Loading...
03/11/1974 - 00015990�L1 �YI THE MINUTES OF THE PUBLIC HEARING MEETING OF THE FRIDLEY CITY COUNCIL OF MARCH 11, 1974 The Public Hearing Meeting of the Fridley City Council of March 11, 1974, was called to order at 7:30 P.M. hy Playor Lieb7. PLE�GE OF ALLEGIANCE: Mayor Liebl led the Council and the audience in saying the Pledge of A17egiance to the Flag. � ROLL CALL: MEMBERS PRESENT• Councilman Bre9der, Councilman Starwalt, Mayor Liebl, Councilman Utter, and Councilman Nee. MEP1BER5 ABSENT: None. ADOPTION OF AGENDA: iNOTION by Councilman Starwalt to adopt the agenda as presented. Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the moiion carried unan�mously. PUBLIC HEARINGS: PUBLIC HEARING ON FINAL PLAT P. S. #74-01, RICE CREEK ESTATES, BY GOODCO, INC., AND PINE TREE BUILDERS, GENERALLY LOCATE� BETWEEN RICE CREEK ROAD AND 61ST AVENUE AND WEST OF BENJAMIN STREET. ��� RECEIVING PETIIIDN �3-1974, IN OPPOSITION TO PI.AT: MOTIOfV I�y Councilman Starwalt to waive the reading of the Public Hearing Notice and open the Public Hearing. Seconded by Councilman Nee. Upon a voice vote, all voting aye, flayor Liebl declared the motion carried unanimously and the Public Hearing opened at 7:.i2 P.M. Tfie City Manager pro�ected a map of the proposed plat on the screen. Mayor Liebl asked the City Manager to present some facts on the proposed p]at. The City Manager said the Planning Commisison had recommended approval of the plat with some stipulations. He explained there had been some problems with the extension of 61st Street. He continued saying the plat being reviewed needed no additional right- of-way from the property owners on 61st, the cul-de-�ac was proposed entirely for the developer's property. He said the requirements of the platting ordinance had been met. He also explained the amount of park land to be obtained through the plat to be in excess of the normal percentage of area. He said normally for this much area, there would be 4 to 4z lots for park and this plat would provde 8 to 8%z and the developer is loosing about four buildable lots. The City Manager said the recommendation of the Park and Recreation Commission was that a good size park be developed in the area to serve al7 the properties bounded by Rice Creek Road, �tinson Boulevard, Old Central Avenue, and 61st Avenue. He said the perimiter roads are heavy with traffic and this proposed park wou7d be in the center of the developed area. He said he believed this to be a good place for a park to serve the entire area. �Councilman Utter asked if the cul-de-sac on the extension of 61st Avenue was now on the applicant's property and the City Manager said this is true. He said the developer would have to dedicate the roadway right-of-way for the cul-de-sac. The City Manager sa�d this would leave the two lots unbuildable because of the steepness of the terrain and the property being taken for the cul-de-sac. Mr. Ed Dropps, Pine Tree Ruilders, addressed the Counci] and introduced Mr. Wally Goodroad, and said they had formed Goodco Builders. Councilman Starwalt asked if there had been any agreement worked out between the deve7oper and the property owners of the area. f�1r. Dropps said he had not talked to the property owners. �,e said he was �dilling to sell twenty feet of his property to the Thielmanns to make their property buildable. H� added, the Thielmanns had indicated they did not want to continue the road through their property at this time. Mr. Uropps said he nad proposed a plan which would not continue the roadway through the Thielmann property. 4i�1 PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 2 Councilman Utter said the plat that had been proposed at the Planning Commission Meeting by Goodco, was not accepted by the Planning Commission. He said the Planning Commission had approved the plat being proposed at the present meeting. Mr. Dropps sa�d he was sorry they were not in attendance at the meeting of the Planning Commission, but they were under the impression they had attended all the meetings ihat they were to attend. He said they were not aware of the meeting the previous Wednesday, and had thought the Parks and Recreation Meeting of Monday night was the last meeting. Councilman Starwalt asked if there would 6e any objections by the developer at running Woodside through rather than use the cul-de-sac. �9r. Dropps said as the road is run on the proposed plat, it is of no use to the development, it is �ust additional cost. H� said he believed the access required by the Thielmanns could be obtained from the east side of their property. He said there is no value in the 135 foot piece of road. Councilman Starwalt said he favored the plan which wouid allow Woodside Court to be extended through the Theilmann property and he believed this would be a better plan to cont�nue the development of the entire area. Mr. Dropps explained he had originally come to the City with a plan for 59 7ots and now the proposal was to 40 lots. He said all of the 59 ]ots were of buildable size and four of them were on Mr. Theilmann's