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CITY OF ST. ANTHONY <br /> REQUEST FOR CITY COUNCIL ACTION <br /> ------------------------------------------------------------------------ <br /> • Date Submitted Type of Action Requested Agenda Item Number <br /> Resolution New Business-4 <br /> September 9, 1983 Ordinance <br /> Date Action Requested X Formal Action/Motion Title Request for Lease <br /> Other Approval - Municipal <br /> September 13, 1983 Liquor Operations <br /> ------------------------------------------------------------------------ <br /> TO: Mayor and .Councilmen <br /> FROM: David M. Childs, City Manager <br /> ------------------------------------------------------------------------ <br /> SUMMARY DISCUSSION OF SUBJECT: The face of off-sale liquor marketing has been <br /> changing and continues to change. In order to remain competitive and to maintain <br /> liquor revenues which have traditionally kept taxes lower in St. Anthony, the staff <br /> and Council have explored and discussed numerous marketing alternatives. Warehouse <br /> type operations account for a growing proportion of liquor sales and with on-going <br /> vacancies of large commercial buildings in both of the shopping centers on Kenzie <br /> Terrace, it is felt that we are in an excellent position to modify the thrust of a <br /> portion of our off-sale operation. <br /> During investigation of a cut-rate or "warehouse" operation, staff met with repre- <br /> sentatives of both shopping centers to attempt to negotiate short-term leases which <br /> would allow the City to begin a warehouse operation without the major long-term <br /> expenditures for space and facilities which would result if a new structure is con- <br /> structed. <br /> Based on these negotiations , staff presents herewith a one year lease for the old <br /> Snyder Drug Store location in the St. Anthony Center 2540 Harding Street N.E. , and <br /> owned by Max Saliterman. The lease price is $1 .33 per square foot. <br /> The following scenario is presented by the liquor operations manager, Ray Nelson. <br /> 1982 <br /> Net Sales Net Income Profit <br /> Continued operation of Apache Wells $231 ,000 $ 53,000 23% <br /> * Continued operation of Apache 855,000 116,000 13.6% <br /> off-sale (some reduction in off- <br /> sale business i.s expected as a result <br /> of the new off-sale) <br /> a Continued operation of Stonehouse <br /> and Speakeasy on'sale 490,000 155,000 32% <br /> (continued on page 2) <br /> • <br /> CITY MANAGER'S REVIEW: COMMENTS : <br />