04-13-1987 Council Packet - Laserfiche WebLink

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Mr. CorI, as was indicated by the other bidders, would be initially operating the store in the current location. At present the only differentiation between the three bidders is the fact that the second highest bidder has the most experience specifically in t,e oft sale liquor business. While this may be significant, the Bank of Wayzata was and is willing to extend to Mr. Corl the necessary letters of credit and loan based on his business plan in light of the dollars at which he going to purchase the operation. Without substantial reason to the contrary the the City is best advised to go with the highest bidder. While it may be desirable to select on the basis of anticipated success or expected future upgrade that must be weighed against the difference in cash available to the City by award to the highest bidder. RECOMMENDATION - It is recommended that the Council award the bid of the liquor store to Mr. Cor 1, who wi 11 be doing business as Navarre T.iquors in the amount of $137,500.00 with that award contingent upon Mr. Corl being able to obtain an off. sal- liquor licr-nsF and satisfying any condition attendant theieto from the Council. The liquor license will he heard at a public hearing on April 27, 1987 at Wlich time the appropriate background invest gation materials will be made available to Councilmembers. In additi the staft has draf ed a sales contract which is currently being reviewed by the City's legal sta`.f and at the appropriate point upon issuance of a license will be sent to the highest successful bidder to complete the sales process, once the sales contract has been signed 258 0-" the estimated sales price will be given to the City in cash plus a letter of credit for he tialance. Followirg that on a closing date established in the contract the City and the buyer will conduct a liquor invent -ry to determine a final pri..e. At th_ closing a check for 65% of the total sales price will be given to the City. Upon conclusion of the inventory a check for the balance will be submitted to the City within 30 days of closing. It is anticipated that once physical inventory has been completed Mr. C:.,r 1 wi 1 1 begin operation. The target date for the sal.(- st i 1 1 remains the and of May. PROPOSED MOTION - Moved by , seconded by , to award the bid for the liquor store to Mr. Steven Corl as the apparent high bidder at c 1 37,500.90 contingent ipon tt a- license and successful completion of the sales procf•ss. Ayes _, Nays ccs Mr. Steven Corl Mr. Bob Guth,/Charles Ashbeck Mr. Steve Martin/Cris Dunlap Tows Kuehn, Finance Director Lorraine McGowan, Liquor Store Manager 2