property, He said he had tried not to offend Mr. Theilmann, but now �t was time to take a stand. Mr. Dropps commented he had sent a map of the proposal to the Engineering Department and would apply for a variance of from 35 feet to 25 feet for the front yards for the lots on 61st Avenue which would make the lots buiTdable. ' The City Manager said there were only two problems to be solved on the proposed p7at, one being the section of roadway through the Theilmann property and the other , recorronendation for the park in the southerly section of the plat. He repeated the Park and Recreation Commission had recommended a large park be created in this area. He explained the proposal to cut Woodside Court through would be a better proposal utilityWise than dead ending the street and utilities at each end of the access. The City Manager said he appreciated the po9nt of view of Mr. Theilmann, he wants to live in the area and had been in the location for a long period of time. He said Mr. Theilmann would like the area to remain as it is. The City Manager said he thought the developer and Mr. "fheilmann should work somethrng out which would be a better plan. He indicated the proposal would create a better drainage plan and a better utility plan. Councilman Starwalt asked the parties involved if it would be possible for them to gei together to reach some agreemeni. Mr. Dropps replied he did not believe any agreement could be reached, they had tried. li� explained Mr. Theilmann wished to keep the area as it is until the time of his ret�rement. f�ir. �ropps said Mr. Theilmann had indicated this is the or�ly plan he would accept. Mr. Theilmann sa�d he had purchased two acres of property and he asked why he should sacrifice a lot now after paying taxes on the property for many years with the p7an of creating eight buildable lots in the area. Fle said he did not believe he wou7d be forced to do this for the developers of the abutting property. Councilman Utter said the creation of cul-de-sacs is an additional expense for the City. He said there is a lot which would not be buildable on the Theilmann property if the � cul-de-sac is installed for access. He said if this plan is followed, it would create two additional cul-tle-sacs for the City to maintain, The City Manager said he would encourage the two parties to try to work something out which wou7d be good for the community and good for each other. He said they both have needs of the other and would both have to give a little. He stated, they need each other in order to develop the property. Councilman Starwalt asked what the tax status would be and what provisions would be in effect if this property is divided by the roadway at the present time. 7he Finance Director, fir. Marvin C. �runsell, said he did not know of anyway there could be a delay in paying the taxes and special assessments. He commented there is a two to three year process before the special assessments would he on the tax rolls. PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 3 �a � Councilman Starwalt asked tf the taxes would be affected before this time. The F�nance D�rector said there would be no appreciable difference in the tax, the big difference would be in the special assessments. The Finance Director said the difference in the taxes would come about by putting the road tn, not by platting and installing a line in a plan. The City Manager said Mr. Iheilmann's land is higher than the surrounding land, at will be more expensive to complete the improvements on the Theilmann property alone in the future. He said with the present plan, the assessments would be spread over the entire �development and not assessed to the abutting property owners section by section. He said if the improvements are done sinqly the owner of the four higher lots would have to ex�aend the entire amount of the higher priced installation. He said it would be difficult to assess the other people �n the future when the assessment wou7d have no benef�t to them. Councilman Utter said the improvements with the raise in costs would be at additional cost in the future, Councilman Utter asked Mr, Theilmann if he would be ab]e to come into the City Hall and speak to the City Manager on the methods of funding the current proposal and the reasons why it would be to Mr. Theilmann's advantage to install the improvements at this time, He thought if Mr. Theilmann would add the improvements later, the cost wouid be out of this world. �fhe City Manager said the Theilmann property would be difficult pt°operty to work on. He explained how there is 25 feet of d9rt which would have to be removed before the installation of the improvements. He said at the present time, if it were done all at once , the cost would be minimal He again stressed, the parties should get together and work something out for the good of 6oth of them. Mayor Liebl agreed stating he also thought they should get together before the Council would take any action on the mat�er pending. P1ayor Liebl asked Mr. Theilmann if he opposed the