03-24-1986 CC MIN - Laserfiche WebLink

Home Browse Search

City Council Minutes March 24, 1986 Page Three . Mr. Dolejs further expressed his concerns if the Council decided to sell the liquor store. He stated that he felt it was important that the Council con- sider setting restrictions for private off sale liquor establishments, such as limiting the number of stores, and setting specifications for size and design of the stores. Discussion was carried on regarding the possibilt~y of passing an ordinance setting limits for off sale liquor establishments. Further discussion was carried on regarding the limitations presently set for on sale liquor opera- tions. Discussion was carried on regarding the potential that exists for lawsuits in the liquor business and the impact a lawsuit could have on the City's economic situtation. Lori Johnson, Finance Director, reviewed items of concern as stated in her memo to the City Council dated March 18th. Councilmember Williams questioned the value of the municipal liquor store assets. Lori Johnson stated that the land and building was vaulued at approximately $240,000, the inventory at approxi- mately $150,000 and a cash balance of $100,000, for a total of approximately $490,000. Discussion was carried on regarding comments the Council and Citizens Advisory Committee had received regarding the possible sale of the liquor store. . Mr. Duane Kropuenskeindicated that some of the calls the Advisory Committee had received were regarding the possible loss of jobs for present liquor store employees. Mr. Kropenske indicated that it should not be assumed that if the store were sold to a private owner, that all the employees would be let go, but even private enterprise, employees are at the same risk, if the owner of the company were to sell his business. Mr. Kropuenske expressed, his concerns if the City were to keep the liquor store; 1) the financial impact a lawsuit would have on the City, 2) the location of the store, 3) the inevitible deterioration of the building and added costs, and 4) the need for the City to have better facilities. Mr. Kropuenskeindicated that he felt the City has no choice but to sell the liquor store, as it is the only asset they have that could be liquidated in a relatively short period of time, as a source of funds to finance a new City facility. Ms. Charlotte Novak expressed her concern that if the liquor store were sold, where would the funds come from to continue City services provided at the present. CouncilmemberSchuldt indicated that that is the important question that must be considered. Lori Johnson explained that if the Council decided to sell the liquor store, two questions must be placed on the referendum ballot; 1) to use funds generated from the sale of the liquor store business to build a new city facility and 2) to build a new city facility. . Discussion was carried on regarding another referendum. It was the general feeling of those present that a third referendum would not be successful unless most of the funds to finance a new city facility were acquired some way, other than by raising taxes. MAYOR HINKLE MOVED TO DIRECT THE STAFF TO OBTAIN AN MAl PROFESSIONAL APPRAISAL FOR THE LIQUOR STORE PROPERTY. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 5-0.