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City Council Regular Meeting Minutes July 25, 2023 Page 5 Liquor Operations Manager Mike Larson presented a power point summarizing the mid -year report for the St. Anthony Village Liquor Operations. Two other employees Chris Mork and Bill Haugen were also present. Mr. Haugen noted there are two locations — Silver Lake Village 2602 39`h Avenue and Marketplace 2700 Highway 88. He reviewed the Mission and Vision Statements. The profits from the liquor operations are transferred to the General Fund and can be used to provide property tax levy relief, provide funds for equipment purchases for police, fire and public works departments and supplement general fund purchases. 9 Mr. Larson reviewed the conditions through June 2023 and provided a January — June 2023-2022 10 Sales and Profit Comparison chart. Other charts were presented including 2023 Sales 11 Comparison, 2023 Sales Projection, and 2023 Net Income Projection. 12 13 The 2023 Accomplishments included: 14 • City Goal Setting 15 • League of Minnesota Cities Conference 16 • Minnesota Municipal Beverage Association Conference 17 • MMBA/MLBA Legislative Day at the Capital 18 • Students in Government 19 • Social Media Advertising & New Sharing Group 20 • City Council Tour of City Buildings 21 • Collaboration with Distilleries and Breweries. 22 23 The current status of where the liquor operations are now include construction surrounding the 24 stores, supply chain delivery issues, inflationary influence on customers purchasing habits, and 25 cost of products and retail prices stabilizing. 26 27 Liquor Operations will be celebrating 75 years of Public Service in 2023. Plans for the future 28 include implement new on-line ordering and application, continued collaboration products with 29 local distilleries and breweries, holiday sampling events and THC/Cannabis/Hemp products. 30 More liquor operation information can be found at www.savmn.com. 31 32 Councilmember Walker congratulated Mr. Larson for 75 years of service. Mr. Larson stated he 33 has been here for 27 years. Councilmember Walker asked about the north location sales increase. 34 Mr. Larson explained the construction on Highway 88. 35 36 Councilmember Jenson stated the overall business picture presented looks favorable. Liquor 37 Operations are exceeding projections. He thanked Liquor Operations Staff for their contribution 38 to enabling the business plan to be as good as it is. 39 40 Councilmember Randle thanked Mr. Larson for his presentation. He asked if there is an appetite 41 for the hemp based products in the City. Mr. Larson stated they are looking forward to the 42 adoption of the ordinance. Residents have been inquiring about the product being available and 43 the demand is very high. 44 45 Mayor Stille noted the Mission Statement will be outdated as it only addresses alcohol. He 46 thanked Mr. Larson for the presentation.