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cp06-08-2004 cAGENDA REGULAR MEETING - IIUTCHINSON CITY COUNCIL TUESDAY, dIJNE $, 2004 1. CALL TO ORDER - 5:30 P.M. 2. INVOCATION -Rev. Jim Hall, Word of Life Church 3. PLEDGE, OF ALI.,EGIANCE 4. MINUTES (a) REGULAR MEETING OF MAY 25, 2004 (b) BID OPENING MINUTES OF JUNE 2, 2004 Action -Motion to approve as presented 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARAS AND COMMISSIONS 1. FIRE DEPARTMENT MONTHLY REPORT FOR MAY 2004 2. BIJILDING DEPARTMENT MONTLY REPORT FOR MAY 2004 3. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR APRIL 2004 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE N0.04-376 - AN ORDINANCE AUTHORIZING TIME SALE OF A PORTION OF PUBI.iC PROPERTY TO EARTHLY DELIGHTS, LTD. (STATE THEATRE PROJECT) (SECOND READING AND ADOPTION) 2, ORDINANCE NO. 04-377 - AN ORDINANCE VACATING LOUISIANA STREET AND THE 10 FDOT UTILITY AND DRAINAGE EASEMENT DIRECTLY TO THE WEST OF TI-IE STREET REQUESTED BY LEO SAND, SAND PROPERTIES (SECOND READING AND ADOPTION) 3. ORDINANCE NO. 04-379 - AN ORDINANCE AMENDING ZONING ORDINANCE SECTION S.OI REGULA'CING EXISTING TWO FAMILY HOMES IN THE SINGLE FAMILY RESIDENCE DISTRICT (SECOND READING AND ADOPTION) 4. RESOLUTION NO. 12441 -RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL pEVICES 5. RESOLUTION NO. 12442 -RESOLUTION FOR PURCHASE (c) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE FOR HUTCHINSON FIRE RELIEF ASSOCIATION FOR SEPTEMBF..R 11.2004 (d) CONSIDERATION FOR APPROVAL OF HUTChIINSON POLICE SERVICES MAKING AN EQUIPMENT DONATION CITY CO(INCIL AGENDA - JUNF. 8, 20(14 (e) LETTING NO. 6, PROJECT NO. D4-06 & 04-07 (ECHO DRIVE SB & ECHO CIRCLE SE) . -DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT - HEARING ON PROPOSED ASSESSMENT (f) LETTING NO. 8, PROJECT NO. D4-09 (RAVENWOOD WEST) -DECLARING COST TO 13E ASSESSE AND ORDERING PREPARATION OF PROPOSED ASSESSMENT - WAIVING HEARING ON PROP05ED ASSESSMENT - ADOPTING ASSESSMENT -ACCEPTING BID AND AWARDING CONTRACT (g) LETTING N0. 9, PROJECT NO. 04-10 & 04-11 (ARCI-I STREET SE TRAIL AND BLOCK DOWNTOWN ALLEY, 50UTH % CITY) - DECLARING COS"h TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT - HEARING ON PAOPO5ED ASSESSMENT (h) LETTING NO. 11, PROJECT NO. 04-13 (12TH AVENUE NW) - ORDERING PREPARATION OF REPORT ON IMPROVEMENT - RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (i) CONSIDERATION FOR APPROVAL OF SELLING SURPLUS CITY PROPERTY (j) CONSIDERATION FOR APPROVAL OF CONSULTANT SELECTION FOR AIRPORT IMPROVEMENTS Action -Motion to approve consent agenda 6. PUBLIC HEARINGS - 6:00 P.M. (a) PUBLIC INPUT REGARDING LIQUOR STORE PROJECT 7. COMMUNICATIONS RE UEST5 AND PETITIONS (a) PRESENTATION OF FINANCIAL RESULTS OF CREEKSIDE COMPOST FACILI'1"Y THROUGH APRIL 30. 2004 No action. (b) DISCUSSION OF POTENTIAL CHANGES IN COLLECTION OF RECYCLING/COMPOST CONTAINERS IN ALLEYS No action. 8. UNFINISI3ED BUSINESS (a) CONSIDERATION FOR APPROVAL OF PEDDLER'S LICENSE AND FEE ADJUSTMENT FOR GERALD JOHNSON 'I"O SELL NOVELTIES AT THE JAYCEE WATER CARNIVAL ON JUNE 20, 20D4 C~ 2 CITY COUNCIL AGENDA -JUNE 8, 2004 Action - Motion to reject -Motion to approve ~' (b) CONSIDERATION FOR APPROVAL OF HUTCHINSON CONVENTION AND VISITORS BUREAU 2004 BUDGET Action -Motion to reject -Motion to approve 9. NEW BUSINESS (a) PRESENTATION ON LIQUOR STORE PROTECT Action - (b) CONSIDERATION OF 2005 BUDGET SCHEDULE Action - (c) CONSIDERATION FOR APPROVAL OF AD7USTING CERTAIN CEMETERY FEES Action -Motion to reject -Motion to approve 10. MISCELLANEOUS (a) COMMUNICATIONS 11. CLAIMS. Al'YRDYRIATiONS AND CONTRACT PAYMENTS 12. ADJOURN C~ 3 MINUTES • REGULAR MEETING - HUTCIIINSON CITY COUNCIL TUESDAY, MAY 25, 2004 1. CALL TO ORDER - 5:30 P.M. 2. INVOCATION -Rev. Kevin Oster, Our Saviors Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) RF..GULAR MEETING OF MAY 11, 2004 (b) BOARD OP EQUALIZATION MINUTES FROM MAY 13, 20D4 (c) BID OPENING MINUTES OF MAY 13, 2004 (d) BID OPENING MINUTES OF MAY 14, 2004 (e) Blb UPENING MINUTES OF MAY 21, 2004 Minutes were approved as presented. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND CUMM155IONS • 1. PIONEERLAND LIBRARY SY5'T"EM BOARD MINUTES FROM MARCH 18, 2004 2. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM APRIL 20, 2004 3. IIUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM APRII. 20, 2004 4. HIJTCHINSON PLANNING COMMISSION MINUTES FROM APRIL 20, 2004 5. HUTCHINSON AREA I•IEALTH CARE FINANCIAL REPORT FOR APRIL 2004 6. CITY OF HUTCI-IINSON WATER AND WASTEWATER FINANCIAL REPORT FOR APRIL 2004 7. CITY OF HUTCHINSON GENERA[, FUND FINANCIAL REPORT FOR APRIL 2004 8. CITY OF HUTCHINSON INVESTMENT REPORT FOR APRIL 2004 (b) RF.,SOLUTIONS AND ORDINANCES 1. ORDINANCE NO. D3-361 - HIGIIWAY 7 ACCESS MANAGEMENT OVERLAY ORDINANCE (SECOND KEADING AND ADOPTION) 2. ORDINANCE N0.04-374 - AN ORDINANCE GRANTING A FRANCHISE TO AMERICAN PAYMENT CENTERS TO PLACE A PAYMF:N"I CENTH R OVER AND ABOVE CERTAIN PROPERTIES LOCATED ON PUBLIC PROPERTY AT I11 HASSAN STREET SE . (SECOND READING AND ADOPTION) ~(a> CITY COUNCIL MINUTES -MAY 25, 2004 3. ORDINANCE N0.04-376 - AN ORDINANCE AUTHORIZING THE SALE OF A PORTION OF PUBLIC PROPERTY TO EARTHLY DELIGHTS, LTD. (STATE THEATRE PROJECT) WAIVE PIRST READING AND SET SECOND READING AND ADOPTION FOR JUNE 8, 004) 4. RESOLUTION NO. 12420 -RESOLUTION APPOINTING AND DESIGNATING THE COMMISSIONER OF TRANSPORTATION AS AGENT FOR TFIE CITY OF HUTCHINSON FOR THE PURPUSE OF CARRYING OUT FEDERALLY FUNDED AIRPORT IMPROVEMENT PROJECTS 5. RESOLUTION NO. 12421 -RESOLUTION FOR PURCHASE 6. RESOLUTION NU, 12422 -RESOLUTION ACCEPTING PLEDGED SECURITIES FROM CITIZENS BANK & TRUST CO. (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY PEACE LUTHERAN CHURCH TO USE PROPERTY LOCATED A'1' 4DD GLEN STREET SOUTH (FORMER HANTGE FUNERAI. CHAPEL) FOR CLASS ROOMS AND MEETING ROOMS LOCA"I'ED IN THE R2 DISTRICT WITI-I STAFF RECUMML'•NDATION AND FAVORABLE RECOMMF,.NADTION (ADOPT RESOLUTION NO. 12411) 2. CONSIDERATION OF VARIANCE REQUESTED BY 3-D CNC LOCATED AT 10555'" AVENUE SE TO REDUCE SIDE YARD SETBACK PROM 20 FEET TO 17 FEET FOR TIC CONSTRUCTION OF AN ADDITION ONTO AN EXISTING NONCONFORMING BUILDING AND REDUCE PARKING SPACE LENGTH BY TWO FEET WITH 5'fAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION • NO. 12412) 3. CONSIDERATION OF VARIANCE REQUESTED BY BARRY OLSON TQ REDUCE FRONT YARD SETBACK FROM 25 FEET TO 18 FEET FOR THE CUNST'RUCTION OF A COVERED ENTRY LOCATED AT 304 COLLEGE AVENUE NE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RE50LUT'lON NO. 12413) 4. CONSIDERATION OF VARIANCE REQLIF.STED BY DAVID BROLL TO INCREASE LOT COVERAGE REQUIRMENTS T'ROM 35% TO APPROXIMATELY 37% FOR CONSTRUCITON OF FOUR-SF,ASON PORCH ON TOWNHOUSE LOCATED AT 70 URCHARD AVENUE SE WITH STAFF RECUMMNL'DA1'ION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTIUN ND. 12414) 5. CONSIDERATION OF VARIANCE REQUESTED BY RANDALL AND EDITH CARLSON TO REDUCE FRONT YARD SETBACK FROM 25 FEET TO 8.8 FEET' FOR THE CONSTRUCTION OF ADDITION TO EX1ST'ING NONCONFORMING DUPLEX LOCATED AT' 426 HURUN STREET 5E W1'I'H STAFF RECOMMENDA'1"lON AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12415) 6. CONSIDERA'f10N OF VACA'1`ION OF LOUISIANA STREL'•T AND THE 10 FOOT UTILITY AND DRAINAGE EASEMENT DIRECTLY TO'fHE WEST OF THE STREET REQUESTED BY LEO SAND, SAND PROPERTIES, WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVE F1R5T READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 04-377 FOR JUNE 8, 2004) 7. CONSIDERATION OF CONDITIONAI, US6 PERMIT AND VARIANCE REgUES'I'ED BY SCOTT GERBER TO CONSTRUCT A RETAINING WALL IN THE EASEM1rNT AND TO . REDUCE SIDE YARD SETBACK ONE FOOT TO CONSTRUCT A HARDSURFACED DOG ~ t ~~ CITY COUNCIL MINUTES -MAY 25. 2004 WALK FOUR FEET FROM PROPERT LINE LOCATED AT 785 ROBERTS STREET 5W WITH STAFF RECOMMENDATION AND FAV ORABLE RECOMMENDATION (ADOPT . RESOLUTION NO. 12416 AND 12417) 8. CONSIDERATION OF A THREE-LOT PRELIMINARY PLAT TO BE KNOWN AS I-IUTCHINSON FIFTH AVENUE INDUSTRIAL PARK SUBMITTED BY THE HUTCHINSON EDA WITH STAFF RECOMMENDATTON AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12418) 9. CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE SECTION 8.01 REGULATING EXISTING TWO FAMILY HOMES IN THE SINGLE FAMILY RESIDENCE DISTRICT WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF RDINANCE NO. 04-379 FOR JUNE 8,2004) 10. CONSIDERATION OF FINAL PLAT TO BE KNOWN AS SOUTHFORK RIDGE SECOND ADDITION WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12419) (d) LETTING NO. 4, PRQJECT NO. 04-04 (5TH AVENUE SE/INl]USTRIAL PARK) - DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OP PROPOSED ASSESSMENT - HEARING ON PROPOSED ASSESSMENT (e) IsETTING NO. 5, PRQJECT Np. 04-OS (ROLLING MEADOWS EAST) - DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT - HEARING ON PROPOSED ASSESSMENT . -WAIVING HEARING ON PROPOSED A5SL'"S5MENT - ADOPTING ASSESSMENT - ACCEPTING BID AND AWARDING CON'T'RACT' (f) LETTING NO. 8, PROJECT NO. D4-09 (RAVENWOOD WE5T') - DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT - WAIVING HEARING ON PROPOSED ASSESSMENT - ADOPTING ASSESSMENT -ACCEPTING BID AND AWARDING CONTRACT (g) LETTING NQ. ]0, PROJECT N0.04-12 (HUTCHINSON MUNICIPAL AIRPORT) - ACCEPTING BID AND AWARDING CONTRACT (h) CONSIDERATION FOR APPROVAL OF TRANSIENT' MERCHANT APPLICATION FOR RICHARD SEIPEL DBA TI3E COUNTRY STOP (i) CONSIDERATION FOR APPROVAL OF PEDDLER'S LICENSE AND FEE ADJUS"T"MENT FOR GERALD JOHNSON TO SELL NOVELT'lE5 AT THE JAYCEE WATER CARNIVAL ON JUNE 20, 2004 (j) CONSIDERATION FOR APPROVAL OF 5I-TORT-TERM GAMBLING LICENSE FOR HUTCI3INSON AREA FOUNDATION FUR HEALTH CARE ON AUGUST 9, 2004 . (k) CONSIDERATION FOR APPROVAL OF AWARDING RECREATION CENTER ~ cam) CITY CO UNCIL MINUTES -MAY 25, 2004 FLQgR1NG BIIa • Items 5(d), 5(e), 5(f), and 5(i) were pulled for separate action. Motion by Peterson, second by Haugen, to approve consent agenda with the exception of items 5(d), 5(e), 5(f) and 5(i). Motion carried unanimously. 5(d). John Rndeberg explained that accepting bid and awarding contract should be included with this action item. Motion by Peterson, second by Arndt, to approve accepting bid and awarding contract. Motion carried unanimously. 5(e). John Rndeberg explained that ibis award should be contingent on the subdivision agreement being signed. Motion by Haugen, second by Stotts, to approve this project upon the contingency of the subdivision agreement being signed. Motion carried unanimously. 5(f). John Rndeberg requested that this item he deferred to the June 8, 2004, City Council meeting. hi addition, the low bidder, Duinick Bros., has had issues with previous city projects and Jnhn would like to get those ironed out, Mntinn by Peterson, second by Arndt, to defer this item to the June 8, 2004, City Council meeting. S(i). The applicant requested that the license fee be adjusted due to decreased sales. This item will be deferred to the June 8, 2004, City Council meeting in order to determine what other City's charge for transient merchant fees. 6. PUBLIC HEARINGS - 6:00 P.M. 7. COMMiJNICATIONS. REQUESTS AND PFTITiON5 8. UNFINISIIF,D BUSINESS (a) CONSIDERATION OF A LOT SYLI'I' LOCATED AT 165 ST" AVENUE NW AS REQUESTED BY PAUL BETKER WITH UNFAVORABLE STAFF R.F..COMMENDATION AND iTNFAVQRABLE PLANNING COMMISSION RECUMMENDA'1'lON (ADOPT RESOLUTION NO. 12390) Julie Wischnack, Planning Director, presented before the Council. Ms. Wischnack gave an overview of the situation. Options for the Council to consider are to send this item back to the Planning Commission for consideration, approve/deny the lot split, or to provide direction to staffto negotiate a pproperty sale. John Rndeberg explained that the file line running through the lot is from the early 1900s and this line is where raw sewage is coming from. The the hoe is operating and the City needs to keep it operational and not remove ii. Discussion was held on drainage issues on this property and surrounding properties. Mayor Torgerson's feeling is that this lot is unbuildable, it could be split, but then a portion of the lot would be unbuildable. The southwest corner of the parcel is the only piece that is buildable. Casey Stotts asked if it would be an option for the City to purchase the unbuildable portion of the parcel. Mr. Rndeberg stated that more ponding will be needed than what is available on the lot, but property tq the north will more than likely need to be purchased to build a pond. Julie Wischnack explained that the vote at the Planning Commission was 6-0 recommending denial of the lot split. Paul Betker, property owner, presented before the Council. Mr. Betker explained that he purchased this lot thinking that he would be able to split it. Mr. Betker stated }ie was unaware of the file hoe U (~~ CITYCOUNCII. MINUTES-MAY25, 2004 and he feels like he is in a dilemma. He also stated that other development has forced water to this • area. The lot split would cause one portion of the lot to be unbuildable. If the lot remains as one lot, the lot would have a buildable area on the southwest corner. Mr. Betker requested that this item be tabled so more discussion on options for the lot can be discussed. More discussion was held on what the next steps should be. John Rodeberg explained that the City may not need to purchase the unbuildable portion of the ]oi, however drainage easements could be purchased. Motion by Arndt, second by Peterson, to defer this item to the June 8, 2004, City Council meeting. Motion carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF REQUEST FOR PROPOSALS FOR WATER SYSTEM MAST ER PLAN AND WASTEWATER FACILITY OPERATIONAI. SUPPORT AND ANALYSIS John Rodeberg explained chat he has two RFPs for consideration. Mr. Rodeberg further explained that the last analysts done was years ago and needs to he completed again, The second RTP is relating to staffing issues at the wastewater facility. This request is to obtain proposals with approval of the RFPs occurring at a later Council meeting. Motion by Peterson, second by Haugen, to approve the request for proposals for water system master plan and wastewater facility operational support and analysis. Motion carrted unanimously. (b) CONSIDERATION FOR APPROVAL OF 2004 RECLASSiFICA1'lON REQUESTS • Gary Plntz, City Administrator, explained that typically reclassification requests are made in January, however due to the reorganization ofthe Public Works Department, the requests have been delayed to now. Brenda Ewing, Director of Human Resources, presented before the Council. Ms. Ewing explained the positions for consideration of reclassification which include Director ol'Public Works, Assistant Public Works Director, Laboratory Technician, Director of Human Resources, Administrative Secretary and City Attorney. Bill Amdt questioned the reclassification ofthe laboratory technician. Ms. Ewing explained that the job duties have been adjusted. Jim Haugen questioned the rates indicated on the chart provided in the packet. Ms. Ewing explained that pay increases indicated are for the remainder of 2004. Motion by Peterson, second by Arndt, to approve 2004 reclassification requests. Motion carried unanimously. Ms. Howell, neighbor to Beiker property, presented before the Council. Ms. Howell voiced her concerns of her property flooding if a house is built on the lot owned by Paul Betker. 10. MISCELLANEOUS (a) COMMUNiCAT10N5 1. Hutchinson Area Health Care requested approval to purchase infusion pumps in the amount of • $59,000. yC~) CITY Cd UNCII MINUT,~S - MAY l5, 2004 Motion by Peterson, second by Arndt, to approve purchase of infusion pumps. Motion carried . unanimously. ]3i11 Arndt - Mr. Arndt congratulated the class of 2004 on upcoming graduation. Mr. Arndt also stated that a good meeting was held with the downtown property owners regarding the lighting issue. Kay Peterson - Ms. Peterson reminded the public of the 100`" anniversary of the Public Library on June 22, 2004. Motion by Peterson, second by Amdt, to set the 100`" Anniversary of the Public Library as an open mceting of the City Council. Motion carried unanimously. Gary Ylotz - Mr. Plotz ex~laincd that a presentation on the liquor store project will be at the June 8 2004, City Council meetm~. Mr. Plotz suggested that a public hearing be held at the June 8`s meeting for the public to voice their opinions on the liquor store project. Motion by Arndt, second by Stotts, to set a public hearing for June 8, 2004, at 6:00 p.m. to discuss the liquor store project. Motion carried.unanimously. Mayor Torgerson noted that the newspaper had published the fact that the Ciiy Council had decided to build a second liquor store. The Council has not made that decision. .lobo Rodeberg - Mr. Rodeberg informed the Council that a Highway 15 Corridor Coalition meeting was held last week and was attended very well. The first drafr of plans of Highway 7 have been presented and a hearing will he held for municipal consent at a future Council meeting. . 11. CLAIMS, APPROYR[AT[ONS ANll CONTRACT PAYMENTS Mcriion by Stotts, second by Peterson, to approve claims, appropriations and contract payments. Motion carried unanimously, 12. AA.1O[1RN With no further business to discuss, the mceting adjourned at 6:45 p.m. C~ 6 i LCD) r~ ~~ MINUTES BID OPENING LETTING NO. b/PROJECT NO. D4-06 & 04-07 JUNE 2, 2004 Present: Gary Plotz, City Administrator, john Rodeberg, Director of Public Works and Melissa Starke, Recorder Gary Plotz, City Administrator, called the bid opening to order at 10:00 a.m. Mr. Plotz dispensed with the reading of Publication No. 7182, Advertisement for Bids, Letting No. 6, Project Nv. 04-06 & 04-07. Mr, Plotz noted that the City Council reserves the right to reject all bids and tv waive any infnnnalities and irregulariiies as signed by Gary D. Plotz. 'fhc following bids were opened and read: Duininck Bros Inc Prinsburg, Minnesota Bid Amount $545,537.05 R&R )~xcavating Hutchinson, Minnesota Bid Amount $593,704.50 Wm Mueller & Sotas Inc Hamburg, Minnesota Bid Amount $505 429.90 The bids will be referred to staff for review and a recommendation. BIb OPF..NING LF,TTING N0.9/PROJECT NO. 04-]0 & 04-11 JUNE 2, 2004 r 1 LJ Present: Gary Plotz, City Administrator, John Rodeberg, Director of Public Works and Melissa Starke, Recorder Mr. Plotz dispensed with the reading of Publication No. 7183, Advertisement for Bids, Letting No. 9, Project No. 04-10 & 04-11. Mr. Plotz noted that the City Council reserves the right to reject all bids and to waive any informalities and irregularities as signed by Gary D. Plotz. The following bids were opened and read: Duininck IIros lnc Prinsburg, Minnesota Bid Amount $95.341.80 ~I ~Ja> Reiner Contracting • Hutchinson, Minnesota $id Amount $68,236.45 Wm Mueller & Sons, Inc. Hamburg, Minnesota Bid Amount 70 090.75 'The bids will be referred to staff far review and a recommendation. The bid opening adjourned at 10:10 a.m. Marlin Torgerson, Mayor ATTEST; Gary U. Platz, City Administrator y ~~~ C~ Memo 70: Mayor and City Council Members From: Brad Emans, Fire Chief race: tx>IO1roa Re: Monthly lJpdate on Activities of the Fire Department The fire department responded to 37 general alarms in the month of May. Example of a few of the calls: 1. We had a child that was playing with matches and started a woodpile on fire in Hassan Valley. 2. We assisted the police department in a missing child report, the child was found without incident. . 3. We ware called to one of the Hutchinson Airport hangers were people could smell smoke. We checked out the building with the thermal imagining camera and found a bad electric motor. 4. We responded to a full cement truck rollover. We assisted the owner in up righting the truck. 5. We responded to a run-away truck. The truck ran over the driver, hit a fire hydrant, and a gas meter attached to a building. 6. We responded to two houses that were hit by lightning. The lightning did approximately $10,000 damage to a house on Dale Street and an undetermined amount of damage to a house on Franklin Street. 7. We were called to investigate a residential garage fire; we determined that a juvenile had started the fire using gasoline. 8. We responded to feur false calls to Pleasant Acres Apartment during the month. 9. This is the breakdown of the calls for the month: Clty: Residential 6 Commercialllndustrial 6Multi-Family 7 Hazardous Material 4 Vehicle 1 Rescue 3 Sky-W am 1 • 1 ~~~J~ Rural: • ResCUe 2 Grass 2 Medical 5 drills I Meetings !Other Information • Trench Rescue-Classroom • TrenchRescue-Hands-On Gas /Pipeline emergencies conducted by Hutch Utilities • McLeod County Chiefs meeting in Glencoe Fire Prevention 1. We provided 1 ~ Aid fora 4-H event held at Gopher Camp Fire 2. We participated in EMS week with an equipment display held at Cashwise C~ LJ • Page 2 5~ ~~ s ~7~d~ak~~r ~~,~f~arrrd~~ra~ ~,na~its far ~h~ aaaaan~P~ - ~ ~- ~~ . H • A~3os aooa ': :: C r ar ^ ^ r TE7TAL * ^ * ~ , 1 ~'- ASSETS UTILITY PfJ1Nf - AT COST LAND SLANG FIGHI~S 1,876,337_49 DEPRECIARL.E UTILITY PLANT 9d, 759, 759.96 - TL]TAL UTILITY PLANT ___ __. 98,436, 097.45 ~~~~ LE55 ACClA7ULATED DEPRECIATFC7N (27,146,447.981 .._ _ _ __ TOTAL ACCUMULATED DEPRECIATION. --_ ._ f27,i46, 447.985 n, ~ ~•; CE)k87RUCTICN IN PRCX.RE55 1,579,459.81 -' ~ ~~ ~ -_ ~ ~_ ~~~_~ ~-~~ TOTAL COkSTRUCTIOk IN PROGRESS -~-~- _ L, 579,4S9.Bi ~ ~~~ TOTAL UTILITY PLANT DEFREC VALUE 73, 067.109.26 ;,~ .ei ~~ RESTRICTED FUhFDS S RCC6UNTS ~.:: FUTURE E%PAkSFOk S DEVELOPMT-~NT ~ 3, SBL, 66L.11 ~ 2003 REFUNDING F_UM7 _ .._ ~~ 2,795.415.85 ~ ~~^f -- HDND 6 INTEREST PAYME3JT 2063 697, 146.36 I ~t+:l TE)TAL RESTRICTED FUNDS S ACCDUkTS 6,674,423.32 ,~ --- ---~-~~- _.- - . _. ~- CURREk7 & ACCRL~D ASSETS a~ CABH IN SANK :,68,696.OA ~ ~ _ ACCOUNTS RECEIVABLE__._ 2,583,430.30 1-- ---- -~IiVVEkTORIES ~ S,Si4,238. i6 , ix.' PREPAID INSURANCE 16,810.39 r CLEARFNG ACCOUNT 52,929.53) ~. __ 5AL.E5 TA% RECEIVABLE 34,093.30 w TOTAL CURRENT S ACCRUED ASSETS 4,714,336.68 ~i - _ _ I DEFERRED CHARGE W 8f]kD DI5C©UMT 2003 647,235.95 h~ TOTAL DEFERRED CHARGE 647,236.95 Ki ~~:~ TOTAL ASSETS 85,303,128.23 ~ `-i ~ . • s,•. ''' 1: 1 i J~ i.. ^ x~ r r TOTAL ^ • +~ ~ ~ MUNICIPAL EBUiTY E LIAS iI_ITiES MUNICIPAL FAULTY 43,387,536.98 MUNICIPAL EQUITY ~ CUNTRIHUT1=b EQUITY 5,665,640,38 UNAPPROPRIATED RETAINED EARiJINGS 763,506.35 TOTAL MUNICIPAL EQUITY 49,255,883.75 i .• L9NG TERM LIABILITIES-NET OF ~~• ~ CURRENT MATURITIES 2,725,000.66 ~ ~ 2001 8 E+QNDS 30,705,000.(X7 2003_8UND5 33,430. O0O.OU TOTAL LONL TERM LIABILITIE5 ~ !~ i COi+lTRACTS & RCCTS PAY RETAIN CON6TR •~ i __ ACCRUED E)'PENSES - RETAINAGE 112,965.@4 965.84 112 7 TOTAL CONSTRUCTION L. ACCTS PAY , -~ CURRENT 5 ACCRUED LIAPILITIE5 I+i 7 ACCOl.N+1T'5 PAYABLE 1 , 706.751 .69 i6 544 93i ~~' INTEREST ACCRVFD . , __ ACCTS PAYABLE TO CITY OF HUTCHINSON 77,250.00 ~• ACCRUED VACATION PAYAPLE 588,818.43 ~ ; pCCR4.lED t9EDIpAL FUND C 163, 621.647 ~~~~ ~ ACCRUED REC PAYMEiJT 15,925.94 i ACCRUED SEVERANCE 28,820.1] Il DEPQSITS R USTOHE C 77,885.00 i i . __ _ _ . OTHER CURRENT S ACCRUED LIAPILITIES 67,517.44 a,saa,27@.as ~!:~ 70TAL CURRENT 6 ACCRUED LIAP TOTAL MUNICIPAL EQUITY & LIAE 85,303,126.23 ~ ':. f:: ~.. - --- - ~ ~. ~ - ... ----- ~ N -- Si'ATEMENT OME 6 EXPENSES • AP30, 2004 INCOME STATEMENT OF'F_RaTING 1:'EVEIJL[E_ SALES - ELECTRIC ENERGY i~~ SALES FOR RESALE _ 9ALF_S - GA5__ - TOTAL OPERATING REVENUE ~ ,.. '~~ OPERATING EXPEN5E5 -__--_- I:~ PRODUCTION OPERATION ; ; • f'RODUCTII]N NfA INTENANCE ~~:~ PURCHASED AOWER._-- ~~i TRANSMI55ION OPERATION ~ ~ TRANSMI55I[1N MAINTENA1dCE I°i ELECTRIC DISTRIHUTION OPERA '~! ELECTRIC DISTRIBUTION MAIN? !i.: PURCHASED GAS EXPENSE ~ GA8 TRANB'TtI552.ON OPERATION __ _ I~ ~ - GAS TRANSMISSION MAFN7ENAtJC •!~ ~ GAS DFSTRFRUTION OPERATION DI57RISlITION MAINTENAN_ GAS !% ~ _ _ _ __ _ _ CUSTOMER ACCOUNTING & C1)LLE i ~~~ ADHINISTRATIVE L. GENERAL EX ~~~ DEPRECIATION _ _ -- - -i __ TOTAL OPERATING EXPENSES ~ ni P OPERATIttlG INCOME _ _- I __ f OTHER ih9COME I:a F1F SL' INCOHE- __.. - _ ©THF_R . ! -_ _ _ SECURITY LIGHTS i ~~ Ff~E RENTAL _ - __ _ _.__OTHER. - NET ___ _- - _ .. _ _ INTEREST INCOME +~:-0 MIS( INCOME ti OtV DISPUSA_L -. _ELECTRIC GAIN ~ ' - r' _ - - - GAIN f]7J DISPOSAL - GAS I i ~^i TOTAL OTHER INCIX'1E - OTHER EXPENSE6 - - - - ----~ - i ;.