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-12- which he perceived had been a "disaster" and, he said, he had opposed the cheese • shop addition to the warehouse operation from the very beginning. Mr. Nelson responded by saying that he didn't feel that it had been the times and economy which had eventually made the Speakeasy less than successful and he indicated he perceived that rather than taking taxes away from the residents, the proposed operation would be adding to the City's revenues. He disputed another of the Councilmember's statements that the new operation would have to be kept completely separated from the City' s liquor business by saying the state had passed legisla- tion in 1978 which permitted the sale of food along with an off sale liquor operation. The Liquor Manager pointed to the Surdyk store where the owner had perceived the cheese and deli sales had been a big factor in his store' s success, as a reason, Mr. Nelson perceived the cheese and deli sales would enhance the liquor operation. Mr. Nelson said he was not promising any great increase in revenues from the proposed project which would only involve a 400 foot space, but he said, as the one who is responsible for raising those revenues, he believed, anything he could do to offset taxes would be a big plus. He said from his own perspective as a merchant, he had to do anything he can to meet the stiff competition he encounters in the current market. Councilmember Marks commented that there were already some food products like potato chips, soda pops, canned dips, and non-alcoholic wines and beers being sold in the City' s liquor operation nowwhich led him to believe the City was already in the non-alcoholic retail business already. • Mr. Nelson agreed, saying that the warehouse operation has a section devoted to only non-alcoholic beverages which has worked out only moderately well because those products are fairly expensive. However, he said it had always been his operation's policy to promote the use of non-alcoholic as well as alcoholic beverages. The Liquor Manager confirmed that the sale of food and pop which could be perceived as competition for the -grocery stores had been part of the liquor operation for as long as it had been in existance. Councilmember Makowske indicated that, of course, she was interested in increasing the liquor revenues,, but she could somewhat appreciate Councilmember Ranallo'-s perspective on competition with the private sector having been personally out- raged when the University, a tax exempt institution, had operated its own travel bureau which competed with private tax paying agencies. Councilmember Ranallo said he perceived his point of view was shared by a good number of people in- St. Anthony, most of whom would probably vote to get the City out of the liquor business until they realized that operation made $300,000 in revenues which they would have to make up in taxes if that source were taken away. Councilmember Marks told him he believed the Council'man's statement about the free enterprise system being destroyed was a little too strong because he per- ceived the little cheese and deli Mr. Nelson was proposing would only be an extension of what had been started a long time ago. Mr. Childs recalled that at the previous work session one of the factors supporting the operation which had been discussed had been the sale of non-salty wholesome • food products in conjunction with the sale of liquor to lessen the impact of the liquor. s