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4b 4b 4b <br /> Costs/revenues Disadvantages <br /> Description <br /> 1.Current Operation 1. Current operation is performing below 1. Current operation 1. The building needs to be <br /> industry standards. A restaurant of provides a basis for replaced. <br /> this size should produce charitable gambling 2. Municipal operation of on-sale <br /> approximately$1,000,000 in order to operations. A portion of liquor store provides significant <br /> cover reasonable operation and capital the revenues is used for challenges including public <br /> expenses. Net operating income community purposes. perception, liquor liability, <br /> should be $60,000 to $90,000. control and pricing. <br /> 2. Compared to industry standards the 3. The current building conditions <br /> Stonehouse net operating income is reflects poorly on city image. <br /> overstated. No payment is made for <br /> rent (or an equivalent), taxes, and <br /> other related expenses. <br /> 2. New On-Sale Restaurant 1. $ 1 ,000,000 for b u i 1 d i n g, 1. Allows continued 1. It is unlikely that the City would <br /> Construct new 5,000 s.f. furniture/fixtures and equipment.Since revenues for Charitable be able to repay cost of capital <br /> restaurant on current site with the site cannot support a restaurant of gambling operations. from operations. <br /> city continuing to operate. i this size and off-sale retail an additional 2. Continued presence for 2. Municipal operation of on-sale <br /> $250,000 for land should be on-sale operations. liquor store provides significant <br /> considered. challenges including public <br /> 2. A restaurant ofthis size should produce perception, liquor liability, <br /> approximately $1,250,000 to control and pricing. <br /> $1,500,000 gross revenues. 3. Current site requires <br /> redevelopment to maximize <br /> restaurant potential. <br /> 4. Municipal organizations are <br /> generally ill-suited to operate <br /> profitable on-sale operations. <br /> i <br />