1990-11-13 - Laserfiche WebLink

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I I I Council Meeting Minutes November 13, 1990 Page 5 Council Business, continued City Manager David Childs explained that in February 1990, Council adopted separate policy statements for the Powerhouse Bar and the Palmer Drive/Brandywine facilities. The policy statements referred to the closure of the Powerhouse and the sale of the Palmer Drive/Brandywine facility. Upon Council direction, Childs analyzed the criteria established by the Council relating to such a sale and began speaking to interested parties, After considerable negotiations, a purchase agreement was submitted by the Lloyd Engelsma 1984 Family Trust (Kraus Anderson and Brighton Village Center owners). Based on the City's goal to terminate liquor operations, it appears to be a credible ofter. The proposed agreement includes: $800,000 purchase price (not including $200,000 worth of inventory), 7.75% 15-year contract for deed carried by the City with a $100,000 down payment and a balloon payment at the end of year 15 and completion of leases with Champps' Restaurant and Red Lion Liquors. The purchase is contingent upon Council approval and amendment of the City's liquor ordinances. Red Lion proposes to keep the off-sale open with very little change in the operations. Champps' proposes a major renovation and would close the Brandywine on about December 15 and reopen about 90 days after that. Charlie Gravelle, Kraus Anderson, has met with Childs periodically since February to identify a tenant for the facility. Kraus Anderson feels purchasing the property allows for more control of the center. Kraus Anderson believes this is a good use for the property and both owners have excellent business reputations. Gravelle said parking should not be a problem because currently the center is underutilized. Kraus Anderson feels the conversion from City-owned to privately owned should not involve parking or traffic problems. Kraus Anderson has not performed a traffic study. If Los Banditos and Champps' both become successful and traffic volume increases, Kraus Anderson may redesign the parking Jot and would work closely with the City and neighboring residents to address traffic issues. Benke noted previous resident traffic concerns, and suggested research into combining the two Palmer Drive entrances. Benke asked the probability of locating a fast food restaurant on this corner if Champps' leaves. Gravelle said the Champps' lease is rather lengthy and Kraus Anderson does not have any intentions to put a fast food restaurant at that location. Mike Moore, M & R Liquors, said his corporation owns three successful Metro Area liquor stores. They intend to retain the name "New Brighton Liquors" and interview existing staff. The liquor off-sale license public hearing will be held November 27. Council Business Purchase Agreement for Palmer Drivel Brandywine Report 90-235