~i RISC EXPENI6E5 + £ST EXPENSE_ _ __. iNTER - _ TOTAL OTHER EXPENSES - CDNTRIRUTION TO OFTY ____ ~~ _ TOTAL CONTRIBUTION TO CITY NUN-OF'ERAT ItJG _F1~ICOME __ __ __ - _ . _ • ~ ~. NET INCOt'lE J~ _ ._ TFON _. ENANCE E CE. . CTI ON5 PEN5E5 PkEVFOUS YEAR T6 DATE 6,120,956.13 (3,745.00 4,964,351.26 15.519,074.39 843,427.16 104,337.17 2,948,555.58 103.97 204,592.90 158,489.00 47,551.26 4,338,323.63 .09 .00 130,539.96 39,714.85 111,351.51 507,982_00 820,000.08 10,256,329.09 842,745.30 4'7, 602.26 3,727.00 924_50 23,730.30 58,846.47 139,926.04 1,034,055_64 134,557.58 1,445,561.84 43,261.21 99,163.33 142,444.54 294,900.00 294,000.00 S,D09,137.2T 1,871,882.37 Ck1RRENT YEAR 70 DATE 6,850,976.89 :i 7, 369.00 4,356,830.04 11,265,Ik5.90 435,954.31 142,849.53 4,158,548.41 117_66 2,992_92 1?5,845.88 :,5, 579.87 3,669,543.29 6,943.05 6'76.87 148,374.41 24,173.89 102,057.91 592,462_20 5,044,672_00 10,502,784.34 762.331.56 46,846.23 3,692.00 968.25 5,315.85 29, 19(1.39 70,234.06 .OU .00 156,240.78 10,748.91 435,717.08 446,465.99 309,900.00 309,000_00 1599,225.21) 163,106.3. BUDGETED YEAR TO DATE 5.555,402.17 166,650.D0 2,675,22.7.50 8,347,279.47 $58,974.94 88,824.45 2,333,100.OU .00 2,466.40 144,980.44 50,328.30 2,084,740.68 13,581.65 23,900.94 149,829.72 31,580.39 112,387.35 618,346.59 1,064, 56U.00 7,579,7@3.45 817,576.02 29,997.00 4,332.90 1,333.20 19.998 _ CkCi+ 23,331.00 208,575.81 .OU .00 287.507.91 .90 397,198.15 397,198.15 308,949.10 308,949.10 (416,459.34) 348,916.68 E+UDGET DEYIRTION 1,295,574.72 (109,341.00) 1,681,402.51 2,847,836.23 422,922.63 (24,025.081 f 1,825, 448.41) (117.40) (326.527 19,114.55 f 5, 251.57) (5,584,372.653 4,638.40 23,222.07 1,25:'.51 7,406.34 S U, 329.44 25,484.39 (112.001 (2,923,080.497 (55,244.461 14,643_23 (440.961 (364.457 (14,682.15) 5,859.39 (138,261.75) .00 .90 (131,267_133 (10,748.917 (38,518.93) C 49,267.843 530.99) (30.90) (560,565.87) 1235.810.33) ANNUAL SUDGEF 16,667,673.30 50C•), 000.00 8,926,485.15 25,194,358.45 2.574,688.53 264,500.00 7, 000,00D.UU .OU 6,000.09 434,484.84 151,000.00 6,254,647.52 40,749.00 71,710.00 g49,S34.10 94,750.00 337, 195.'13 1.855,225.27 3,200,000.00 22,741,384.99 2,452.973.46 9D,900.OD k3,000.00 4,000.00 60,000.00 70,000.00 625,610.00 .90 .UO 862,610.00 .40 1, 191,'713.42 1,191,713.62 927 , 000. C'ki 927,090.90 ((,256,103.42 1,196.649.84 J" ORDINANCE N0.04-376 PUBLICATION NO. AN ORDINANCE OF THE CITY OP HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF MUNICIPALLY OWNED REAL PROPERTY ANA ADOPTING, EY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY OF HUTCHINSON ORDAINS: Section 1. That the municipally owned real property legally described as follows: That part of Lot 3, Block 49, NORTH HALF OF HLTTCHINSON, according to the recorded plat thereof, described as follows: Commencing at the southwest corner of said Lot 3; thence northerly, along the west line of said Lot 3 a distance of 20.00 feet; thence easterly, parallel with the south line of said Lot 3 a distance of 52.00 feet to the point of beginning of the land to be described; thence continuing easterly, parallel with said south line 3.00 feet; thence southerly, parallel with said west line 20.00 feet to said south line of Lot 3; thence easterly, along said south line 33.00 feet; thence northerly, parallel with said west line 27.OU feet; thence westerly, parallel with said south line 36.00 feet; thence southerly, parallel with said west line 7.00 feet to the point of beginning. • for good and valuable consideration thereto, is hereby sold and conveyed to Earthly Delights, Ltd., together with all hereditament and appurtenances belonging thereto. Section 2. The sale of municipally owned real estate is authorized in exchange for payment, by cashier's check, certified check, or other guaranteed funds, in the amount of $11,664.00 by Miles and Linda McMonigle of Earthly Delights, Ltd. Section 3. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeaied verbatim herein. Section 4. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this 8~~' day of Tune, 2004. Mazlin Torgerson Mayor ATTEST; Gary n. Plotz City Administrator 5C~) PUBLICATION NO. ORDINANCE Np. 04-377 AN ORDINANCE OF TIIE CITY OF IiUTCHINSON, MINNESOTA VACATING LOU151ANA STREET , UTILITY AND DRAINAGE EASEMENTS LOCATED IN HUSI{i ADDITION THE CITY COUNCIL OF THE CITY OP IIUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the Ciry Council that it would be in the best interests of the City to vacate Loisiana Street, utility and drainage easements located in Huski Addition for the puzposes of redevelopment. Section 2. That the street, utility and drainage easements to be vacated ate described as follows: Louisiana Street N.W. and the 10 foot drainage and utility easement to the west of the street in llttski Addition. Section 3. This ordinance shall take effect from and alter passage and publication subject to the following conditions. 1. All piled concrete material be removed from the property by June 30, 2004. 2. Future development plans must be reviewed under separate processes. C~ Adopted by the Ciry Council this 8'" day of lone, 2004. Marlin 1'orgerson Mayor A7"1'EST: Gary D. Plotz City Administrator 5 «~- • Hutchinson City Center ~.~..~ c 111 Hassan Street 5E Hutchinaoo, hIN 55350-2522 320.587.5151/Fax 320.2344240 MEMORANDUM DATE: May 20, 2004 TO: Hutchinson Ciry Council FROM: Hutchinson Planning Cotnnlission SUBJECT: Consideration of Vacation of Louisiana Sneet and Arainagc and Utility Easements located in Huski Addition Pursuant to Subdivision Ordinance No. 466, the llutchinson Planning Commission is hereby submitting its f`mdings of fact and recommendation with respect to the aforementioned request. IIISTORY: The applicant is requesting a vacation of Louisiana Street and a 10 foot easement along the street. The easement will be xeplarted in the future- Originally, the plat indicated xlght of way in this area because there was anticipation there would be a connecting road tv the north. However, when Rolling Meadows was platted, the road connectivity was reconsidered and Texas Avenue will continue to the east (and is being constructed). FINDINGS OF FACT: 1. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, May 6, 2004. 2. There were no neighboring property owners present objecting to the request. RECOMMENDATION: Planning Commission unanimously recommended approval of the request for the vacation of casements with the fallowing conditions: I. All piled concrete material be removed from the property by Tune 30, 2004. 2. Future development plans must be reviewed under separate processes. Respectfully submitted, Dean Kirchoff, Chairman Hutchinson Flanning Commission r~ cc: Leo Sand, Sand Properties, 366 South 10th Ave- Waite Park MN 56387 Primed an recycled pepw - 5(.~~~, ~~ CITY OIi HUTCHINSON PLANNING STAFk' REPORT _._ ____._._w.w.~.~..~_~._~~,...,...~...<.,.WV.~,.~,..~.,A.~,..~...M~~,...~.,a..w...~ . To: Hutchinson Planning Commission Prepared 13y: Planning Staff: Brad Etnans, Aolf Moon, Doo Nelson, Lisa McClure, Susan Rolander, Jean Ward, John Rodeberg, P.E., John Webster, John Olson, Lenny Rutledge, Barry Greive, Mark Schnobrich, Marc Sebora, Gary Plotz, Ken Merrill, Jim Popp, Dave Erlandson, Dick Nagy, Julie Wischnack, AICP, and Bonnie Bauroetz Date: May 7, 2004 -Meeting Date: May 18, 2004 Applicant: Len Sand, Sand Properties, Property Owper VACATION OF EASEMENTS Brief Description: The applicant is requesting a vacation of Louisiana Street and a 10 foot easement along the street. The easement will be replatted in the future. GENERAL INFORMATION Existing 7.nning: R4 (High Density Residential) • Property Location: North of Texas Avc. Lot Size: 7.77 acres Existing Land Use: Vacant Adjacent Land Use And Zoning: Single Family to the north and east; High density to the south and west Comprehensive Land Use Plan: T'raditiona] Residential Neighgorhood 2,oning History: Huslci Addition was platted in 1995. Applicable Regulations: Sec. 12, Chapter 12 Hutchinson City Charter SPECIAL INFORMATION Transportation: Texas Ave. Farking: N/A • Analysis and Recommendation: Originally, the plat indicated right of way in this area because there was anticipation there would be a connecting road to the north. However, when Rolling Meadows was platted, the road connectivity was reconsidered and Texas Avenue will continue to the east (and is being s~.~~~ Vacation of Street and lwasements Sand Properties Planning Commission-May 18, 2003 Page 2 constructed). Staff would recommend approval of the request with the rededication of easements as the property develops. Staff would have the following cohdition: 1. All piled concrete material be removed from the property by Tune 30, 2004. 2. Future development plans must be reviewed under crparatr processes. Cc Leo Sand, Sand Properties, 366 South 10'" Arc, Waite Park, MN 56387 r L. r~ u 5~:~~a, w ~~ ~ ~~ ~~~ '~ ~~ ~i~~~. ~~ ~~ ,~ ~, ppee``'' ~y f~~ }¢ ~~~ ~a ~ d m~ 5S y ~~ i ###,~~~ ~~ 1~~ ~~ ~ ~ ~~r7~~ ix ~~ I~ ~,~~ s~ a d Z ~ ~ ~~~ v~iG9 ~~~C~. •~ ca e,; ~e' w, ; ~ ~~ d~~ .. ' ~ ~ ~~ ~ , ~ I~ y ~ ~~ ~, ' ~ ~~6 ~~ 'l • yr A ~~ ~ ti'-. ~ 1~X F i :J ~ .~ ~. ~ 'ryf~.. ~ ~ ~ ~.'~? 7a1 y !K„4S~d~d~f74~5 ~il"l'YY :I a5''r0~ ~ +r i~'C~ i 1 y ~ 4 ~~ Yin ,gym. ' I 1 l ~ ~ ~, ~~>~~.~~ a~~Y~ ~. ~ 1 1 ~'8~ 9 ~ l Rs. ~~~ ~~ ~ ~ C .~. ~ ~ ~~ yf ~ ~ n ~" I ~~. "Y ~ 4 ~ I .. r'~ ~ ~ A ~'~ ~ S ~. ~ ., ~ .. ~.. w" ~~ ~~ ~ :* a w, ~".' i~ ~+~ ''..~s y ..gip < '" 4~ '~ 4 ~'F 'k ' A! dr '~ ~ ' .. N ~ ~ ~ .~ w I ~ Y ~ ~µ I I ~:~ ».. ~.... ~ ~~ ~~ l~ ~ v ~~ ~ ~ ~ ~a ~ z r°yn ~,:a~ .. .~_ wm~~. vs']&u''W {~~c.q ~., .e. raYSaNF.. ''~~•~. .4, ~' a r6~y!(:e, ~; P~V~z 'v.e .~..,. ... ~ ..„ C-+r:A .lr .H~' ~'fi-; .. .... "en"rihWv, .,'.='i.^fl:W.,~'E'+r~ s:;nT~ \~ •Pd.;,:• .., 'N~..i ~~ ~' -~CI Scr.nrl (,`onr nnies, hu•. April 20, 2004 Ms. Julie Wischnack, AICP Director of Planning, Zoning and Building City of Hutchinson 1 1 ]Hassan Street South East Hutchinson, MN 55350 Waif P;rrV..:\1~\ 5(~~k'.(i'~'_ Fax: I??I11 ?II]- t 15!: 1:-mail: tiCIGi tiandCr~tnp;u,lt.._~n:r ttpbvni: w,ra.SnndCnmpanitn r~~n-~ Dear Julie, Enclosed please find the Petition to Vacate Easement, Street or Alley, with attached check for $175 and a survey plan. T'he property is in the name of Sand Properties, Inc. formerly known as Sand Properties, Minnesota, .Inc. 1 have enclosed a copy of the deed and the proper documents relating to our name change. You will notice that I am requesting the vacation of Louisiana Street NW and the 10' utility and drainage easement directly to the west of this street. Anew 10' utility easement at the east side of the current street will be granted to the city as well as extending the current 10' easements to the east on the ngrth and south property lines so that there is a continuous 10' utility easement around the entire lot after the street has heen vacated, I have hired Otto & Associates to prepare a final site plan for development of this property. 1 am planning on submitting in the near future a site plan for 32 to 40 units of twin homes, which 1 understand requires a Conditional Use Permit. if you have any additional questions please do hesitate to contact me at (320) 202-3100 ar I:~\Itiand ~r:$:Ind('untpamr~ cant. Sincerely, Inc. Executive officer Construction • J'roperty A7anagetuent • llevelupment F~grarl Upprrrtunity Fnrplovpr ~~~ PUBLICATION NO. ORDINANGE NO. 04-379 . AN ORDINANCE AMENDING SECTION 8.04 OF THE HUTCHINSON CITY CODE REGARDING EXISTING TWp FAMILY HOMES IN THE SINGLE FAMILY DISTRIGT 8.04 R-1 SINGLE FAMILY RESIDENCE DISTRICT PURPOSE The R-1 RESIDENCE DISTRICT is intended tc provide residential areas for development of single family homes and complementary uses on larger parcels of land. PERMITTED PRINCIPAL USES The following uses are permitted, as regulated herein, without special application requirements or conditigns attached: Single Family detached dwellings - (All new home construction in Resldentlal Districts shall have an attached or detached garage with a minimum of 400 sq. ft. Single family dwellings without garages or with garages less than 400 sq. ft. Are conditionally permitted. A conditional use permit is required.) (Amended 1D/11/94) Parks and playgrounds Licensed Family day care as permitted by Minnesota State Law (Amended 5/9/95) State licensed residential facilities serving six (6) or fewer persons. (Amended 5/9/95) CONDITIONAL USES . Single family houses not served by public sanitary sewer 7~.~~ fa..~fl.. hn~~o ce. ,. °-~Dt• r Existin two Tamil homes constructed and utilized as a two Tamil home rior to 1987 could became a legal conforming use thrvuah the conditional use orocessl. Golf courses and related facilities Churches and houses of worship and related facilities Schools Move structures larger than 10' x 12' Seasonal on-site sales (ie: Ghristmas trees) Conditional use permit to be renewed every three (3) years (Amended 12/23197) All licensed day care facilities which are not permitted principal uses under Minnesota State Law (Amended 5!9!95) EFFEGTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adapted by the City Council this 8'h day of June, 2004 • Attest: Gary D. Plotz Marlin Torgerson, Mayor J~h~3 Hutchinson Cit Center r~ L 111 Haaaan Strtet SE Hutchinson, MN 53350•xs2z szassv-slsveax 3zax3a-axao MEMORANDUM DATE: May 20, 2004 '1'O: Hutctunson Ulty Council FROM: Hutchittson Plann~nv Commmission SUBJECT: CONSH)ERATION DF AMENDMENT TQ ZONING ORDINANCE SECTION 8.04 REGULATING EXISTING 7"WO FAMILY I-IOMES IN THE SINGLE FAMTLX RESIDENCE DISTRICT Pursuant to Sections 6.05 ofZoning Ordinance No. 464, the Hutchinson Planning Cotnnlission is hereby submitting its I"mdings offact and recommendation with respect to the aforementioned request for an amendment to the zoning ordinance. HI ORY Staff reviewed the information in the code. It is obvious over time, the code was amended from having only one residential district to five residential classifications. The Rl District, in 1962, allowed two family dwellings. The 1962 Code, also did not have any additional residential zoning districts. In 1987, the code was changed in that the Rl District changed to delete two family dwellings as apermittcd use and did not specifically pemlit them conditionally. The verbage added stated "cluster housing, detached or attached townhouse developments with a maximum of five unit groups" would be considered under a conditional use process. In 1997, the zoning code was changed and added language that stated "two family houses on a lot of record prior to January 1, 1991" would be considered a Conditional Use Permit. A change in the ordinance would clarify the matter to fw thcr provide a process for existing duplex/two family dwellings within ~c Rl Zoning 1istrict. FIND~1 VGS OF FACT 1. Notice was published in the IJutchinson Leaded on May 6, 2004. 2. There was no one present at the meeting objecting to the request. COM AT1ON The Planning Commission voted unanimously to approve the amendment to the ordinance as follows: "Existing two family homes (constmcted and utilized as a two family home prior to 1987) could become a legal conforming use through the conditional use process." Respectfully submitted, Dean Kirchoff, C1lairman Hutchinson Planning Commission C] Printed an recycled poper • f / ~ R~soI.uTION No. Izaal . RESOLUTION ESTABLISI-IING LOCATION FOR TRAFFIC CONTROL DEVICES WHEREAS, the Director of Public Works and the Police Chief agree that the following areas have traffic control concerns which warrant traffic control devices, and; WHEREAS, the Hutchinson City Council has the authority to establish locates as points where traffic control devices shall he erected, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHIN5ON: That the Council hereby establishes the following traffic control devices: "LOAllING ZONE" signage shall be installed in the municipal parking lot west of City Center (by 101 Park Place) to provide a stall adjacent to the handicapped stalls near the alley. This was requested to provide an area in the lot when events such as the Farmers Market or Arts & Crafts Festival require closing the alley entrance to tsr Avenue SE. 2. "NO PARKING - 2 a.m. to 6 a.m." shall be installed on the north side of South Grade Road from a point approximately 100 feet east of Lakewood Drive to a point approximately 250 feet cast of Lakewood Drive. This area was previously approved as a IVo Parking zone, but the lack of safe parking !n this area has raised concerns that we felt needed to be addressed. The propose! will allow for appropriate sight distance. Adopted by the City Council this 8th day of dune, 2D04. Marlin Torgerson Mayor ATTEST: Gary D. Plotz . City Administrator I:1Pu611C Wo~CSIResalutionslTRAFFIC1TrdfCpA9 6~-0A.da 5~~~y RESOLUTION NO. 12442 CITY OF HUTCHINSON • RF,,SOI.UTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSIJ DEPT. BUI]GET VENDOR Bag Film $47,117.00 Bagging of product for resale Compost Yes Volm Bag Co. ~he following items were authorized due to an emergency need: ITEM I COST I PURPOSE IDEPT.IBUDGETI VENDOR Date Approved dune 8,2004 Resolution submitted for Council action .Motion Made By: Seconded By: hy; Ken Merrill, Finance Director S ~ 5~-~ a .: ., f City of Hutchinaon • FEE: ~" APPLICATION FOH GAMBLING DEYiCES LICENSE Appr©Y.ed.by: Bui3~d~h~"• `, _ F9:re •. Application shall be submitted at Police least ~ days prier to the Glambling eccasi{-on 1, ~,a-~. c~,etlz/C AND I. 1~~~~ ~. ~~~'`lA.~'Y1L~n~ Name of Authorized Officer of Name of Desig#~ated Gambling gxganizatian Manager Hereby submit in duplicate this application for a license to e.enduct Gambling devices in accordance with the provisions of the City of Hutchinson grdinarce N0. b55 and Minnesota Statutes Chaptex 349 fox the license year etading 200 Signatures: ~ ~~ ~` ~-tc~..._v Author ea q fiver of grganization Designat ambling Mana,g;e,~:of organi.~`:a"t~-G1iii . A. The following is to be completed by the duly authorized officer of the organization: 1. True Name: cr/L°C rrr .~ r-.~ /~ Z o ~~iN (last) (first) (middle).. 2. Residence Address: /°%~ }~<~t.~ r.tSe?~-- ~/f/+!_____ ~~~-~~ (street) city) ,(sta=tieaj~;-,~~~y~j~:,'' . 3. Date of Birth: /I ~ n°73`".~'- 4. Pls,ce of Birth {/•r~~~,`~'Su.,;. i`I'I+~-~ ..~, r ,.. ~ ,. (me/day/year) (city'"~iir~:~re')'.:' ' 5. Have you ever been conv cted of any crime ether than a traffic.: offense? Yes No ~. Tf Yes, explain B. The fallowing is to be completed by the designated gambling phnage'x. of organization: (1 M,~~ ~~en 1. True Nama: ~~~1t+4n9G~~n I``,i (last) 2. Residence Address: 3. pate of Birth: r (street) II- ~- i~~3 4. (mo/day/Year) . (first) (mi`d;d1.e.) $,35.c Sf-- rGe'F'" S ctJ ~1 sarl N (city) (state) (,z:p),°,.,:., Place of Airt2i: St~vt{ 0 av~ ~j~G~ C~ C~ j. $, Have you ever been convicted of y crime other than a traffic offense? Yes No ~. TS yes; explain b. How long have you been a member of the organization? ~~•~Y 7. Attach a copy of the official resolution ar official action designating you gambling manager. 'C. Game Information: 1. Place where gambling devices will be used '~-G ~"t~'a''l 2. Ante or dates gambling devices will be used ~ '~~` ~ date .a7!tdy,~"-;:"(I~eyt');;'. of week) 3. Hours of the day gambling devices will be used: From IZ~o71 To 2=a7~A.~M~ P. ~ I I ~. Maximum number of players ~ if Gi~~'~'~°f -- .... 5. Will prizes be paid in money or merchandise? ~_-h_~~~'ic~-~sc - 6. Will refreshments be served during the time i:he gambling devices will be used? 'Yes No ~. If so, will a charge be made for such refreshments? Iles NO ~_____ -. Organization Information: 1, Address where regular meetings. are held 205 3~ ~v-~, 5 x, nay and time of meetings (n~V1~a~s ~"~b p'-'~ -- . 3. Is the applieant organization organized under the laws of the State of Minnesota? Yes ~, No ~. How long has the organization been inexistence? S~i+~c£. 18~~ 4e. How many members in the organization? ~ S _.. 5. What is the purpose of the organization? ~,,,~~'e n~< _~__ 6. Officers of the Organization: Name Address Title real ~m ns I~u~-~.~ss~ ~~ r~~~-F -~-~~ PnAp ~u~c~~scrc-. ire A~mrnc~7d(~~ ~ci:~" 7. G1ve names of officers or any other persons paid far services to the organization: Name Addre s s Titl.e.•. ' ~. Oxganization Information: (Continued) 8. In whose custody will organization records be kept? Name Address 9. Tf the organization carries sufficient insurance to compensate the players in the event any injury is sustained by players while gambling devices are used, ar while an the licensed premises, please state the Name of Tnsurer and Policy Na. l0. Have you (Manager & Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations~~ verni ~ operation and use of gambling devices? ~~ s , 11. Attach a list of a active members at the grgabizatian. T~. The fallowing information is provided concerning a fidelity bond given by the gambling manager in favor of the organization, i 1. Name of bonding company. 2. Addxess of bonding company 3. Amount and duration of bond 4. Application is hereby made for waiver of th bonding requirements. Yes Na 1 declare that the information I have provided on.thi.s application i'.s truthful, and I authorize the City of Hutchinson to investigate the information submitted. Alsq, I have received from the City of Iiutchinson a copy of the Gity Ordinance Nv. 6g5 relating to gambling, end 1 will familiarize my if wi,t a contents thereof. Signature~.a ut orized of ices a-i' arg.A"ri'3~at~on=. Dots: S 2 Subscribed and sworn to before me a notary public on this day of . 19 Si.gnatux'e of Notary Public. Commission expires on Subscribed and sworn to before me a notary public on this day of , 19 LL ~ Signature of Notary Pu lic Commission expires an __ Social Security Number: MN Busyness TD Number: ~~~~ ~~ • MEMORANDUM POLICE /EMERGENCY MANAGEMENT SERVICES TO: Mayor and Council FROM: Lt. Dave Erlandson, Interim Chief~~ DATE: June 3, 2004 RE; Liquidation of Property Approximately 5+ years ago, Hutchinson Police Services acquired a 10kw military generator from the White Bear Lake Police Department at no cost. Since acquiring the generator it has never been used. It has also been determined that the generator does not meet the requirements of police services. Hutchinson Police Services has a Cummins generator that does fit our needs. Madelia Municipal Light & Power, another public entity, has expressed interest in the generator. Police Services would like to donate the generator to them. They have indicated they would provide for all transportation. I have included a resolution regarding this. Thank you for your thoughtful consideration in this matter. /Ikg 2004-01-0008 • 51d~ RESOLUTION AUTHORIZING EQUIPMENT DONATION • Resolution No. WHEREAS, the City of Hutchinson Police Services have in their possession one 10KW Military generator, serial number B2841 2; AND WHEREAS, said generator requires significant and costly modification to be useful to police services; AND WHEREAS, police services has a Cummins portable generatorthat meets the mobile needs of police services; AND WHEREAS, Madelia Municipal Light and Power has expressed interest in acquiring said generator; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That the City Council authorizes Hutchinson Police Services to donate the 10KW military generator, serial number B2841 2 to Madelia Municipal Light and Power. . Adopted by the City Council this 8th day of June 2004. Mayor City Administrator C.~ 5~~~ RESOLUTION NO. 12423 RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL N0.5066 LETTING NO.6/PROJECT NO.04-Ofi & D4-07 WHEREAS, Cost has been determined for the improvement of: 04-D6 Echo Drive SE from TH 7 to Freemont Ave SE by construction of storm sewer, sanitary sewer and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, restoration and appurtenances; and 04-07 Echo Circle SE from Echo Drive to termini by construction of storm sewer, sanitary sewer and services, concrete curb and gutter, bituminous base, bituminous surfacing, restoration and appurtenances; and the bid price for such improvement is $505,429.90 and the expenses incurred or to be incurred in the making of such improvement amount to $121,303.18 so that the total cost of the improvement will be $626,733.08. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $268,512.68 and the portion of the cost to be assessed against benefited property owners is declared to be $358,220.40_ 2. Assessments shall be payable in equal annual installments extending over a period of 10 years, the first of the installments tc be payable on or before the first Monday in January, 2005 and shall bear interest at the rate of .~ percent per annum from November 1, 2D04. 3. The City Administrator, with the assistance of the Director of Engineering, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof. Adopted by the Council this 8th day of June 2004. Mayor r L. City Administrator ~ ~~~ CDYMLEp SY: P VEEN CONPU1Ep RY: A33ESSNENT ROLL NO. SG6fi LETTING NG. 6fPROJECT NO. O4O6 [ECM Ur SE) 8 WUT (E SE) {875.55 SEWER SERVICE CCSTNNR 31,280.00 WAFER SERVICE CGSTNNR LHECNTcp BY: P. VANpEff PEEN Ol2fi ~£CNOllq SE FROM TXT TO FREEMGHS AVE SEE 595.00 $igEET BASE COSilFS IIMSFA GF YERR3: 10 p1-0I-ECiq OR SE FRGY Edfp pR 5E TO TERMINI BY COk13TBRilON OF 520A0 CVg9 EGIITTENbgA1NAGE CCSTRF INTEREST BATE: STGPM SEWER SANRARY SEWEq 8 3EPVICES, WATERMAIHE SERVICES. GRApING, GRAVEL SASE, CONCRETE tSi XFAfCNG: MA3~2p9a S!~ HEAIIIHG: OS'2L2WG ACCi. CITY PIGN0. N0. CGIRlTY PIG NO. LIlR9 E GUTTER. BrtEp11Np11 NAPE EApd1F35 OF PROPERTY OWNER 5 RASE. RINMINONS SUBFACI11Cv SIpFWALK, BESTIXtATIGNd APPIIRIENAXCPS LEGAL pE.SRilP1-!pN $EiVEq 3ERV1L£ W AGWlION GR SU9pNk6kpN UNIT ASSESS UNIT ADOPTEp- ATER I~EFIWCE ST11E£f BASE fdG,pRNN6GE TQTILL ACTIVE ASSESS. FF ASSESS. FF ASSESS. A33E%NENT OF1162313-0020 RaM 8Ma Mtlerscrt P~opeO A~reu: 89T 155aim 521 Krr 5!SW ~ LM 18 E%Tlla[Part Npt THR158 E23.5'of 5115 of LO[B, ,m ~n. m4 e,~ t 23.20].0150 Hwchinson MN 55350 Putl Plat La 19. A0tl PgIS 1R Sec2on Oc 116-29 t ~T156 1 51.200.00 33 52,805.00 33 56.00 55.538.55 06-t 162953-CU3~ Lvke A GiIWN Propen AMress: 4S5 Echo Dr SE 2 23.203.0010 ob Thomas BL .POBOx 217 Hwchinann MN 55350 Lc[1. &vck 1, gsalis Rtltlilim t 58T1 S5 1 $1,200.00 t2t .5 910.32T.57 ,gyo~,wmnMmcrw• 60 Si,200.C0 S13S99.05 06-1162313{10AG Pemartl S ! 