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Attachment A Regular City Council Meeting Monday, January 11, 2021 Page 16 672 the flavored tobacco products other than mint and menthol that are more typically 673 found in the tobacco shops and they do not sell to the youth under the age of 21. 674 Their business model relies on what customers like. For example, the landscaping 675 crew that might stop at their site during the day for some food, drink, and maybe 676 gas for their equipment. These customers might also want a can of wintergreen 677 chewing tobacco at their stop, and as written in the ordinance, these people will 678 find somewhere else to shop, taking with them all of their item sales. With compe- 679 tition being fierce and margins being razor thin, they are left with a business model 680 that might not sustain and it will correlate with moving commerce out of the com- 681 munity. He asked the Council to consider leaving mint and menthol at the conven- 682 ience business and moving the other flavors to the tobacco shops. 683 684 Mr. Maher Safi 685 Mr. Safi stated he owns and operates two tobacco shops in Roseville. He explained 686 menthol and other flavored tobacco products are at least 45 percent of his overall 687 business. If they are to be banned both the businesses in Roseville would need to 688 close. He mentioned they are at the meeting to discuss and decide a local matter. 689 The subject should only be discussed based on the local businessÓ compliance with 690 the current law and whether they want to further restrict and disrupt the operation 691 of these local businesses who have been following all of the rules and who have 692 been in the past decades a part of what makes the City of Roseville. He noted local 693 businesses follow the law and only sell tobacco products to customers who present 694 an ID and can show and prove that they are of legal age to purchase these products. 695 His establishments only allows those who are over the age of 21 to enter the store. 696 Adults over the age of 21 who smoke or vape these legal products also purchase 697 other related devices and accessories of which, if this ordinance were to pass, adds 698 to the losses of the business in his stores and these products, in the tobacco shop, 699 cannot be substituted with any other products, such as grocery items. To be able to 700 stay in business, the majority or of their sales are 90 percent tobacco products and 701 related accessories. He noted the first place he has owned has been serving adult 702 customers in Roseville and surrounding neighborhoods for over 27 years and is 703 probably the second, if not first, tobacco shop to be open and in business in the 704 State of Minnesota. Customers who are residents of Roseville are not going to be 705 happy about losing their favorite store and having to drive to Midway, St. Paul, or 706 other cities to purchase their tobacco products. Tobacco products are highly taxed, 707 and this location alone contributed over $20 million in Federal and State taxes over 708 the years and now is contributing over $500,000 in taxes per year for this one loca- 709 tion. They believe this is not the time to deprive the State of Minnesota from much 710 needed monies that are often used for the greater good of the general public. He 711 explained he purchased this store, which is around 600 square feet in 2017, a couple 712 months later expanded next door to 3,000 square feet, and signed a 15-year lease. 713 If his business has to shut down, he will still have to pay on that lease. The new 714 space is now costing him $4,300 a month and the remodel was a huge challenge in 715 which he spent over $100,000 for fixtures and remodeling and stocking product 716 that adult customers would like to buy. He stated he is risking losing his livelihood