Laserfiche WebLink
<br />J.,./ ~'\( <br />( i/ <br />Eli( River <br /> <br />ITEM 5.4. a. & b. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Am~~or <br />November 4, 1996 ~ <br /> <br />DATE: <br /> <br />SUBJECT: Liquor Store Proposal <br /> <br />The finances of the municipal liquor store fund were briefly reviewed at the <br />October 28, 1996, meeting. Attached for your review is a section of my memo <br />from last week which relates to these finances. As you can tell from this <br />attachment, with a number of assumptions it appears that the city will have <br />about $450,000 for a new store by late 1997. A new Northbound store should <br />cost just less than $1 million, so when considering some bond issuance costs, <br />it appears that the liquor store fund will be approximately $550,000 in debt <br />at the end of 1997 when the new store is in operation. Based on reasonable <br />profits and a continued constant level of annual contribution to the city <br />general fund, there appears to be sufficient funds available to payoff this <br />debt within about a six year time frame. As noted by the Council at the last <br />meeting, this scenario allows for very few, if any, new projects or programs to <br />be financed out of the liquor store fund for the next six years or so. <br /> <br />As discussed in the past, from a purely financial point of view, staff would <br />prefer to wait one year before proceeding with this project so that the fund is <br />in a better financial status. If this is not the desire of the Council, then it <br />also appears that the debt of a new liquor store will be manageable. <br /> <br />At the 10/28/96 meeting, I advised the Council of another Northbound option <br />associated with the Sax store. At this time I have not received any additional <br />information from representatives of Sax and, once we do get additional <br />material and data, it will take some time to analyze this information. <br /> <br />Gary Tushie of the architectural firm Tushie-Montgomery and Associates, <br />Inc., is scheduled to be in attendance at this meeting to discuss with the City <br />Council the proposed new Northbound plans. The store as presented by Gary <br />is consistent with the input he has received from city staff and we support <br />this proposal. <br /> <br />The timing of opening a new liquor store is critical to its first year success. A <br />new liquor store must be opened before the holiday season, preferably around <br />October. In order to accomplish this schedule, the project must begin in <br /> <br />13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425 <br /> <br />...,._,-,~-.,., <br />