Laserfiche WebLink
MEMORANDUM <br /> DATE: December 4, 1995 <br /> TO: Mayor and Councilmembers <br /> FROM: Michael Mornson, City Manager <br /> ITEM: APACHE WELLS AND SAV II STORE <br /> Attached are the comparison numbers for closing vs. not closing Apache Wells <br /> and the SAV II store. The bottom line is that as of September 30, 1995 the City <br /> would be ahead by $27,871 by closing the Wells and in the minus by $13,221 <br /> by closing SAV II. That is primarily because SAV II has $72,518 in fixed cost <br /> vs. $49,042.20 for the Wells. <br /> • The Council has at least three options regarding these two sites. Following are <br /> the options in the order staff recommends: <br /> Option Move SAV II (lease expires August, 1996) to the Wells location <br /> (lease expires in 1999). The increase in profit by doing this as of September <br /> 30, 1995 would be $69,071. Closing the Wells down early 1996 would give the <br /> Public Works the opportunity to convert the Wells into an off sale operation. <br /> Option 2 Move SAV II to other space in the Apache area or build a free- <br /> standing building and close the Wells. This option is feasible only if First Bank <br /> allows us out of the Wells lease and Apache redevelops the mall. <br /> tion 3. Close both stores and concentrate all efforts on the Stonehouse and <br /> SAV I. This option is only feasible if First Bank allows us out of the Wells <br /> lease. <br /> We will review and discuss these options at the January 2nd Work Session. I <br /> thought I would get this to you early enough so you have time to think about the <br /> two stores. Don Perry and Roger Larson will be at this Work Session to <br /> discuss this issue. <br /> • <br />