development of the residential plat as proposed. Mr. Theilman said he was not opposed to the plat. �Mayor Liebl said the proposal of the street pattern would be accepta6le to the Counc�l over the long range plan of the area. Mayor Lieb7 said Mr. Theilmann cannot be forced to develop hts property. P9r. Dropps said he was aware of this. Mayor Liebl pointed out that Mr. Theilmann had been a long time resident of the City of Fridley and had paid many tax dollars. � The City Manager said there were three alternatives; one to approve the plan and develop only the property within it; two, to let the property owners work something out; and three, acquire the needed right-of-way i.hrough eminent domain. Councilman Utter asked Mr. The�lmann and the representatives from Goodco �f they could have another meeting which he and Councilman Starwalt would attend. Mr. The�lmann sa9d he is home every evening and this would be agreeable with him. Councilman Starwalt said it seemed it would be advantageous for Mr. The�lmann to allow the road to go through at this time rather than dead end it. Mr. Theilmann said he is not ready for this. �ouncilman Starwalt again stressed the amount of increase that would be involved in the development of the area in the future. Mr. Theilmann said he would like to go over this point with someone at the City. Councilman Starwalt said the plat could be adopted as it is being presented w�th the dead end, 6ut Mr. iheilmann would have to agree to pay the incurred costs for the improvements at the future time of development. Councilman Nee asked the amount of cutting that would have to be done for this 7mprovement and asked if the elevations could be pointed out. i+ir. �ropps said Mr. Theilmann wants to sell the fill in the area and after this is done, he would sell the property for development. Mr. Theilmann said this is true. The City Manager said the two parties need each other for the plan for the area to be workable. Mayor Liebl asked if there were any others present who would like to make a statement to the Council. Mr. Cnarles Rice, 1541 Ferndale Avenue, asked if there was any right- of-way on the Rice property, or was a]1 of this being ohtained from the developers of the property. i4ayor Liebl asked N�r. Rice if he had any objections to the plat as it was being proposed which did not requ�re any right-of-way from the Rice property. Mr. Rice said he would have no objection if the plat did not touch his property. ,�irs. Gloria Arel, 1521 Ferndale addressed the Cauncil and said if the plat does not touch either the Rice Property or her own, she would have no ob�ections to the plat. ,�� , PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 4 The City Manager said the plat did not touch either of these properties. �ouncilman Breider stated Mr. Theilmann wanted to sell the dirt before the development of the property. Ne thought there would be an additional cost for the development of the area some point in the future if there is a delay. He asked Mr. Theilmann if he was aware of the expense and limitat�ons on dirt hauling. Mr. Theilmann said this had been done all around him and was well aware of what dirt hauling does. Councilman Starwalt asked why there wouid be a$20,000 to $25,000 cost to the City to make a park of this size. The City Manager said the recommendation_of the Parks and Recreation Commission was to create a large park for the families of the neighborhood. He said when the areas surrounding ihe present plat are deve7oped, the City would require some amounts of money for development of park. He said this would provide a park large enough to service the entire area in the future. The City Manager pointed out that appiicant is dedicating more than the required amount to the City's parks and this property for the amount mentioned would be in addi�ion to the 7arge dedicated area. I`1r. ��arry Lembke, 1505 Ferndale, addressed the Council and said he paid $4,000 for the extra amount of property he �owned. H� said if the assessments were put in and he sold the property he could only increase his investment by about $2,000 and this would not be a large enough profit, he would rather keep the property. Counc�7man Starwalt asketl Mr. i�iike 0'Bannon if he had any objections to the plat. Mr. 0'Bannon said he had no o6jections. Mr. Dropps satd he would like to set up a meeting with Mr. Theilmann and the City representatives. Councilman Starwalt said he fe7t Mr. Theilmann should meet with the City staff first. Mr. Theilmann said he would meet with the City staff,he would make arrangements and tell them when he could make such a meeting. MOTIOPJ by Councilman Starwalt to close the Public Hearing. Seconded by Councilman � Utter. Upon a voice vote, all voting aye, Mayor Liebl dec7ared the motion carried unanimously, and the Public Hearing closed at 8:45 P. M, Mayor Liebl said the petttion in opposition to the plat should be received. Mayor Liebi noted, this is not the plat being discussed at the present time, th9s was a previously discussed plan for the plat. MOTION by