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City Council Study Session Meeting Minutes June 12, 2001 Page 6 1 Morrison stated that a community survey would be helpful in determining if the residents like the 2 fact that the City owns an on-sale restaurant. 3 Morrison mentioned building a new store, and having someone else operate it. He indicated that 4 it could not be done at this time. He stated that under the Operation of a municipal liquor store, a 5 city may not contract with a private corporation for the management and operation of a 6 municipal liquor store. 7 Mayor Cavanaugh asked Mr. Prosser what they should do, from a business perspective. Mr. 8 Prosser stated that it is a complicated issue. He indicated that they would like to come up with a 9 proposal that looks at the Stonehouse, and other buildings in the area where they would like to 10 see redevelopment take place. 11 He indicated that, essentially, there were three decisions to make: 12 1. Redeveloping the area. 13 2. Redeveloping the area with, or without a liquor store. 14 3. Redeveloping the area with, or without a restaurant selling liquor. 15 Mr. Prosser stated that, for comparative purposes, they would do a straight financial analysis, 16 comparing what they think the establishment would be expected to produce on an annual basis 17 from that type of operation to the value of the sale of the land. 18 Mayor Cavanaugh asked about the point in which the business decision would be to shut it down. 19 Mr. Prosser indicated that an analysis factoring that option in would not be as accurate, but could 20 be done in order to revisit it later on. He stated that he did not have a comfort level that it would 21 be really clear, or not. 22 Councilmember Sparks asked how they would factor in the Sports Boosters in the whole process. 23 Mr. Prosser indicated that he could not answer that, but that it was a largely political decision. 24 Councilmember Hodson asked if they could re-construct part of the building without affecting 25 the Fire House. Mayor Cavanaugh stated that the Stonehouse is a short-term issue of cash flow, 26 and when they start putting capital into it, and realize that they are not going to recover it, what 27 are the alternatives to putting the capital into it. He added that the Sports Boosters create a 28 unique obligation for the Council to try and keep their funding source. 29 Councilmember Horst stated that he would like to see what potential offers they have received on 30 the property, so that they oan have a true idea of what their options are. 31 Councilmember Thuesen stated that he would like to see figures and a plan for the Fire Station, if 32 it is unable to be salvaged from the Stonehouse Property. Mayor Cavanaugh stated that he would 33 like to focus solely on the Stonehouse. Mayor Cavanaugh stated that the Stonehouse will 34 someday need $100,000 of capital money, and wanted to know what the Council would decide at 35 that point.