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City Council Regular Meeting Minutes <br /> August 28, 2001 <br /> ® Page 13 <br /> 1 - $1,000,000 for building, furniture/fixtures and equipment. Since the site cannot support <br /> 2 a restaurant of this size and odd-sale retail, an additional $250,000 for land should be <br /> 3 considered. <br /> 4 - A restaurant of this size should produce approximately $1,250,000 to $1,500,000 <br /> 5 gross revenues. <br /> 6 The Advantages: <br /> 7 - Allows continued revenues for Charitable gambling operations. <br /> 8 - Continued presence for on-sale operations. <br /> 9 The Disadvantages: <br /> 10 - Building needs to be replaced <br /> 11 - Municipal operation of on-sale liquor store provides significant challenges including <br /> 12 public perception, liquor liability, control and pricing. <br /> 13 - Current building conditions reflect poorly on city management. <br /> 14 Mr. Prosser reviewed other options, including leasing the site to charitable gambling operations for <br /> 15 development as on-sale restaurant(would require a referendum to split on and off sale operations). <br /> �6 The costs and revenues: <br /> No direct costs. <br /> 18 - Projected value property of$100,000+. <br /> 19 - Projected property tax $20,000 total and $5,000 City. <br /> 20 - Projected license revenue. (Fees not determined, would cover cost of control.) <br /> 21 - City expense reimbursement unchanged. <br /> 22 The Advantages: <br /> 23 - Allows continued operation of charitable gambling. <br /> 24 - Charitable gambling operations would be able to contract for operations management <br /> 25 with independent firm. <br /> 26 - Property would be taxable. <br /> 27 The Disadvantages: <br /> 28 - Charitable gambling operations may not be interested or capable of operating <br /> 29 restaurant. <br /> 30 - City would no longer directly control on-sale liquor operations. <br /> 31 - NFP operation of on-sale liquor store provides significant challenges including public <br /> 32 perception, liquor liability, control and pricing. <br /> 33 In summary, Mr. Prosser stated that it was extremely important for the City to have an idea of the <br /> 0 profitability aspect. He stated that Ehlers and Associates does not think that the numbers truly reflect <br /> 35 the need to reinvest in the building. <br /> 36 Additional Findings: <br />