1~RMh Pence P,tltlreu: 955 EClu Dr SE 3 23.209.0000 600 T er St SW Hwchiisan MN 55350 La[ 1. Rlock 1, gswi s Ay1Apn t SRT1 55 1 5'..200.00 120 510,2CO.W ,NR~ .t a. u,..wc.r+: 60 51,200.00 313.lT1.55 O6-t 1623-13-0056 Diane L Nn:nx Prose • ABtlreu' 985 Echo Dr SE a 23.209.D"..30 130354fn 5[ S[Nwater MN 55062 LT 3. frock 1, Gso~i s Aod'nion 1 38]1 i5 1 6r,2Cp.IX+ 120 510.200.00 r„~.-.1 BO ~ St ,200.00 St3.aT1 55 06-11&2313-0060 Han[ a EvlM1ers 899 Hwy 15 Sau[h PrLpeM Address. 899 a 15 E.oulh Lal 1 frock 2. w. ..s ix zm -+a u~cul 5 23.2%.0.}W HI.tcM1nson h1N 55356 Gsu's AOd~un 1 SeT1.55 1 51,200.00 ]6 . s S6,G30.'~0 7 5p.C0 Sg.T71.55 0611629-t3-0OTO Han a Bmlhers Prose Atltlress. 95C ECln Dr SE 6 23.203.0050 699H •185ou[n HutcM1nsan MN 55350 Lo12. &pck 2, Gson's .4CrJalm C 50.i0 $0.00 120 510.200.D7 :nsmv 0 a~n»,~cc..,.,.: 50.00 316.211000 O6-t t629t3-002C Ran S Jobe Anderson RoreR Adtlress' 980 Echo Dr SE 1 7 23.209.D'.50 990 Echo bSE Hl.:chnson MN 55350 La13. frock 2, gson's Ratlnipn 1 58T1.55 r 1 51,207.00 120 510,200.00 ' 60 ,,,~.- .+, ~~' 3.,200.00 353,x: 1.55 0611629-13-0090 Mtla ~^onsmxlwn Ccrnpa Prtpe Adtlreu 991 EcM Dr SE 8 23.212.0030 PO Baz 7T7 IAa[Ir1Ce] MN 56550 Loll.&ak 2. Firs[ Atltlecn [o Sa1Hl See Terrace 2 S~,Ta3.5C 2 $2,600.00 3E0 529,9:A.D] 34C 56,20000 533,893.10 06-11629-13-0100 J R 8 R Partnership Prq~eRy A9dress: 9i5 May 15 Swlh 9 23.212.0.]10 Mn: Bill Joens. FII 1, Box 59A MdMaF MN 56258 LG11 Eft N10G', Hock 1, Firs: Addnron W South Sqe Terrce 1 S8T1 S5 0 $0.00 260 520,60p.OC 260 %,87000 328.OT1.65 06-1 tb2313-0150 First Stale Fetleral Rope AAdress: 505 15 Spum 19 23.232.0[Qp 2V1 Men S[ Sau[A HlAphnsan MN 53356 N1 Op' of Lvl 1, Block 1. Firs) AWaim roSouSh Sitle Tertace i 5871.55 0 §0.00 100 38.5CO.OC 100 32,000.00 511,3]1.55 07-116230n40F' C W HwcMSOR PmceO Aoireu: l OLg H 15 SGwh 1'. 23.21<.OD10 111 Hassan 9[ SE Hulchmm~ MN 55350 a: Hwchirmn Area HeaAM1 Care Lc~ i 8 2. frock 1. CedarRn~5ub6rwr 0 50.00 0 9].00 E03 551255.00 673 512.0.00 833.315.00 Ann: Phil Graves 1095 H 15 SwM Hw[hileon /AN 55350 COYPa-EO BY: P VEEN CG\IgliEp BY: ERG ASSESSMENT ROLL H0. SO66 LETTING q0. 61PROJECT iLO. OS-06 ~E:cb Dr SEA 5.,..,T ( SE) SST1,55 SEWER SERVCE COSTRJklF 31,2p0.8O WATER SERVCE OOSTAINR C9iELNEp BY: P. V R VEEN 0109 -EtIq GR SE FROM ilfl TO fREENONF AVE SEE 185.00 STREET BASE LOSFFF NUNBER OF YEARS: 10 S9UI. ECkM]Okt SE FROM ECkq OR SE FO TEPNHW BY OONSFRUFION OF $20.00 WPB f GIITTERR1R41NAGE COSTFF INTEREST gATE: SFORY SEWER, $AlHiARY SEWER S SERVICES, WATERNAIN S SERVICES. GR0.OING, GRAVEL BASE, CONCRETE 191(FARING: OY1 Y2SO4 4NN HEARING: 06'iNY109 CURBSGVFTER, BRUNNWSS0.5E,Bf111NINOU3 SIIRFAGING, SIpEWALK, RESTORATIONS APPURFEN0.NCE5 ADOPTED: ACCF. CRY PIO NO. NAVE S AUORFSS LEGAL OESCPIPFM]N SEWER SERVICE WATER SERVICE SF3iEEi BASE CAG+DAAINAGE iOTAA ACfIYE N0. GWMfY PD NO. OF PROPERFY OWNER AIXMigN DII SUBDRRSIGN [MR 85565. fANR ASSESS. FF ASSESS: FF A3SEAR. ASSE>kiNEklF OT-116-2404-00]0 9ichard Schmglhaue~ Prcpaty Adtlress' 1025 Echo Or SE 12 13 23.214.0020 OT-tt6~29-04-008ti 23214.CQ'+0 -116-2404-0090 15846 St H 15 Hulchirecn MN 55310 Rlchactl SchrMtteuer 15899 5[ 15 HNlchin5on MN 5535] oM W eD¢I 1220 EMaiortl &Y SE, S[e t t0 Lot 1, bbd 2, Cetlar Acres SUbdiyision Pr ROtlress: 215 Ecno Cir SE Lo12, Rbck 2, Cetllr Apes SpEarvlslm Properl Rd3ess' 225 E[ho Cir SE Co! 3. Bbch 2. 1 1 $8]1.55 5911.55 1 1 31.200D0 51.20000 1]5 130 514,8T5.00~ r 511,050.00 em.i,=vr,..N'm'aa ~~ 1T5 13U m. iar. .aC 53,500-CO $2,600.00 ,..rm ruvl ¢']0,416.55 515,T21.55 14 9.2140090 Hutthnsan AIR: 55."150 CaOar RCres SWdraision 1 $STt 55 1 51.200.00 130 511,05000 130 32.0.00 515,T21.55 OT-1 tfr2499-0t00 G 8 H Ccmpan' Prppe AWrev': 2a5 Echo Cir SE 23.21 a.OCryr ]OT 13U1 S[W Glnlwe UN 5:336 L4Y 4-Block 2. Cedar RCres Sab~kvK:n 1 SBTt-55 1 51.2pu.GO 130 leewxcc wq~ss'xo 511,050.00 m.rev. 130 ~ce.v n9cal $2,600.00 S15.T21.55 OT-116235-0110 Barre[Rrms ParlneMi Pm 2y AWre55: 220 Echu Ci~SE G'0 Ali hvre3l Man men[, P O ePx 7220 Lo[ 5 Block 2 I9aar.-F.us+a~ = is. ,r rv r,P+: t6 23.2t 4.WB: Bismarx N0 5850] Cetlar Acres ^^w[Kavscn 1 SBTl .55 1 £1.20.•00 I 130 511,050 C0 130 E2,000.00 515.T21.55 OT-116-29U9-0120 dartet Rrms ?arlnership uo Mitlmvesl Man me•I[. P O Box ]220 ProceT•Mtlress: 210 ECAC Qr SE Lc[d. Olock 2. 1T 23.214.p0FV Bismaik N0 5850] Cptlar Acres 5ub]invon 1 58]1 55 1 51.20.^00 130 $ ~1.0=A.!'0 130 12,800.00 315,T21.55 OT-118-29-04-013a ilchard 5[hmitl;baue~ Proce Atltlress' 1095 Etllo pr SE 16 23214.0080 158985tH 15 Hulchlwn MN 55360 Lal ]. Block 2, Cetlar Acres Subdiyison 587155 1 51.200.C0 1]4 ;~Y.-.H; :s 314.T90.iA z 1]4 ~ ~ 53,490.00 520,341 55 Oi-118-29-04-O14C HulMirearl Medcal Propxnie; Pr adtlres= 211 Freemo~l[ Ave SE 19 2321 4.0090 211 Prepm[Ih1 .4ve SE Hul[hl ~n M1IN 55356 TOTAL-ASSESSNENF ROLL ND.5066-L Lvl B, 81W12, Cetlar Acres Suhtlrvisior. ETTING HO. 6fPR0JECT N0.06L6504-0T 18 18T1.55 315,B8T.Sq 0 15 3G.CO 518-000-00 100 str~s 315-300.pC 5]64.832.50 180 z~9s 53.6N.pO 354.T0O.OD 519,TT155 3358,420-48 54503fuv;f I fMi Iq yJiLfi pr-P•PAiE 20F 2 `f . RESOLUTION NO. 12435 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL N0.5066 LETTING NO.6/PROJECT NO. D4-Dfi & 04-07 WHEREAS, by a reselutien passed by the Council vn the 8th day of June, 2004, the Director of Engineering was directed to prepare a proposed assessment of the cost of improving: p4-06 Echo Drive SE from TH 7 to Freemont Ave SE by construction of storm sewer, sanitary sewer and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, restoration and appurtenances; and 04-D7 Echo Circle SE from Echo Drive to termini 6y construction of storm sewer, sanitary sewer and services, concrete curb and gutter, bituminous base, bituminous surfacing, restoration and appurtenances. WHEREAS, the Director of Engineering has notified the Council that such proposed assessment has been completed and filed in his office for public inspectien; NOW, THEREFORE, BE IT RESOLVED BY THE GITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. A hearing shall be held on the 22nd day of June 2004, in the Council Chambers at Hutchinson City Center at 6:00 P.M. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Administrator is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prier to the hearing, and he shall state in the notice the total cost of the improvement. He shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Administrator, except that nq interest shall be charged if the entire assessment is paid by November 15th, 2004. He may at any time thereafter, pay to the City Administrator, the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the Council this 8th day of June, 2004. Mayor City Administrator -, .5 RESOLUTION NO. 12430 RESOLUTION DECLARING COST TO 8E ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL N0.5068 LETTING NO.B/PROJECT NO.04-D9 RAVENWOOD WEST WHEREAS, cost has been determined for the improvement of Dale Street 5W and Bluejay Drive SW in Ravenwood West development by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, trail and appurtenances and the bid price for such improvement is $372,617.29 less $31,048.00 due to the elimination of Sheet 8 of the Plans, for a total bid price of $341,569.15. The expenses incurred orto be incurred in the making of such improvementamount to $85,392.29 so that the total cost of the improvement will be $426,961.44. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $30,640.80 and the portion of the cost to be assessed against benefited property owners is declared to be $396,320.67. 2. Assessments shall be payable in equal annual installments extending over a period of 10 • years, the first of the installments to be payable on or before the first Monday in January, 2005 and shall bear interest at the rate of percent per annum frnm November 1, 2004. 3. The City Administrator, with the assistance of the Director of Engineering, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof. Adopted by the Council this 8th day of June 2004. Mayor City Administrator ~~~ cOYgYEa eY: P V VEEN COYMIiEO BY: J RG LHELNEO BY: P. V VEEN ASSESSNEM POLL NO- 5069 LETTING NO. efPR0.1ECT H0. p4-09 . BLU£JAY pR SW @ PALE Si SW IH RAYEHW000 YIF..ST ROMTION 51.746-10 $1,933.25 S7B1.49 SANITARY SEWER COSTh1NT- LOT51$ BLOCK I, RAYENW EST WATFJiNAIN C09TIlINi - LOiS 1$, BLpLK 1, RAVENWOOp $TORN SEWER COSTlUNIT-LOTS t$, BLOCK 1, RAYENWpOO NUMBER GF YEARS: Fa BY LONSTRLCTION OF STGRN SEWER, SAMTARY SEWER Sb4RNLE5. WATERNAYI4 SO.B4 STREET RESTORATION COSTIORii -LOTS 1$. BLOCK f, RAVENYl000 WEST YIERE$i BATE: SERVICES, GRADiNC, tl14YEL RASE, CONCRETE CURB! GUTfFR, RIIY3YINOUR RASE. 52,882.73 STREET CONSTRllLTIOM LOSTNNIT-LOTS 1$, BLOCK 1, RAYENWpOp WEST dpDPTE0: O6'9B~lap1 RRUNWDUS S[INFACWG. SIOEWALN. iRAILb APgUfRENN1LE5 HEAAYM.S WAIYE0 : 04J27129p1 ACCT. [tiY Rp Ml rNIE IANUPBS LEGK OESCNWIgN SRNrtMYSEMER MAiE1WYN STORY 9EYEq BEET AE3ip110. SiRFFi TOTAL ACINE R0. DOIlITi PL NO. Ci PAOP91tt ON1ER MLSI'IOX OR SIIBpYIS1DR LMi ASRESSNEHi A4ffiSSMENi A98f98YENT RSRE33r,E1R ASSESSYEHT A59ESSYEHC 12-116-30 06-0520 Ylla a Fbmes of Hu[clsnson Props AtlOresS: 1180.'1164 81ue' Dr SW ]301 Ohms Ln, S[e 560 La[ 1. Blwk 1. 1 23.452.D7f0 Etlina AYJ 650.'ffi RavenAnptl Wes[ 2 ST.492.20 53.6.50 51562-56 x.00 35,?6i.46 514,68T 14 12-118-30-06-0530 Orrick lnvestrnml NO-91 :nc PmFe AAdress: 11]N'11 T461ue1 OrSW ]301 Ohms Ln, SFe 560 Lc[ 2. 81ock 1. 2 23.452.002) Etli~ IAN 55439 Ravenmctl WesF 2 536922p $366650 51.562.98 9].00 35,]65 G6 516,68]ta 12-116-3006-0590 Sorenson & NaualOal PropeNe3 Props RotlreES: 11E6r1184 Blue' OrSW 525 Hanes[ 8[ SW LIX 3, &wk 1. 3 23.452.D]3: Hu[cNnsm MN 55350 RaverrAOCtl Wes: 2 S{.692~ 53.66c 50 S1 S6298 9].00 S5.?65-46 514.d8I-14 12-116-30-060550 Sorensen & NaiaYtlal Pr s Pmpe A41ress: 1t50.~1154 Bluel Or SW 525 Harves[ S[ SW La[ 4- frock t 4 23.452.0)40 Hu[cNnson MN 5530 Ravmnvotl Wes; 2 53 a92-~ 53.66650 St ,562.98 9].00 35 ?6566 St 4.4RT to 12-116-3]-::6L660 SOrpn50n 8 NawWk~ PrpCert~eS P rl AD]re55. 1140.r11 L4 BIU a D~ $W 525 Harvest S[ SW La S, Back 1. 5 23.452.0.'Sv HulcM1nson IAN S,i350 Rar'enxVOT 1VR31 53.492.20 63.666.50 5'.562.93 SC.W SS ]65.96 914.98T.tL 12-1 tfi-3]-06{~TC Soraison 8 NaLrsltlal Fmpenles Propetl Rd]reas. 1130+1 `34 &u 'a Dr SW 526 Harvest 5lSW Lo16, BUtl[1, 6 23.452.OW0 Hulchnson MN 55351 Parenrrwd Wesl 2 33.992.20 53,666.51. St,6b2.99 50.00 SS.Tfi5.46 514,48?14 12-1 tb3;-O6{tiB'J Sorenson S NausMal P~openies Prc~prty Rrbess= 1120.'1124 Bueyy Dr SW 526 Harvest 515W LM T, 8A')d[ 1, T 20.452.00?0 Hutchinson MN 55351 Ravenrrcod West 53,492.20 53,666.50 51,562.99 50.00 SS.Tfi5.46 314,48T.14 12~f 163(}06-0590 Swenson & Naus[tlal PrepeNes Prppe Address' t 12Q'11t4 BUela Or SW 526 HarvmY St SW Lnl e. Bkck 1, 6 23.452.0090 HulCiinsan NN 55361 Raverrwv.^tl Wes[ 2 53,492.20 53,666.50 51,562.96 30.0.^ S5,?65.46 316,4fi?.14 Sl1B-TOTAL SZl,4pT-60 529,332-00 312,W164 SFI.00 546,12].69 3115,1.12 EA38Yt9'~IETTNG NC adamPl.GEt Gr5 ~, LCYRLEOSY: PY FA VEEN COYPIITfIi RY: ERG CHECICE9 Rr: P, vEEN ASSESSMENT ROLL NO. 5068 LETTING NO- eRRDJECT K0. 00-09 . RYIIEJAY D115W 6 DALE ST SwN RAYEMflGGG'NESI' dGGfllGn 53,904.9T 54,591.22 SO.W SAWTARY SEWER C0STAINIT-L0T58-21.6L0CK i, RAYEN WEST WATERNAIN COSTfUYIi ~ L0T5421, BLOCK 7, RAV ENWDG STORM SEWER COSTRIHIT-LOTS 921, BLOCK 1, RAYENW ST HIIYRER OF YEARS: i0 er CONSTRLCiiDN DF STOgY SEWER. SANITAgY SEWER t SERVCES, WATERWIIN d 5134.62 STREET RESTOPATION C05iA1NIT- L0T59-21, BLOCK 1, flAYENWO00 WEST IHFEPESi RATE: SERVICES, GRAONq GR0.YEl RASE, (NINLPETE LIIRB d GIITiER, RIiIIMINOIIS RASE Su.oG STREET CONSTRLCTON COSTNNIT-LOTS 421- BLOCK 1; RAVENW0O0 WEST BRIIYNWSSVRFAGING, RIGEWALK TgAY dAPPW1iEN0.NCE5 AOOPTEO ACCT. QIi {m M1 NpME EApCgP]5 LEGPL GESCPIPTGN SPIIRN[i SEWED MATEPWJM STORM SEMER TREET RESipR0.igX SigEEi Tpi,1E FC[IVE Iq- CWNFY PIR NO. OF PPpPEnTI OWNER 0.OOIININ ML RYRIXVRgN IINR ASSESSIEIIf 0.SSE59MENF A"RESSYENi A9RESRMENi A4464MENi A'3463MEHF 12-116-30.DGW00 Sorenson 8 Nausldsl Properties Plope Rdtlr~s' 1115 Oak S SW 52T Harvest 9 SW LIX 9, Rb[* 1, 9 23.45LC090 +54[cnnsort MN 55352 Rarmw.vtl Vlesl 1 53-904.91 $4,591.22 $0.00 5134.62 $0.00 36.630.]5 t 2-118:10 OB DE1. Sarvison & Nausltlal Prpperlles PropvR• Adtleess' 11~ Cele S[ SV! 52T HarvesI SISW LM 10. RL1ck t, tp 23.952.9100 H1AdAnsan MN X352 Rarelydnod Wes[ 1 $3.904.91 54,591.22 5000 5134.62 SO.pO 58.630-15 12116-30-05-0(20 Sorelsan 5 Naus[dal Pm es Prose. Address: 1135 Gale S15N' 52] carves[ St SW La[ t 1. BbcG 1, 11 23.452.0119 Hulolinam MN 5'.352 Ravenrvotl Wxs: 1 53,903.91 54,591.22 f7-00 5134.62 5000 58.630]5 1 1211630-~LU30 Sorensen 8 NausGal Properties Pmperl AtlOress: 11 a5 Oale St SW 628 Harr¢s[ St SW LIX 12 frock 1. 12 23.4520120 ihRelrnson !AN 55153 Rarvirn:otl Well 1 53,90091 SL,59122 SO :U 5134.62 50.00 56.633 ]5 12-t 163405-D±4C Sorenson S ~auslGa! Pmperlies Property Atlvess: 1155 Oale 515W 528 Harvest 5l SW :0113. Bbck 1. 13 23652.019] HYlehinsen YN 55353 Pavercdocd Wes[ t $3904.91 5459122 50.00 3136.82 SC.CO 5863.'+]5 12-116-30i5-01ti0 Sorercwn 5 Na.is[dal PropeTes Paper. Pddress: 1165 Gale S[ SY! 5~ Harvest 5[ SW Lo[ te. BIOCE 1, 14 23652.016.: HulcSirrsm MN 55353 RavsnnVoa West 1 r 53,904.91 54,591.22 50.00 E13462 SCW S6-E30 TS 121163'-DSJOEO Sorenson 8 i,aistdal Procerties Prtpe RdCr¢s5: 11]5 Gale S15W 529 Ha.:¢EC SI SW Lp. 15, frock 1 16 23.662.0150 H4[clFlson MN 55354 garenwoud Wesl 1 $3,906.9' %,591.22 $0.0.'1 513662 &.`-CO SB 630.]5 12-t 16~405D]iC SeralsOn 8 Naustrla Pm mes Prcpe Address. 1185 Oak S[ SW 529 Harvest S[SW LM 16, BkCk 4, 16 23-452.918] HOIdllrean MV 5535n Raverrrvod Wes[ 1 53.904-51 E4,591.22 50.00 5136-fit 50.00 $$.6,39.75 12116-3]-00-0080 Sorensen BNaus1G314r¢enies Pm Rdtlress: 1t950a1e 51SW 17 529 Har•res[ S SW Lo11T. 6bck 1. 1 t 53.904.91 5459122 9].O3 5134.62 $0.0.'1 56,830.75 23.452.01]0 H4[CM1nson MN 55354 PaPenweod West t2-116-30-050090 Sorenson 8 NausMal Pm es PrOpe Address: 1x15 Oale Sr SW 530 HRNB51 St SW W11R, Bbtl<3, 18 23.652.01@] HOIrh1~n MN 55355 Rarenrootl Wes[ 1 53,900.91 %.591.22 50.00 5136.62 50.00 56,63].]5 $OhC6f2pl11ETfING fIC Bb-STAGE 26i r L]. ~f COMPIL£O BY- PY R VEEN COMPUTED BY:J G ASSESSNEN[ POLL ND. 5088 LETTING NO. BfPROJECT 11O.W-09 . 53.904.91 $4,591.22 9RNITARY SEWER COSTNNIT- LOT59-21, 6lOCK 1, RAYENW WEST WATERNAIN C09T1l1NIT-LOT5421. BLOCK I, RAYENWDO CHECKEOBY: P. YEFH BLUEJAY OR SW dOALE Si $W IRflAYENWOOO WEBiAODRIOH SO.UO STORM SEWER COSiNNIT-LQT59-21, BLOCK I, RAYENW T NUMBER OF YEARS. 10 BY CONSTRUCTION OF STORM SEWER, SAHRARY SEWER b SERVICES WAi£RYAIN d 5134,82 STREET RESTORAPON C09TlUNIT-LOTS 9-21, 6LOCK 1, RAVENWO00 WEST iNiEREST PATE: sERYICFS, fd1AOING, GRAVEL RASE, COBOIETE CORBH GUTTEfL BITUMINOUS 645£, SO.W SIAEET CONSFRUCTION COSTNNT-LOTS 42'I, BLOCK 1, RAVENWOOO WEST BITUMIROUB SUPFACN4 51OEWALK, iRNL 8 APPURTENANCES ADOPTED ACCT- N0. LTTY RP RO. COIIIEII'E9 N0. MAIEdOFgRE53 DF PRDLERiY ~NNEfl LEG.LL 4ESCRPTION AOLEnON OR SIIBpYH.YI IMrt SNIRARY SEN£R A~E~IEMF WA'fFA1MM LSE61.FMt STOIY SEVER •"_-SSYB€I TREET REa'iIXVRiiIM ASSESSMENT STET 0.440`SNEM TO}AL AC}ryE ASSESSMENT 12-116~3YWb100 Screrenn a Na95tdal PNOeNes P Adiress: 1215 Osle SI Sn 530 Harvesl5[ SW Lo119, 61ock 1, i4 23.452.0190 Hutckirem ldH 55355 Flaverrrvod Wes; 1 S3,9uM.91 54,541.22 90.00 5134.62 $0.00 SB,63i.]$ 12-11&30-05-0110 Sorenson & Nausltlal P rtN5 Pmpe AObas: 1225 Oxe 5[ Sri' 530 Harces[ S[ SY1 Lo[ 20- &xk 1. 20 23.452-0200 Hutchnson MN 553,55 ilarenrwotl West 1 53,9W.91 54,591.22 50.00 St34.62 50.00 88.633-]5 12-11630-05-0520 Soren~n 8 Nausltlal Properties Pr Aetlress: 1235 Gale S15Vh' 531 FBrvE51 St 5W Lv121, Okci 1, 21 23.0.52.0210 HW~IIISen PNJ 55356 Raveirruoa lv¢E[ 1 53,904.91 ¢t,591.22 SO.UO 5134.82 SO.OO 58,63".._]5 9116-T9TAL 350,]fi3.BS 359.585.86 SO.p6 51.150AE SO,OO 5F12,199.T5 Si ~OR.R])i IFTTI`G Nan9a!BaCGE 3 CF 5 r/y^V T~ Imo` CDYPBED BY: P Y vtEn ODYPIIYFD BY: ERG CHEGRP BY: P. VEEN ASSESSMENT ROLL NO. 5068 LETTING NO- BlPAOJECL NO. OA-09 . BLIIEJAT DR SW bDALE $T SW IN RAYENWG06 YIESi ADOIT3Dn 54.00 56,6&5.52 55,954.06 SANITARY SEWER COSTAINIT ~ LDT 1, BLOCK 1, RAYENWOW WATERMAlN COBTlUKIL-LOT 1. BLOCK 1, RAYENWO00 STORM SEWER CD9TNNIT-LDT 1, BLACK 1, RAVENWOOp H6MBER OF YEARS: 16 BT CGPISIR4lClIGn OF STORM SEWER, SANRARY SEWER b SERYILES, nATEPMAIn a 50.04 STREET RESipgATION COSTNNIT -LOT 1, BLOCK 1, RAVENWOOO IIREREST RAT£: SETMCEB, GRADIBG GRAVEL BasE, cONCIiEYf C6RBH GUREA, BTR1511NOU5 BASE, 515,686-91 STREET CONSTRUCTION COSTfUNR -LOT 1, BLOCK 1, RAYENWOOO BIiIIMINOIiS SURFACIKIG. SIDEWALK, TRAIL b APPIIRTENAnCE4 ApOPTEp }CCI. C1TT R6lq- BAIEB AOIXVES3 [EGAL DESCBPiION SiURARY S[IYEA WAiEWWp STCIW SEYIE6 RVEES RESiCeA STAFFS T{]TAL ACIIYE Iq_ Cd1MY %O NO. OF PiIOPEBIY GNIER AWITION OR 9UP~IY516f1 UNIT ASSES51.ENi A5565MEM A43ESBYB(I A9BE95YEBT a3SEa'9YEHI ASSESSMEBL 12-17&3~?Ofi-0030 VN Firln¢ d HulcTinson Prtpe Address. 1UT3 BlatkMM TTSW T301 OM1ms Ln, S[e SBJ La[ 1- frock 1, 22 23.432.0010 Edna AIN 55439 RavenAaM Aod'nim a SG.Oo $18 ]42A8 S23,H00.24 95.00 562.]4T.64 5105,289.96 SUBTOTAL 50.00 318,74208 323.860.24 SO-00 562,T4T.64 5105,289.% EhEC66R W i LETTING ~ aUL®PIGE <OF 5 \J CONPILEO fiv: a NEFJI LOMPOTEO BY: J BG ASSESSMEN[ ROLL NO. 5068 ~ LETTING NO. 8IPROJECT 110. 41-09 $55,133.50 $1$,880.110 SANITARY SEWER COSTAINIF ~ LOT A BLOCK 2, RAVEN WOO WATERMAIN COSTNNIT-LOT 3. BLDCK R, RAYENWDOG YM1ER VEEN CNEGKEO BY: P BLOEJAY OR SW 6OALE SF 94Y IN PAYEHWGOp YlEST A[lplitOn 511,296.44 STORM SEWER COSTAINFT -LOT 3, BLOCK 2, RAVENWO0O . aEJNBEB GP YEAtiS: 10 BY CplISiRULigN OF $TGBM SETYETI, SANITARY SEWER 6 SEBNICES. wATEBMaIn a SD.00 STREET RESTORATION COSTfIIIR ~ LOT 3, BLOCK 2, RAVENWO0O HfTEBESi BATE: SEIIVIGE9, GRAONG-GRAVELBASCCONLRETECYBBSGUTFEfl, BITTIMINGLS BASE, 516,623SD STREET CON5TRUCT3ON COSFAINIT-LOF3, BLOCK 2:flAVENWOO0 BVlI1NWWS5lIRFAdNG,S®EWALN, IBM AAPWfliEHANC E4 ADGPTEG M%.•T- GITy Np Np. NpMEFN1YRE58 LEWLpE3O11PitlM SaNIABY SEwEB WATEAYAIM SiOIW 9E'aEfl SSAEET flE5iOR0.TIpN yTBEEf TOTAL ACSIYE NG. MINtTRp11 GPPBOP61Tf OW1EB AOOrtW1iW 3VBlw'6pN IINrt 455E551.EIR L4SfS3MEMi A56ESSYFM 1$E851EN[ ASSESSMENT ASSE53YENf 12-11&3]-060060 Via a Homes of HiHCFnspn Pmpe AUtlress: 1220 Blaclmark Or Sh' 23 23.s320044 73]1 ONns Ln- 51e 560 Edna MN 550.39 LIX 3, Bbck2 RarenxuoT Ad]ieon 1 315,13150 E19,630.90 511,296.64 SO.W 516.623.90 462433.64 SUBTOTAL Si S.t3S.50 519,850.00 511,296.44 30.00 51fi-fi23-90 562,933.84 TOTAL -ASSESSMENT ROLL H0.50 58 ~ LETTING NO. 8IPROJECi NO. 44 V! 593,834.93 312],639.84 547.800$2 51,749A8 St25,695.22 5]98,320.87 sM5652D'J~ LFRPG NO..&tY~.'BPAGE S OF s 1 . RESOLUTION NO. 12431 RESOLUTION WAIVING HEARING ON PROPDSED ASSESSMENT ASSESSMENT ROLL NO. 5068 LETTING NO. 8/PROJECT NO.04-09 RAVENWOOD WEST WHEREAS, by a resolution passed by the Council on the 27th day of April 2004, the Director of Engineering was directed to prepare a proposed assessment of the cost of improving Dale Street 5W and Bluejay Drive SW in Ravenwood West development by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, trail and appurtenances; W HEREAS, the Director of Engineering has notified the Council that such proposed assessment has been completed and filed in his office for public inspection; NOW, THEREFORE, BE IT RESOLVED 8Y THE CITY CDUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The owners of the affected properties have waived hearing on said proposed assessment. 2. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest • accrued to the date of payment, to the City Administrator, except that no interest shall be charged if the entire assessment is paid by November 15th, 2004. He may at any time thereafter, pay to the City Administrator, the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the Council this 8th day of June 2004. Mayor City Administrator `~~ RESOLUTION NO. 12432 RESOLUTION ADOPTING ASSESSMENT ASSESSMENT ROLL NO.5068 LETTING NO.B/PROJECT N0.04-09 RAVENWOOD WEST WHEREAS, pursuant to resolution and notice of hearing the Council has met and reviewed the proposed assessment for improvement of Dale Street SW and Bluejay Drive SW in Ravenwood West development by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, trail and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted, and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of ten (10) years, the first of the installments to be payable on or before the first Monday in January, 2004, and shall bear interest at the rate of -percent per annum as set down by the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment . from November 1, 2004 until the 31st day of December 2005. To each subsequent installment when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whale of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid by the 15th day of November, 2004; and he may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to the 31st day of December, of the year in which such payment is made. Such payment must be made before November 15, or interest will be charged through December 31, of the next succeeding year. 4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Council this 8th day of June 2004. Mayor City Administrator ,J ~~ RESOLUTION NO. 12433 . RESOLUTION ACCEPTING BID AND AWARDING CONTRACT LETTING NO.B/PROJECT NO.04-09 RAVENWOOD WEST Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of Dale Street SW and Bluejay Drive SW in Ravenwood West development by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous surfacing, sidewalk, trail and appurtenances; and bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Amount Bid Duininck Bros Inc of Prinsburg MN $372,617.15 Juul Contracting Company of Hutchinson MN $376,734.65 R & R Excavating Inc of Hutchinson MN $402,106.40 Rickert Excavating of Brownton MN $412,873.50 Northdale Construction of Rogers MN $413,890.56 and whereas, it appears that Duininck Bros Inc of Prinsburg MN is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY GOUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The mayor and city administrator are hereby authorized and directed to enter into a contract with Duininck Bros Inc of Prinsburg MN, in the amount of $341,569.15 in the name of the City of Hutchinson, which reflects the original bid amount less the elimination of Sheet 8 of the plans, related to storm sewer, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the Director of Engineering. 2. The Director of Engineering is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 8th day of June 2004. Mayor City Administrator C~ ~~ RESOLUTION NO. 12437 • RESOLUTION DECLARING GOST TO 8E ASSESSED AN^ ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL N0.5069 LETTING N0.91PROJECT N0.04-10 & 04-11 WHEREAS, cost has been determined for the improvement of: 04-10 Arch Street SE Trail from 2nd Avenue SE to Fifth Avenue by construction of storm sewer, grading, gravel base, bituminous surfacing, restoration and appurtenances; and 04-11 Block 7 Downtown Alley, South Half City (between 1 st Ave SE/Washington Ave SE & Jefferson St SE/Hassan St SE) by construction of storm sewer, grading, gravel base, concrete paving, restoration and appurtenances. and the bid price far such improvement is $68,436.45 and the expenses incurred or to be incurred in the making of such improvement amount to $16,424.75 so that the total cost of the improvement will be $84,861.20. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE GITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be . $58,770.70 and the portion of the cost to be assessed against benefited property owners is declared to be $26,090.50. 2. Assessments shall be payable in equal annual installments extending aver a period of 10 years, the first of the installments to be payable on or before the first Monday in January, 2005 and shall bear interest at the rate of _ percent per annum from November 1, 2004. 3. The City Administrator, with the assistance of the Director of Engineering, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof. Adopted by the Council this 8th day of June 2004. Mayor City Administrator ~1~~ ~` ~~ COMPRE VANDER VEEN ~ ASSESSMENT ROLL N 9 526,090.30 TOTAL ASSESSED COS COAIPDTED BY: J RODEBERG LETTING NO. 9IPR0J ECT NO. OL-1D BArch St raB~ 806-11 {61k 7 Affey} E38,776T0 TOTAL CITY COST CNECK6D BY; P. VANDER VEEN PROJECT N0. 