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City Council Regular Meeting Minutes May 13, 2003 Page 10 Mayor Hodson thanked the Council for moving forward on this issue. He noted he looks 2 forward to the redevelopment of this site. 3 4 Mayor Hodson called for a five minute recess at 10:06 p.m. 5 6 Mayor Hodson called the meeting to order at 10:15 p.m. 7 8 D. Discuss Renewal of On-Sale Liquor Store Insurance and Consider Resolution 03-035 9 reaardin Cog the Stonehouse 10 Dan Crawford, Sunrise Park Insurance Agency, stepped forward to address the Council 11 regarding the Stonehouse. Mr. Crawford noted they went to four different insurance carriers 12 with only one being an option as being the Minnesota Joint Underwriting Association at a rate of 13 $72,075. He noted there was a$48,060 increase over last year. Mr. Crawford noted an interim 14 quote could be sought. 15 16 Councilmember Thuesen asked why so few insurance companies quoted this site. He questioned 17 if the risk was too great. Mr. Crawford indicated this is a cyclical business, where they suffer 18 losses and then increase profits. 19 20 Councilmember Faust asked if this policy could be canceled part way through the year. Mr. 21 Crawford indicated this was the case, as the City could go on a month to month payment 0 schedule. 24 Mayor Hodson thanked Roger Larson for his financial recap and stated he would not want 25 to keep the Stonehouse open while it is losing money. 26 27 Motion by Councilmember Faust to adopt Resolution 03-035, re: Closing the Stonehouse Bar 28 and Restaurant. 29 30 Discussion: 31 Councilmember Horst questioned if a month to month payment plan would be feasible. Roger 32 Larson, Finance Director, stated he prepared a graph for Council showing an option to keep it 33 open until September. He indicated this would be an option, but stated the profitability would be 34 uncertain. Mr. Larson stated starting June 1, 2003 the profits would be less than incomes, based 35 on the new insurance rates. 36 37 Councilmember Faust asked how the August timeline ties into this resolution. Mr. Morrison 38 stated this would work well because we have a redevelopment opportunity and would allow for 39 the closing of the off-sale as of May 31, 2003. 40 41 Councilmember Sparks asked if greater notice should be given to the employees at this site. Mr. 42 Morrison noted discussions have been held with the employees at the liquor store and they have 43 been made aware of the possibility of redevelopment. 0 Mayor Hodson felt the City should not be in the restaurant business and asked if the resolution 46 could be amended to read June 30, 2003 to allow for flexibility for special summer events.