Agenda Packets - 1997/04/28 - Laserfiche WebLink

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For comparison, the gallonage and revenue figures resulting from this estimate are in excess of national and Minnesota averages for convenience/gasoline stores gasoline sales; using the national average for gasoline sales provides an annual sales of 5.7 million gallons. Similarly, looking at each station individually, given large capacity differences and associated convenience draws, four stations are likely to sell volumes around the national average,while the fifth is considerably larger than average. The large station could realize sales of 4 million gallons, making a total of 8.6 million gallons. The range of annual gasoline sales by existing stations is probably between 5.7 and 8.6 million gallons. The existing stations fail to serve between 34% and 55% of the immediate traffic market along Highway 10 and Silver Lake Road. Even under the conservative assumptions used above, market saturation by existing retailers appears to be fairly low. Additional Market Issues The proposed development must not be analyzed as if the market share of Mounds View gas stations is fixed. The proposed development includes not only a gas station, but a car wash, a fast food outlet, additional office space, and a number of senior housing units. The car wash, fast food outlet, and convenience center add value to this location as an "impulse" stop for the 45,000 vehicles passing this site daily. The proposed development, particularly the housing, office space, and to some extent the car wash, provides "destination" value to the site. For instance, traffic is expected to increase on both Silver Lake Road and Highway 10 (as noted in the attached traffic analysis). The likely result of the proposed development is to increase the size of the total gasoline market share captured by gas stations on Highway 10, rather than redistribute the existing market share. • S -4-