0411 - BLOCK 7 DOIYHTONRJ ALLEY, 5011TH HALF CITY $84,881.20 TOTAL PROJECT COST NUMBER OF YEARS; 18 [BETSVEEN 157 AVE 5EANASHINGTON AVE SEdJEFFERSON 5T SEMAS5AN ST SEI 1sT HEARING 41277200! INTEREST RATE: 8Y CONSTRllDTION DF STORM 5H'lER, GRADING, GRAVEL BASE, TANCRETE PAVING, 2ND HEARING 612212004 RESTORATiDN AHO APPIIRTENANCE3 ADOPTED ACCT. CITY PID NO. NAME 3 ADDRESS - LEGAL DESCRiPT6011 UTILIT'/1STREET - T[STAL DEFERRED TOTAL ACTIVE - NO. COUNTY ~D NO. OF PR,OPERTV OWNER _ ADDITION DR SUBDIN910H AREA #SSESSMQIT ASSESSIG~NT ASSESSMENT OB-116-29-03-0710 Jose h 8 Che I OBole Pro Address: 130 Washi on Ave E 750 Harmo Ln SW Lo! 1 8 N22' of Lo! 2, 1 23.950.0430 Hutchinson MN 55350 61ock 7, Narth Half - 8733 8705% $2,211.13 O6-116-29-03-0120 Joseph 8 Che I O Pro eA Address: 16 Jefferson St SE 750 Harmon Ln SW Lot 1 ER N51' 8 N22' of Lot 2, 2 23.050.0420 H0lchinson MN 55350 Block 7, North Half Ci 4865 6.315% $ 51.647.77 06-116-29-03-0130 Barhara & Jerome Kreckaw Pro eA Address: 18 Jefferson St SE 18 Jeflerson 5! SE 544' of Lot 2, 3 23-050.0440 Hulchinsan MN 55350 Block 7, North Half Cil 5810 7-512% 8 $1,959.79 O6-116-2303-0140 Jerri A Liesiman Pro a Address: 24 Jefferson St SE 2d Jefferson St SE Lot 3, 4 23.050.0450 Hulchinsan MN 55350 Block 7, Norlh Half Cil 8712 11.263% 8 $2.936.67 06-116-2303-0150 Ann L HGfike Pro a Addross: 36 Jeflerson St SE 3fi JeNerson St SE Lot 4, 5 23.050.6460 HulcJunson MN 55350 Block 7, North Half Cit 8712 11.263% 8 $2,938.67 D6-716-29-03-0164 Gustav WurdeB Pro eA Address: 146 1st Ave SE fi 23.p56.0470 19116 230th St Hulchinsan MN 55350 Lat 3, BIoGc 7, Narth Half Cit 8712 11263% $ - 52,938.61 OFr116-2&03-0266 Gev a quart Pro eA Address: 33 Hassan St SE 408 Main St S, P O Box 233 N28.4T of S 12 of LoE 8, 7 23A50.0480 Hulchinsan MN 55350 Blocc 7, North Half Cit 3758 4.859% $ - 51,287.62 06-116-29-03-0210 Geor a Quart Pro a Address: 25 Hassan St SE 8 23.050.0490 406 Main SI S, P 0 Box 233 Hutchinson MN 5535D 520' of W82' & E50' of 544' of Lot 9 8 N 112 of Lot B, Bbck 7, NDAh HaNCi 8189 16.587% E - $2.762.26 OB-11fr29-63-0220 George quasi Property Address: 116 Washington Ave E 406 Maln St S, P 0 Box 233 E50' oT N2Y of Lot 9, 9 23.650.0500 Hutchinson MN 55350 Block 7. Narth Half C- 1100 1.422% 5 $371.04 O6-116-29-03-0240 Geo a Ouasl Pro Address: 126 Washin on Ave E 406 MaiD St 5, P D 13ex 233 E50' vF Lot 10, 10 23.0.50.0520 HutUinson MN 55350 B3ock 7, North HaB C- 3313 4283% S 81,117.52 9G-116-29-63-7220 Libra S uare East Assn Pro Address: 115 15! Ave SE 115 1st Ave SE Lols 1 8 2, Black 1, 11 23.051.0010 Hutchinson MN 55330 61vck 1, Libra uare East 17424 22.527% 5 - 85,877.34 - 70TAL-ASSESSMEHFIiOLL Nb.5089-LETTING NO. 9IRR0JE0T ND.D4.11 77346: 1DDA0%-- - ;0.00 529,090.SD S.A-5C69R0M LETTING ND. A`]9-1004-11/PAGE 1 OF 1 RESOLUTION NO.12438 . RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. 5069 LETTING NO.9/PROJECT NO. D4-10 8 D4-11 WHEREAS, by a resolution passed by the Ccuncil on the 8th day of June, 2004, the Director of Engineering was directed to prepare a proposed assessment of the cost of improving: 04-10 Arch Street SE Trail from 2nd Avenue SE to Fifth Avenue by construction of storm sewer, grading, gravel base, bituminous surfacing, restoration and appurtenances; and 04-11 Block 7 Downtown Alley, South Half City (between 1 st Ave SENVashington Ave SE & Jefferson St SE/Hassan St SE) by construction of storm sewer, grading, gravel base, concrete paving, restoration and appurtenances. WHEREAS, the Director of Engineering has notifed the Council that such proposed assessment has been completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCWINSON, MINNESOTA: 1. A hearing shall be held on the 22nd day of June 2004, in the Council Chambers at Hutchinson City Center at 8:00 P.M. to pass upon such proposed assessment and at such time and place all persons awning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Administrator is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least twc weeks prior to the hearing, and he shall state in the notice the total cost of the improvement. He shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The owner of any property so assessed may, at any time prior to certificaticn of the assessment to the Ccunty Auditor, pay the whole of the assessment qn such property, with interest accrued to the date of payment, tp the City Administrator, except that no interest shall be charged if the entire assessment is paid by November 15th, 2004. He may at any time thereafter, pay to the City Administrator, the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the Council this 8th day of June, 2004. Mayor • City Administrator 5~~> PUBLICATION NO. 7216 • NOTICE OF HEARING ON PROPOSED ASSESSMENT ASSESSMENT RDLL N0.5067 LETTING NO. B/PRDJECT N0.04.10 & 04-11 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council will meet at 6:Q0 P.M. on the 22nd day of June 2004, in the Council Chambers at City Hall at Hutchinson, Minnesota, to consider and possibly adopt, the proposed assessment for the improvement of: 04-10 Arch Street SE Trail from 2nd Avenue SE to Fifth Avenue by construction of storm sewer, grading, gravel base, bituminous surfacing, restoration and appurtenances; and 04-11 Block 7 Downtown Alley, South Half City (between 1st Ave SFJWashington Ave 5E & Jefferson St SE/Hassan St SE) by construction of storm sewer, grading, gravel base, concrete paving, restoration and appurtenances. Adoption by the Council of the proposed assessment against abutting property may occur at the hearing. You may at anytime prior to certification of the assessment to the County Auditor, pay the entire assessment on such property, with interest accrued to the date of payment, to the City . Administrator. No interest shall be charged if the entire assessment is paid by November 15th, 2004. You may, at anytime thereafter, pay to the City Administrator the entire amount of the assessment remaining unpaid, with interest accrued to December 31st of the year in which such payment is made. Such payment must be made before November 15th or interestwill be charged through December 31 st pf the succeeding year. If you decide not to prepay the assessment before the date given above, the rate of interest that will apply is 1 D percent (plus or minus) per year. The right to partially prepay the assessment shall be until November 15, 2004. The proposed assessment is on file for public inspection at the City Administrator's Qffice. The total amount of the proposed assessment is $26,090.50. Written or oral objections will be considered at the meeting. No appeal may be taken as to the amount of an assessment unless a signed, written abjection is filed with the City Administrator prior to the hearing or presented to the presiding officer at the hearing. The Ccuncil may, upon such notice, consider any objection tv the amount of a proposed individual assessment at an adjoumed meeting upon such further notice to the affected property owners as it deems advisable. If an assessment is contested or there is an adjourned hearing, the following procedure will be followed: 1. The City will present its case first by calling witnesses who may testify by narratives or by examination, and by the introduction of exhibits. After each witness has testified, the contesting party will be allowed to ask questions. This procedure will be repeated with each witness until neither • side has further questions. 5(~ PUBLICATION NO. 7216 . ASSESSMENT ROLL NO. 5069 LETTING N0.9/PROJECT N0.04-10 804-11 PAGE 2 2. After the City has presented all its evidence, the objector may call witnesses or present such testimony as the objector desires. The same procedure for questioning of the City's witnesses will be followed with the objector's witnesses. 3. The objector may be represented by counsel. 4. Minnesota rules of evidence will not be strictly applied; however, they maybe considered and argued to the Council as to the weight of items of evidence or testimony presented to the Council. 5. The entire proceedings will be tape-recorded- 6. At the close of presentation of evidence, the objector may make a final presentation to the Council based on the evidence and the law. No new evidence may be presented at this point. An owner may appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment and filing such notice with the District Court within ten days after service upon the Maycr or City Administrator. . Under Minnesota Statutes, Section 435.193 to 435.195, the Council may, in its discretion, defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the payments. When deferment of the special assessment has been granted and is terminated for any reason provided in that law, all amounts accumulated, plus applicable interest, become due. Any assessed property owner meeting the requirements of the law and the resolution adopted under it, may within 30 days of the confirmation of the assessment, apply to the City Clerk, for the prescribed form for such deferral of payment of this special assessment pn his property. Gary D. Plotz, City Administrator City of Hutchinson, Minnesota PUBLISHED IN THE HUTCHINSON LEADER ON TUESDAY, JUNE 8TH, 2004 AND TUESDAY, JUNE 15TH, 2004. r1 J 5(~ RESOLUTIDN NO. 12439 . RESOLUTION ORDERING PREPARATION OF REPORT ON IMPRDVEMEN7 LETTING NO, 11 PROJECT ND, 04-13 WHEREAS, it is proposed to improve 12th Avenue NW by construction of sanitary sewer and services, restoration and appurtenances; and WHEREAS, it is proposed to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement be referred to the Director of Engineering for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. Adopted by the Council this 8th day of June, 2DD4. Mayor Administrator C~ 5~ h) • HUTCI=ITNS~OI~T ~N'GIluEERINGIj~:PUBLIC ~URKS flEPART1Vl~'T °. ' '' ~ ' ~I3utChixisvn City Ccnter /~ 111 I'Iassan Strcct S'1? / Hutt9ilij6on MN 5575D-2522. % 720-,234-4~'J~F2i~C'~~~2(`1=2$~-42gU EIVGTNEERTN'G PORT 70: Mayor and Clty Council FROM: John P. Rodeberg, Director of Engineering/Public Works DATE: June 2nd, 2004 SUBJECT: letting No. 11/Project No. 04-13 I have studied the following areas and find that the proposed projects are feasible and recommend they be constructed. Project No. 04-13 12th Avenue NW by construction of sanitary sewer and services, restoration and appurtenances ESTIMATED CDST TOTAL,' Construction Cast $37,000.00 Land Acquisition $0.00 E'ngineeringlAdministration/Fiscal $9,250.00 Consultant $0.00 ESTIMATED TOTAL $46,250.D0 ESTIMATED FUNDING TOTAL Assessabt~, Cost - $46,250A0 Deferred Ass~ssable'Cost ' $0.00 City aotlddd' $0.00 City-~YV~ki3r/$eyver funds $0.00 City - Rarkinp Lot;~und $0.00 Cull ~ TIF $0.00 1NSA . $0.00 'MnIDOT $0.00 ESTIMATED TOT,4L $46,250.00 C7 SCh~ RESOLUTION NO. 12440 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 11 PROJECT N0.04.13 WHEREAS, pursuant to a resolution of the Council adapted June 8, 2004, the Director of Engineering has prepared a report with reference to the improvement of 12th Avenue NW by construction of sanitary sewer and services, restoration and appurtenances, and said report was received by the Council on June 8th, 2004. NOW, THEREFORE, Bt= IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvements of such streets in accordance with the reports and the assessment of benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429, at an estimated total cost of the imprpvement of $46,25D.00. 2. A public hearing shall be held on such proposed improvements on the 22nd day of June, 2004, in the Gouncil Chambers of the Hutchinson Gity Center at fi:00 P.M., and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 8th day of June, 2004. r ~ LJ Mayor City Administratpr 5 ~h~ PUBLICATION NO. 7217 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 11 PROJECT N0.04-13 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:OD pm on the 22nd day of June, 2D04, to consider the making of an improvement of 12th Avenue NW by construction of sanitary sewer and services, restoration and appurtenances, pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be assessed for such improvement is the benefited property, for which property owners shall receive mailed notice. The estimated Gity Cost of said improvement is $0.00, with an Assessable Gost of $4fi,250.D0, for the total estimated cost of $46,250.OD. Such persons as desire to 6e heard with reference to the proposed improvement will be heard at this meeting. Dated: June 8th, 2004 City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON THURSDAY, JUNE 10TH, 2004 AND THURSDAY, JUNE 17TH, 2004. n LJ ~L~,~ C CJ Hutchinson Citv Center lll Hassnn Sheet SE nucehinson, MN 55350-2522 ,p~~, $ ~T 320.587-5151'/F~ax/3~20-234.4240 TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works R);: Consideration of Selling Surplus Property DATE: June 2, 200A Attached is a list ofsurplus vehicles and equipment chat the Public Works Department would like to • auction. The auction will be held in cooperation with McLeod County. Prinsed an recycled paper . J` 1 J\ 1.7' 1 i'~ 1 f' I~ i ~~ ~~ "~ ~. ~m r j +c-- r- &4 ~} qyg. `1 '~ ~ Q5 ~ ~} - -rte _ v ~ ~p ~I Vy.. ~ v! 7t ~ ~ +~ ['~ ~ c i ~.. ~ ' ~ ~ ~ °c9' x.. „; ,~ ~7 a, ~, . i rra - un cn cn '~ ~ "~ ~ ~ a ~ ~ y ~ ~ ~... ~ ~ OE' ~ C4F '~ ~ i 1~ ~ ~ I rP ,r f"~ i%7 r ~ ~ try LL- D te, - ara C3 ~ L ~ ~ - i ~ ~ ~ U ~ ~ per„ ~ 17 ~ ~ ~ ~ pa ~,~ ~ ~3 ~° '~ ~, rw E - ~' aa - L 'y - ~ ~ ~" tif'D ~ 4 ~ . . ~ L N i ~ ~ ~ Y ~ r ~I -_ ti' I i ~__.... _ r . Q. ~ _,rai, c~ ~ ~ ~ c~ ~ ~ { c~ c~ ~.. v - ~ ~ ,~ ~ ~ c~ a v I Pux ~ 'igd dED ~ ~. w. W ~ ',.. [tj ~ ~ .`C L V^r.~, *y_~ r~~' yU ~ ~ ~ i~ ~ ~ rr // i '.. ~ ~ ~ ' Q ~ ~ ~ ~ "~ }y 4.D ~ Fyn 4.L, T"'" ~ ~ ~} ~ ~ ~ L. ya/ N w~+ t13 ~ ~ tL q„tl,.. L~ LY.. N.k,.. Y.L,. Y..+' ~..~ CU RY .~I r ~ ~ 47'd ~S $7"Y _ ~ i .~~ ~ CLY ~ CYD i ~ ~E$ ~ C77 d'A ~T7' NtlW ,p+~'yM ~' P~r V e ~ ~ Y C~ ' + - - v; SPP VY PJ3 V1 f!3 ffP P/l SPA ¢N5 R(Y ~ + ~: c ~ ~ _ fJ" ~' ~ wr.G+ w + wi~ ~ ~ ~ ~ ~ 1 . ,1. JL .L. .J4.. ~ y. W ~ 4~7 m ~?' aw C'D '41- Cy k- C7 'W- Cb Mrs C~ CP H- Q N-- ~ Lti C~ aY- &7 i, I ~ .. ~ .~. Hutchinson Cit Center C~ 111 Hassan Street SE Hutchinsna, MN 33330.2322 720-387.5t31/Fox 320.234.4240 TO: Mayor and City Council FROM: john P. Rodeberg, Director ofEngineering/Public Works RE: Consideration of Consultant Selection for Airport Improvements DATE: June 2, zoos In order to receive state and federal grants for airport grants, it is required that the city complete a periodic consultant selection process. We have normally gone through this process every five years, but did not do so for the airport in our last review due to being in the middle of a long Capital hnprovemeni Process (CIP) based on our recorded Airport Layout Plan. With the recently awarded project, all work in the previous plan has been completed and we must go through a new consultant selection process. . We sent out Requests For Qualifications from four consultants that specialize in out-state airports: Bolton & Mcnk Mead & Huut SEH TKDA Mead & I-Iunt responded that they did not have tlae resources to complete the work, while the other three firms submitted qualifications. A Selection Committee (consisting of Airport Commission member Chuck frill, Airport Commission Chair Dave Skaar, Airport Manager john Olson and 1) reviewed the qualifications, as noted in john Olson's attached memo. All three firms had excellent credentials altd backgrounds, and we would be we] 1 served by any of them. Our deciding factor was the 35+ years of exceptional service from TKDA, which continues today as we are working on this year's project. As noted by John Olson, we recommend that TI{1)A be selected as the City of Hutchinson's airport consultant for the next CIP period. Printed an r[cycled paper - r ~~ Czty of June 2,2004 City of Hutchinson Public Works Department Hutchinson Municipal Airport -Butler Field 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 T'o: Honorable Mayor and City Council From: John Olson, Public Works Supt./Airport Manager CC: John Rodeberg, Director of Public Works Subject: 2004 Airport Consultant Selection The 2004 Airport Consultant Selection board met on June 1, 2004 to review the statements of qualification received as a result of the City's advertisement on April 1, 2004. We received three statements of qualifications from: Bolton & Menk, lnc„ Mankato, MN . Short Elliot Hendrickson, St. Paul, MN TKDA Engineers, Architects, Planners, St, Paul, MN Selection board members reviewed the statements of qualification, using the following criteria for selection: 1. Pmfessinnal experience of key personnel 2. Experience with state and federal aviation grants 3. Capabilities in airport planning, architecture and engineering 4. Ability to meet schedules and budgets 5. Experience on comparable projects fi. Familiarity with and proximity to the geographic location of the airport 7. Quality of the work accomplished It was a pleasure to receive proposals from three highly qualified firms. Each of the three candidates was deemed able to complete any of the projects we had identified. F,ach of the three candidates had extensive capabilities to provide service to our airport. Therefore, the only significant difference that could be noted was in item number G: "Familiarity with and proximity to the geographic location of the airport." The selection board recommends that TKDA be selected, based on their familiarity with the airport and areas surrounding our airport that affect airport operations. C~ 5 ~,~ ~ CITY OF HUTCHINSON MEMO Finance Department June 4, 2004 T0: MAXOR G CITY COUNCIL FROM: K.EN MERRILL, FINANCE DIRECTOR SUBJECT: APRIL 2004 FINANCIAL REPORT -- COMPOST & REFUSE/RECYCLING I will have an April 2009 financa.al report for the Departments of Refuse/Recycling and Compost to present to the City Council Tuesday. fl:looc \city council memo 1.aoc CJ ~ ~-~~ City of Hutcf~inson Income reports -Water Sewer Compc 04/30104 I _ _ Annual Budget ; 4a4 REFUSE -RECYCLE _ 4001 REVENUES _ 4100 TOTAL INTEROOVERNIu1ENTAL REVENU 160,000.001 _ 4450 TOTAL S_AL_E_S__ _ _ _ 743,700.OD~ 4001 REVENUES i 903,700.00 1 r~ ~/ 1 ement budge[ __ __ CAPITAL OUTLAYS 4 :ycling 12efuse -t i 54 36.03°.61 00 Prior Prior --F -- ___1___ --~- - Ci of Hutchinson ' Income reports -Water Sewer Compost Recycl ing Refuse I 04!30!04 ~ Prior Prior Annual Current Year 7o Budget_ _ _ Yer_cent Year' Year To Percent _ _ _ _ _ _ _ Budget _ Mon[hr Dale Remaining Used Budgets Bate Used _ 4005 COMPOST ___ _ 4001 REVENUES ~ ~ ~ 4100 TOTAL INTERGOVERNMENTAL REVENU 32,000AO __ 0.001 0.00 32,000.00 0.00% 4250 TOTAL CHARGES FOR SERVICES ~ 0.00 120:189.48 122:869.08 122,869.08 0.00% 4450 TOTAL SALES ~ 1,453,423.00 30,183.99 642,827.36 2,094,250.36 4429% 4700 TOTAL REIM6UR5 E M E N -f S 100,D00.-00~ o.o0 1:302.50 101,302.50 5.30% _ _ _ _ _ _ _ 4001 REVENUES L551.423.00 150.373.471 766,998.94 2,195,552.86 49.44% 0.00 0.00! D.OOi 0.00 ,253.34 r~ ~J 6905 DEPRECATION TOTAL EXPENDITURE _ NE7INCOME LOSS] 1 12,860.55 51,44221 55,179.79 48.25°/ai~--- --- - ---- 209,732.39 761,380.031 1675,252.97, O.d1 -59,358.92 5,618.911 1,120,299.89 _- - _ _---- i 208,216.89 Hutchinson City Council • May 10,2004 Dear $irs, I have vended toys and balloons along the parade rome at your Water Carnival parade each year since 1977. Its become a tradition for my crew to come and sell toys there each year on Fathers Dey. I never worried about the fee as I usually paid ] 50.00 to [ 75.00 to the 7Cs for the permit fee. "Then, in 2001 the city took charge of the permit and it went to 25.00, which was fine with me. Last year the fee was raised to 200.00 and the parade route was moved south of the usual route. The new route was fine but sales were down by about 70%. I want to continue to sell toys at your parade, but I cant justify the fee, if I only make about 400.00 like I did last year. Tf you could maybe grant me a fee of 25.00 to 50.00, then I can continue as 1 have in the past, and if the route changes hack or sales increase in the future, then I don't mind paying a highter fee if I can make some money. Please consider this request, and I th~an~k~yo~u~v~ery mrr~u1ch. ~~ [rC/ vv[ ~yYr~/y~'~ C~ ~ ~Gl i~xr~o~' ,~-~ T~ '~.i,? 1 11 l -~~~san ~l~eR S~r~rth~as4 wt~tn7nxr~ru, 9afN 55350 (3'3GJ~ 5~'7-515'i l"f`ax ~ Q32f~) 2 3~-~} ~4~1 ~~ ~~~" II''tt~6i~~rn .~'~'LiC~~'~'I(71 ~(~ I'"~:Cl~LF`I$,, ~~,I+C~'~"~4.~', AC'~l- "A'R..iI~l"~T ~~~ X11 ap~~et~sl~~ tts>~ k~ reeved ~,~ ~ea~ C~ c~~s hfr~r~ ~~r~~~ ~ ~r~r tc~ be c~n~~r~c I I~ ~r~ta~it~r~, P~r..~ ........_.._..~_.... ~? p ~ ~~icat~rs, der- "scar I._.~' I"¢°ar~sre~t N"erclrarzts, ]Per E1a~r~mm "'C"rarrszerzt I'w~~ercharrts„ Per 'Vi'car y_._ ..._.._ .._.._ a ..~.. _.._.. .,... o ' 1'c~c~lers ,Ter Ala ~'ce~~lers, ',e~° Yca~° carnti 'Ca~t~rrrn~tcraa "'~ ~~"' ~~~;ture R_ct~uir~~l ~~t),~ t1~9 E~~rte(~~ t~ ~..tW~,'s~~a~tf~IL~ry~u~')'~~r~r•,.....___n~ ~- ,~tu,~,+~ L7~.t~}~+za~^ w 1,~gy'" ~~^^yy//yy 4~-r1~n~k1lF y~'~~y y k nil t~te' ~~./. t~ q _.._..m.~.. ~2~~.~t3 ....~ .~.._..... Elate~s~. _..~ ..._.._.._ ._..~..~. .._...~. ......._. e~.._..~: _ _.._.., tra ~;~ J~.~f) Elate(s).; t -~ .._..._..~ ._..___ _..W~.~ _.. .. ,M _.._..~.. m.. .~.._ .~_m.. ,~ ~.,~. .e..~ ~ ~..~. .w..~,.m. ~.. _ _ ~.~ __ ,t~ .u. ;J,-~ Ye~ar ~ rWi'~r;,:JalF~aa~9?°er, ~~~:QCI ate(s~: tea ~e;i~~t: .~" ~.~ ~ eik~t: „~'-t~~_.__.... 1Ce ~;~r~~r; a Elri~rcr"s ~,ic~er~s~ N~ar~aber.,r.?~'~- „"rx ~"° ~ ~~ °~,~ Stag: ~!~"~/~,... l~er¢rra~raer~t address: .,~..~ '~~~-'` ~~ ~ j , ~errr~uarzermt ~[`e~eI~~~z~e: ~~ ,:~.. ~`~ ,. ~:. .,4' Sz~eadr 'a....~ ~,~,~._._.~..__... ~~ '~e~r~~rary T~'~epa~ne c,:ess: __ _ _ ]-I,_,.'r y~,~a ~~~~a~ c~~ra~w~aC.~~~3 +~f'~~a'~c'r-Y~~e~, za~]s~c~~~~T~~r„ ur~ v'a~a~~ai„ 1~ a~~~"a~, r~~~r~a~t~t'p~9 ~s~it~~ar7~, ~., !~t~acr t~~r~ ~~.~i~~~ via~latia~xs"~ l yes Asa ti yw,, sd~~t~ $he t~st~zre a~~'e+9ferrse ti~r1d ~tr~is'yti~~t ~ar° ~erualr~a ~,~s~ed tE,rMr°~fnre:. ~, q~ _ ~.....~~ City ofHutchtmm~ Appficntian for PeAdlers, Solicitors, nM Trnnsien[ AAerchants Page 2 of 3 • Location Location Name Srase Location Addreas r~ Business Information Aescribe relationship between applicant and employer: Describe nature of business and describe item(s) offered: Describe method of delivery: Describe source of supply: lier Nnme S upp S'upp/er P)rone N umber T , J ~~ ~~~/.9`~i°'rh'L. ~ _ // ~Jfl~hS7 i_' ~ / f'j f~ 'L'eL~'/9 ~,~ ,,~~ // Supplier Addrees ,VC 6'~~E'. O ~ C!ry Sfnfa `Z/ip ~-~'4t7-~~l't'T~ Supplier Nnme SSrppler Phon¢ Number Supplier Addrese City S!n!e Zip Supp!!er Nama Suppfer Phone Number Su IierAddress (.'i Stntr ZI Information Provide two (2) property owners (preferably in McLeod County) far character references: Praparty Ownar Nnma Property Owner Phone Number ~. ,B..r ~c~s-_ Greve ~~~ {?~ ~Mr~l~-l~ 6~~N~ C,`~-h ,~~N ~~~~~ Property Owner Address ' ~~ Stnte 7-ip 1 ~f. • Property Owner -3x -5,s7~~7s~ Property Owner Phone Number (~ N Score ~~~~ ' CiryofHulchinson Appllca7lon for Peddlers, Sol7clrors, and Trnn-sient Merchnnts Pnge 3 of3 Information List last (up to three (3)) previous city(ies) where you carried on same activity; City Slate Date(s)ofAcnviry { ~j Ciry Stau //~ ' / Date(s) of Activi/ty Clry Statc Date(s) of Activity Checklist The following items need to be completed and/or attached in order for the application to be processed: Application/investigation fee paid in full (check or money order): ^ yes ^ no A lication corn ]eted in full and si ned: ~ es ^ no 1 hcrchy certify I have complctcly filled out the entvre above application and that the application is true, correct, and accurate. 1 fully understand that any pcrsnn who violates any provision of the Peddlers, Solicitors, and Transient Merchants Ordinance No. 673 is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1,000.00 or by imprisonment for a period not exceeding 90 days or both, plus, in either case, the casts of prosecution. r~ LJ 's Signature Date Internal Use Onl Police ^ approved ^ denied Notes: ~ City Council ^ approved ^ denied Notes: H:/LiceiueyAp~lice~inwPaidler, $alleliar, Trmuim~.dor • ~~~) r~ LJ Transient Merchant/Peddler/Solicitors' license Fees Surrounding Areas City Fee Bemidji $280/6 month Prior Lake No charge if taking orders only $50.00 if product in hand Farmington Issuance Fcc - $25.00 $25/month; $250/year Fergus Falls $20-$40/day; $] 20-$240/year Buffalo $50.00/year Hutchinson $200/day; $S00/year ~c4~ Expenses: General i Adminlsha8ve Rent Equipment Meeting 8 Board Retreat wages 8 Saraies Payrop Tox & Expense 4D1 K ACCOVnting Office Suppiss Postage Telephone/ ce1 / E-Mail bepreciaficm Health Insurance Conference i Travel slate conference $M7A Meetings Misc Meetings Vlsilon Marketing Media Adv. IN slate Media Adv- Out OI State Ad & Marketing Agency Internet Prin ling-.Cormlelical Printing-ln house Visitors Brouchers/D 8 L Group Morkefkiy We~ome Moteriak 8rouchen/ Mailers Travel Shows Bid Packets 8 Promotion kelalad Asaxlatbnt Danatlbns Dues VI- MorkeBng VIP Marketing Locdl Marketing i Told Fxpense~ Revenue: Savings lodging Tax MOT Partnership Interest Income total Income DIFFERENCE 2007 8udgef Ac3ual ;8.400.00 ;8,400.00 ;'~7-~ 50.00 ;100.00 ;50.00 ~9,ooa.ao ;29,aoo.aa 52.4ao.0o 52.4oa.0o y910.p0 f0-Op ;1,200.00 51,20Q.00 ;800.00 ;2(10.00 ;1,200.00 ;600-W ;1,200.00 51,500.00 ;1.200.00 51,200.00 548,410.00 54,6,350.00 5500.00 ;49.00 y'300.00 3.'300.00 OD 15.1 57,100.00 5764.14 ;5.650.00 ;5,010.00 ;8,782A0 ;8,000.00 Ss,aao-W SSZSO.ao S54D.00 SD.00 5500.00 54DO.ao $50D.00 5150.00 00 350.00 $21,47200 519,160.00 St,aaD-00 3500.00 3750.00 ;122.00 ;1 5~ 4R S7b4 37 -, . 