Laserfiche WebLink
M <br />B. Disadvantages of ownership are: 1) Cost of building improvements; <br />2) Upkeep of the premises may be significant and; 3) The City assumes <br />debt by issuing liquor revenue bonds which we do not with a lease. <br />From a numbers perspective, the Muffler Shop is the least attractive of the two options to <br />purchase. The cost per square foot is higher and the cash outlay is $20,000.00 more than the <br />$275,000.00 lease proposal because of legal and purchase costs associated with ownership. In <br />addition, the purchase of this property removes it from the tax roles (with the Tires Plus option, <br />the portion leased remains on the tax roles). <br />The H.R.A. could fund the purchase of either the Tires Plus or Muffler Shop buildings by using <br />the a portion of the H.R.A. Projects fund balance. Currently, the cash on hand is approximately <br />$800,000.00. <br />There is no advantage of internally funding the building of a new liquor store (cost for bonding <br />or internal funding is approximately $1.2 million). Also, because of the volatility associated <br />with the liquor industry, internal funding could have a negative impact on St. Anthony's bond <br />rating if profits for the liquor operation did not meet expectations. <br />K <br />