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-2- especially in view of the residents ' decision by referendum not to raise the City' s levy base which would allow its officials the leverage of raising revenues to match the rate of inflation. He explained the twelve alternatives to the existing Apache liquor operation listed in the information sheet were just suggestions, many of which might not be viable either from a profit-making or good-planning point of view. He reiterated the anticipated diffi- culties for this operation with the probability of a sharp rise in rental fees with the renegotiation of the lease in 1986 and the -- immediate need for remodeling of the bar at an estimated cost of up to $75, 000 . Apache owners have refused to negotiate the rent prior to the current lease expiration . He concluded by telling those present, "The liquor revenues are representing a smaller and smaller percentage of the total general fund revenues each year. " Ten of the persons present who had asked to be heard on the question identified themselves as living on Penrod Lane , Macalaster Drive or 39th Avenue N.E. , adjacent to either the Hedlund or Twin City Federal property in the northeast quadrant of the City across from Apache where alternate sites for building a liquor store had been suggested. About a half dozen residents of Heights Manor, 3850 Stinson Boulevard, indicated they were present to oppose a bottle shop or bar being located at 39th and Stinson. Approximately only one resident south of 37th Avneue N.E. was present. Joseph C. Waltersack, 4000 Penrod Lane, did not see the figures as provided in the fact sheet as indicating a problem with the Apache • operation since those figures seemed "almost equal to those for the Stonehouse" . He wondered if the Apache owners might consider re- modeling the bar as an incentive for the City to remain in the shop- ping center. He later questioned the "legal ramifications of building a liquor operation on the east side of Silver Lake Road" , and threat- ened to "personally seek legal counsel if this happened" . Good management practices accounted for the maintenance of income in spite of decreasing sales for the Apache operation, Mr. Fornell told him, but the City cannot anticipate being able "to wring more and more out of the operation" (with less sales) . Ruth Nelson, 3916 Macalaster Drive, felt it "would be a very poor idea to build a liquor operation on the Hedlund property near a residential area where it will probably bring in other undesirable kinds of commercial business to the area" . She believed the City should do all in its power to keep Apache going. Later she mentioned the volume of business the pie shop on Stinson is doing. George Thompson, 3015 39th Avenue N.E. , opposed placing a liquor operation on the east side of Silver Lake Road near residential area. He felt it would be too costly to build, and saw the development of such a usage, where the "Hedlund PUD asks for low volume service of- fice usage or south of Twin City Federal, as setting a precedent for commercial development incompatible to the homes on Penrod. He favored leaving the liquor operation on Apache property , suggesting >_ ,s