Councilman Starwalt to receive Petitian #3=1974 in opposition to the Rice Creek Estates. Seconded by Counci7man Uiter. Upon a voice vote, a11 voting aye, f1ayor Liebl declared the motion carried unanimously. W MOTION by Councrlman Breider to receive the communication from the Housing Committee of the Fridley V. F. W., 1040 Osborne Road N. E., signed 6y Mr. Anton Olson, Commander, Seconded by Councilman Nee. Uron a voice vote, all voting aye, Mayor Lieb7 declared the motion carried unanimously. Mr. Andrew Kohlan, ,4ttorney, addressed the Council representing the Fridley V. F. W. Mr. Koh7an said he aad visited the facility and ta7ked to the Commander and believed as the letter from the V. F. W. states, the problems arise because of the common wash room facilit�es which are used by members of the V. F. W, and also by renters of the facility, He continued, there is interact�on because of this and when the � facilities are rented, this is the major cause of the problems. He said there is a possibility, in the future, for the V. F, W. ta acquire some of the adjoining space in the building complex and this wou7d lessen the chance of this type of interaction through separation, He said the V. F. 4J. would 6e providing additional security to alleviate the current incidents. Mr. Kohlan said the V. F. W. Housing Committee is sincere in its attemp to alleviate the problems and they realize this will take attention to complete the process. Councilman Bretder asked who is leasing the other port�on of the building. Mr. Kohlan said this lease is held by a grocery store. He explained the owner of the grocery facility has a year left on the lease with an opt9on of an extension of another year. He said there is also a barber shop in the complest. He explained the circumstances of the V. F. W. obtaitring the building with the incompleted leases, and said there would be no way of expanding until the other businesses are no longer leasing the build�ng. �� � PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 5 Councilman Breider asked Mr. Kohlan if it was the V. F. W.'s intent to take over the entire building. ?4r. Kohlan said noi entirely, but something could be arranged, this would be to eliminate the interaction in the wash rooms. Councilman Starwalt said he had visited the facility and he believed they were trying to run a proper operation. �Mayor Liebl asked if there would be any further action on the matter at the present time. �ouncilman Breider said he thought the Housing Committee was making a concentrated effort in alleviating the problems, and this is what he was interested in. Mayor Liebl asked if the points listed in the communication (1 through 4) would be agreeable to the Council as means of satisfying corrective measures for the current problems. P�OTION by Councilman Breider to concur in the statements in the communication as listed one through four. Seconded by Councilman 5tarwalt. Upon a vo�ce vote, a71 voting aye, Mayor Liebl declared the motion carried unanimously. CONSIDERATION DF POSSI Counci7man Breider said he had asked that this item be placed on the agenda to obtain an idea on the Council's thinking on the matter. He recalled the 1971 policy of the City �n establishing sidewalks on residential property and said the money would come from State Aid or the general fund, He said he had asked the City Manager to prepare a cost break- down on the installation of sidewalks on Jackson Street from 73rd to Osborne Road or the Woodcrest School area. He said the grand total for this installation would be approximately $33,145 and he would like to discuss the possible methods of comp7etion of this installtion. �The City Manager pointed out the City had a five year sidewalk program. He explained Mississippi Street from Central to Highway #65 had been completed. He said the State Aid roads carry heavy traffic. He said �ackson had been a State Aid roadway, but this had been deleted from the State Aid roads, and now the property owners may have to pay the assessments for such an installtion. He explained the property owners did not want thts road to be a State Aid roadway because of the addit9onal traffic this would possibly create, but there is a traffic prob7em and there is a possibility with the safety factor, State Aid funds may take care of this assessment. He said the general funds could also be used if it is for the good of the entire neighborhood. He said the Counci7 would have to make a determination on the method of funding and whether or not the property owners should be assessed. He said, originally, this was a State Aid Road, but the people did not want the trucks and heavy traffic, so the State Aid road was chan9ed to Baker 5treet which abuts the commercial property. He said this roadway does collect traffic because it is the on]y connection between 73rd and Osborne in this area. The City Manager said the Counctl would have to make the determination on how the amount that should be done in this area, if anything. He added, at 75th and Jackson the traffic really starts getting