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City Council Minutes March 26, 1990 Page 4 e 6. Plannin~ Discussion with Plannin~ Commission Chairman. Peter Kimball The City Administrator noted that he is had not discussed this agenda item with Mr. Kimball for approximately one week and that he had neglected to send Mr. Kimball an agenda or call him as a reminder about this agenda item. The City Administrator indicated that the main discussion item that Peter was going to present to the City Council was the recent public informational meeting on the BRW Planning Studies. These two planning studies were for the western area of the community and the Highway 169 area. These two studies have been reviewed by staff, Planning Commission, and presented to the public. A second set of two studies, along east Highway 10 and the area between the mobile home park and Rail 10 industrial plat, would be reviewed by staff and the Planning Commission in later April. This information would then be presented to the public. Following this review, all the information will be processed to the City Council for their review and discussion with staff, Planning Commission, and Consultants. Following this review, public meetings will be held. It was noted by the City Administrator that the first BRW report that has been presented to the public has also been distributed to the City Council. e 7.1. Northbound LiQuor Store Annual Report/Fritz Dolejs The Liquor Store Manager, Fritz Dolejs, discussed with the City Council the operation of the Liquor Store in 1989. In general, Fritz indicated that the store had stabilized in its annual sales, but that the stabilization point of approximately $200,000 profit was a very good level for the size of the Liquor Store operation. In round numbers, Fritz indicated that for the past two years the sales have been approximately at the $1.8 million level; expenditures at approximately $220,000; and profit at approximately $200,000. The actual amount of profit in 1989, as compared to 1988, was down approximately 1.5 percent, or $3,300. A key point indicated by Fritz was the net income as a percentage of sales. In this regard, Elk River was ranked #1 in the metropolitan area in 1988. This level in 1988 was 12.44 percent. The projection for the 1989 level is 12.46 percent. Accordingly, it is anticipated that Elk River will be near the top in the metro area in this regard. e The Liquor Store Manager discussed trends of the municipal liquor industry with the Council. It was noted that there are approximately 290 municipal liquor operations in Minnesota and about 1/2 of these stores are having a difficult time financially. This is especially true in the smaller communities. Facts noted in this regard include five municipalities that closed their liquor stores in 1988, compared to 11 in 1987; 86 stores in 1989 made no contribution to the city's general fund; and 36 stores suffered a loss of net income. An additional fact presented to the City Council was that there are 24