12-08-1986 Council Minutes - Laserfiche WebLink

Home Browse Search

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