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64 <br /> Mike Mornson <br /> Stonehouse Redevelopment <br /> February 4, 2003 <br /> Page 3 <br /> 3. Deed the Land: The City could deed the land to Amcon for $1 and negotiate a "free" or <br /> reduced lease for an extended period of time. The property will become taxable and generate <br /> revenue for the City's General Fund. <br /> 4. Subdivide the Land: The City would continue to own the land, subdivide it so it could own <br /> the liquor store (place it on an end cap) and lease the remaining land back to Amcon. The <br /> Liquor Store will remain tax-exempt and the remaining land would generate a lease payment <br /> that could be utilized to pay for the Fire Station or Liquor Store improvements. <br /> In review of these options, the following outstanding issues were identified and are being analyzed by <br /> Ehlers and City Staff. <br /> 1. Loss of Profit From Liquor Store <br /> a. Need to be closed for up to six (6) months for construction <br /> b. Loss of revenue (25%-30% of business will transfer to SAV II) <br /> c. Transfer of employees to SAV II <br /> d. Interim Location <br /> i. Cost Benefit of interim space (rent and tenant improvements) vs. loss of long-term <br /> business <br /> 2. Closing of Stonehouse Restaurant <br /> a. Notification to employees that restaurant will be closing <br /> b. Need to inform pull tab organization that they will be closed for up to 10 months <br /> c. Need to determine closing date <br /> i. Potential loss of insurance due to recent events may dictate date <br /> d. Current employees will be able to apply to new restaurant for jobs <br /> 3. Fire Station/Public Facility Development <br /> a. Positive/negative recommendation <br /> b. Timing for redevelopment <br /> c. Possible interim location for Fire Station <br /> i. Cost and placement <br /> 4. Existing Bonds on SAV II Liquor Store <br /> a. Liquor revenue from all liquor enterprise is pledged to bonds <br /> i. If land is sold, needs to be utilized to build new store or placed into reserve for <br /> payment on the bonds <br /> b. Interest paid by SAV USAV II/Stonehouse <br /> c. Principle paid by SAV II <br /> d. Can be refinanced <br />