sharing time with other Allina locations, giving them less incentive to move here. Even if most of the professionals did move here, while the housing developers might enjoy the added business, there would not be a significant positive impact on the economics of the city. People, including professionals who work elsewhere, are moving here anyway. If we want to attract higher income residents, it is important to provide better service and amenities to our residents. 5. By way of zoning, I have had some discussion with health care professionals (not Allina competitors) who questioned whether we should even permit a clinic at that location on Highway 10 due to traffic concerns with the types of individuals who would be utilizing the clinic. Whether it be sick or injured individuals, the elderly, or whomever, the question was raised whether it made sense to require those individuals to drive on a major highway to get to the doctor. It was discussed that the potential traffic danger could be why most clinics are not located on major highways. Regarding the offer itself: 1. While I obviously believe any offer should be rejected, if a sale is to be considered, I believe that the offer of$6.50 per sq. ft. (about $425,000 total) is exceedingly low. The City apparently paid about $5.50 per square foot in 1996 with the future liquor store purpose in mind. 2. Since the purchase date, many improvements have occurred to the area. The road (Jarvis) was put in where there was none and the signalized intersection was put in where there was none. While these had already been paid for by the Seller through assessments, having them already in place is more valuable. In addition, Guardian Angels [which arguably could be a [mancial windfall for Allina and which could be why Allina is so interested in the site] was built instead of being only a dream, a frontage road was put in on the South side of Highway 10, and the whole area is much better prepared for development than it was three years ago. Allina is asking that we accept about a 6% Page 4 of 5