Minutes - 2010/01/25 (2) - Laserfiche WebLink

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Mounds View City Council January 25, 2010 Regular Meeting Page 6 sales. He stated he has spoken with Clerk-Administrator Ericson on a regular basis. He stated • they still need to work on signage and parking so people know they are not too busy and can accommodate more customers. He stated they have eliminated some staff and managers, are doing more with less, and heading in the right direction. With regard to Council Member Stigney's suggestion, Mr. Moritko stated he has been working with US Bank to modify his loan but it is a 12-week process and will take more time. He stated if it were approved, it would free up funds to pay property ta�ces. He explained the other thing that would help is a"tip credit" in Minnesota, noting 39 other states have such a credit. Council Member Mueller reviewed the number of Moe's employees and impact in 2009 from a second minimum wage increase. Mr. Moritko stated Moe's rises above the threshold and had to adopt the Federal minimum wage that was raised to $7.25, an additional 50 cents per hour, and that resulted in an impact of $45,000 in additional wages. In addition, there was a$178,000 decrease in sales from 2008 to 2009, equaling lost revenues of $200,000. Council Member Mueller noted Moe's is current with State sales tax and applauded his decision to make that payment. She stated support for the Council to work with Moe's to get through this difficult period and not "tie their hands" by restricting the liquor license. Council Member Stigney stated he supports Mr. Moritko trying to buy time to recover from the economic crunch. He asked about payment for the first half of 2010 t�es that are due in May. Mr. Moritko stated he wanted to discuss first the delinquency since it was connected to his liquor • license application. Mr. Moritko stated the loan they were approved for could be used to cover the first half of 2010 taxes. Council Member Stigney asked about the City's ability to suspend or revoke a liquor license for nonpayment of State or local property t�es. He noted if that option is removed, a liquor business could continue to operate without paying t�es and asked if staff had contacted the League of Minnesota Cities for an opinion. Assistant Clerk-Administrator Crane stated she received information from five local cities and all require the business to be up-to-date with payments for city bills such as water, but none addresses payment of property taxes. She stated she is still gathering information. Council Member Stigney stated he hopes Mr. Moritko is successful. Mr. Moritko thanked the Council and noted if a grocery store is behind in taxes the City would probably not stop their ability to buying groceries. Council Member Mueller stated Mr. Moritko has done well to keep City staff updated and urged him to continue that practice. Mayor Flaherty stated this he is exasperated about the entire issue, noting Mr. Moritko has presented plans three times that have not worked out and is now presenting another plan. He stated this Council has gone far beyond what the Code requires and he hopes Mr. Moritko's new • plan works because he believes this is the last opportunity he will consider it.