heavy and continues th�s way to the north. The City Manager said there would be two questions; one, if and how much of the roadway should have sidewalks; and, secondly, how much of this should be funded. He said there are three possible methods of installation and funding; one, assessing the abutting property owners including the installation of the walks, replacement of the sod and drives; two, asking the property owners to pick up the cost or installation of the sod and drives with some State Aid funds backing up the funding of the sidewalks; or three, to complete � the entire pro�ect with funds from the General fund or State Aid Revolving Fund. Mayor Liebl said the sidewalk construction program would meet the criteria of safety of the people and pedestrians in route to and from Woodcrest School in this area. He said at the present time, the children are walking on the street. He continued he believed this area would meet the crtteria of 7971. He said according to the resolution, this could be done if there are funds ava�la6le. He pointed out that there would have to be a Public Hearing before this improvement �s approved. riayor Liebl said he would like to have more information on the improvement before there would be a Public Hearing. Councilman Breider said before there is any further discussion or consideratton of the matter, he would like to talk to the people of the area. He said at this time, he wanted the feeling of the Council on the possibility of installation of the sidewalk. He said he would not want the abutting property owners to be assessed comp7etely for the pro,7ect because it is the entire Melody Manor area that is using Jackson Street for access to the School. i�e said he could not tell the abutting property owners that they ��� PUBLIC HEARING MEETING OF MARCH 11, 7974 had to pay for the sidewalk assessments area is on Jackson Street. PAGE 6 He explained, the main traffic of the The City Manager said he would be concerned at the policy followed in a matter such this. He said he could see that this may be a different situation than most of the areas in Fridley, but he would hope that if this is done, the Council would layout exactly why it would be done so it does not open the door for other areas to request such improvements. He said this would have to be explained as a specia7 consideration. He suggested doing more homework on the possible installation. He said perhaps, there should be some study on the area to determine the needs. He continued, after this, if the Council fee7s the area requires special consideration, the question must be answered whether or not the City should take over the 100% funding of the pro,7ect. He said other areas have been assessed for the sidewalks. Mayor Ltebl explained that many of the people in the City do not want sidewa7ks, and if this is a factor in this area, the City would have to do something to provide safe access to the School. H� recalled the walkways to Stevenson School had been constructed with funds from the general fund. He said he thought some work should be done in this area to determine the criteria. 7he City Manager pointed out another fact for consideration saying in some areas the property owners were assessed with the understanding that the City would take care of the maintenance of the sidewalks. hle said this had been done on Osborne Road and the people were assessed 100%. ��ayor Lie61 said he would like to ask the School District for a count on the number of children that are vralking from 75th to the north to school. He said this would provide �ustification for the need. Councilman Breider sa�d again that at the present time he would only want the feeling of the Council on the possibility of consideration of this construction. He said he would like to talk to the people of the area to determine if they wou7d favor this plan. Councilman Nee satd he would like to see a survey of the entire City done if this idea is looked into. lie said the improvements should be put in the order of their priority. He continued saying he thought thts improvement would be a good thing, basically. He recalled the City had a plan for the installation of sidewalks and this plan is completed. He said hopefully, there should be another plan prepared with this area included. Councilman Starwalt sa�d he knew of areas in Ward II with as much justification for the installation of sidewalks. l,ouncilman Breider said if this is true, he wou7d support this insta7lation in Ward II also. Councilman 5tarwalt said this also would be determined 6y the fact if the people had to pay for the sidewalks or not. , � Councilman Utter asked if the consideration of the plat proposed previously in the meeting, Rice Creek Estates, was tf�ere any consideration of the sidewalks on Benjamin Street. He added, there would be a good many young people who would use this Street for access to Gardena School. The City Manager said he would look into this area in the overall plan along with any other areas of concern or where there had been requests. MOTION by Councilman Breider to receive the report on the costs for the installation of sidewalks on Jackson Street and also authorize the Administration to work up an overall plan which would include priorities at the present time and a long range plan. Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously. RESOLUTION #35-1974 - AUTHORIZING THE CHANGING OF BUDGET MOTION by Councilman Utter to adopt Resolution #35-1974, authorizing the changing of Budget Appropriations in the General Fund (Silver Jubilee). Seconded by Counci7man Starwalt. tipon a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously. Mayor Liebl read the Resolution aloud to the Council and audience. The City Attorney asked if the Council would take action on the report for appointing a Bi-Centennial Committee. He suggested appointing the current Silver Jubilee Committee ' PUBLIC HEARING MEETING OF MARCH 71, 1974 PAGE 7 �,�, ,, as the B-i-Centennial Interim Committee. He said there had been a meeting of the Silver Jubilee Committee that evening and they requested the Council take formal action appointing a Committee in thts manner in order to complete the application. i�lOTION by Councilman Starwalt to appoint the Silver Jubi7ee Committee as the B�-Centennial Interim Committee and that the City Manager be authorized to take the appropriate action. Seconded by Councilman Utter. Upon a voice vote, all voting aye, r9ayor Liebl declared the motion carried unanimously. � RECEIVING REPORT ON PDOR REVENUES (LOSS) SITUATION AT OFF-SALE STORE #2 EAST RIVER ROAD AND 37TH AVENUE: Councilman Breider asked what the current rent on the facility at East River Road is. Mr. Bob McQuire, Liquor Store Manager, addressed the Council and replied this was $6,300 per year. Mayor Liebl said the members of the Council had seen the report from the City Manager and h�s proposed alternatives. He said he would like to make a comment explaining his thoughts on the problem. Mayor Liebl read the follow�ng staiement: "TO THE CITY COUNCIL AN� ADMINISTRATION FROM THE DESK OF MAYOR FRANK G. LIEBL, March 9, 1974 5ince price controls were removed from bottle sales of liquor in July of 1969, operating income from our off-sale stores has gone steadily downward - 1969 - - $150,000 1970 - - $135,000 - - 1971 - - $102,000 - - 1972 - - $ 76,OOD - - 1973 - - $ 33,000 - - Down $75,OOD Down $33,000 Down $25,U00 Down $43,D00 fVet operating ]oss at store #1 was almost $7,000 in 1972, the last full year this store �was open. S�.ore #2 had a net operating loss of almost $8,000 for the fourth quarter of 1973. Since the fourth quarter normally accounts for about one third of the annual operating profit, there doesn't appear to be much hope for recovery at that location. ' Whatever the reasons, this record makes it obvious that some decisions must be made immediately. Some action must be taken soon to correct the problem, or we must expect to be forced out of the business in the not too distant future. i suggest that the following steps be taken - 1. Since the Camden bridge was closed, sales at the #2 store have dw�ndled to practically nothing. To the best of our knowledge the 6ridge will not be open for two years. The best solution appears io be to c7ose this store and negotiate the best possible deal for termination of our ]ease at that location. 2. I suggest that we consider eliminating the position of Liquor Manager and go to a Store Manager arrangement. We have a purchasing agent who could da the buying. The Store Manager would put in his 40 hours per week in the store to whtch he is assigned. Bank deposits and necessary reports cou7d �asily be arranged for. Assuming a Store Manager salary approximately $2,000 per year above that of the clerks and with two full t�me clerks to each store, the annual payroll should be su6stantially reduced. Each Manager would be free to make all the necessary decisions relating to schedule of working hours for clerks, sale pricing dead stock, etc. - within guide lines lain down hy the City Administration. He would be responsible for successful operation of the store. llbove action should result in savings to the taxpayer of $30,000 to $40,000 per year and help raise the net profit to an acceptable figure. If not, we should seriously consider getting out of the business. Frank G. Liebl" f�9ayor L�ebl said he had received and read the liquor store reports since 1966 and he was not trying to criticize anyone. He said the liquor sales have dropped in all communities. �•iayor Lieb7 said he thought the CIty should be very conscientious in laying out a plan. He stated the City had spent a considerable amount of money 6, �.