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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />November 13, 1990 <br /> <br />Page 7 <br /> <br />Council Business. continued <br /> <br />Paul Capzak, Beverage Assc., said state law requires a city liquor <br />operation to hold a public hearing if it is unprofitable for two out of three <br />years. The law does not require closure because of these losses, but a <br />city will need to decide its next steps. Benke noted there is a fundamental <br />philosophical conflict of interest for a City being involved in the liquor <br />business. <br /> <br />Pat Reamington, Brandywine employee, is very unhappy about the closing <br />and feels the facility could be made to turn a profit, <br /> <br />Doug Mackey, 1476--20th Avenue NW, asked what procedures were <br />used to accept the offer. Childs followed the criteria set by Council and <br />the offer meets those criteria. <br /> <br />Rebelein noted her confidence of the offer. She consistently maintained <br />that government should not be in a business which could be profitably <br />operated by private enterprise. The City should not compete with private <br />businesses for liquor profits. <br /> <br />Don Murphy, 3138--12th St. NW, noted his frustration that the sale was <br />not published in the newspapers. <br /> <br />Benke noted the offer has been finalized only recently. Last week Childs <br />spoke to newspaper representatives, but the articles did not make the <br />newspaper's deadline. <br /> <br />LeFevere said the pending sate requires numerous changes in the City <br />Code which require public hearings. <br /> <br />Larry Peterson, resident. asked if the agreement approval appears to be in <br />direct conflict with the liquor license procedure. LeFevere said Council <br />would not bind themselves by approving the agreement. The Council still <br />has the right to decline to issue the liquor license, <br /> <br />Williams noted that during his 1989 re-election campaign many residents <br />questioned the need for the City to continue to operate the liquor <br />business. <br /> <br />Larson said the most recent citizen survey showed that residents favored <br />terminating the liquor business by a 2 to 1 margin. <br /> <br />Chet Glisan, Broker, asked if the buyers' history was researched. Childs <br />confirmed that extensive background checks were done on both <br />applicants. <br /> <br />Benke said the City would need to make a large investment in order to <br />make the Brandywine profitable. <br /> <br />Dan Englesma, Kraus Anderson, noted timing is very critical to the sale's <br />success. <br /> <br />Council Business <br /> <br />Purchase <br />Agreement for <br />Palmer Drivel <br />Brandywine <br />Report 90-235 <br />