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15,000 which would be letter than the City could <br />probably achive on return of investment this year, but <br />maybe on par over the long term. <br />C. APP"(OPRIAT_E TIME TO EXIT BUSINESS - The City could <br />continue with its operation until it again loses money <br />at which time it could make the decision to sell. This <br />strategy has three problems with it: <br />- Sale of a business at loss - To the extent that <br />the City would e able to achieve any goodwill <br />etc. for its business apart from the inventory, it <br />would be better when the City is in a upswing <br />rather than in a year that has experienced a loss <br />together with losing a years return on investment. <br />- Impact on employees - While this would probably <br />be an excellent incentive for the operation and <br />not dissimilar to others found in private <br />business, it may not be equivalent given the fact <br />that the employees do not fully receive the <br />benefit of the profits and therefore they should <br />not need to sustain the stress and uncertainty <br />involved in this strategy, particularly the <br />Manager. <br />D. TIMING OF DISPOSITION - As outlined in Attachment A <br />it is felt that the appropriate time given the nature of <br />the business the City look to culminate a sale by <br />September 30th of the year it chose to get out. This is <br />felt to be of benefit both to the City and a new liquor <br />owner who would be coming into some of the most <br />profitable months of the business. <br />E. APPROPRIATENESS OF MUNICIPAL L,i1JOR - Liquor is one <br />of the businesses that while there has been d long <br />tradition of pubic ownership for control of revenue in <br />the state of Mi,inesota is traditionally a private <br />business. In the metropolitan area there is a <br />significant issue of public business competing with <br />private business and the appropriatness of the City <br />being in this business particularly when they are <br />competing with privates who do pay income tax etc. <br />within only a few miles of our store. While the City <br />i..self would realize little from income tax and <br />potentially other taxes such as increase in property tax <br />or from off sale liquor license fees ($150.00 maximum <br />per store) the argument goes beyond just a revenue <br />issue. <br />F. BUSINESS OPERATION TRENDS - In addition to the <br />