+ � 1 PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 8 in the construction of the new liquor store on Central and this location was having good sales along with the Holly Store, He felt the need to take the proper action and cut down on the overhead of the operation. He pointed out another factor for the loss is the action by the Leg7slature, saying they had put ihe City into this situation. He also pointed out that when he viewed the activity at Leon's, ihe facility was full of customers and they seemed to have beautiful sales there. Mayor Liebl said the Liquor Store Manager and the Assistant Liquor Manager had been with the City for from 16 ta 20 years, and they would 6e capable of managin9 the two remaining profitable stores. He mentioned some salary arrangement could be made. Counc9lman Breider said he appreciated the possibilities being pointed out. He asked if there would be a possi6ility of gett7ng out of the lease at the present facility on East River Road. ��e said he did not feel that taking a loss for the remainder of the lease period would make any sense. Councilman Breider questioned the Finance tiirector on the possibility of the Pubchasing Agent buying the liquor for the two remaining stores if there was no manager to take care of this. He said originally the CIty had four stores, it is down to three now and proposed for two. Councilman Breider asked what the comparison in the fixed costs would be. The Finance Director asked if this would be for 1974 and Councilman Breider said yes, Councilman Breider questioned how the labor costs for four stores could be compared to the labor costs for the two stores. He a7so questioned the fact that the labor costs seem to be getting higher for the amount of sales. Councilman Breider said he would not be too excited about the prospect of putting a trial siore location on the East Rover Road and Os6orne Road. He stated the grocery store at this location had gone 6roke, th� parking would not be adequate, and he would not want to invest money in this corner. Councilman Breider asked the Finance Director if he could prepare a report and tell the Council how they could obtain a 72% net profit for the liquor sales for 1974. He asked if a plan could be charted out. The City Manager commented, the deficiencies in the system should be eliminated and the East River Road Store is not making any money. He stressed, something should be done to eliminate the loss. iie pointed out that the sales at Central and also Holly are good and he would not want the East River Road facility to eat all the profits away. He explained by ,7ust closing the door, the loss would be cut more than half. He said there would have to be a plan and he asked the Council if the plan to close the doors of this store would be feasible at the present time. MOTION by Councilman Bre�der to instruct the Administration to prepare a plan to show the C�ty Council on how the City can turn the present situation into a net profit of 12% for the 1974 sales and that this be brought back to the Council by the first of April and if this includes phasing out non-profitable stores, this would be a part of the plan. Secondecl by Councilman Starwalt for discussion purposes. Mayor Liebl said he would accept this as a second to the motion. Councilman Starwalt sa�d he had two questions, would this be a long or short range plan and what would be done w�th the East River Road store at the present time, He asked the possibility of an addition to the motion which would indicate that something should be done with the East River Road Store at the present time. Councilman Bre7der said it was his intent that if the plan would ca17 for some present action on clos7ng the East River Road store, this action would be started immediately. He said he wa�ld like the City Manager to get in contact with the 7ease holder on East River Road and determ7ne if something could be worked out. Councilman Starwalt said if this is the intent, he would wholehearted7y second the motion. MOiIOPJ oy Councilman Nee to amend the motion to prepare the report to add that the Liquor Store #2 be closed immediately. Seconded by Councilman Breider. Councilman Breider said he thought this may be within the intent of the first motion. The City Attorney said this was the intent of the first part of the motion. Councilman Breider said he would WITHDRAW HIS SECOND, in this case. Mayor Liebl declared the motion DEAD FOR LACK OF A SECOND. The City Mana9er said this would enable him to start phasing out the operation without closing the door immediately. ' � �I v _. PUBLIC HEARING MEETING OF MARCH 11, 1974 PAGE 9 The City Attorney said he interpreted the aei.ion to mean that if clos�ng the #2 Store would be appropriate tn the plan of the Administrat�on, this should be done as a part of the plan to obtatn the 12% net profit. The motion was repeated and all concurred in the content. UPON A VOICE VOTE, a71 voting aye, Mayor Liebl declared the moiion carried unanimously. Councilman Breider asked Mr. McGuire if it would be possib7e to turn off the be11 in the Central Store. ADJDURNMENT: i�i0TI0N by Councilman Breider to ad�ourn the meeting. Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously and the Public Hearing meeting of the Fridley City Council of March 11, 1974 ad,7ourned at 10:12 P.M. rtespectfully submitted, . �� Patricia Ellis Secretary to the City Counci7 C.n-r.�—l� i �, / 9 �� Uate pproved � � 'T1�4.s�' �. � Frank G. �iebl ' P1a or � Y