53860.00 51,346.17 5600-00 3400.OD 5400.00 5600.00 $1.000.00 57,000.00 51.500.00 ~;600.OD 1 000.00 .OD $7,500.00 ;1,000.OD 578,33200 569,200.49 EsBmaled pcpral ;0.00 ;0.00 559.000.00 559,000.W ;3,526,00 53,005.62 564,826.00 567,1&5.62 21)04 budge} ;6.500.00 ;3,000.00 ;100.00 S3z.ooo.oo 52500.00 ;0.00 ;1.4Qp.lp S5pD.00 ;1,500.00 S3,OOD,Op x.00 $59,000.00 5800.00 5700.00 ~.1~R 52.000.00 alo,2oD-oo i9,9ao-m 51.500.00 ;1,140.00 52000-OD 525o.ao 545.990.00 ;l,sDO.op 54,000.00 52000.00 58,500.00 3f,00AO 3~70.17R ;1,A00.00 51.000.00 5],44q,0a 52,000.00 594.890.00 SOQ4 Est. kevanue 5.000.00 ;62.000.00 51,1321-00 55.104.QD_ 591,921.00 ~ C~> Conference and Travel 1. State Conferences $$D0. a. Governor's Tourism Conf b. MN Assoc of CVl3's 2. Southern Tourism Assoc $7Dp a. 6 Meetings per year 3. Mise Meetings $500 a. Educational & training Meeting b. Upper Midwest CVB Assoc. TOTS zOD0 'Visitor Marketing I. Media Advertising (in State) $10,200 a. Southern MN Magazine b. Newspapers c. MN Assoc of Innkeepers d. MN Monthly e. Itineraries MN 2. Media Advertising (Out State) $9,9pp a. Howe and Away AAA b. Midwest Meetings G RV Magazines 3. Advertising Agency $150p a. Setup ads and get discounts on ad placements b. Eagle MTN Agency 4. Internet Maintenance and;tbly charge $1140 a. Vivid Image 5. Printing Commercial $2000 a. New Hntcbinsou 10 page book b. Motel information hook 6. Printing In-house $250 7. Dining and bodging Guides $1000 a. New Glossy Brochures TOTAL $25,990 8 ~ ~~ VIP Marketing • ]. VIP Marketing $1000 a. Gifts (pens, Cups-ETC b. Baskets 2. Local Marketing $1000 a. Fairgrounds Sigp 6. Motel Iuforroation Books TOTAL $2000 TOTAL EXPENSES 92 ggD Revenue 1. From Saviggs $24,000 2. Lodging Tax (Now Collecting from the Fairgrounds) $62,QOD 3. MOT Partnership $1821 4. Interesf Income 55100 TOTAx. REVENUE X2,921 Difference • ~«~ HUTCHf NS4N AREA CHAMBER 4F COMMERCE r~ L J 1 ~ MAIN STREET SOUTH, HUTCHINEiON, MNrj5350 PHON~:320-587.5252 ~ FAx 32p•587.4752 WEBSITE: WWW,HUTCHINSONCHAMBER.COM EMAIL: HCHAMBER@HUTCHTEL.NET Hutchinson Area Chamber of Commerce Board of Directors Meeting Tuesday, December 16, 2003 The HACC Executive Board recommends to the HACC Board that the CVB relocates their office within 30 days of notification (February 1, 2004 deadline); that HACC remains the Fscal agent ofthe CVB by continuing io issue all checks and financial reports in accordance with current by-laws/charter, that the CVB treasurer or chair person approve all expenditures prior to submittal to HACC for payment with a fee paid to the HACC oi'$150 per month or $400 per month if financial controls are not followed; and to accept the 2004 CVB budget with reservations and concern that the CVB board may not understand where the projected income is coming from. Motion made, seconded and approved to accept the Executive Boards recommendation. .~~I1~~~11~~.. L'cu>'urtiltneaat to ~ Since. X945.. . .Mal#i~t~..~futcPeirtban a ~teften peace to P.iue, wc+xP~, and da. Pxcwine~e! $~ h\ Hutchinson Cit Center r'. I I A Hassan Street 56 Hutchinson, MN 5535Ud522 32A-587.5151/Fax 320.234.4240 TO: Mayor & City Council ;~1tOM: Cary Plotz, City Administrator DATIJ: June 4, 2004 SUBJECT: Background Information nn Current Liquor Store Earl~Backrrround 1999 -City Council aulhcrrizes a liquor store expansion study by Grinstead & Associates ] 999 -City Council receives report based on data from 1995 - 1999. This 1-eport includes an executive sununary, customer- questicmnaire summary, salts analysis and projection, and product sales and operational overview. The report by Grinstead & Associates concluded the following: "We enthusiastically recommend to the City of Iutchinson that a second liquor store be added nn the soulhside of Hutchinson. The store should be 4800-5400 square feel, and that it definitely oat be a satellite story It should be slightly more wine oriented and carry its awn distinctive inventory mix (see page 7). Feh. 2001 -The City Council gave Ncil Wegner, Liquor Store Manager, direction to investigate the current site for expansion. Apri12001 - We understand that Komgiebcl Architecture along with some general contractors were consulted and some very preliminary cost estimates were provided to Neil Wegner and shown to the City Council at a workshop on Apri124, 2001 (see attached worksheet). Discussion entered around the fact Option "B" with Mr. Movies made an inefficient cigar-shaped store. Option "C" was explored...expandlnto Mr. Movies and add 18 feet along the entire length o1'thc south building line. Tlxis would leave a driveway and diagonal parking along the sidewalk running nn Washington Avenue, such as the store currently has. '1'l3e feeling al ihat workshop was Thal a iolally new building should be researched in view of very preliminary 2001 cost estimates: Value of existing property $300,000 Cost of Mr. Movies $255,000 Cost of renovation of 18 fcoi expansion , 409 380 $964,380 1'hc comparison was made with a 14,000 square foot building (u) $75-80 square feet totaling . $1,050,000-1,190,000. Printed an recycled paper - ~ l~~ . Due to the accuracy of the cost in adapting the existing stores south wall and relocating the HVAC and coolers, the City Council's feeling in 2001 was that they would rather have one new building- Mid-Tenn Background 2(lfl l - 2(1(13 At the Council's direction, between May 2001 and December 2UU3, staff spend considerable time exploring the "single super store approach". In December of 2001, we explored a location on the southeast corner of Hassan 5treel, north of first Avcnuc. It was felt the site was ton small. A layout was reviewed and deiemrined to be too confining. The landowner to the south was approached, however, did not want lv sell or lease property needed for deliveries. Ptuking and visibility were also issues. Also, we briefly discussed the SO foot strip lot adjacent Lo Shopko that the Cily currently owns. The wicilh limitation was deternrined unacceptable as it would have made a narrower store than we currently own (57 feet in width). Also, we explored with Nash Finch (owners of Econo Foods) in a free-standing, new store adjacent to the alley on Washington Avcnuc. Nash Finch was not interested. The site on the northwest corner of Pirst Avenue (across from Dairy Queen) was investigated. Appraisals and surveys were completed and some preliminary work on land negotiation and • relocation was pcvl'onned by Wilson Development Services. Also, Tushie-Montgomery Architects drew both interior and exterior drawings. Although the project was tabled by the City Council, tlxe layout drawings still have some value in developing a second store approach. Recent Background A second independent study was completed in December 2003 by Dakota Worldwide Corp. After reviewing their Decision Material on the alternatives studied: "Rased on these projections, it is a basis for consideration of a new liquor facility in l~utchinson and, in particular, a second location on the south side.." (page 3, last paragraph). Ccmclusion Although considerable time was taken to ex~minc one large store location (downtown or southside), both independent studies conclude atwo-store approach is favored. hr conclusion, Kcn Merrill, Candice Woods, and 1 recommend adoption of Resolution No. 12435, as seen attached. °~(~~ n u LIQUOR HUTCH EXPANSION AND OPERATIONAL REVIEW PHASE ONE REPDRT 1 Prepared 6y Grinstead & AssocWte, -(~-) r~ ~: LIQUOR HUTLH EXPANSION AND OPERATIONAL REVIEW TABLE QF CONTENT5 • • SECTION ONE SFCTIDN TWD SECTICIN THREE SECTION FOUR E%E[UTIVE SUMMARY THE [USTDMER QUESTIDNNAIRE THE SALES ANALYSIS & PRDIECTION The Customer Questionnaire ExErutivc Summary is heated on Pages 1 and 2. ~ Pages 2 thru 6 show annual sales from 1995 to 1999 ~ Pages 7 thru 1 D show the Sales Projections (thru 2010) for the various locational options. PRDDUCT SALES and OPERATIDNAL OVERVIEW '~' Pages 2 thru 8 shows the various Product Category Analyses U Page # 9 provide an operational overview. An analysis of the three options available to the City of Hutchinson. Plus, The Appendix Section PrepareA nY (nnstead & Associates . c~ LG) ~. ww b N I^ CJ LIQUOR HUTCH EXPANSION AND OPERATIONAL REVIEW PHASE ONE REPORT Section One EREWTIVE SUMMARY • Prpp,~red by Gnnslcad & Assacialr, ` C'l ~ CS \/ a~"~+J Liquor Hutch Expansion and Qperational Review Phase One Report EHECUTIYE SUMMARY THE 081E[TIVE OF THE PHASE ONE REPORT IS TO DETERMINE WHETHER: the Cily of Hutchinson should expand Sts off-salt liquor store Operttions with (7) c7n nddilir>nu! store or (2) <7 sisg(e (ar~er store, u! a new site. OH (.I) return the exieling store .rn•ucture -and recolnn:er:d mudifieutinrts !n the Liquor /Iulcl:'s nperatinnn! .rb-uch~re -- devigned to take full crclvcvttnge ojasy pnlenfiul that pre sc ntly is nal hying fully exploi7ed. SALES SUMMARY FOR THE LIQUOR HUTCH •• DOWNTOWN: Atmual Sales Wince 1995 hove been: BEERlIIQUORlWINC ALL OTHER SALES TOTAL SALES - P ). (indudesMarkdowns? SALES (Tobacco, ap Misc. ~. .. .,,.... .. w:.,,r,u :~,~:....,,„„ ..,,.,.,. - les $2,130,230 ~~~ ~~Annual1995 ~ ~~~~~~~~„~~r~J$2,D38,717~~~~~ $92,018- 4~32%ofT~tal$a~"~~~~ ~~~~ ~ ~~.~~ Annual 1996 ~ $2 X39,335 $104,853 = 4.47°7 of Total Sales $2,344,187 Annual 1997 $2,372,914 $120.581 = 4.84%of Total SalcS $2,493,494 Annua11998 $2b52,972 $126,105-A.71%aolTOtalSales $2,679,077 Annual 1999 $2,810,580 $115,057 - 3.93% of Total Sales $2,925,637 SALES PROIE[TIOHS FOR THE LIQUOR HUT[H -- DOWNTOWN: Clue projections for the future -- with no changes in competition (HO NEW STORES IN HOTCNINSON); with no changes in: per capita consumption, with the L.iquur Laws, the physical size of the Liquor Hutch. -- arc: BFFRlLIQUORIWINE ALL OIHER SALCS TOTAL SALES SALES (Tobacco, Hopt Misc. (includes Markdowns ... ~0 e[ted Annual 2000 ~,.~~, ~ ~~~$7,952,382 ~~~$147732~-«. 4.75°tiWof TOtal~r~ -.~~~~$3,099,614 Pr j ~ @ 2001 $3,111,202 $198,587--(>?6A'7otlotal $3,309,789 2002 ', $3,283,756 $247,127--@ 20'7 of Total $3,530,383 ~ 2003 ~ $3,378,384 $254,287 $3,632,671 2004 $3,484,928 $262,306 $3,747,234 $; 2005 $3,600,350 $270.994 $3,$71,344 2006 $3,714,230 $279,566 $3,993,796 2pp7 ', $3,837,601 $288,852 $4,126,453 2008 $3,955,437 $297,721 $4,253,158 2009 $4,087,A13 $307,655 $4,395,068 2010 $4,230,387 $318,416 $4,5A8,803 NU'fHS: • the Liquor Hutch Customers come from: • 50.35`7 of kit Sates was generated by ruSlOmerS hnm the ~''r' • 14,69'7 was generated ],y customers tram the 55350 zip code living outside the [ity; • 29.38% was generated by customers living 1 D in 30 miles from Hutchinson; and • 5.6% was generated by customers living aver 30 Writes, • 1 he principal question regarding these projections is can the store accommodate this sales volume & inventory requirement? Logistically, it truly iy qucstinnahle whether or not the present Liquor Hutch store could generate these figures. v On one Band, 2 $4.55 million dollar 521e5 vohime (In 1999 dollars) can and is being generated in this sire stare. r On the other hand, the inventory turnover ratio n1 Liquor and Wine can be inrreased ~~ BUT, the Beer Nmover ntin was 62.75 X • ( in 1999. Beer is aheady flying out the door and Beer Turnover Ratio (COG$llnventary @ cost) must he decreased. Reer Inventory needs lu be. doubled -lust to reduce the Beer Inventory Turnover Ratio down to 28 turns per year. • "ALL U I HER SALCS" (Non Alcoholic Beverage Sales) need to be increased In (al least] 7% 01 the Total $ales- We will make recouunendatinns to the City of Hutrhinson that you aggressively promote tobacco. But, whether this recommendation is aucplal (or not) Cigareties, Tobacco-(igaa, Pop, Ice, henldl, and Bar Supplies should exceed T7 of the Total Sales. prepared 6y Grinstead & As;n<iates ~~<..i) ~.r~~u~ ~~~~~ ~~~~~~o~ n~~ r~~~rN~~-~ ~~v~~~r Phase (~~~ FCepart - Ex~tal~ve 5umm~lry .. ~a~e #~ ~ A~Cit~R#31INM~ ~F~ I~UiR SI~~S P~C9~EC"~YC~H~ M~THt~DI~L~1+~Y; tt~e a thr~~ p°axt apprcaa.ch tit estiin atin~~ ales ~,n rho: ~,~~atsd~- Fart ~a~~ - a~iafly the ~eateral lcacatiatas t~u~der ~a~tasiaJeiati~ara tea the Cm~~ Sales F~raj~ctic?n "orarattl (devel~~~~d t>ver ~ ,Years aF`c~aysultiry~, '"r°e t,nalze arad gaaar~tiY the deailo`,~x~~pbi~s, t11e c~~¢7~apetitictn, tI!re lt~,~isties, the tr~~a~saza`e, tl~e at~cessiblifiY, I:l~e custa~rraer ccaaveraierace, arad'tlue ~°r. iaaa~"re arz~l tWfl~e +aftr~fiC'ac ~,. to all la~catians tc~ be analyzed tt~ ~eaterate a ~QQ Sales rxaject~caa. ~xa-t f~a"te is desa~°u'bed irr detail ix~ tl~e 'Sra9ef, I"rrayeetia~a"a. Sectiesx. fart ml"+~p -~ ,ernerat a ~`ara~e" in vuhi~&a. e are statist~call,Y l~'S~/a "~~~j11'idc°taP' this 2~~q dales Prc~g~eti~~a~ r"Il fail. Dart "1"brae -_ ea¢ra~re "`~aar dales rajea;tirat7s"', ~eraera~ed aa~ .C~rt (Jr~e -_ tru the 1"ac~l~et ar~_ ~;~t l~~taYatia~rat lase, arrtd' the famsurraptic~ra lea. I~Icaaaseb~aid Statistics ~tierived fr~araca "t'ite iuareau arf' Labor Statistics. ALL ~uPPR4dlCl~ ARE WITHIN 3°l~ ~?~ ~ACW [DTI~ER - T~fEI~EF'4~, iNE CAT BE' QUII"l; Cq~"ICIEHI" IH C~l~~i ~STiMA~il~Dd~S. :Part. "T'@~re ns~t catatY a~lav~^s r~s tca generate a "S~crorrd ~?pi~a~aa" aa~ ~~r ~~-~ Sales ~''rjectiraa~ .... zt ti~"i11 alsca alleaw ras t ~ca~erw~te aaa aaaaaual Sales l~e-r~~ectic~a~, a~xucf it will ilitastrate hew c1rJS~ ~~r fat"~p aaa existil~ t~~~~: r,ttian is li"arxt its a~~aritet Iaaateaataa.l. TF~~ f9111"ERV~~III CYF BUR P'1~~9t'~'I~HS': "l"lie Ap~exadix tea tlt'is secti~ra au~i~fec ,~ara in ci~aa-t foxra'z ~- si~c'twvi.a~ assua~~pticra~as ti&tat ire used'ta ~r<tject Sales aa~d '~"laxlcet Pcutexatdal t`t~t' flue I~igt.a~r 1 iut~ fi; for a a~ur:w a°ela~catedllar~:r i.,~clta~a° ~iatcia a~rr the setinside; arrd fox tc~ Li~,ruc~x 1=l~rtcl7 stares. The 1~I~~~~rit~ix ~}r~°s: .~~. ,~.. 1 11„57 i.'ti"} TIME. P'(J'I`.I~,NTII~L ~S. f;'T~Ai., I~?~~ S.~,I;..E 7t~~s is a3xeelle~mut. ~.r. t jai i~e~rll.i~gaat~rJ""u~'irae Sales ire l',~9~I was _w '~,~ 1 t~,ti ~U; "n leis slaavws the Lurprnax Hutc:ha ~~s getalr~~ toast abauat all laaterut.al be~~erag~ sala5s -av~.~I,L lei'" "I"lee best t:laat flee sure caa~ald ha~re i~xaped for Brats 2,88,SFI~I. SE~}I'~~I. i~, E i"it~I'Eu~T. rcurat saris r~a~r~ xar~a~. ~s~reis u;~r~r~~~ CIaST( IIISIUE ]h 5~~u~sioE ~ ~ _ , ~~r'ran~a~.~,a,~,r~ mF ~_,. ~' ', up r~q ~ _ . - a 65.01"'~, 34.'~fi°r+"~ ~ ',. -:: :;: .. ..... . .......w _ .. _ .. ,. 'I'~r ~~„ ~tl.ar~~~~~„ ~~~~,GC ri~a~~rt ;iglu , _~r~r'°aLIH ,IG~- 6~M.~`:r~ 35~~.75~~ ~ : ~; SF~I~~S- 11 11 ~~1511. ~i)'s~lll ~`~P _~1QA~EA~dC~~~ Aq'L~'14,.:_~4~ r~1~~~d9~~/~p +~,'~~~~a rra ~ 4~tltsqu~~~ rcaar ItE~AIL q.tquOFt.~rr~~~„ _ ~. ~ IM A L.G~tR~Tli i~l ~ ~~ "t~E ~al~Ttl",P~~E Cat NIJT~&~IP!_! ~N = -. Please i'~at~. F, 7Nue l4(~FaeaueVix ~iata~us dales a~ ~~r,u+l.Vq,t.uar~'ti~iine `~aVes ~iVLY ~, ,4111 ntarr7bers are ex~rst:d in F 99~ ~~xaVlars to caam~partw reatl t~rt~w~l~i at~d t~ eBirriir7at~ the ~ffe~is caF 1rulFtlatrtaat, ~. ~h~ ~xi~tiu~g V_Nq~cr FVuatch is ,6~~ stitaare feet (ap~raxirruately 57 Feet rude by t i fr leaf dleep~w ~, 'ih~ rug, rt»la~ated, I argr, S~auathsud~ L.igtaiar Fita~tcFu ttradex ~r~insid'eratitarn itll~ allay Fitatehir7~sor"d the sne rteeessar~ ~S,S~GI to 1 ~~,o~ u~are fe~t~ t~ ~u Ply tVa~k setlecti~ru sa rue~t~ssar~. ele~ti~cr~ is a wren arrwy~axtanl` reascru lar sh~,P~irng %,r7~ if taRarq~urnstarr ._m as sFinaa~rru bi? star C:tust~_;rr~ ~r t~ua~stutanrtatlra=, (Setlacluar°i as a aeasar7 Far stoaPpi,cug is trual rnua~:h hugMer tl~aru ary ether aVierat of &a4J~. TI°ul~s rne;~„ r~laa~a~~ter;. I~~rgaa, S~ratl•~~~,I~ lr Luyuaaar ktuatt;l~r VIII e~xParud tie rustarner elr,~~aala~g uadias ~~t~ sarrue de~gr~~ee~~ ~aat rt'IS Ia+at gairrug t~s d~ai~ge the averall Li._luar gtc~~ ~ . ~s'ru~i~Tr dravwing ~J•,na~n s (iht Otut !Hrl`C~„ th r ar_,rfc~cr gill b~e~ raoare aao7~~. rwi~~rut tea sane sl~aPpers. GN 7H~~ C~TN~R ld~?, ih _ in i~~~rtaru~.~~. ~-,'. the ~arih~~ i~ a ~ ~iwt~-n~, ~ ~, end tb~'ur c ~ ~a~, ~~~ ~ ,~a°r;: r~ry~Wfr~ran~r"Fts eh~„1 ~ d ~ ~+ b~ ~v~fl°lara'A~~I,. PkCtP'E~'~PER thus"autlmFStlde #a~ati~-r~ Vs Perceived ~s ~~~~in~ ~eless xa~~v~m~~~ nt" to I; ~rrr "ragu~lars" (tl~igdl ~~f~~~;~~~~~~~ Fre~qureaay ~'r<astam~ars~. 7hue cuevr„ r. " ~eatedd larger, ~aaiths~ide Ltlgruar h~'atth will have a tl~igher ~u ,ss ~~1i~ ~urw ~Prclee~d ~ -~-~.~3"d' ~ trim the f~aw~rrta~aru ~i~arzr~ I~utcfa h~ ~~. r itue sele[tl~n~ and lareserrtatit~ru at ~wmrpas crud rnuera ~ irru~ ~ ~~~~'~eers Sara be hlgh~r QwutV1~ the extra srgtaare i'~a~tage~,. Fati .f~he ecc~ud `.t r~ t_,,~i~n _ L.Vr~u~ar tlB~tcft ~.~ atathside, u~nwast I~~_ a , ~~~~ t~ ~g~4~L~ sguaare faaat ~.uq~gx t~re~. tlt i~ irttrud~`~9 tru Fay a ti.,~11-sc~ I~ tligrrnr st~nre v~ith its cwru uar7igtae irrv~:a~trar~?, euastcar~ers, ar7d ~rradluct der~arhdl. IIT P~FIU.FLP hd~fi P ~d~l~i~'R r4 `"SA~d~Ltl~P Tl~Rln"°, fr, f'tl_P~SP ~tCl~1~~: ttl~e ~w I Fri ~i~~r~~~arus far either st~r~ c~i~, ~r~i ~~:,n ttlte saawthside art ~uara~ers thuat are r~care~ geruer~~al (~~~~tas vie rya r7at d~ as ; ~c.„u~ti: I~cattlcrts~.. l~k~vnatasly, ~f~-.:~ a~iJi bra tapdate~f an7d fumed-taara~c~ iru tfa~~ PFaase "lure F~el~au~rt, ~~~.~~ ~ w,..,,.:''6 LIQUOR NUT[H E%PANSION AND OPERATIONAL REYIEW Phase One Report - Exeeutire Summary -- Page # 3 ANALYSIS OF THE NEW, RELDCATED, LARGER, SOUTHSIDE LIQUOR HUTCH The follgwing chart assumes: (1) a location can be obtained to allow us to build an 8,500 to 10,500 square foot stare on the southside Of Hutchinson; AND that this location will provide good exposure and accessibility to Highway 15, South (2) closing the present Liquor Hutch and relgcating it on the southside, in a larger, new store; and (3) retaining the existing Store Management structure. 5ALE5 PROIE[TIONS FOR THE NEW, RELO[ATED, LARGER, SOUTHSIDE LIQUOR NOTCH: Our projections far the Future -- with n0 changes in competition (NO NEW STORES IN HUTCNIHSON); with no changes in: per capita consumption, with the Liquor Laws, the physical size of the liquor Hutch. -- are: BEER/LIQUORIWINE ALL OTHER SALES TOTAL SALES SALES Tobacco, Po ,Misc. includes Markdowns From the Liquor Hutoh - Oowntawn Projected Annual 2000 $2,952,382 $147,232 -• @ 4.75%of Total $3,099,614 2001 $3,111,202 $198,587-@6.0%MTotal $3,309,789 FROM THE NEW, RELOCATED, LARGER LIQUOR NUTCN-SOUTHSIDE We cannot envision this opening prior to January, 2002 Beer/UauorMlme Sales All Others [a 7% of Total Tot I I 2002 ~ $3,544,281 $266,774 $3,811,055 2003 $3,646,973 $274,503 ~ $3,921,476 ^ $3,761,987 $283,160 2004 $4,045,147 )~ 2005 53,886,585 $292,539 $4,179,124 I 2006 ~ $4,009,519 5301,792 54,311,311 5 2007 ~ $4,142,698 $311,816 84,454,514 +g I ~ Zt)OS iM1 $4,269,902 $321,391 $4,591,293 ~~~ ~ 2009 $4,412,370 $332,114 $4,744,484 ,0,' I 2010 ~ 4S ,566,711 $343.731 1 4 ~ 9 YEAR - 2002 THRU 2010 TOTALS •• FOR THE NEW, ENLARGED LIQUOR HUT[H - SOUTNSIDE SALES pg~ 536,241,027 $2,727,819 ~ $38,968,846 '~ $8,581,875 $900,180 GRO55 PROFITS $9,482,055 GRO55 MARGIN 23.68% 33.00% 24.33 OPERATIONAL INCOME $ 4,805,793 New Stdre Cast (Princple & Interest) (-$ 876,096) CASH FLOW $3,929,697 ~ 9 YEAR - 2002 THRU 201 TO OTAlS •- FOR LIQDOR NOTCN -DOWNTOWN SALES $33,571,986 52,526,924 536,098,910 GROSS PROFITS E $7,872,631 $833,885 $8,706,516 f GROSS MARGIN '~, 23.45% 33.00'90 24.1 OPERATIONAL INCOME ~', 54,374,647 New Stare Lost (Principle & Interest) (•$ 326,536) CASH FLOW 54,046,111 :w.~ramwww0erwxwo+xra~ !ewmrrwmwMxmaim~w 0 Gross Mar gin of the sum of Beer, Liquor, and Wine has grown steadily at the Liquor Hutch. In 1995 this was 22.55%; in 1996 this was 22.94%; in 1997 [his was again 22.94%; in 1998 this was 23.07%; and in 1999 this was 23.23%. v We will estimate Gross Margin for Beer/LiquorlWine in the liquor Hutch - fkwntown Irom 2002 to 2010 @ 23.45%. b We will estimate Gross Margin for Beer/Liquor/Wine in the Liquor Hutch _ Southside from 2002 to 201 D @ 23.68%a, Gross Mar gin of "All Other Items" has grown in the last two years at the Liquor Huth. In 1995 this was 36,11 %; in 1996 this was 35.06%; in 1997 this was again 34.95%; in 1998 [his was 36.19%; and in 1999 this was 37.47%. We will recommend a more aggressive pricing policy for these items. b We vrill estimate Gross Margin for "All Other Items" in all Liquor Hutch Stores from 2002 to 201 0 @ 33A%. • ~ Anually, we will recommend using some "Other Items" as promotional items -which will decrease Gr oss Margin -but will increase both the Sales and the overall Gross Profits. Therefore, we are quite comfortable with this conservative estimation of stare profits. Prepared by Grinstead & Associates G (~~ LIQUOR HUT[H El(PANSION AND OPERATIONAL REVIEW Phase One Report -Executive Summary -- Page # 4 ANALYSIS OF THE NEW, RELO[ATEOt LARGER, SDUTHSIDE LIQUOR HUT[H -Continued FORTHE NEW LIQUOR HUTCH - SOUTHSIDE FOR THE EXISTING LIQUOR HUTCH -DOWNTOWN ... ............ . ............. ... .......................... . b We estimate Gross Profits ham 2002 to 2009 @ $ 9,482,055 9 year Grass Profits = $ 8,706,516 . ... ............. ....................... ............... b We estimate 0 erational enses vrill6e 12.0%oi Saks; Operatonal Expenses @12.0 of Sales; P .. ......~ .............. b We estimate Operational Income hom 2002 to 2010 Ca $ 4,805,793 Operation Income= $ 4,374,647 ............. b We estimate the Cost of a New Store will be $ 876,096. ($97,344 times 9) Store Lost = $ 328,536 (36,492 times 9) This h based upon budding msts = 9,500 square fee[ @ $501tool = 4 475,000 Our old notes on the Eridrson's Downtown Redevelopment PLUS $325,000 for land acqulald°n. This totals 5800,000. Condominium showed a E300,000 figure. $800,000 overt 5 yeah @ 9% interest is $97,344 per year in Prindpal 6 Interest. $300,00!) over 15 years [o) 9% interest is $36,492 per year. p. 9 year Cash Flow = S 3,929,697 9 year Cash Flaw = $ 4,046,111 From 2002 to 2009 -the new, larger, relocated Liquor Hutch -- southside will produce about''/a million more in pperational Income -but, the cost of building this new store will produce a cash flow of approximately 5100,000 less than that existing Liquor Hutch --Downtown. Over the next 20 years, these two locations will produce relatively similar financial lncoroe/Cash Flow numbers. However, these "similar numbers" are not substantial enough for us to enthusiastically recommend that the City of Hutchinson move its downtown stare to a new, relocated, larger, southside operation. This maybe a considered an "alternative" if the Condominium Agreement is "pulled" by Nash Finch. ANALYSIS OF A SE[OND LIQUOR HUTCH STORE - ON THE SOUTHSIDE The charts on Pages 5 & 6 -- assume that this #12 Liquor Hutch -southside store: I (1) will be a 4,800 to 5,400 square foot store; . It is intended to be a full-scale liquor store with its own unique inventory, customers, and product demand. IT SHOULD NOT BE CONSIDERED A "SATELLITE STORE". (2) will be operated in conjunction to the present Liquor Hutch -Downtown. (3) will allow us to Maximize Convenience in that it would service customers to the North and your mare lrequentcustomers -and it would better serve customers to the South and would be more attractive to the shopping oriented customer. (4) will Reduce The Inventory Pressure on the Liquor Hutch -Downtown (5) will both Retain the existing Store Management structure -and, expand it to cover two stores. Therefore, this is going to dramatically Increase Operational Expenditures, but it will not double it - because various lixed expenses can be prorated over two stores. (6) will have a negative 21.3°/a effect on the sales ofthe Liquor Butch --Downtown Store. This is derived from data taken from the 1999 Customer Questionnaire, from our projections, and from similar projects in other Minnesota Municipal Liquor Stores. (7) will be ready to "OPEN" in June, 2001. We assumed because of the smaller square footage requirement --this location could be obtained easier, and the stare could be set up faster than the larger 8,500 to 10,500 square foot store, (8) will have the facility to support a 4,800 tv 5,400 square foot building, and still provide convenient parking, good exposure, and easy accessibility to Highway 15, South and that (9) there will be no "other" changes in competition; per capita consumption, with the Liquor Laws, the physical sizes of either Liquor Hutch Store. The Gross Margin of Beer, Liquor, and Wine has grown steadily at the Liquor 3Hrtch. In 1995 this was 22.55%; in 1996 this was 22.94%; in 1997 this was again 22.94%; in 1998 this was 23.07%a; and in 1999, this was 23.23%a. We will estimate Gross Margin for Bcer/LiquorlWine from 2002 to 2010 (~ 23.45% in both stores. f The Gross Margin of "Al] Olhcr Items" ]ids grown in the last two years at the Liquor Hutch. • In 1995 this was 36.11%; in 1996 this was 35.06%; in 1997 this was again 34.95%; in 1998 this was 36.19%; and _ in 1999, this was 37.47%a. We will estimate Gross Margin for "PJI Other Items" from 2002 to 2010 @ 33.0%a in both stores. Actually, we will recommend using some "Other Items" as promotional items- which will decrease Gross Margin -but will increase both the Sales and the overall Grdss Pr°fts. Therefore, we are quite comfortable with this conservative estimation Of store profits. Prepared bS Grinstead & Assodates <t! ~1 LIQUOR HU7CN E1[PANSIpN ANp OPERATIONAL REVIEW Phase One Report -Executive Summary -- Page # 5 . ANALYSIS OF A SECOND LIQUOR HUTCH STORE - ON THE SOUTHSIOE • Continued SALES PROJE[TIONS FOR # 2 LIQUOR HUTCH -- SOUTHSIDE: The following chart is the sum of the Sales from the Liquor Hutch -Downtown and the N 2 Liquor Hutch - southside. BEER/LIQUOR/WINE ALL OTHER SALES TOTAL SALES SALES (Tobacco, Pop, Mist.) (indudes Markdot From the Liquor Hutch -- Downtown Actual Annual Sales in 1997 $2,372,914 $120,581 = 4.84%af Tatal sales $2,493,494 Actual Annual Sales in 1998 $2,552,972 8126,105 = 4.71% of Total Sales $2,679,077 Actual Annual Sales in 1999 $2,810,580 $115,057 = 3.93% Of Total Sales $2,925,637 Projected Mnual 2000 $2,952,382 $[47,232 •• @ 4.75% of Total $3,099,614 FROM THE LIQUOR NUTCN -DOWNTOWN AND THE #f' 2 LIQUOR HDTCN - SOUTNSIDE Stare # 2 •• projected tq open in Lune, 2001 - wRh a Father's Oay Grand Opening @rgrlLauorlWme Sales All Other Items TyTal Sales 2001 -with 7 months from $3,807,155 $243,010 $4,050,165 the # 2 Liquor Hugh Ir 1 L J I • ~ ~~ Fmm the Sum of Both Stores ~ 2002 ~ $4,178,923 $314,543 $4,493,465 2003 " $4,300,002 $323,656 $4,623,658 2004 $4,435,611 $333,863 $4,769,474 0 2005 $4,582,520 $344,921 $4,927 441 a 2006 $4,727,467 $355,831 , $5,083,298 2007 f $4,884,492 $367,650 $5,252,143 2008 $5,034,474 8378,939 $5,413,413 ° 2009 $5,202,453 $391,583 $5,594,036 2010 4 4 $405.280 5 789 710 ~ 9 YEAR - 2002 THRU 2010 TOTALS -- FOR THE TWO LIQUOR HUTCH STORES g ~ SALES $42,730,373 $3,216,265 $45,946,638 ~ GROSS PROFITS ~ $10,020,273 $1,061,367 $11,081,640 I GROSS MARGIN 23.45% 33.00% 24.12% OPERATIONAL ERPENDITURES - based on 11.7% of sales $5,375,757 ~ OPERATIONAL INCOME $5,706,572 ~ New Store Cast (Principle & Interest) (-$ 766,584) CASH FLOW avva $4,939,988 9 TEAR - 2002 TNRU ZO10 TDTALS -- FOR LIQUOR NUTtN - 00WNTOWN a SALES $33,571,986 $2,526,924 $36,098,910 GROSS PROFITS + $7,872,631 $833,885 $8,706,516 ° t GR055 MARGIN p~, 23.45% 33.00% 24,12% ~ OPERATIONALEBPENDITURES-based on 12.0%ofsales $4,331,869 ~ OPERATIONAL INCOME $4,374,647 New Stare Cost (Principle & Interest) (-$ 328,536) CASH FLOW 84,046 111 w , smau Estimation of Amortited Costs of the two stores - is the SOM of the Condominium Cost of the liquor Hukh - Downtown (i.c. $328,536 over 9 years -PLUS- Cgnswnion Losts on the new stare (5,000 square feet @ $50 per loot) Is $250,000 PLUS, land acquisition @ $150,000. TOTAL COST = $400,000 =amortized over 15 years, @ at 9% interest is $48,672 per year or $438,048 over 9 years. $328,536 + $ 438,038 = $ 766,584 WE ARE CONFIDENT ABOUT THE SALES ANp GR055 PROFIT ESTIMATION. However, the Operational Expenses and Operational Income aze more "ball park" figures based upon other stores. Because we can spread fixed expenses out over two stores - we believe expenses can be reduced to at least 11.7% of sales. Prepared by Grinstead & Associates q (0.1 n u LIQl1OR 1R{TCH E][PAH51Of4 AH6 OPERA41O11i1L REYIEIIIf Phase One Report - Fsecutlve 5unnary -- Page # 5 SUMMARY SHffT - wed to e+~wlte tre "O6jodives" of thls PYabe One Repal: . Shardd the Cite ofHutchinson exprmrl its off-.sa1e liquor stare operations with: (I) an additional store ar (ZJ a single larger store, a[ a new site. DR ~3J retain the existing store structure -card recommend mod{frcatioms to the Liquor Hutch's opetntional shxcture - designed to take full advtartage ofmry pateniial ihrd presently is not 3eing fully exploited Qpfion # 3 Resale ibe EwLstAeg Stole Sa'ractsr~e - _. Arnssl Saks ArnrJ 1995 ___ _.._. 