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City Council Regular Meeting Minutes August 28, 2001 • Page 14 - The current Stonehouse on-sale restaurant is in need of replacement. No additional 2 capital investments should be made in the existing building. 3 - The Stonehouse cannot be considered to be profitable. Given its current condition it is 4 likely to be more unprofitable in the future. 5 - St. Anthony Village would be required to invest approximately $100,000 to 6 $1,250,000 for a new building to continue on-sale operations. 7 - Gross annual revenues of$1,250,000 to $1,500,000 will be required to service the 8 operation and debt. It is very difficult to sustain this level of sales in a highly competitive 9 market. 10 - The current site is too small to permit appropriate redevelopment for commercial uses 11 that include both on-sale and off-sale liquor sales. 12 - The primary financial function of the Stonehouse appears to be an outlet for charitable 13 gambling. 14 - Charitable gambling is projected to be at least as profitable at a new city-owned or 15 privately-owned on-sale restaurant (s). 16 Recommendations: 17 - Explore redevelopment of the Stonehouse site with off-sale liquor retail store as a potential. 44f9 - Cease on-sale liquor store operations. 20 - Conduct referendum to permit municipal off-sale and private on-sale operations. 21 - Permit charitable gambling at restaurants serving liquor. 22 Alternate Recommendation: 23 - Consider a referendum to approve $1,000,000 to $1,250,000 to fund a new on-sale 24 liquor store. 25 Mr. Prosser indicated that the Stonehouse property was worth $100,000. 26 Councilmember Sparks asked what the consultants said about the location of the Stonehouse property 27 for a restaurant. Mr. Prosser stated that restaurants like to be amidst a great deal of retail, and a high- 28 traffic area. 29 Councilmember Horst asked what type of redevelopment projects they see useful for the property. 30 Mr. Prosser stated that they see mixed use. Mr. Prosser indicated that there was strong support for 31 limited retail with a small restaurant pad and an off-sale liquor pad. He added that townhomes, 32 apartments, and daycare have all been mentioned as viable options. 33 Mr. Prosser stated that he was not recommending that they market the Stonehouse property at the W $100,000 value, but that it was the amount that they could bank on. 35 Councilmember Horst asked if it was necessary to close the Stonehouse in order to get split liquor in 36 the City of St. Anthony. Mr. Morrison indicated that it was not.