5.1. SR 4-15-2002 - Laserfiche WebLink

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Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 1 Executive Summary The purpose of this study is to evaluate the feasibility of opening a second municipal liquor store in Elk River. One location (Site 1000) was tested at the northwest quadrant of Joplin and U.S. Highway 10 on the outbound side of the highway on the west side of Elk River. Site 1000 is currently the center lot of three vacant parcels of land awaiting future commercial development. There is limited new housing growth occurring just to the north, but this part of Elk River is less developed than the east side, which also has the prime shopping area of Elk River. A new Holiday Station store is located at the southeast quadrant of Joplin and U.S. Highway 10. U.S. Highway 10 is a major arterial between St. Cloud and Metropolitan Minneapolis-St. Paul. Accessibility to the north and south of the site is possible by the neighborhood street network. The majority of Elk River's population growth in the 1990's has occurred on the east side, but some growth is now starting to the north of the site in Sector 10.1. Physical site characteristics including accessibility, visibility and ingress/egress are rated from. good to very good. This location, like the existing stores', is in an excellent position to capture westbound traffic and transient traffic heading west via Highway 10 to "lake country." Elk River and its surrounding townships and communities constitute one of the fastest growing areas in the metro area and the state. Its population inci-eased from 11,143 people in 1990 to 16,447 people in 2000 or 4.76% per year. Current increases are projected to be at least 4% per year for the next several years. Most of this growth will be on the east side in Sector's 7, 8.3 and 9, and in the west in Sector 10.1. The surrounding communities and townships are also experiencing strong growth, and this trend is also expected to continue for at the next several years. Overall growth, based on the number of planned developments in the trade area is projected to be just over 5% for the next several years Three stores dominate the area's liquor store business, and they are all municipal stores. Northbound Liquor, one of the better municipal operations in the state, is th.e market share leader followed by Lake Center Liquor (Big Lake) and Hi-Way Liquor (Monticello). The other 14 stores affect the trade area to a lesser degree, with the best market share of these stores belonging to Riverview Liquorette because of its location in the center of Ostego. There are a number of market changes that will affect the trade area. Monticello and St. Francis are now undergoing major expansions and improvements for their municipal stores and the City of Rogers is expected to start construction within the next year of a replacement off-sale liquor store adjacent to the new Super Target. In addition, Riverview Liquor in Ostego may remodel, and Wiser's Liquor in Ramsey (newly opened) will mature its image in the marketplace. In the next several years wine sales in Minnesota grocery stores may be allowed and a test is included in this study to show the effects on the marketplace and Northbound Liquor if this takes place. Dakota Worldwide Corp. 4801 81a Street, Suite 105 · Minneapolis, MN 55437 Telephone 800.475.4505 · Fax 952.835.4461