42,F30130 - - - Arne11996 42,344,187 _. ... -- ArnrJ 1997 52,493,494 Arns11998 _ _ _ 32,674A77 ._ _ . Pmr11999 42,925b37 %ojxted Anrel 2000 $3,099,6.14 _ . _ _ _ -- -- "- Prole[led Nrs812001 - $3,309,789 Optiae # 2 Relorale la a eew, t'a~ger SoaA6ak4e Sroro -- _ _-- _ knal5ales_ OpNoe # f Aa4da am-seare n u - Arrsel Saks Arrs~ Sates ~ - -- -- Prr_ >I~i ~lns - -- Lir}or H.Adi # 1 .. - -- - Llgaor Hum. # 2 _ ... _ Sun d - ~ DanEOxnSlam -- Sauf~vdtStae _ BATH STORE -- $2,896,065 --~- ~ ~-41,154,100 $4050,165 2002 $3,530,383 $3b11A55 $2,778A11 $1,715054 $4,493,465 2003 53,632,671 33,92F,47fi 42,858,912 $5,764746 34b23,fi58 2004 33,747134 84A45,147 52,949073 51$20,401 347fi9A74 2005 43,8'71,344 $4,179,124 33,04fi,748 (1,890,693 $4827,445 200fi ~ 43,993,7% $4,331,311 33,143,117 51,940,181 45063,298 . 2007 $4,126,453 34,454.514 43,247519 S2A04b24 55,252,143 2008 $4153,156 &1,591,293 43,347,235 42,866,178 35A13,413 2009 $4,395,068 34744,484 43,458,949 42,135,117 55,594036 2010 $4,548,&73 54,910,442 $3,579808 42209,802 55,789]10 zooz ro roro rarres 2Gb21oZf110- SAIESTt)TALS 536,098,910 $38,968,846 $28,409,842 $17,536,796 $45,946,638 2Lb2loZ(170- Q7Q45'PRC4`TTS $8,706,516 $9,482,055 $6,852,454 $4,229,875 311082,329 2lA72lo1t1l0- EkPEM1tffS $4,331,869 54,67fi,Z52 $3,323852 42051,805 $5,375757 2Li71 to Z(1l0- L4°EIb1 TkAlWL dlYtaNE $4,374,647 4411115,793 $3,528,502 42,178A70 45,706,572 2(A?Z1aZl7i0- NEWSTOR£IZtST $328,536 3875,036 $328S3fi 44?8A48 $765884 2fA72TOZ0f0-CRS11RL9V $4,045,111 53,924,697 ~ 33,199,%6 41,740A22 (4,939,988 _ Astrage Arawa'Cash F37w $449,566 - ~ ~~ _ ... _.... $436,633 ~- ..__ _ .._.. $355,552 _ . __ ~_ ~_ _ 5193,33fi _. -. ~--.. _~ _.4548,888_... __ -- r'~ 1&54h're f@~mba~ 4x.97 -- -- 41.22 LIQUOR HUTCH EXPANSION AND OPERATIONAL REVIEW Phase ORe Report - Exeeutlve Summary -- Page # 7 ANALYSIS DF A SE(DND LIQUOR HUTCH STORE - ON THE 50UTHSIDR -Continued Page # 6 is used to quantify our recommendation to the City of Hutchinson Nate that Option # 3 Option # 2 Option # 1 From:2002 to 2D10 Retain tha Exiadng Reloaaee !a a Add a new afore Store Strednre never larger DOwntnwM Southslde Sum of Southslde Stare 'uor Hutch # 1 1iq.... ..... li uor Hutch # 2 .....4 ................................ Both Stares Operational Income ........ .......84,374,647....._. .......$4,805,793 $3,528,5D2 $2,178,070.......... .....$5,706,572...... Cash How 54,046,111~~~~~ ~ ~~~~~~~~~$3,929,697~~~~~-~ ~~~~~$3,199,966 $1,740,022 84,939,988 Average Annual Cash Flow $449,568 ~ ~ ~ ~ ~ $436,633 ~ ~ ~ ~ ~ ~ $355,552 $193,336 $548,888 AElative Potential 97.12% 122.09% Compared to the liquor Hutch -Downtown (as 10D%) Option # 2 -Relocate to the snuthside -would grade as a 97.12% Option # 1 - Add a new store on the snuthside -would grade as a 122.09% Therefore, we can enthusiastically recommend to the City of i-]utchinson that you add a second Liquor Hutch on the snuthside of Hutchhtson. That this store should be 4,800 to 5,400 square feet, and that it should definitely not be considered a satellite store. It should be slightly more wine oriented and carry its own distinctive inventory mix. M The following is the Appendix to the Executive Summary. This is designed to show: r1 The demographic growth assumptions that we used to generate Sales and Market Potential for the options shown above. 2) The "POTENTIAL ]999 SALES" compared to ACTUAL 1999 SALES. b Acmal Beer/Liquor/Wine Sales in 1999 was -- $2,810,590; b The best that the store could have hoped for was $ 2,988,800. This is excellent and shows the Liquor Hutch is gettingjust about all potential beverage sales available!! 3) The big difference between the locations under consideration is the percentage of customers generated from outside of zip code 55350.. The Appendix shows Customers from OUTSIDE Zi Code 55350 Option # 1 -- two Hutchinson liquor stores - (1) the edsting downtown Store and (2) a new 48.90% R,80D to 5,4D0 uare toot retail li uor store in a locahon on the soulhpde of Hutchinson _. .............59.-~- ----- -... ...---- - -----. , , ,.,.._ ., .. 39.75% ,... --. - - .. ..... an the Southslde o Hut msan ~..... ~~.~~~....~... -------------------------------'----- 34.9fi% Dpl on # 3 -just retain the downtown Liquor Hutch ~~~~~~~~ ~ ~ ~~~ ~~ ~ ~~~~~~~ ~~-~---~-~~~ -~ ~~ Ylcase Note: ~ The Appendix shows Sales as BeerlLiquor/Wine8ales ONLY ~ All numbers are expressed in 1999 dollars to compare real growth and to eliminate the effects of inflation. The pollowing Sections to this Phase One Report are: / THE CUSTDMER QUESTIONNAIRE • / THE SALES ANALYSIS & PROTECTION / PRODUCT SALES and OPERATIONAL OVERVIEW. Prepared 8Y Grinstead G Associates Glad ~~ C~ LIQUOR HUTCH EXPANSION AND OPERATIONAL REVIEW PNASE ONE 6EPORT E%E(UTIVE SUMMARY APPENDIX Prepared 6y Ginstead & h.50uates Ci / ®-~~ Cerm~raphic rrcrm Asarrptiac Population Arsage Household Inooma _.r_..._._. ~._~._.. _..- -r-----.._..-----.. Section One -- Appen~x --SALES POTBiTIAL from 1999 thru 201 D Oty of 2019 2067 2005 2002 7999 1997 199D 18800 17,400 16,500 15,300 14,170 13,322 11,523 1999 1997 1990 $44,669 540A62 $29,503 Cul~ide the Gty n ~ aade 55350 5,705 5,004 4,612 4,1 S8 3,710 3,403 3,101 851,256 $45,480 534,867 TOTAL in ~ md• 55350 24,505 22,404 21,112 19,418 17,880 1fi,731 14,624 545,930 441A55 $30,474 PEAR 2010 21707 2005 2002 1999 1997 1990 ary of 7,873 7A45 6,fi53 6,}20 5,601 5?24 4,537 OuLSde tlx 4ry n zp mde 55350 2,417 2,112 1,938 1,71fi 1,533 1,391 1z5a u TOTAL n ap mde 55350 10,091 9,156 8,591 753fi 7,134 6,618 5,787 ~r"°1E ~ Ritide Fie Gty un ~ ~ orn 10 fo 30 his Mae Fen 30 t89e sale sz,s1o,58a saw ;, ~p ~ Galortwrs r~ ~ ~ ~ ~.,,>t,e ' Mies troy, lne 55350 'l7ul Of Tarn" ~~~ L ~ra Fimdi L .ror Hind t 50.35% 14.69% =fi5.0496 34.9fi% 29.3fi46 S,fiO% 41A15,127 4412,874 8982.579 5825,186 8157,392 8eerticNarA'~ To615aks 100% _ $2,810,590 ACTUAL pc cap7a mam~m d Nahd~c 8e+. 5252.67 5269.31 POTEHIIAL pe ~i3 ~ongtlm d N~3~ Ber. 5318.75 5327.25 Adel and Poteittal Carangtlcn of AlaoFxic ~'Q'~ par hasdnVd - fran the 6,rear of Labor 51a9si5 r1 `O 4999 A.dellxrcrHuWi 41,415,127 5412574 54528,D01 @fi5A4% 52,810,597 ~ MarkelPoladal 41,78§252 4501,693 52286,945 @fi5A4%a 53,516,213 df%sfMaldparlP,MsHal~rf7,ld4,dAP The Edsiig A Fkx, Rdo®ted, Lags The EdsFig Lk}nr H~ Fir a Salesand Mzrket liq.ia Hutdi LJq.or Fluty on theSouEsde SA00 eq' slaeon the 5outslde Potenfd Presenlllwel %af `roof Prcjectias Oty CuLsde d•7eOtp TOTAL 96 d {34.9fi%~ of %af 'Uut OF Tan' %of 'Oul # Tows' d e~ ~ mde h ap mde Cuelorrars from 'S7ul Of Town' Custaners from faatan><rs Gataries from Custmters yEpq FkAdirrscn 55350 55350 55350 Clalmbrs 55350 ~ 39.75% 55350 ta4&9096 2002 MakelPotedel 51.950.750 5561,520 42512270 ~65.044b 53,862,4 ~B025Sfi $4,589,743 51.11'1SE 54,91fi,380 8i%olfheMarkefPotmtta'es 53,283,256 53,544,28} 54,!7$923 2005 M1431!el Poterd~ $2,120,716 5634,787 52,754,903 ~ 65.0496 ,235,766 ~ 60.2596 ,572, 51.1 85% ofthe Market Pm~c+tial +s 83, 600,350 53885585 54,582,520 2007 hlarketpotental $2245A45 0,997 $2.936,442 65.0496 ,514,825 .2591 ,873,763 1.10% B5%m'f1,~MarkelPoter+Na1B 83,837,80} 84,}42,898 84,964493 2010 Market Patertl~ 52,445,918 8791A74 53,236,992 ~ 85.0495 ,976. ~ .2591 ,372,602 51.50% .334.62;1 85~nftheMaketPoten7ialu 54,230,387 $4565,7}} 553844 N n.frhers are In 1999 0.:i`as. to $nlrete 9ie etkcts of hflafon HauaehoW TFrse Saks Pro~Ctlors ae BeaA.IquorNAne Sdes CNLT. U~at Prepared bP G1r~d 6,lzso3ates C~ C LIQUOR HUTCH ERPAN510N AND OPERATIONAL REVIEW PHASE ONE REPORT Section Two THE COSTUMER QUESTIpNNAIRE ANALYSIS Prepared by Grin:.Ind & Assn .fates \~G~l '~ ~'~ ; THE LIQUOR HUTCH CUSTOMER ANALYSIS (A database of Prasent Customers) 'I'bis section is the result of the customer interviews taken in the Liquor Hutch on December 2"a through 4`s, 1999. Customers Interviewed Total Customers Interviewed in the Li uor Hutch ip 1899 143 Total Customers Interviewed in the Hutch Liquors in 1992 313 These Liquor Hutch Customer Questionnaires will obviously be compared to the questionnaires taken in ]Tutchinson in 1992. But, they will also be compared and contrasted to questionnaires taken in: (a) Richfield in 1992 & 1998; (b) Apple Valley in 1998; (c) Brooklyn Center in 1997; (d) Savage in 1994, (e) two privately owned stores in Minneapolis/St. Paul taken in 1995, (f) 13 privately awned retail liquor stores in Fort Wayne, IN in 1998, and (g) national retail liquor store customer statistics. EXECUTIVE SUMMARY WHERE ARE YOUR CUSTOMERS COMING FROM -PAGE # 4 • Median Distance Traveled to the Liquor Hutch was 2.32 Miles • The fallowing chart shows haw the Customer Mix has changed over the last 7 years Liquor Hutch Hutch Llquors • 1999 1992 Median Distance Traveled to the Store 2.32 Miles 1.50 Miles -w Customers tram the Cily of Hutchinson (0 to 2 miles) _. 50.35% 71.57% Customers From the Hutchinson Zi Code 55350 65.04% .. ...................87,223'0 ................. P Customers From Out of Town 34.96% 12.78% • The Liquor Hutch's percentage of Out of Town Customers can be further increased. FREQUENCY OF SHOPPING -PAGE # 5 Compared to other G&A Clients -The Liquor Hutch has an ideal percentage of customers shopping once per week (OR MORE) -and once per month (OR MORE). This indicates a strong store loyalty --that customers view the Liquer Hutch as both A DESTINATION and A R00TINE SHOPPING TRIP. + A DESTINATION IMAGE -- is more attractive because R will generate a higher sales and profit -but + A ROUTINE SHOPPING TRIP --will create a lower customer count --hut will also generate the potential for an increased average Sales per Customer. This puts much more emphasis on effective store merchandising & marketing. COMPETITION -PAGE # 6 • ONLY 37.1°k of the customers interviewed in the Liquor Hutch could name a (non-Liquor Hutch) store as a °Favorile". We were surprised that the larger Minneapolis stores ware not even mentioned by the Liquor Hutch Customers. • The competitive stores that were mentioned have a low shopping frequency. • The "Customer Perceived Price Image" has certainly changed over the last seven years in Hutchinson !! Price Comparisons Liquor Hutch Hutch Liquors 1999 1992 The Liquor Hutch Price is HIGHER than Brand "X" 11.3% 83.5% The Liquor Hutch Price is EQUAL than Brand ")(" 50.9% 12.8% The Liquor Hutch Price is LOWER than Brand "X" 37.7% 3.7°k • THIS INpIGATES A RELATIVELY LOW LIQUOR STORE "COMPETITIVE PRESSURE" IN THE LIOUDR HUTCH MARKETING AREA. Prepared by G~Snsteed 8 ASSOCIaIB~ THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # Z • E>,ecutive Summary -- Continued REASON FOR SHOPPING--PAGE # 7 • The Reason that customers shop in the Liquor Hutch was Convenience of the Location. • However, Selection and Customer Service rated a well "above average" - as a Reason for Shopping. • Page # fi shows that the Liquor Hutch has a low price image, but it is not rated as a major "Reason for Shopping". Our Marketing Recommendalionsneed tostrengthen "low pricing" as a reason for shopping. PLANNED PURCHASES -- PAGE # 8 • There is a considerable opportunity to generate additional "IMPULSE SALES" in the Liquor Hutch because ONLY 59.4% of all customers had already planned their purchase, before entering the stores. • Hutchinson should be considered a Brand Named Community-especially during the summer tourism season. 77.0% of all customers planned to purchase "their favorite brandlproduct" -whereas only 63.8% planned to buy at a low price. SHOPPING @ MORE 4 SUPERMARKET- OR SHOPPING JUST @ THE LIQUOR HUTCH -PAGE # 8 • The "Liquor Hutch & More 4" customer can be characterized as: mare local, more female, older, more effected by advertising, and shopping less often--than the Liquor Hutch ONLY customer. PRODUCT PREFERENCE -PAGES # 9 and # 10 • Page # 9 -shows the Liquor Hutch's Product Preferences compared l0 7 other liquor operations (including Hutch Liquors in 1992). The Weighted Average of the Liquor Hutch illustrates a continued high growth potential. • Page # 10 -shows Liquor Hutch Product Preference broken down by various shopping and demographic characteristics. The customers age 45 and over -have the higher product preference for spirits. THIS wILL CHANGE IN THE NEAR FuruRE. gEMOGRAPHICS -PAGES # 11 and # 12 • Demographically -- Liquer Hutch's Customer Age is ideal. The Sex is still very Male Oriented -but, this will change because female customers (in General) are more satisfied with the Liquor Hutch -than their Male wunterparts. . An increase in the percentage of Female Customers will create more potential -but also more Marketing will be required. • Women feel the Liquor Hutch Prices are Iewer, want More Service, and are Tess interested in a Southside Storell MARKETING TODLS -PAGES # 13 thru 15 A) Effect of Supermarket Advertising -only 39.9°k of the Liquer Hutch Customers use advertising to effect Supermarket Selection. We extrapolate this to mean -less than 5°k of the Liquor Customers are effected by Liquer Hutch advertising. B) "WHAT IS YOUR FAVORITE SUPERMARKET" --showed that More 4 and CublCash Wise supermarkets were virtually equal as "FAVORITE". The Cub/Cash Wlse customers are much more positive about a move to the Soulhslde of Hutchinson. C) The Image of a Municipal Liquor Stare are discussed on page # 13 D) Only 17.5°k of the customers interviewed -use aedit cards @ the Liquor Hutch. This needs to be increased. E) What do you like best about the Liquor Hutch. ~v pommenis: What do you like most about the Uquor Hutdi. Liquor HuttM ~ 1999 .. ......... ........ ....... ........ ....... ....9.. .... ......... _........ with the'Seletlion" in the SELECTION = Vanety, Well Stocked, Selection of BeerANmelLlquor 45.8% Your customers are leas Li uor Hutch. This was much hi her than we a acted. CONVENIENCE -- Conveniem, Location, ParWng, One Stop ~ 41.7% CUSTOMER SERVICE - Em to ees, Het I Staff, Nal 29.2% Thls is quite a complement to Store Management P Y P~ and the Stare Employees F) What can we do to serve you better? -- We were surprised that the wider aisleslmore space and congested parking facilities -had many more responses to this question -than the responses for "low prices°. This certainly illustrates the reason why a second storela much larger store is being considered by the City of Hutchinson. OPEN A STORE ON THE SOUTH SIDE -PAGE # 16 Ouestion # 10 asked: "What would it mean to you, if we closed this store and opened another one on the Soulhside of Hutchinson?" In general, these customers can be characterized as: • 28.7% said this would be a positive move "less frequent" shoppers; younger; Going South of the Uquor Hutch, very interested in Selection, and tavodte supermarket =Cash Wrse. ......... .......... ........ . • 43.4°,5 said'R would have no effect on them or on their buying 6ehavwr. In general, these customers can be duranenzed as: • 28.0% said this would 6e a negative move. "your regulars"; older; living to the North of the Uquor Hutch, less interested in Selection; and lavorite supermarket =More 4. THE FOLLOWING PAGE SHOWS THE CUSTOMER 4UESTIONNAIRE USED TO GENERATE THIS DATA. Prepared by Grinstead 8 A~saciateg [~{ ~. THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 3 pro; ~~, ~ Liquor Hindi , . , 245 Washington Ave. East Hutchinson, MN 55350 1. WHAT CITY DO YOU LIVE IN 77 WHAT IS YOUR ZIP CODE 77 1 A) APPROXIMATELY, HOW FAR DD YDU LIVE FROM THIS LIQUDA STORE 77 in blocks OR in miles ___,_^ Z. APPROXIMATELY, HOW OFTEN DO YOU SHOP IN THE LIQUOR HUTCH 77 (Check only one) Once per Week - ofl MOflE OncC per 2 Or 3 Months ~ 00 Nat Knout 2 to 3 times per Momh Less than Once per 3 Months ,~ Once per Month T 151 or 2nd Time in the Wquor Hutch ~„ OTHER THAN THE LIQUDA HUTCH -• WHAT IS YOUR FAVORITE LIQUOR STORE 77 STORE'S NAME A) HOW OFTEN DO YOU SHOP IN THIS OTHER STORE 77 ONCE A WEEK OR MORE; 1 TO 3 TIMES PER MONTH LESS THAN ONCE PER MONTH 8) ARE THE PRICES AT THIS "OTHER I T RE": (CHECK ONLY ONE) Much Higher; Somewhat Lower (than the Liquor Hutch 77) Somewhat Higher Equal ~ Much Lower (than the Uquor Hutch 77) .~ Do Nat Know ~„ WHY DID YOU COME HERE TOPAY77 (Instead of some other Liquor Store) 4 p) Have you gone or are you planning to go Convenience of the Location Good ServicelHelpful Employees to "More 4 Supermarket" today 77 T Good Selection _ Cleanliness/Appearance of the Stare ~ YES; __,,,~__ NO Low Pricing ~ Other ~„ WHAT DO YOU GENERALLY PURCHASE IN "ANY" LIQUOR STORE 77 (Check ALL that apply) I 6FER ~ LIQUOR . =Cold Beer 2 WINE =Gin Warm Beer Vodka Imported or Micro-brewery Beer dr Premium Wines Rum or Tequila Tahle Wines ~ Bourbons or Bonds ~^' OTHER ITEMS Champagne (Sparkling Wine) ~ Scotch Whisky Soft Drinks ~ Sweet (includes PortslSherry) Canadian Whisky ~_ Bottled Water Wine Coolers ~_ Blended Whiskey Cigarettes/Tobacco ~ Vermouth ~ Liqueurs or Cordials Cigars Brandy or Cogna[ Other ProducLS _ Other ~. DEMOGRAPHIC QUESTIONS AGE: SEK FAMILY STATUS Under 25 years _ Male Marred with Dependents 25 to 34 years ____ Female ~ Married without Dependents 35 to 44 years DWELLING: ~_ single wRh Dependents 45 to 54 years Own Nome Single without Dependents 55 to 64 years _ Renting Over 64 years ~,., NA ~. DO YDU USE THE NEWSPAPER AD TO DECIDE WHICH GROCERY STORE TO SHOP IN77 _ YES; N0; What is your favorite Grocery store 77 $. PERCENTAGE OF THE TIME YOU USE CREDIT CARD FOR YOUR LIQUOR HUTCH PURCHASES 7? % Which credit card(s) do you uses 77 ~. WHAT DD YOU LIKE MOST A80UT THE LIQUOR HUTCH? 9A) WHAT CAN WE DD TO SERVE YOU BETTER? . ( iQ. WHAT WOULD IT MEAN TO YOU - IF WE CLOSED THIS S7DRE AND OPENED ANOTHER ONE ON THE SOUTH SIDE OP HUTCHINSON7 Prepared by Gnnsle9d 8 AirsaClales `rYi !lam\1 THE LIQUOR HUTCH CUSTOMER AHALYSIS Page # 4 . Question # 1--WHERE DO YOUR CUSTOMER5 LIVE ?? THINGS NAVE [HANGED IN THE LAST SEVEN TEARS. Liquor Hutch Hutch Liquors THE LIQUOR NUT[H IS NOW DRAWING MU[N MDRE FROM ODT OF TOWN 1999 1992 Median pistance Traveled to the store 2.32 miles 1.50 maes % of all Customers % of all Customers Customers within the aty of Hutchinson _ w+thin two (2) miles of the store 50.35% 71.57% Customers from Rural Hutchinson livin over two miles ta.69 5.65 WSTOMERS FRDM [U5TOMERS FROM "OUT OF TOWN" SDUTH Hector/Buffalo Lake 20 - 25 miles GlencoelPlato 14 - 20 miles StewaNerownton 10 - 12 miles HORTN EA57 Darwin/Litchfield (22 Miles) 2D - 25 miles 0assel/Cokato (14 miles) 14-18 miles Silver Lake (10 miles) 10 miles Winthrop/tester Prairie (20 Miles) 18 - 24 miles • OTHER TOWN Just for reference: OVER 30 MILES 65.D4T0 87.22% 34.96% 1278% 7.00% 1.6D% 4.20% 1.28`yo ~s ~ u 13.30% 4.809:0 g 16 6.30% 1.92% ~ 2.24% 9.80% 4,16% 4.20% 1.60% ~ i',,.I.Q~s DD 6.3D% 2.24% r~ 5.60% 1.60% ._._ ~ • !/r uvr au7rca nrc: _....,. - ....,m..- ~ ante ~ory of n Trav~ed to the % of Customers - (rom: Cities. Mi nesota ~w Brooklyn Center 3 stores -taken in 1997 28,515 1.03 miles Brooklyn Center = 75.6%a Apple Valley 2 stares -taken in 1998 42,617 1.65 Miles Apple Valley = 65.53% Hutch Liquors 1 store taken in 1992 12,000 1.50 Miles Hutch = 71.57% r0i Liquor Huleh 1 store taken in 1999 14,000 2.32 Miles Hutch = 50.35% Richfield 3 stores taken in 1992 1.17 Miles Richfield = 36.2% Richfield 4 stores taken in 1998 34.47D 1.54 Miles Richfield = 39.2%a _ _ _,. -.Richfield Sales in 1999 = $8,75.5,361 _ _- •„-•-• -- '1''he difference between the stores over 65% locals and the stores under 51 % locals is marketing. > ', Obviously, there is a difference in the population, population density, competitive pressure, and commercial shoppingldrawing power of these four cities -but, this chart is presented to illustrate that THERE IS NO QUESTION THAT THERE IS "MORE POTENTIAL" FOR THE LIQUOR HUT[H- In our 1992 Hutchinson Customer Questionnaire - we stated that we were surprised that the Median Distance • Traveled was so low. This further solidi5es the increased sales projections of the new Liquor Hutch (because the new location will draw a much higher proportion of "out of [own" shoppers). Prepared by Grinstead & Associates ~1(~1 THE LIQUOR HUTCH CUSTOMER ANALY5IS Page # 5 . Question # 2 -FREQUENCY OF SHOPPING The WEEKLY Shopping Frequency (Customer stating they shopped in the store "Once a week or more) is an important statistic. This was 43.4°h in Hutchinson in 1999. We cannot ask for a better number. oBR ROLE of TNOMB is 3T.5% to aT.s%. b We believe it is bad to be over 47.5%. In the retail liquor industry -- if the Liquor Store is perceived by their customers as a "Destination" as opposed to "just a Routine Stop" -sales will be three to four times higher for that customer. a On the other hand, a low frequency of shopping indicates a low loyalty level, a high degree of competition, customer dissatisfaction with the store. We like to see this figure be above 37.5%. The MONTHLY Shopping Frequency (Customers stating they shop in the store Once per month or mare) is an important statistic too. This was 78.3% in Hutchinson in 1999. DBR RBLE OF THUMB IS 72,5°h to 82.5%. If this percentage is below 72.5°~ (obviously) there is somethln wron ; but if this ercentage is over 82.5% -- obtainin new customers & customer satisfaction must be addressed. Comparing these percentages against Customer Questionnaires taken in other stores • 3 Brooklyn Center Municipal Stores 2 Privately Owned stares in MinneapolislSt. Paul Hutchinson in 1992 Hutchinson in 1999 2 Savage Municipal Stores 2 Apple Valley Municipal Stores 3 Richfield Stores in 1998 Customers shopping ONCE Customers shopping ONCE PER WEEK or MORE PER MONTH or MORE 53.6°k Too Hi h 81.8% 507°k 9 87.1% 44.1 % 85.9°k 43.4°h 78.3% 42.3°k 79.0°h 34.4°k Too Low 61.6% 33.3°k 75.6% The fallowing chart shows these percentages for Liquor Hutch [ustomera based upon their distance traveled to the store and where they lire. . Customers shopping ONCE Customers shopping ONCE PER WEEK or MORE PER MONTH or MORE Customer from Hutchinson (within 2 miles) 57.6% 81.4% 50.4ry° of all Liquor Hutch Customers. ,~ ~ THE Shopping Frequency of the LOCAL CUSTOMER (within 2 miles) shows that additional Sales can be generated locally. Q, ~ Customers Tram Hutchinson RR (over 2 miles) 35.3% 82.4% m o 14.7% of all Liquor Hutch Customers ~ >n THE Shopping Frequency of the MID RANGE CUSTOMER shows a small amount of additional Sales Is available. u However, the 82.4°h of all customers shopping once par month or mare - is mighty impressive. Customers from Outside of Hutchinson Between 10 and 25 miles from the store 35.7% 76.2°k 29.3% of all Liquor Hutch Custdmers -, F E Custo from of Hutchinson o ~ me ER 25 m leslfrom OY the store 12.5V° 50.0°k ~ 5.6% of all Liquor Hutch Customers The Shopping Frequency of the DUT of TOWN Customer-which probably has another store available lothem - iscomplement to both the Liquor Hutch Store Management and the retail drawing potential . We would have expedad these percentages to be much lower, just because a physical logistics. . I FOR THE RECORD, HERE IS HOW THE CUSTOMER SHOPPING FRECIUENCY HAS CHANGED OVER THE LAST SEVEN YEARS. Customers shopping ONCE PER WEEK or MDRE Customers shopping ONCE PER MONTW DR MORE Customers shopping ONCE PER TWO to THREE MONTHS Customers shopping LESS THAN ONCE PER CALENDAR QUARTER Customers shopping (or the 1 sc or the 2^" time . .. .. .. . . . .. . .. . . .. . . . . . . . . . . . . . PERCENTAGE OF CU570MER5 TWAN ONCE PER MONTH !! Liquor Hutth 1999 43.36% 78.32% 6.29% 4.90% •' 21.68% :h Liquors 1992 44.09% 85.94% •- T00 HIGH 5.tt% 6.71 % 2.24% 14.0~6%~ •' We are always surprised that the percentage o1 first time shoppers is this high -hut 5% is our average percentage for all retail dquor stores. Prepared by Gdnslead 8 Asspciates ~~~~~ THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 6 C~ • Question # 3 --BRAND "X" -COMPETITIVE ANALYSIS WHAT IS YOUR FAVORITE LIQUOR STORES ',, Named another liquor Did "NOT" name another Store store HUTCHINSON in 1999 37.1% 62.9% HUTCHINSON in 1992 31:1.