Posted: 3/7/07
‘Be conservative'
Stacy resident tells council to watch spending as city makes plans
By Anne Thom
Public comment, which always opens the Stacy City council meetings, was brief but to the point last week. Esther Ashley went to the podium with a postcard in hand sent to her by the city.
Ashley had been unable to attend the Park and Recreations meeting, which had been the reason for sending the postcard to residents. The council has consistently sought input from the community in planning and development matters. She read from it, "We can't do what you want if you don't tell us." Ashley was there to tell the council what residents want. "Be conservative."
She said the city has been on a spending spree that would make congress blush. Ashley said her only request was that any park development be done in a conservative manner with the best interests of the community in mind, and she asked that the council "look after the bottom line."
"I appreciate the post card," she said, but "people living in this community are not winning the lottery."
Mayor John Daher asked Ashley what she meant regarding the spending spree. Ashley said she meant the Stacy Bar and Grill.
Daher explained that the bar's construction had been financed through the sale of bonds and that money does not come out of tax dollars. The city does though own the municipal off-sale liquor store and Ashley said she had heard that had been losing money.
It is the bar however, and not the liquor store that has been in the red. Daher explained that it is a complicated formula, and that both the on-sale and off-sale operations comprise city liquor operations and, while the Bar and Grill has struggled, the off-sale store has turned a profit.
Liquor store operations manager Brian Hachey was waiting to speak. The one year anniversary of the opening of Stacy Wine and Spirits is coming up. To celebrate and to generate revenue through some typically quieter months in retail, Hachey is holding an anniversary sale March 8 through March 24. There will also be prize drawings and product tasting. Hachey intends to hold events concurrently at the Stacy Bar and Grill, tying the product offered for tasting at the bar to a sale offered at the Wine and Spirits. A new sign could soon grace the front of the Bar and Grill. The city has been working on the marketing and visibility of the Bar and Grill over the last year. Quotes received ranged from $5,000 to $10,000 and Hachey commented that the sign with the lower price actually had the better look.
There will be changes to the interior of the bar also. Patrons and bands have complained about the acoustics both in the bar area and the music room respectively.
Many on the council described not being able to hear each other across a table as soon as there are 5-6 people in the room, the sound just bounces around. The ventilation system has also been described as quite loud, making it difficult to talk or enjoy the music. Hachey has been working to get bids to install some type of sound absorbing panels. Those quotes have ranged from $4,500 to $12,000.
There was further discussion about money and liquor operations as the meeting continued after the public comment. City Attorney Peter Grundhoefer read the text of MN State Statute 340(a).602:
"Every municipal liquor store must demonstrate proof of financial responsibility"...."In any city in which the report of the operations of a municipal liquor store has shown a net loss prior to interfund transfer in any two of three consecutive years, the city council shall, not more than 45 days prior to the end of the fiscal year following the three-year period, hold a public hearing on the question of whether the city shall continue to operate a municipal liquor store."
The statute goes on, "Following the hearing the city council may on its own motion or shall upon petition of five percent or more of the registered voters of the city, submit to the voters at a general or special municipal election the question of whether the city shall continue or discontinue municipal liquor store operations by a date which the city council shall designate."
Though the Stacy Wine and Spirits has made money, the bar has lost money. There was some disagreement as to how much money and whether or not depreciation had been factored in, therefore figures of $119,547 or $74,963 for 2006 and $31,291 for 2005 could not be substantiated at this meeting.
Councilor Mel Aslakson asked how the city was going to pay back $40,000 that had been borrowed to keep the Bar and Grill running. Liquor operations accountant Amy Joslin was not present to speak to the matter. There was no figure available for 2004. The large loss in 2006 was attributed to the start-up costs of the new Bar and Grill. Hachey described the strong surge in the food business as the "silver lining" and said sales of food has been expanding, but strong trends for liquor sales at the bar remain "sporadic."
The council felt that the Bar and Grill had not been given a proper marketing strategy under the previous management and that Hachey and new assistant bar manager Lori Dahle are now "playing catch up, and doing a good job." The two are working on expanding dart leagues, pool leagues, Texas Hold ‘Em games and more food specials. According to the discussion that evening, a statewide smoking ban though, would "kill business." The city will be watching that battle in the legislature.
The state and the city were hit with a snow storm for the first time this season. The city has kept up with the plowing, and maintenance supervisor Tom Archibald said he had received very few complaints. He had received several regarding residents who are plowing snow from their driveways into the public right of way.
According to Aslakson's estimate, this involves about one dozen properties.
Grundhoefer told the council that under state law, snow from a private drive cannot be deposited into a city street. A few of the surrounding cities and townships also have ordinances that specifically address this. Grundhoefer didn't think this was necessary and advised the council that Deputy Cliff Sheppeck could issue citations to these residents.
Daher thought that the offenders should be notified first and have the law explained to them. Archibald and Grundhoefer will be following up. Stacy residents should clear snow from their properties onto their own properties or they could face a fine.
Comment from Christi, 3/21/07
I am surprised that the Stacy Bar is losing money, since every Friday and Saturday night the patrons' parking overflows onto both sides of County Road 19.
I am not surprised that the Liquor Store is able to keep its head above water, since they have no qualms about selling to people who are already visibly intoxicated.
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