Laserfiche WebLink
• STAFF REPORT <br /> DATE: March 5, 1997 <br /> TO: St. Anthony H.R.A. <br /> FROM: Michael Mornson, City Manager <br /> ITEM: SAV 2 LIQUOR STORE <br /> As you know, the City has been negotiating with First Bank over the past six <br /> months regarding securing space at the Tires Plus building for our municipal <br /> liquor store. First Bank, over the past two months, has presented the City <br /> with two options in relation to the Tires Plus building. The first option is to <br /> lease the building and the second option is to purchase the building. The <br /> economics of both options is as follows: <br /> Option 1 - Leasing <br /> • Years 1- 5 7.25 <br /> Years 6 - 10 7.50 <br /> Years 11 - 15 7.75 <br /> Plus $275,000 of HRA funds to pay for some of the improvements. <br /> TOTAL PAYMENTS OVER 15 YEARS -- $1,231,925 <br /> Lease rate average over 15 years <br /> with $275,000 -- $9.66 per square foot <br /> These payments are paid back with sales from the liquor store. <br /> Advantages Disadvantages <br /> *No bonds to issue *Don't own anything after 15 years <br /> *Good lease rates <br /> Option 2 - Purchasing <br /> $725,000 to purchase the building with HRA funds. <br /> Tires Plus will pay lease payments to the City over the 15 years in an <br /> estimated amount of $1,069,558, which in essence pays the City investment <br /> • back. The City then issues a liquor revenue bond for $650,000 to pay for the <br /> construction of the liquor store expansion, as well as possible facade <br />