%x ,. 678% - ........................................ .. A Marketing Oriented, 13 store liquor chain 1~...................... 33.8% 66.2% In Fort Wayne, Indiana Richfield 39.1% 60.9% Brooklyn Center 46.7% ;, , 53.3% ............... .... Apple Valley ....................... , . -.................... ... 50.4% ...........49,6%........... A Minneapolis Liquor Store 59.8% 40.2% „ , , „ , , ';d,;~~~,;1 Often Sometimes Rarely HOW OFTEN AO YOU SHOP THERE? Once per Week + 1 to 3 X per Mo. Less than Once per 3 Ma. HUTCHINSON in 1999 20.8% 32.1% 47,2% QU0St100 # 3 asked -other than this store - / WHAT LS YOUR FAVORITE LIQUOR STORE? / HOW OPTENDO YOU SHOP THERE? / ARE OUR PRICES HIGHER/EQUAIJOR LOWER THANTHIS OTHER STORE? THIS SHOWS A VERY WEAK "COMPETITIVE FACTOR" • 62.9%ot your customers could not name another store; 37.1% of your customers mould "Name Another Store'. 80T, only'h vi these customers shopped in 'brand X' more than 4 Gmes per year. , ARE OUR PRICES+, _, OR (•) 7 These stores can basically be characterized as small IpWI liquor stares (Silver Lake, Glencoe, Cedar Mills) NONE of these customers Ilved in Hutchinson 36.4% of these customers shopped at the Liquor Hutch Oncelweek or more. Dur prices are: HIGHER 11.3% --great 83.5% -- poor These stores can basically be These stores Include a wide Characterized as scope of small stores - Stores or Liquor Departments to 56 Cloud; to Sam's Cluh; in SR LIDUd or Willmar [o Syrdix in Minneapolis '/z of these customers 56% of these tu5tomer5 lived in Hutchinson Ilved In Hutchinson 41.1% of IheSe Customers 36.0%of these customero Shopped at the Liquor Hutch Shopped at the Liquor Hutch Once/week or more. '% Oncelweek w more. - A , ,,. .ii,l i ,,. , , Our prices are: ... , , . , Our prices are: "EQUAL" LOWER 50.9% 37.7% 12.8% 3.7% HUTCHINSON in 1998 HUTCHINSON In 1992 Brooklyn Center 20.3% 59.3% 20.3%a A Marketing priented, 13 store liquor chain 23.3% 59.5% 17.2%a Richfield 24.4% 58.2% 17.4% Apple Valley 33.7% 62.0% a.3% A Minneapolis Liqucr Stare 33.7%a 62.0% 4,3%a OBSERVAT10N5: • The "Competition Factol" is very weak. Note that only 20.8% of the Liquor Hutch Customers (who named another stare) stated that they shopped in "Brand X" Once per Week or more. And none of these customers lived in Hutchinson. I • The "Customer Perceived Price Image" has certainly changed over the last seven years in Hutchinson !! . a) It is very important that customers perceive that they are getting a fair price and that "Something Is Always On Sale". n1 The Liquor Hutch Customer certainly feels that they are getting a fair price. Perceived Retail Pricing Image and Customer Service are the two mast important factors In keeping a happy customer. Prepared by Grinstead ¢,Asyocl@tes C_11 l! ~"i 1 ~~ • THE LIQUQR HUT[H [USTOMER ANALYSIS Page # 7 Question # 4 -• REASONS FOR SHOPPING The reason that customers are coming to the Liquor Hutch is the convenience of the location -and obviously it is the only one in Hutchinson. BUT, Selection and Customer Service were also strong reasons for shopping. Your Liquor Hutch Customers shop: • 88.1% because of the location andlor the convenience of the afore; • 37.8% because of the Selection; • 25.2% because of the Good ServiceMelpful Employees; • 9.8°~ because of the cleanliness or appearance of the store; • 8.4°k because of low pricing (more on Ihls below); and • 6.2% because of some other reason. ART SHOWS "THE REA50 FOR SHOPPING" IN VARIOUS RETAIL LIQUOR STORES. THE FOLLOWING [H N _ _-__i f~~-~ ~"~ LLislinnnaimc raknn rher GtA~mrolvement at~taken odor to G&A lnwlvement , Uquor Hutch 1999 ~ ~° ''~ Richfield ! I ! @ Liquor Lhain in Indiana ~ @ savage p pie Valley '' Br°~ yn Center '~, ~ to Minn- Si. Paul Stores ~' CpMMENTS ~~ We like to see this figure at SO%to 90%. - Convenience 88'1 % 81.5% ' 89.7% 88.G~° 97.3% 89.0% 84.4% espedalfy in Municipal Liquor Stores. of the LOGatiOn O 1.. ... ..-.-.- i ..... :.. .. ......... ...........National) thlsfi ur 70%to80%. y... 9.eis Good 37.8% 13.9% ''. 19.2% ~ 10.1% 9.8% ~, 9.7% ~' 14.6% We like to see this figure at 12%t 20% ° election $ (2) ; -- ~~~~~~~~~ ~ ~~~~ . ~~ ~ ............. ~~~~ .. .. . -~ ~~~~~~~~ ................... ....... '~ to see thisfgurea112%to20~. We like ' Low 8 4% 14.1% ~ 16.3% 14.1% 0.8% '~~ 12.1% ~i 5.2% Pndng as a reason for shopping has dropped Prieln g . , . in importance- as the price image has 13~ ~ ! become more uniform. .......... ......... ....... ~'~, ............ ..... ................. .. ~'~, We like to see this figure at 10% to 14%. Store Cleanliness, ' ~ ~'~, ~ ~ Nationally this figure is 5%to 7.5%. Appearance, 9.8% 9.3% i 14.6% ~~~ 6.1% 0.8% 8.5% 2.1% ;This reason for shopping is easily overlooked. And Atmosphere (4) ~'~ ~ '~ i,lt needs to be planned for and worked at; and '~ '~, ~~ _ it makes °shopping much more fun". Hel ullFrendl pt Y I ~ '~, ~ I We like to sec this figure at 20% to 30%. Employees or Good 25.2% 17.9% 25.9% 222% 2.7% '~, 14.4% 18.8% Nationally this figure i5 10% to 15%. Service Customar (5) ! : :........... '.... -.................. . ......... ....... ~ ~ ............ .... ';This is a catch all category and can be eHeded Other Reason 6.3% 10.7% ~~ 9.1 % '~ 5.0% 5.1 % ~ 3.3°k 8.5% ! by ParMing, Ggar Displays, Lottery, or a less includes Parkin (~ 9) ~~ than effective interviewer. Sum of all percentages.....> ~ 5.6% 147.4%a ~,~ 'The higher this number -the more diversified '~, 175.8% '~. 145.5% 116.5% ~, 137.0%a 133.6% ' the reason for shDPping. O13SERVATTONS: (1) CONVENIENCE -- Hutchinson is high in convenience (even with a 2.32 mile median drawing radius) because of the lack of competition. Convenience (as a reason to shop) is obviously the reason that most customers shop - but it is also easiest and least committed answer possible, We place little emphasis on this answer (unless it is below 75%) (2) SELECTION - HUTCHINSDN'S SELECTION IMAGE IS DOUBLE THE TRADITIONAL 570RE - because R does provide a diverse selection, especially when compared to °competitors" mentioned in question # 3, and especially because of the good wine image. Liquor Hutch Customers who shopped because of a "Good Selection" - had a much higher product preference for Warm Beer, Microllmported Beers, Premium Wines, Champagnes, and Canadian Whisky, Scotch, and Liqueurs & Cordials. (3) PRICING --Liqueur Hutch Customers do not shop because of the Low Prices -although Page # 6 shows there is a law price image. We will be able to use this factor for making recommendations to pricing ([his will be included in the on Retail Pricing-Gross Margin part of the Marketing Section in the Phase Two Report) and its objective will be to 6ne4une Grass Margins. (4) CLEANLINESS, APPEARANCEIATMOSPHERE --Customers feel comfortable shopping in [he Liquor Hutch and partkularly like the layout. This 9.8% is good, but can still be increased. (5) CUSTOMER SERVICE -- Customer Service is a lundion of "Good Store Management" and is also a gauge of "Customer Comfort". This is something that we can give our customers for nothing and makes their shopping "experience" much more enjoyable. Usually, the more the Store Management is "on the floor" -the higher this percentage becomes !! Prepared by Grinstead Assoc) ties (G,~ • THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 8 Question # 4 --REASONS FOR SHOPPING •• Continued PLANNEQ PURCHASES: We did not ask any questions regarding PREPLANNED PURGHASES in Hutchinson (because we made room for the question - "have you gone, or are you planning to gD to More 4 today??") But, we have asked this question in numerous stores -with relatively consistent results: Before you came to the store -- 'I~ did you know what you were going to purchase? .r. Consolidated All Stores ND, has no Planned Purchase ES, has a Planned Purchase .-. _ -_~, 40.6% 59.4% hat Products Will Be Purchased - BEER 48.0°h - WINE .~~.. 32.2% .W. ~. .~~ - LIQUOR -- 19.7% _ brandlproduct s this Planned Purchase a favorite - YES 77.0% - NO 23.0°h _ rc aw price Does this Planned Pu hose have a I - YES _..._~ 63.8% - ----...- ....... -_.... -. NO 3 6.2°h THIS CHART SHOWS: / in any well merchandised liquor store, there is a considerable opportunity to generate additional "IMPULSE SALES" -because only - 59.4% of all arstomers had already planned their purchase, before entering the stores. / Beer is the principal product "planned" to be purchased. But note Wine is very important. / Our questionnaires in markets similar to Hutchinson show that the product preference for the low price item will be slightly higher than the chart to the right. EXCEPT DURING THE TOURISM SEASON -then this will revert to Brand Names. This is a very important chart - as it relates to inventory, selection, merchandising, & marketing. • 48.D% Beer (planned to be purchased) -and beer makes up about 53.5% of the Total Sales. This shows Ihat beer inventory and selection is "right on the money". BUT, the Liquor Hutch Is dusting out of its seems In beer. • 32.2% Wine (planned to be purchased) --clearly shows the need for a substantial Wine Inventory - even though Wine only makes up about 17.5°k of Total Sales. (and this percentage will be increased) • 19.7% Liquor (planned to be purchased) -clearly shows how marketing and merchandising can be used to manipulate customer purchases. The customer does not know what he is going to buy and still Liquor makes up about 37.5°/° of total Sales. SHOPPING IN MARE 4 •• Question 4a We wanted to know - is this customer's shopping trip to the Liquor Hutch - AL50 going to include a trip to MORE 4 ?? / 113ro of your customers - 33.6% of your customers where also shopping at More 4 today - / 213f° of your customers - 66.4% of your customers were "NOT" • I Assuming a $3,000,000 store @ $12 per customer and 33.6% shop at the Liquor Hutch and More 4 in the same shopping trip - this represents 84,000 customers who combine their Liquor Hutch & More 4 shopping, per year. ................. LIQUOR HUTCH 8. Lr E 4 CUSTOMER '~ ONLY CUSTOMER i ................... TOTAL PERCENTAGE OF LIQUOR HUTLH MOR :......-- ........................... - .. . . ........... 33.6% ~ 66.4`% _.. ~_. ._,...,._.„,„ w ~rn~.~...,.,.~...,...-..~..__.,....... . IN THE HUTCHINSON ZIP CODE - 2D02 POPULATION - 16,961 ...... 70:8%.......... ............ .~ ............... . SHOPS DNCE PER WEEK OR MORE =TOTAL 43.4% 35.4% '~ 47.4% MEN -- WOMEN ... - 37.5% ..... ............75.8% - 24.2%............. ~~ .62.5807.1% ........... 45.3% • CUSTOMER534ANDYOUNGER ~~~~~~~~~~~-~~~~~-~ ~~ .. .... ........... ~ ...... ....39.6% ... _...'~ . 32.6% • CUSTOMERS 35 TO 44 ~ ~ : ........ ............. ................. , • CUSTOMERS 45 AND OLDER 33.35'° ~ 22.1% ~' USES AOS TO DECIDE WHICH GROCERY STORE TO SHOP IN ........ 4?•9%... 5: ..._.. ............. FAVORITE GROCERY STORE -MORE 4 II ! ........ 50.0% .......-.- . 44•Z~?........ THUS, THE LIQUOR HUTCH 6 MORE 4 CUSTOMER could be characterized as: more local, more female, older, more effected by advertising, and shopping less often than THE UQ80R NUTCN ONIy [USTOMER. Prepared by Gdnstead~ sgoci@tas ~--1 C 1 THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 8 Question # 5 -~ PRCIDl1CT PREFERENCES The chart below and the chart on page # 9 show the Product Prefer ence -derived firm the question. What do you generally purchase in any Liquor Store? The following two charts show the Product Preferences of the Liquor Hutch customers compared to: / similar interviews in Hutchinson in 1992 and to 6 other liquor operations -PAGE # 9 -below; / various Liquor Hutch Customer shopping and demogr aphic characteristics -PAGE # 10. These figures are intended to compare product strengthslweaknesses against other stores and characte ristics. 7 t f3 Z 4 3 ~~ LIQ00R N9T[H Nul[Flnao~ Store la Stores i~ Starea io Slons to Storos to StoroS la N. WIS[. MiuJ Fort Apply RlcMleld BrooNlyrt 7999 1992 Tourist S!. Pant Wayoee Yallay [enter Area Indiana 1998 TOTAL CUSTOMERSINTERUIEWED 149 313 154 201 1347 256 503 39D vj Cold Beer 78.3% 82.4% 66.9% 88.8% 72.9% 93.4% 69.6% 83.8% Warm Beer 14.0% 10.9% 28.6% 5.4% 20.1% 2.0% 3.6% 0.5% m Imported & Micro Brew 14.0 77~ 10.4 23.9 10.2 ~oD 6.4 2»~ TOTAL BEER 106.3% 1DD.3% 105.9% 118.1% 103.2% 97.3% 79.6% 86.7% Heer in Hutchinson was consistent with the other Stores 'stare tried to Bevel this business - was obvious o ular Premium Winos 20.3% 8.3% 20.1% 17.4% 13.7% 43.4% 23.9% 5.4% Table Wines 42.7% 41.9% ~ 24J% 21.7% 13.4% 2.4% 23.5% 10.5% Champagnes 21.0% z7% 8.4% 0.0% 4.3% 2.3% 2.8% 2.8% ~ Sweet Wines 1.a% 3.8% 5.8% 2.2% 2.4% 1.2% 1.6% D.0% Wine Coolers 14.7% NA 1.3% 9.8% 8.8% 8.2% 4.2% 6.7% Vermouth 0~ 4~ na O.D ,1~ 4,~ 0.2% 0.0 TOTAL WINE 1D0.0% 65.9% 60.3% 51.1% 44.3% 57.8% 56.2% 25.4% Wne in Hutchinson was higher than other stores because of the layout Other stares are equal to Hutchinson bade in 1992 N TOTAL WINE. Note strong preferen[e for Table tames and Orampagnes The Liquor Hutch has grown in Customer preference for wine. This i5 ve im rtant to our Wme merchandisin & invento recommendations. Gin 6.3% 12.6% 6.5% 7.6% 1D.4% 14.8% 7.6% 4.9% Vodka 18.9% 20.4% 15.6% 10.9% 15.2% 21.1% 14.5% 10.5% Ruro Or Tequila 27.3% 9.3% 9.1% 15.2% 12.2% 11.7% 10J% 13.6% Bourbon Or Bonded 9.8% 4.3% 7.1 % 2.2% 8.4% 5.9% 4.4% 1.8% ~ 0 Scotch Whisky 7.0% 4.0% 10.4% 3.3% 87% 47% 5.6% 3.6% ~ Canadian Whisky 30.8% 21.7% 13.0% 9.8% 9.9% 14.8% 4.8% 5.6% ~' Blended Whiskey 6.3% 6.2% 7.846 5.4% 8.3% 6.6% 2.8% 3.616 J Liqueurs&Cordials 21.7% 2.7% ~ 15.6% 2.2% 11.1% 7.8% 3.0% 3.1°k Brandy&Cognac 28.0°k 23.3% ta.2% 1D.9% 9.D% 15.6% 6.9% 7.4% Others 2.1 0.0 1.3 ~ nyp ~ (q1 TOTAL LIQUOR 158.0% 104.5% ~ 104.6% 67.5% 93.2% 103.5% 62.3% 55.6% Liquor in Hut[hinson was higher than other stores because o1 the layout ether stores are equal to Hutchinson back in 1 992 in TOTAL LIQUOR. The demographic and Shopping characteristic breakout shows The Liquor Hutch has grown in customer prelerence for liquor products. where this li uor roduct demand is strongest, rewa~me Sort Drinks 2.1°k 5.1% 2.0% 8.7% 4.4% 2.0% 2.6°k 4.6% Bottled Water 0.0% 6.7% 0.7% Na 0.4% 0.4% 1.4% 0.5% ~ CigaretteslTobacco 3.5% 10.5% 9.7% 16.4% 15.6% 4.3% 7.4% 12.3% c ~ Cigars O.D% 0.0% 2.0% 7.a% 2.6% D.4% 2.0% 2.1% Other Products Q,Q~ 4~ 4.3 ~ Q,9~ ],Q~ ¢$~ TOTAL OTHER PRODUCTS 5.6% 22.9% 19.0% 32.1'7u 25.9% 7.4% 14.4% 20.3'70 We will certainly recommend a change in cigaretle pricing & marketing. ' Cigarettes and Cigars can be used to increase Sates ar Humidor should be utilized. Moreover, that a small C ALL PRODUCTS' 1 369.9% 293.6% 289.8% 268.a% 266.6% 266.096 212.5% 188.0% . WEIGHTED AVERAGE W OBSERVATIONS --the Weghted Average of the All Froduas shows: THE LIQUOR HUTCH CUSTOMERS PROVIDE A HIGH POTENTIAL FOR SALES. Prepared q' Grinstead 8 Assodates ~L~' THE LIQUOR HUT[H WSTOMER ANALYSIS Page # 10 Questio n q 5 •• PRODUCT PREFERENCES •• Continued ' Demographlt Charaderistia NWX Customers: TOTAL Shopping want ;, AGE SES LIQUOR NUTCN Fregoenty SELECTIOM'~ fustomer Product Preferences tggg Younger Customers Shop '~ Median older Customer , aFmp because of '~, Age Age Age ~ MEN WOMEN Questiannnire ~ 1lweek+ 9ELE[T10N i 21 to 34 35-44 45 TOTAL CUSTOMERS INTERVIEWED 143 az 54 sa SO 37 foe 47 Cdd beer 78.3% 90.3% 77.8% i 76.8% 84.D% 73.0% ~'~ 81.4% 70.7% ~ Warm f3eer 14.0% ~ 8.1% 24.1°,6 i 16.1% ~ 16.D% 8.1% ''. 1D.8% 22.0% Imparted & MI[rn f3r~w 14.0 ' 10.7 22.2 13.5 1 7 >»~ ~ TOTAL BEER 106.3% 111.3% 12A.1% ' 103.6% 118.0% 94.6% '~ 108.8% 100.0% Note that the liquor Hutch Customers that shop because of Selection pr efer warm beer and Micro Brewllm orted Beers. Women also refer warm beer more than Men. ~ Premium Wines~~r 20.3% 8.1% 37.0% '~, 16.1% 18.0% 29.7% '~, 12.7% 39.0% Table Wines 42.7% 30.6% 48.1% ~ 30.4% 42.0% 62.2% 36.3% 58.5% Champagnes ~ 21.0% 14.5% 31.5% ~ z5.0% ~ 12.D% 27.0% ~, 10.8% 46.3% ~ Sweet WIneS ~ 1.4% ~~ 1.8% 0.0% 1.9% 2.D% O.D% ! 2.0% 0.0% _ ~ Wine COOIerS 14,7% 12.9% 14.9% '. 21.4% 10.0% 10.5% '~, 1D.8% ' 24.4% Vermouth a o~ o.o% o.D% D.o% o.D% o.D% D.D% o.o% TOTAL WINE 100.0% 66.t% 133.3% 94.6% 84.0% tz97% 72.5% 168.3% i Note t hat Women have a much stronger WINE Product Pr eferen[e -than do Men. Customers that shD because of Selection -also refer Wines. ~ va~e~au~emuce Gin 6.3% wM~rmrrm 4.8% Z4% ~~~ 7.1% 6.0% 5.4% '~, 8.8% 0.0% • Vodka 18.9% ~ 14.5% 25.9% 26.8% 10.0% 18.9% 17.6% 22.0% Rum Or Tequila 27.3% 29.0% 31.5% '~ 39.3% 12.0% 29.7% '~, 29.4% 22.D% Bourbon or banded 9.8% 4.8% 9.3% 8.9% 8.D% 13.5% j 11.8% 4.9% GNC Scotch Whisky ZO% 1.6% 11.1% ''. Z1% 4.0% 10.8% ~~, 7.8% 4.9% ~ Canadian Whisky 30.8% 19.4% 40.7% 39.3% 26.0% 24,3% 28.4% 36.6% ~' Blended Whiskey ~ 6.3% 3.2% 5.6% 5.4% 2.0% 13.5% 7.8% 2.4% ~ Liqueurs & Cordials 21.7% 21.0% 24.1% '; 21.4% 8.0% 40.5% 20.6% 24.4% Brandy & Cognac 28.D% 21.0% 18.5% 21.4% 16.0% 54.1% i 28.4% 26.8% C)lhers z.1 0.0% 1.9% 1.8% 0..0% 0.0% ', 2.9% D.0% TOTAL LI(g110R 158.0% 119.4% 175.9% 178.6% 96.0% 270,8% ~ 163.7% 143.9% Older customers have a stronger pr eference fo r spirits in Hutch. This will than a soon LOWER over the nett seven ears. emomwaxwwmw ~,,., BOfIDfInkS 2.1% 1.6% 1.9% 1.8% 4.0% 0.0% '~ 2.9% 0.0% ~ Bottled Water o.o% D.0% D.o% ! o.o% D.o% D.D% I D.D% 0.0% ClgaretteslTobacco 3.5% 4.8% 5.6% I 7.1% 2.0% 0.0% I 2.9% 4.9% ~ Cigars o.o% o.D% D.D% o.o% o.D% o.D% o.o% ' D.o% 0th r Pe roducts ~e ~ D.D% o.o% •. o.D% D.D% D.o% , o.o% o.o% TOTAL DTHER PRODUCTS 5.6% 6.5% 7.4% 8.9% 6.0% 0.0% ~ 5.9% 4.9% "Other Ite lcs and customer shopin~q habits. ms" are consistent as the relate to demo r~aph ~u : v,~ ~ ALL PRODUCTS" 9% a 369 303.2% 4407% 385.7% 304.D% 435.1% ' 351.D% 417.1% WEIGHTED AVERAGE . 085ERVATIONS: ( / Customers with the higher shopping frequency must have their "Colo Beer" - they do nat require much more. . / Customers Thal like to shop because of fhe good Selection in the Liquor Hutch -have the highest produa preferences in Premium YAne5, Champagnes, Table Wines, Canadian Whisky, Vodka, Rum, LiqueurslCordials, and Micro Brew/Imported Beer. / Again, note that the 45+ customers have the higher product preference for Spirits. This will change in the near future. / Women have an gverall higher Weighted Average (created by their strong product preference in Wne) then their Male Counterpart. Pfepared by Gdrelead R ASSpclat`es THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 11 Question # 6 -- DEMOGRAPHICS I Comparing the 1999 Questionnaire tc the 1992 Questionnaire -- b THE AGE of the Hutchinson Customer is getting much younger (which is good, because customers under 35 consume three Umes more per capita -than their over 35 year old counterparts) a THE SEX of the Liquer Hutch Customer is exactly the same -but b The Gustomers owning their own homes, with Kida, and Married -has dropped (probably because of the younger customers). Comparing the 1999 Questionnaire to other Minnesota Municipalities - b Our "IDEAL CUSTOMER BASF' would be Apple Valley. In general, Apple Valley's customers are younger, more female oriented, with a higher percentage of customers that must entertain at home (Name ownership, Kids, Married). Nevertheless, Hutchinson has relatively strong Customer Demographics. Comparing the 1999 Questionnaire to Higher Frequency Shoppers or to customers that shop because of Selection - a The Customers who era younger, renters, and without Kids have a much stronger desire for Selection. Liquor Hutch, 1999 pEMQGRAPHI~S Tet.l Nigh Shopping 4 2 3 AI Fnqumry 8e<e.eeat Hutchinson Richfield Apple Brooklyn Cuerenerr Sheooen Gaed 5~6r1i4tl 1992 its y ICI y n[er AGE UNDER 35 Years 392% 32.3% 46.3°,4 28.0% 28.9% 37.5% 41.8% 35 to 44 years 35.0% 45.2% 27.8% 33.7% 29.4% 36.3% 34.9% 45 l0 54 years 14.7% 9.7% 14.8% 19.5% 20.5% 17.6% 15.9% OVER 54 years 112% 12.9% 11.1% 18.9% 21.2% 8.6% 7.5% SEk Male 71.3% 74.2% 72.2% 71.3% 59.0% 56.6% 70.8% Female 28.7% 25.8% 27.8% 28.7% 41.0% 43.4% 29.2% DWELLING 6+m home 75.596 742% 63.0% 81.9% 69.4% 813% 58.7%a Rent 23.1% 2429'e 33.3% 18.1% 25.2% 16.4% 38.7% NA 1.4% 1.6`9a 3.7% -- 5.4%a 2.3% 2.6% DISCRETIONARY INCOME Customers with KIDS 53.8% 56.5% 4p.6% 62.5% 41.9% 69.5% 51.8% Customers without KIDS 462% 43.5`% 57.4% 37.5% 58.1 %a 30.5% 482`% Martied Customers 65.0% 62.9% 61.1% 783% 57.9% 73.4% 45.6% Single Customers 35.0% 37.1% 38.9% 21.7% A2.1% 26.6% 54.4% • The following page shows the customer breakout by age and by sex of the Liquor Hutch Customer. Prepared by Grinstead 8 A59apalea THE LIQUOR HUTCH LUSTDMER ANALYSIS . Page # 12 Ruestion # 6 -- DEMOGRAPHICS - Continued AGE SEE fOMMENTS t 35To44 ~ r MALE FEMALE Cus omers 35 44 a rs Male Customers 71.3`9a 66.1% 80.0% 67.6% 100`% SEX ~ 28.7% omers Female Lu~ 33.9`% 20.0% 32.4% ~, 100% w . ~~~.,a.~ Under 35 years 39.2% 100% 36.3% 46.3% AGE 35 to 44 35.0% 1 DO% 39.2`% 24.4% Over 44 ears 25.9% 100% 24.5`% 29.3% Own your own have 75.5% 53.6% 86.0% 94.6% 75.5% 75.6% The older the DWELLING customer, the more 23 1~, R ~t 54% 44.G% 12.0% ~2.0% 23.5% II~oOWN ~m~A~~W„ `1 ~.~~A ~,~ ~~ ,^~ LOCATION From 55350 65.0% 66.190 66.0% 62.0% 64.7% 65.9% Very consistent ~~ SHOPPING ~ Shop Once perNweek (or more) ~ 43.4%W 35.7%^ ~56.D% ~M~37.8% 45.1% 39.0% Higher shopping 35 to 44 n u FREQUENCY .,, , ~~.:,.«n ~...,.,.,,,w..,,~,..,...,.,,,"..~,~~o~".~.,...,. ».a,~:.~, ...~..~,.,«,~.,~.,~,..,.~,,.,~,~..~..,..~.«,,;. ~.,.~......mm~~ ~1:w ~». ~ ~," ,w .. Men =prices Hutch pace is higher 11.3% 5.6% 16.7% 11.8% 15.0% O.0% higher PRICING Equal 5D.9% 55.6% 44.4% 52.9% 52.5% 46.2% COMPARISON Woman =prices Lower 377% 38.9% 38.9% 35.3% 32.5% 53.8% Idwer ..,.,.m,,.,.m,~,~„-rv,c~am,,. ,~~,,~~;~..,.w..,m.,,.,,~ ."..~ ,.m,,,,M,..a.. .,:~ .,,,~~~,~~ ~- ~ _ .,...w,. ».u ~T ..w.W.»~,~.-..,~;~„m:.~.,.•. 88.1gy Convenience 90.D% 89.2% 85.7% 88.2% 87.8% Selection 37.8% 44.6% 30.0% 37.8% 38.2% 38.6% SHOP f3ECAU5E Service 25.2% 16.7% 282% 35.1% 20.6% 36.6% Older customer and OF: Women want SERVICE. .. _ ~~~~'~~~„~~, ~~W ~ w~ ~.~, ~ X " «" , Dlder customer and TES I plan to shop (ar have 33.6% 43.2% ~ 23.2% 38.0% 29.4% 43.9% ~ Women Will Shop Shopped) ai Mare a today. e 4 toda Mor y GROCERY SHOPPING , ,,,, ., ~ •,~~ ~ ~:~ .; „~. ~~ ~ ~,,, I prefer to shop @ 48Y2% , , ,,,,,,;,; •, ~ ~ , , ~.:: -~~ , : 39.3% 52.0% 48.8% ,~,;,,,;~:~,~,,. •, ,•,~:,.. . 43.1% 53.7% . , ~., , Younger PREFERENCES MORE A Liquor Hutch I preferta shop @ 497% 57.1% 42.0% 0.8.6% 50.0% 48.8% Customers prefer CublCash Wse mm W~mW~v Mn~,^• _ ~rv• Cub/Cash Wise. ..~.,,..~...~.....,,.~.~ ~~,~..y...~.,m,,.