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April 131 1983,
<br />TO: ClIty Cu
<br />FROM: Ji4m Andrep City M e ana 1,
<br />g -
<br />SUBJECT: Municipal Liquor Opei,ratims
<br />The current, fivie-year lease with Har Mari Shopping Center to ope:rate a municipal
<br />liquor store will ter .hate on August 30, 1983. The alternatives appear to be
<br />as fol 1 ows :
<br />1., Renew the lease with Hay Mar.
<br />a A
<br />12. Relocate the municipal, liquor operation,
<br />3. Divest the City from municipal liquor,, and pernnt private off-sale
<br />a
<br />liquor operations,
<br />The, profitabi"Jity of thie mun]*Lcipal liquor stoirei for the past seven years is
<br />demonstrated as follows-
<br />Year
<br />'crating Income
<br />Other Income
<br />Total Net Income
<br />19 1716
<br />$( , 4100)
<br />$'x,432
<br />3,0058
<br />1977
<br />26.91420
<br />532
<br />26,9;2
<br />119178,
<br />37,282 -1
<br />625
<br />37 907
<br />2
<br />191719
<br />3,6$1353
<br />l0i,495
<br />463848*
<br />19 SO
<br />59 .11985 1
<br />1 �2 1 1.9 4181
<br />8 1 A 4 0 3
<br />1.981
<br />53,9083
<br />32 A 305
<br />85, 388
<br />1,982
<br />44,0 292
<br />18.1 930
<br />63$222
<br />Hamlione Stiore closed 6 0/1179,
<br />Lexi'ington Store closeld 6/30/80.
<br />e pro ji ecti,on for 1983 is, that operating profits will be under 1982 levels.
<br />When, the economy does improve, sales, and profits can be expected to 'increase,
<br />However, it is unlikely, that sales will 'increase to a level where significant
<br />I
<br />operating profits, (in excess, of' 5,,O�00) will result from the Har Mar location.
<br />Har Mari is, requ,es�ti,ng rate increases (to renew lease), A ch will more than
<br />double rental expenses. This would, put operiating p,rofits 'in the $20,000 range,
<br />,compared, to 1982 and projected 1983 operating priofits in the $30 000 range,
<br />Without a substantial greater potential, for increased sales and profits, the
<br />incentive for continuing municipal liquor operations (at Hax Mar) 'is further
<br />decreaseld.,
<br />
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