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MINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD DECEMBER 8, 1986 <br />LIQUOR STORE CONTINUED <br />Steve Martin, 1295 Loma Linda Ave. - He stated that he <br />has talked to the Council and City Administrator <br />Bernhardson concerning the liquor store. He felt that <br />the City should not be competing with the private <br />sector. He feels that the money issue is relevant but <br />is not the only issue to be considered. He feels that <br />the liquor store should be placed in the private <br />marketplace. He noted his interest in ownership of the <br />liquor store. <br />Dean Young noted that there are over 320 cities in <br />Minnesota (including surrounding communities) that <br />believe that liquor is their business and by actively <br />owning the business themselves, they may have more <br />control over it. <br />Mayor Butler noted that, according to Minnesota law, if <br />a municipal liquor store loses money two out of three <br />years and thus begins to become a drain on the general <br />tax rolls, it is then required that the City put the <br />question of public or private ownership to the voters. <br />Del Pfeifer, 3640 Northern Ave. - Stated that he has <br />been involved in the municipal liquor business and that <br />there is money to be made in the business if properly <br />managed. He felt that the Orono Liquor Store is a fine <br />location and could be a profit making business with <br />better guidance, whether it be a public or private <br />business. He noted that over the 27 year business period <br />.the profit has been only $600,000. <br />Dean Young suggested that possibly what the City needs <br />is a new store in the Highway 12 area. <br />Chuck VanEec%hout, 120 Brown Road South - He felt that <br />the City should get out of the liquor business and <br />should not, be competing in a business that can be <br />handled by a private enterprise. <br />Lorraine McGowan, Manager of the Liquor Store, noted <br />(in reference to Del Pf eifer's comment) that the profit <br />has been $600,000 over the last 20 year period. She <br />felt the City should not quit the business due to one <br />year's loss in profits. <br />Rosemary Burmaster, 3414 Livingston Ave. - Employee of <br />the liquor store, asked where the money would come from <br />if the store is closed, will taxes be raised? <br />City Administrator Bernhardson stated that staff is <br />anticipating that the cash realized from the sale of the <br />store would give annually between $8,000 - $10,000 as it <br />would be invested, at no risk. He noted that there was <br />a loss in one year and the other years have been going <br />down. <br />2 <br />