CC MINUTES 05131986 - Laserfiche WebLink

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_$_ Motion by Councilmember Makowske and seconded by Councilmember Enrooth to table final action on the variance request for the commercial facility proposed by META Partnership for 2701 and 2709 Kenzie Terrace until the Council 's May 27th meeting. Motion carried unanimously, The meeting was recessed from 9:05 -to 9:10 P.M. at which time Mr. Nelson continued the discussion he had with the Counc.il .April 29th related to the reconstruction of the Stonehouse bar and the relocation of `the off-sale fat lityJ n Apache Plaia to the vacated LaB.elle's Store next to the Country Store: Mr,. Nelson. had.distributed copies of his May 13th recommendations in that regard along with the May 9th letter from the C. G. Rein Company setting forth- the terms and conditions under which the Apache owners would consider leasing that space and the' proposal' from,the Belair Construe- tion=Company for reconstructing 9,100 square feet of the LaBelle store for the liquor facility. Mr'. Nelson addressed his recommendation that the expansion plans for the Stonehouse bar include the addition of a kitchen which could be leased to Larry Manning as a franchise of Manning's Restaurant and Grill , which is now operating very successfully from a southeast Minneapolis location and is being opened at- another location across from Muff uletta's in St. 'Paul . . The Liquor Manager said the figure Mr. Manning had suggested he could do in business in the St. Anthony location, at a 6% of sales lease rate., could be translated into a return of between $18,000 and $30,000 for the City. In addit ion, national statistics show that for every $10 spent in a facility for food, $3can be- expected to be spent for• .some type of- beverage and St. Anthony would only be following the trend in liquor establishments today, to have food available for those who want a drink, according to Mr. Nelson who said the addition • of food might also decrease the premiums the City has to pay for dram shop insurance. There was a general agreement that there was a need to stimulate day business at the Stonehouse and that a good restaurant might draw back some of the customers from the adjoining industrial areas. Mr. Nelson speculated that even with an investment of $50,000 in the kitchen, . there would probably be only a two and a half year payback based on the sales Mr. Manning had projected and the Liquor Manager said he didn't see 'how .the City could lose with a restaurant manager like Mr. Manning. The Councilmembers indicated there would be no interest in a month to month arrangement with the restaurant owner. The project architect had not seen the revised site plans Mr. Nelson distributed, but the Liquor Manager said Wil Johnson had shown some interest in the concept when he had talked to him, The City Manager indicated the only purpose of the discussion that evening was to ascertain whether the food concept would be acceptable and if so, the staff would proceed with the planning_. which would be necessary to develop a firm proposal for the final reaction from the Council . Councilmember Ranallo said he perceived staff should Ilet Mr. Manning know "the City is not in the food business and doesn't want to be, but an agreement might be worked out whereby space could be .provided from which he could run a restaurant" . Councilmember Makowske indicated she perceived that, while the renovation of the Stonehouse is still in the planning stages, all reasonable suggestions should be pursued. Councilmember Marks said he personally thought having food along with the bar might alleviate some of the problems inherent • in operating a bar. Councilmember Enrooth indicated he didn't doubt Mr. Manning 's claim that he could serve 250 Lunches a day at that location. The Mayor said he perceived the restaurant might draw a whole new clientele who are looking for a good place to eat.