CC PACKET 08091983 - Laserfiche WebLink

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-2- 1982 .Net Sales Net Income Profit * Phase out of Stonehouse off-sale over several months $896,000 $115,000 13% * Opening of 10,000+ square foot. warehouse operation with projected net 1984 sales of $3 million and net profits at $150,000 or 5% Capital -start-up costs would be low because merchandise would be displayed and stored on pallets -and thus the need for large amounts of expensive shelving is avoided. As a budget or warehouse operation, amenities such as wall covering, carpeting, special lighting, etc. will not be needed. Initial outlays would- be required, however. A modular, walk-in cooler of 40' to 60' in length will be needed. The cost will be $30-40,000 but the units can be moved easily to any future location of an off-sale facility. Cash registers would be leased initially, but check out counters and shopping carts are needed. It is proposed that computerized scanning registers not be installed initially but that if sales projections are realized, they should be added.. General clean up of the building , signage and some minor improvements are also needed. Ray Nelson projects an opening of mid-to late October to allow an opportunity to • build up business prior to the holiday seasons . Because the lease. is for one year and the building is located in the redevelopment project area, study should begin for a replacement location for use if this operation meets sales projections. Staff recommendations at this time are as follows: 1 . Approval of the lease with Max Saliterman. 2. Authorize establishment of an off-sale facility in the building. If the lease is approved, bid award for the cooler purchase would be scheduled for September 27, 1983. It should be noted that because of the low start up costs, that if the after one year, projections are not reached, the City could conceivably return to the current system with a minimum of cost and without embarrassment. The timing has never been better for this type of "testing the waters". • .