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such, I will respond to you directly and copy the Council so that everyone is equally informed. First, the language attracting retailers that serve unmet demands . " is NOT a reference to unmet liquor demands. It is a reference to retailers that meet general customer demands. I would agree with your inference that citizens and patrons of Roseville have ample access to liquor stores. But it is conceivable that they may not have access to other retail products or retailers that are in demand -i.e. retailers that offer a va riety of unique or specialty-type product lines. There are a number of nationally- recognized businesses that serve this niche; however, in some cases their business plan requires an off-sale liquor license because of a particular product line or two. Absent the ability to get a liquor license, these types of business might simply skip over Roseville and go somewhere else. Depending on an individual's perspective, that might be good or bad. Either way, the Council should be aware of it. You may not know that the City does indeed have a first-come, first-serve basis when it comes to issuing liquor licenses. The size of the retailer does not matter. The problem is that we only have one license available but we have two applicants that will be effectively applying for that license at the same time. Who gets the license and why? By my definition, that's a 'dilemma' and one that requires Council attention. Your letter also accurately states that the City is not required t o issue 10 licenses, and that we should use "good socio and economic prudence in setting the number of licenses to be issued". The problem with that approach is that we haven't identified what those factors should be. For what it's worth, I was the Staff person that recommended your license approval back in 2003. I can say with certainty that I never performed any socio-economic analysis. Nor do I recall anyone advocating for one. Please be assured that I am fully aware of the unique State-imposed restrictions placed on off- sale liquor establishments, and how that affects your profit margins and the ability to leverage sales from other product lines. I am also aware of the value that your establishment has created for Roseville. I am reasonably confident that the majority of the Council are aware• of this as well inasmuch as Mayor Klausing, Councilmember Kough, and Councilmember Ihlan were all on the Council at the time the previous public hearing took place. Again I wa nt to thank your for your letter. It does an excellent job of relating the personal side of this issue; something that will undoubtedly resonate with the Council as it has for City Staff. Thank you. Chris Miller Finance Director ##################################################### FINAL COMMENT: One of the factors this council must consider is the economic situation today is much more difficult for businesses than it was in 2005. Even the "big box" stores are now feeling the economic downturn. To amend the city code to add more off-sale liquor licenses just to give another "big box" the ability to compete is not wise planning for the city in general or for the existing businesses in the city. Where was Roundy's dba Rainbow, when the 10th license was up for grabs this past year? If they knew they were going to remodel or wanted to add an off-sale to their store on Larpenteur, why didn't they apply for the license that was left before the applicant that is located over on Snelling and Hwy. 36 applied for the existing license? It would appear Roundy's doesn't plan very well or they just assumed the Council would give them what they wanted because they are a big business in the community. Keep in mind if you decide to amend the code for another off-sale license, where do you draw the line? How many is enough and who decides that? Look at what Cub Foods Discount Liquor in Arden Hills did to the small off-sale just to the south of it in the Frattallone Hardware shopping center. That was a case of "big box store prices along with proximity" being the major cause of the downfall of a small business that had survived in a location for many years. Again Roseville is a city with a steady, if not declining, population, so to increase the number of off-sale liquor licenses makes no sense at all. Many of the major chain restaurants throughout the metro area, even those that hold on-sale liquor licenses, are feeling the economic downturn and are facing difficult decisions in their businesses so to say competition is good is probably a sore spot for all. The people that still have unlimited expendable income when it comes to shopping and enjoying dining out are spread out a lot thinner and all of the businesses that still exist feel the impact. Please consider the current businesses in Roseville before you think of adding more of the same in Roseville. The ability for existing businesses to continue to stay in business may rest on your shoulders. Thank you for your time and consideration. 5