~ ~~~~,~WauldoePasitive(+)"-•••f~^w~28.7%~~ 32.4% 22.0% ~~32."1% 20..4% 30.4% THE EFFECT OF Would make no difference to me 43.4% 44.6% 44.0% 40.6% % 48.0% 31.7% t 6% 43 996 F W MOVING THE Would be Negative (•) 28.0% 23.2% 3A.0% 27.0 p . . omen are STORE TO THE °LESS SOUTH-SIDE INTERESTED" in a South-side Store. pBSERVATIONS - a hypothesis might be that: • A ST ORE ON THE SOUTH-SIDE SHOPPING AREA -- WDULD BE A STRONGER ATTRACTION TO FEMALE CUSTOMERS- WHO ARE BUYING FOR THE FAMILY AND ARE MORE AFFECTED BYPRICING & IN-STORE ACTIVITIES. HOWEVER, 7HF LIgUOR HUTCH'S FEMALE CUSTOMERS ARE (A) MUCH MORE LIKELY TD COMBINE A TRIP TO MORE 4; (B) FFEL THE PRI CE AT THE LIQUOR HUTCH IS LOWER, AND (C) FEEL THAT A MOVF 70 THE I SOUTH SIDE WOULD BE NEGATIVE- THAN THEIR MALE COUNTERPARTS. • THEREFORE, THE PRESENT WOMEN LIQUOR HUTCH CUSTOMERS ARE MORE SATISFIED WITH THE LOCATION THAN ARE THE MEN CUSTOMERS. Prepared by Gdnstead & PssOgieleq` (~ 1/ C. 1 THE LIQUOR HUTCH CUSTOMER ANALYSIS Page # 13 MARKETING TOOLS A) EFFECT OF SUPERMARKET ADVERTISING -Question # 7 Question # 7a: Liquor Hutch Do you use the Newspaper Ad to decide 1999 which Su ermarket ou will shi in?? YES -Effected by Exterior Marketing 39.9% The Supermarkets spend a good deal of money on weekly NO 6D.1 % advedlsing. Note that only 39.9% of the Customers are effected. We extrapolate this to mean that less than 5% of the Llquer Hutch Customers are "effected" B) 5UPERMARKETS PREFERENCES •- Question # 7 We know you know Actual Grocery Store Sales from each Liquor Hutch Grocery Stores. Our Customer Questionnaire was utilized to "quantity" the Liquor Hutch Customers' favorite. This showed that Cash Wise and More 4 were virtually tied.. YES, NO, Question # 7b: Liquor Hutch Effected not effected What is your favodte Grocery Store. 1999 By Exterior ey Exterior Marketin Marketln More 4 Supermarket 46.2°,6 49.1% 44.2% Cub or Cash Wise Supermarket 49.7°k 43.9% 53.5`YoF-- More loyalty for the Other Store 4.9% 1.8°h 4.9% Cub/Cash Wse Stares. NpW, What are the locational and demographic differences between the MORE 4 and the CublCash Wise Customers? MORE 4 Cub/Cash Wise Supermarket Supermarket •~ Customers Customers Lives the 55350 Zip Code ~ 818% 6179% Lives in the 55350 Zip -NORTH of the Liquor Hutch 56.1 % 24.6% More 4 much stronger to the Nonh Lives in the 55350 Zip -SOUTH of the Liquor Hutch 25.8°/a 36.2% Woman Customers 33.3% 26.1% More 4 stronger vnth Woman Customers Male Customers 66.7% 73.9% Customers under 35 years of age 33.3% 44.9% CudlCash Wise strong with young Customers Customers POSITIVE about the relocation to the South Side 18.2% 40.6% These customers era exactly opposite. Customers NEGATIVE about the relocation to the Seuth Side 42.4% ~ 14.5% C) IMAGE OF A MUNICIPAL LIQUOR STORE -• We are under the impression that the popular characterization of a Municipal Liquor Store is that "the prices are higher". 1. This is the reason that Marketing, Merchandising, Customer Service, and Store Attractiveness is so important to the Liquor Hutch Municipal Liquor Stores; Nevertheless, we are still amazed that the price image of the Liquer Hutch - QUESTION 3 -shows that customers believe that • THE LIQUOR HUTCH's PRICES ARE PERCEIVED as "HIGHER" =11.3% • THE LIQUOR HUTCH's PRICES ARE PERCEIVED AS "LOWER" = 37.7% 2. Changing the name to imply a privately owned store (Sunset Liquors in Savage) has no real benefit. We have another municipal liquor store client who had three stores with Non-Municipal Liquor names. • 70°k of the customers knew that they were municipal stores -anyway. I • An aggressive marketing and merchandising program is so much more important than the name. . • There is some benefit of retaining the municipal name -- in that by shopping there - the customer knows that the profits will be aiding the community. We see no benefit for the Lipuor Hutch to be renamed Prepared by Grinstead & AssOCiete ~ ta1 THE LIQUOR HUTCH WSTOMER ANALYSIS • Page # 14 MARKETING TOOLS -Continued D) WHAT Credit Cards do you use. - 4uestion # 8 Question # 8 Do you use Credit Cards to make purchases Liquor Hutch at the Li uer Hutch 1999 YES - I use Credit Cards 17.5% Total all customers For 10% (or less) of their purchases 7.0% R always benefits retail liquor stores to accept credit cards For 25% to 5pryo of their purchases 5.6%~ More than 50`y° of their purchases q,g% because the average sale per customer is almost 4 times higher with a aedit caM. We were surprised that more than 17.5°k of all customers do not take "advantage" of this. Out of the 17.5°k of all customers that used credit cards - • More than''/: (51.4°k) choose to use Visa; • 27.0% choose to use MasterCard; E) WHAT DO YQU LIKE BEST ABOUT THE LIQUOR HUTCH? - f~uestion # 9 / 120 Customers responded to this question - and the SELECTION (SelectionNariety) WAS THE ~{ 1 RESPONSE. / Some of the 120 customers had multiple answers. Thus, the sum of the Liquor Hutch percentages exceeds 100°,6. . / The five rightmost columns --show some customer characteristics of those customers that liked Selection, Convenience, and Customer Service the best. For Example: • Customers that like the Convenience best =will not approve oT a move to the South Side. • Customers that like the SelectienNarietyMlell Stocked attributes tended to be younger customers. • We were surprised that so many people from "ONTSIOE of the 55350 Zip Code" still found the location convenient. / Finally regarding Customer Service- s 29.2% is quite a substantial figure; and • oT the 35 customers that said EmployeeslCustomer Service was what they liked most about the Liquor Nu[ch -10 of these customers specifically named Neil. This was quite a compliment. Question # 9: What de you like mast about the Liquor Hutch. Liquor Hutch, rasa SELECTION 13.5% choose to use American Express (we are pleased you are accepting this cab) -other retailers do not. 8.1 % choose to use Discover Card. 45.8% It) (2) 131 14) (51 From Fram Under Relocating to Relocating to Hutchinson OIfrSIDE 35 the South Side the South 5'de 55350 55350 years dd is GOOD Is 8AD lust the customers who liked Sdectian best 63.6% 36.4% 47.3% 23.69e 23.6% Well Stacked, Seletlion of CDNYENIENCE 41.7% WK the customers who liked Convervence best (Convenient, Location, Parking, One Stop) m~~^,~--,"0 6Z4% 32.6% 26.1% 28.3% 39.1% CUSTOMER SERYICE (Employees, Helpful Staff, Neil) xwww'wm~MwSrvMmwwnnW __.....__., _._._.._, STORE (Layout, Atmosphere, EZ t0 Find, Comfortable GDDD PRICING w•r«~ OTNER (Gedit Cards, Other) 8.3% S-3% 2.5%a lust the customers who liked Employee/Customer Service best 69.7% 3q.3% 24.7% 36.4% 33.3°,6 Wt did not break these down because there were not enough responses to generate an accurate statistical sdmpl0. Prepared M Grinstead & Assgcate~ ~. THE LIQUOR HUTCH CUSTOMER ANALYSIS . Page # 15 MARKETING TOOLS -Continued F) WHAT CAN WE DO TO SERVE YOU BETTER? -Question # 9A / Nationwide, usually about 20% to 25% of all customers will respond to this question -and the overwhelming response to this question is "your prices are too high". / In Hutchinson - 56 customers (or 39.2% of all customers) responded to this question -thus indicating that they take pride in the store and would like fo see Operational Policies fine-tuned. / In Hutchinson -- 87 customers (or 60.8%) had no response to this question. The following policies show the 62 responses given by 56 respondents: Number of Percent Percent Respondents of the 56 of all 143 Customers respondents interviewed PRICING YOUR PRICES ARE T00 HIGH 18 32.1% 12.6%- 3 of these 18 specifically mentioned beer; t =wine; all others were far pricing in general CDNVENIENCE More 5pacel Wider Aisles 12 21.4% 8.45'° m Parking is too congested 9 16.1 % 63% r Location on South Side/ Need another store 5 8.9% 3.5% ~ ~ Stare too Crowded 2 3.6% 1.4% ~ ~ ~ ~ `r Expand the Cold Beer Section 2 3.6% 1.4% ~ ~~ ^ o " ~[aer store 1 t.a ° i'~ W ~+ ~+ "p SUBTOTAL 31 55.4% z1.7°h zF ~ a ~ ~ ~ tid~~ ~~ -~ MARKETING Marketing -more items on promo 4 2 7.1% 3 6% 2.8% 1 4% ~ T ~ ._ Need to be open longer hours . . x ~ Lighting in Parking Lot 1 1.8% 0.7% m a Marketing -more wine information 1 1.8% 0.7% SUBTOTAL 8 14.3°k 5.G% SELECTIDN SELECTION 3 5.4% 2.1% specifically: carry Lahatts 50f 50; more Mexican Brandy; and m ore warm imported beer STORE need Automatic Doors 1 1.8% D.7% Cold beer in front for quick stops 1 1.8% 0.7% TOTAL 62 110.7% 43.4% Observations: RE: Pricing - we believe the pricing in Hutchinson is equal (or just slightly lower) than these other large municipal liquor stores. This will be discussed in the marketing section of the Phase Two Report RE' Convenience Requirements - we were surprised that the wider aisleslmore space and congested parking facilities -had many mare responses -than the responses for "pricing." RE: Marketing - we agree with the 3.5% of the Liquor Hutch Customers that are asking for more items on Promo and more wine info. Phase Two will be very specific as to these marketing recommendations. . RE: Selection -Customers love the Selection Image of the Liquor Hutch - This 2.1 °k is % of Apple,Valley and Brooklyn Center.. RE: NO RESPONSES for Customer Service -again is quite a complement to Management and the Store Employees. Prepared by Grinstead & Assgciat@S `('il 1/ G> S'C~U~.~'~ €P~'~ A S7t~~i~ ~N T~~ S~L~"H ~IC1''~ ~ ~ta~sti+r~f~ ~ Uestic~n ~~ asked hat' aid dt rne~ax~ f~a ~'~~w rf we cCa~ed tP"ais stare ara~ ~peraed ~at~rer arse a~ td'"~e eth~~~e ~wf ~tc~r~rrcar~?'~ 2.7'° of the aUtatarnere ilntervie'~tedl thaught that. thus eras pasit}ve (ar'«~ery pasitwwe~ gave rf ti~ese aUStaers 1.$J~/,i~ lived irk NUtahinsen ~~ .. 28~"Ia N~tarth at the t~iq~,uar ~Utch; '~~~ ~: ~~~~.~th et the l.igluar Hutch w ,~~~ lived eut at Tavrn .8°1~ shaCaped anae ~ ~+eek ar mare , :., ~ i : f~,, ~- f'~ ~~ : _ t _,.., ~5.~°f~ chapped ante a ~~nank~k er rna~re ~- t . ,~~~.:~ ~ ~ ;; 9.~T~ at these austaers favarite saaperrnarket via: ht1'~ r~ ~ f ..:1f~ ~ I :.:- ~, ,~ 7~.7°l~ at These aU~tcr~ers faverite superrnalrket wa t_.ul;~'Cah ~~e. 4.°1~ at these cUStaers vtere under ~' years at age. 43.4% ~C the cUterraers interviewued did nn~t care ~expreased na reaatiran in eNther direetianJ. ~t tfaese au~eter~ers 56.E°l~ lived on N~uNchinsan ~3b~ -~ 4$.~a%~ North oaf the V~iquer l~utct~; 51.4~1~ aaUth t the q~iUar 1~"Cutci"b ^ 43,5~~a lived n.tt raf Tarn 4.~°~~ shapp~ed ence a weeY~ ar mare i7.4°J~ chapped ~nae a rnanNtr car ~kcyre 41,E°r"~ of these austarners favaritE sup~rrnaa`ket was t~Nere 4. ~Q.t~°r,~ of these rttstarners f~ ~'r,ritr ~.~ ~prrrrkarYcet wwas 'u.tttlC:ash Vise. 4p.°~ pf these custacrners Mere ~un~~er years at age, 3„$C`l~ ~f the cUStat~ers kntervie~+ed thau,ht that this was a °'ed idea.°' ~f these custerners N3.°f~ Y1ved in b-iUtchGnsan ~'~~ ~_ $7ag% Nerth of the Lipner N-Yutah~ ~ 1~1a earth gat the L'Y~aar Y-latch ~~ ~7.~at°~~ ilved aUt at Ta~~rn .~~ staapped any a creek ar rmare .. ~ ,. . ,,; ,. , ~~.°faa ~~'ir~i~~,~r~ cnce'a n"lanth cr rq"Y4re ~ ~rr r ;~ ~ ~~ 1=ving 73.CN~~~ at then; +.ustaers tavcrite sUp~~n n~,; ktiet ~~vas Cure ,'~ r~ -, ,~ t ~ ~~,_ .;r.;h~ ' ~ interested i~ ~ ~cleG[ivn. ~~'.5°, a6 these cUSta~rrwers fa;verite super) n ~~~ ket w~'as uhJ~ash '4'~ise, ~ . ~.~~~, at these custr~rners Caere Under 3'S years of aue. ThV~ ~{~~k~'t9r3rp tN~NartitktNBS aUStai'a'tef tevllsi~ an rrlNar slat`s tC} thC; ~at~lf~k„ ~3nCt Viit-s'$r~ter~ 91~~ divud~edY they are feeifn~ abaUt tt9e patet~tial n"flave. The teBlawun are exatraples cif their respcrkse; ~'x~amp'ies of Positive St~wtements Tarr tN~,e Mauve * ~I lip ,.,~r~ ;;~n~H err_~ ~~tba ran taE~. ~ ,+~, c„a ~ 1ra,,,,ri E'ar~aaapl~s caf 1'~a~y P'ositiv~ 5tat@IalEnts faar the rnc7v~ •~ 1 "?liL4~ ~.~"~ t"~q~ I'1 _. ~ ~r~~~Aq --9~ni~ ~~tdud ~b4"~ ~'tL9CbV rnrare Cntk'~~PtY~f1C Vi ti, ildl~e tom' ~e 'u.a~aDe~~f 7~ ~"8.7'~a GF Ad_ln ~p7tftdt~5 :SAID Iit,tlC~si~a~l t~trtlaLD ~k ~ iP~5~fI1P'tR Ih9fW ~'akanrAfaNks of fiegative StateraaentS fc~r the move (N [ ~t [_~ ri.r tl~ ~~~_~~~~~~ ~ ~ C' dudan±os;n G6~aipi, Sduuu -7YC~ I 1i_?$li-i1L GC ``-.t3v [a~'VJIY1_i_;. E'xample~ of Very Ncy ~tive 5ttettocnts fur thcr ano°~e _ _ _ . .. • ~~~DIvA 6~pr like thi!5 , c er,'th~lc I ery' ~-~;~nb"+WPYN~61t fur PTG~' ne~'a~P.m. tetra ~ i ccu~,'i'ru 1'~•~~'Ir ii i f u a, ~i~,.F ~$ fnF ~Y"pi`~A•tl~~a ~...... -'qJ~. I ~~'„aI~_ N~ ~_~.~I;h,~ ~~,~uajutl k:~~~•, in'~I~_ik u,, t t ilic., i. alp ,~~Y tc:=~ ni,%n tiaff~ luu t,•u~;, rind I vi ,L iu ~t IIF~ & 1 ,ti ~i11 PJ~~~T ,h~ ~_~ c~i i tF~~ 4~.n.+th rr;d ~ ~ n~F tug,; niu~_hi 1i-iffir ~u.i f ''i,."1i; r fli>>hlritr~.vn ru ', t~ o':'a lsF ALL CIUS t~~htERS 5rb Ic Rt~uC.Atl@9t tllrt~,l'~Uil1U]' II}'~ NV NtE~GA'tttfl~ Mtia1fE 43 „+~~ Sit-D. ~H1" DiDIf'"f ~'tf~~, r~ce~~re~ ~~' rw~ri~ns~~d ~- ~, ~5~~ 4 z t "_ N ~J C~ ~. LIQUOR HUTCH EXPAN510N AND OPERATIONAL REVIEW PHASE ONE REPORT Section Three THE SALES ANALYSIS & PROIEfTION Rcparcd 6y Grins~cad & A;,o<ia~r, ~ ` 1 n ... i • ~,~ THE SALES ANALYSIS & PROJECTIONS Phase One Report Annual Liquor Hutch Sales, Profits, and Inventory -- since 1995 have been: Total Gross Grass Ending Inventory Sales I Profits Margins Inventory Turnover Retio tl Annual 1999 $2,925,637 $6 8 106 23.79% '. $223,039 10 D X~ Annual 1998 i $2,fi79,077 $634,527 23.88% $208,237 9.82 X Annual 1997 $2,493,494 $588,437 23.52% $189,191 10.08 X Annual 1996 $2,344,187 $550,465 23.48°k $170,026 10.55 X Annual 1995 $2,130,230 $492,936 23.14% $156,787 10.44 X Note that every number (except for Inventory T urnover Ratio) has been up every year since 1995. Approximately 21% of the annual 1999 Liquor Hutch Sales and Gross Protts was generated during the months of November and December • / / The following chart breaks this out by Product Category -For both Sales and Profits. ru of annual Wine Sales & Fronts is sold during November & December. Note almost ] /3 ' Flnt td Monlha i lnnuary lhru November, Detem6er, TOTAL Od°4er,t999 7999 t999 w~i ggn+ww~ud~e¢w'manm~mvna•~e,' Liquor Sales 78.27% 8.23% 13.50% .wn'~ 100°,6 Beer Sales ~~ 82.49% 7.69% 9.83% 100°h yfineSales 68.39`% 10.51% 23.10% 7DD% Tobacco Sales 82.54% 6.70'% 10.77°10 1D0% Taxable Misc Sales 79.56% 6.37% 14.D7% 1 DO% All Other Sales 88.76% 4 6.85 1tR1% Total Sales 79.22`% 8.14% 12.fi4% 100°k w,aruwvw liquor Grass Profits 78.34% 8.20% 13.46% 100% Beer Grass Profits 82.52% 7.91% 9.57% 1D0°h Wine Gross Pr°fds '' 66.55% 10.38`% 23.08% 1D0°h 7oba¢o Gross Profits >~~, 83.98% 6.18% 9.85% 100% Taxable Misc Grass Profits "~ 78.71 % 6.26'% 15.03% 100°k NI Other Gross Plgf~ ~~ 90.69% 3.72 10D% Total Gross Pr°fits ~. 78J4% 8.25% 13.01% 100°h The following five pages show the Annual Sales: Pages 7 through ] 0 show the Total Sales Projection a In 1999 -Page # 2 Uf the various locational opportunities available. a In 1998 -Page # 3 pND b In 1997 -~ Page # 4 the Methodology and Implementation of ' a In 1996-Page H 5 our G&A Salea Projection Formula. • a In 1995 -Page # 6 Prepared 6y Gdnstead¢t~s°~fates YiIQVT W4iif1 " REI IIY81 Jffi~5, TTOIflLS, dn0 If1YCFliOf' IOId15 1999 Page # z in precious years First 1 D Months , 1999 1999 1998 1497 1996 1993 Liquor Beer Wne Tahacm Taxable Nfisc NI Q11rer Total Total ToTal Total Total SALES laa.lMru Oct ~ 5698.642 51,282,971 $240,759 $38,486 $33,228 $23,66fi $2,377,752 52,156,919 $1,993,800 51,884,689 $1,696,043 1999 °k of Total Sees 30.1 n 55.4';1, 10.4`x. 1.7°k i.4`$ 1.0°k 160.6% Gross Profits 5153,610 5277,322 E86A21 $10,745 $9,826 $16,16fi $548,091 551)7,822 $466,945 5434,561 $390,999 Gross Margi>5 22.0' 21.6% 33.4% 27.9% 29.6'% 68.3`% 23.6% 23.54`% 23.42% 23.33% 23.0596 le Noremher, 1949 1999 1998 1997 1998 1993 Liquor Beer Wne Tobacco Taxable Mac NI Other Total Total Total Total ToW SALES Nav., 1999 ..- .,-..- E73,d54 5119,574 $38,697 53,122 $2,654 34,772 5238,478 $207,589 5266,687 $200,213 $179,404 %of ToW Saks 30-9`% 56.2% 16.6% 1.3% 1.170 6-5`% 106.07, GrossPrafits 516,675 $26,576 $]2,543 4793 $782 5663 $57,43D 549,712 $48,904 S47,fi50 54F,254 Cross Mar9iu 21.9`% 22.2% 32-9% 25-3% 29.4% Sfi.fi% 24.1 n 23.95% 23.73`% 23.80`$ 22.99% la De3:emher, 1999 1999 1998 5997 1996 1495 L'quor Beer 4Ane Tobacco Taxable i+Rsc All 01her Total Total Total Total Total SALES Oet.,1999 ~+~ $120,465 $152,833 583,786 $5,D21 55,876 $1,826 $369,808 $314,569 3293,667 $259,886 5254,783 %ot Total Saks 32.6% 41.370 22.770 1.4% 1.6°k 0.5°d 160.69U GossPraCRS $26,395 $32,171 327,888 51,260 51,876 5997 390,585 $76,993 570,588 $b3,254 $fi0,585 Crass Margirus 21.9% 21.0% 33.396 25.1°h 37.9% 54.6% 24.5% 24.48% 24.64% 24.34';6 23.82`% A~IpUAL, 1999 1999 1948 1997 4996 1995 liquor Beer Wne Tobacco Taxable Mrsc All Other Total Total Total Tora1 Total SALES Anaeal 5892,566 81,555,378 5362,642 E4fi,fi29 541,763 326,564 52,925,637 $2,579,077 $2,493,494 52,344,187 52,336,230 1999 `~ of Tota15a1es 36.5% 53.2% 12.496 l.fi% 7.4'~ 0.9`$ 100.0% GrossPraSls Et%,086 $336,068 5126,852 512,796 312,485 $17,826 S6%,166 3634,527 5586,437 5556,465 5492,938 Gross Margiric 22.6% 21.696 33396 27.4`% 29.9'% 6fi.9% 23.8"6 23.6896 23.52% 23.4870 23.14% INVENTORY ANALYSIS CfIGS $fi96,480 $1,219,310 5241,791 $33,833 529,279 58,838 $2,229,531 lmrentory $136,628 519,432 $75,786 36,777 $3,353 51,653 $223,634 5268,237 5189,141 $170,626 3156,787 Tumova Rath 5.97 62.75 3.19 4.99 8.71 8.39 10.00 X 9.82 % 14.08 X 16.55 X 10.44% CMM P...nM by C.S,a,mrl F AccrciilR - uquor nutcn -- An num sales, rronts , ana inventory l orals ~.~98 Page # 3 in previous years First 10 Months, 1998 1998 1997 199fi 1995 Liquor Beer rime Tobacco Taxable Mac AA Other ToTaE Total Total Total SALES las. thn Oh ~+~~• 5652,681 41,177,916 $219,502 $52,657 532,433 322,131 32,156,919 84,993,800 51,884,089 $1,696,043 1998 ~', of Toth Saks 30.3°4 54.fi% 10.2` 2.4°,6 1.5% 1.0"6 100.0'R, Gross Profits 3743,238 $252,349 573,237 $13,430 39,425 $15,643 $507,822 $466,945 $439,561 3390,994 Gross Margins 2t.9°~ 21.4% 33.4°,6 26.5°6 29.4% 70.7°,6 23.5% 23A2% 23.33% 23.05% In Aovember, 1998 1998 1997 1996 1995 L"poor Beer Wme Tohaao Ta.+¢ble Misc Nk Otlier Total Total Tatak Tmal SALES Nov., 1998 ~ 567,756 594,757 $32,542 33,796 $2,846 5842 $2177,589 $206,087 $200,213 $179,d04 %otToWSaks 32.6n 48.1% 15.7~F, 1.8`% 1.4°.6 0.4% 100.0% GrossPrafds 514,838 321,435 510,842 $],198 $890 5508 $49,712 548,904 $47,650 $41,254 Gross Margins 21.9% 21.5% 333°b 31.6`% 31.3% 57.0% 23.9`$ 23.7396 23.80"6 22.9996 In December, 1998 199E 1997 1496 1995 Liquor Bar 47ne Tobacro Taxable Misc RII Other Total Total Total Total Oec., 199E SALES ~'*~-~* $114,345 5130.646 $60,827 55,804 $4,458 $1,488 3314,569 $293,607 3259,886 $254,783 %of Total Saks 35.40`, 41.5% 19.3% 1.8$, 1.4`% 0.5% 100.0% Gross Profits 524,675 527,77fi $20,499 51,864 $1,348 $831 $76,993 $70,588 563,254 $60,685 Grass Margins 22.2% 21.3% 33.7% 32.1% 30.2°,6 55.8% 24.5% 24.04% 24.34% 23A2% ANIIUAL, 1998 1998 1997 1996 1945 Liquor Beer 4Ane Tobacm Taxable Mix All Other To41 Total Total Total lV~saal SRlES :~n,b+a.- 5831,783 $1,408,319 $312,870 562,256 $39,338 $24,511 32,679,077 $2,493,494 $2,344,187 52,130,230 7995 °h al Total Sales 31.0% 52.696 11.7% 2.3% 1.5`% 0.9°k 100.0% Gross Profts 3182.751 $301,561 $104,579 516,992 $11,663 $16,981 5634,527 $586,437 5550,465 $492,938 Gross Margins 22.095 21.4% 33.d`f, 27.396 29.6% 643°k 23.746 23.52% 23.4896 23.44'% INVEHf ORY pNAlYS15 COGS $644,032 $1,106,758 5208,291 $d5,26d E27,fi75 $7,529 $2,044,549 Imrentory $105,359 $19,434 571,826 37,458 $3,039 $1,12] $208,237 5189,191 5570,026 $156,787 Turnover Ratio 6.16 56.95 2.90 6.07 9.11 6.72 9,82 X 10.08 X 10.55 % 10.445 Oiart Prepared by Gnrtstead5 Assodsrrs s • uquor nuscn -- wnnua4 gales, rronfs, ana lmemory 1 a>rals 199? in preNau years first 16 Montfis, 1997 1997 1996 1995 Liquor Seer Wine Tobacco Taxable Mix NI Other Tala1 Taal Total SALES fan. thru OR :e~+w~.G %12,361 $1,072,754 $208,239 554,947 530,790 $18,708 $1,993,890 $1,884,489 SS,fi96,043 1997 $`, of Total Sales 30.7`% 53.8. 14.4°,6 2.6% 1.5'#, 0.9% 104.0% 6cossPrafils $133,224 5228,862 $69,209 513,542 58,573 $13,389 5466,445 $439,561 $390,994 Lross Margins 21A% 21.3m 33.2`% 26.7°x, 28.2% 71.6% 23.4"6 2333$, 23.05, In Havember,1997 1997 1948 1995 liquor Beer Wne Tebacco Taxable Mist NI Other Talal Total Total SALES Nov., 1997 ~~~ %9,553 545,714 $32,765 54,592 52,573 $890 $206,087 $200,213 (174,444 ~ofTotalSales 33.7°,6 46.4 F5.9`% 2.2`% 1.2`% 0.496 F00.0`% Gross Profits $15,220 524,449 514,712 41,222 5798 $503 $48,944 $47,650 541,254 Grass Margins 21.9` 21.4% 32.7°6 26.fi% 31.0% 56.5% 23.7'% 23.84`% 22.99 In December, 1997 (997 1998 1995 L"pucr Beer Wne Tobaau Taxable Mix A110[her Total Total Total SALES Det., 1997 =" ~+~ 5106,218 $118,943 556,406 56,129 54,557 $1,394 $293,607 5254,886 5254,783 %ofTotaiSales 36.2°,L 40.5°6 19.2°5 2.1`% 1.6`% 0.5`% 100.4rya fross Prards 523,047 425,557 518,019 51,826 51,342 $7% $70,588 563,254 $60,fi85 Cross Margins 24.796 21.5,°6 31.9°6 29.8% 29.4% 57.i°6 24.0,°6 24.3496 23.82`$ ANl~UAL, 1997 liquor Beer VAne Tohaao Taxahle h&sc R11 Other SALES ll~noal +K+r~ $788,132 $1,287,372 $297,414 $61,668 $37,921 $20,992 1997 %o[TolalSa~ 37.6% 57.6$', 1i.9% 2.5"6 1.5"8 0.8`$ Gross Profits $171,488 $274,868 $97,940 $16,641 $70,813 $14,687 Gross Margins 21.8% 27.4% 32.9`% 27.0`% 28.5°ro 70.0`% INVENTORY RNRl.Y515 COGS $616,644 $7.412,503 5394,477 $45,027 527,108 $6,304 Invenhxy 498,984 420,182 557,199 47,745 53,944 51,134 Turnover Rafro 6.23 50.17 3.49 5.81 6.88 5.56 f~ 1997 i998 1993 Tnlal Total Total $2,443,494 52,344,187 $2,130,230 140.4% $586,437 4554,465 $492,938 23.5% 23.48 23.14' 51,907,058 5784,F91 5170,026 5156,787 10.08 X 10.551[ 10.44% Page # 4 Chart Prepared by Gdnstead5 Asaaciafa uquor nu>:cn -- annual sales, moms, ana rnvensory 1 orals 1996 tart yrzr First ifl Months, 1996 t99fi 1995 Liquor Beer Wne Tohacm Ta~bk Misc ,VI 0lher Total Total SALES lan. tfirn Oct ~~~ $565,235 $1,042,757 4188,038 340,470 $34,687 $16,902 51,884,089 $1,696,043 1996 °6o[To[alSales 30.0% 55.3`% 10.0% 2.1"6 1.6% 0.9°h 100.0% Grass ProPos 5123,521 $222,327 E6Z,073 410,301 $8,768 $12,571 $439,561 $390,999 Gross Margins 21.9`$ 21.3% 33.0% 25.5`% 28.6°6 74.4% 23.3%, 23.05% In Norem6er, 1996 1996 1995 Ligrmr Bee YAne Tobacco Ta~¢bk Miu Fll Other Total Total SALES Nor., 1996 ~+~^~^+ 564,773 $93.354 529,165 54,363 $2,848 $711 5200,213 $179,404 $`, of Total Sales 34.8% 46.6°k 14.5% 2.2°k 1.490 0.4"6 100.0% CrossProfAS 3F5,459 526,082 59,756 41,464 5859 $430 547,650 $41,254 Goss Margns 22.2% 21.5°.6 33.5% 24.4°Ja 30.1% 60.6"6 23.8`#, 22.99°!a En December, 199fi 1996 1995 lpuor Beer Wme Tobacco Table Mix RII Other Total Total SAFES Oec., 1996 :~r~a0.s $96,201 4105,554 449,258 44,37fi $3,498 $999 4259,886 $254,783 °6 0! Total Sales 37.0'% 40.6% 19.0% 1.7%, 1.3% 0.4"6 100.0% Gross ProSts $21,330 $22,607 $16,545 $1,189 51,042 $540 563,254 $60,685 Grass Margins 22.2% 21.4% 33.6% 27.296 29.8% 54.F% 24.3% 23.82% AHNUAL, 199fr i99fi 1995 Eiquor Beer Wne Tobatto Taxable Mix All Otl~er Total Taal SALES A~aual n,w«~ 4731,208 81,241,fi66 (266,460 $44,208 537,034 518,615 $2,344,187 $2,130,230 7996 °6 of Total Sales 31.2% 53.D% 11.4% 2.1`~ 1.6`~ 0.8% }00.0$, Gross Profits $160,310 5265,017 588,374 512,554 $10,664 (13,541 $SSO,d65 5492,938 Goss Margo 21.996 21.3`#, 33.29'0 25.5%, 28.8% 72.8% 23.5`%, 23.1496 INVENTORY ANALYSIS COGS $574,898 $976,649 5178,086 $36,654 526,365 $5,069 51,793,722 9 lrreadory 491,527 $17,544 554.295 $4,865 54,872 $923 $370,026 4156.787 turnover Ratio 6.24 55.fi7 3.54 7.53 5.4t 5.49 10.55 X 10.44X Page # 5 own R'ewrea 6y GinsteaGBFssoriates l.tquor nu,tcn -- annual sates, rroms, ana mvensory royals 1995 First 1l1 Morttlts , f 995 1495 Liquor Beer Wne Tobacco Taxable Misc A9 Other Total SALES lay. thn Oct ~+~~ $535,687 $925,544 $156,963 $30,396 $34,934 $12,514 $1,696,043 1995 `% of To-tal5ales 31.fi°J0 Sd.6`% 9.34'0 1.8~ 2.1 `% 0.7% 100.0% Gross Profits $11d,21fi $197,005 $51,155 $7,667 $9,939 41 t,DtG $390,999 GrossMarg:u 2F3°l0 21.3'% 32.6°k 25.2°k 28.4, 88.6`y0 23.F`% In November, 1995 1995 ligimr Beer Wne Tobacco Taxable Misc A.# Other To-tal SM1LES Nor.i 1995 ~~~ %2,551 $84,859 $25,870 $2,803 $2,967 5354 $179,404 %otTota35a1es 34.9n 47.3% i4.4~ i.6°,6 1.7% 0.2`% 100.0% Gross ProSLS $13,109 $17,fi63 48,488 $708 $968 $317 541,254 CrosstAargins 21.U9'o 20.8% 32.8°k 25,3°6 32.6`Y0 89.6% 23.00 In December, 1995 1995 Uquor Fkrr Wme Tobacm Taxable Misc NI Other Total SALES -ec., 1995 $94,251 $107,146 $45,341 $3.288 $4,290 $468 5254,783 96 of Total Sales 37.0°6 42.1`% 17.8% 1396 f.7%a 02% 100.0% Gross Profits $20,223 $22,773 $15,076 $836 $1,362 $415 566,685 Gross Margins 21.5% 21.3% 333 25.4`% 31.8% 88.6`$ 23.8 AN NUAL, 1945 5995 L'puor Beer Wne Tobacm Taxabe Misc All Other Total SALES A~nnal $692,489 $1,117,549 $228,174 $36.x87 $42,145 513,336 52,130,230 1995 % of To-talSaks 32.5' 52.5°k 10.796 1.7~ 2.Ory0 D.fi~, 1OD.O% Grass Profits 5147,548 5237,442 $74,719 $9,211 $12,270 $11,748 5492,938 Grass Margins 21.3`% 21.2'ffi 32.7°k 25.2% 29.196 88.196 23.1% COGS $544,944 $880,107 $153,455 $27,276 $29,925 $1,588 $1,637,292 Im~enlcry $80,826 $32,795 $35,199 42,219 45,749 SO $156,787 Tuna+er Aatio 6.74 26.84 4.3fi 12.29 5.23 10.44 % r' ~/ i Page # 6 fFun Prenxvrt Fr fnxfead a Aasnciales THE SALES ANALYSIS ~ PRplECTIONS Page # 7 • OUR TOTAL SALES PROlECT10N Our G&A Sales Projection Formula and Strategy / Firstly, we apply the demographic, competition, logistical, and location factors to all locations to be analyzed to generate a 2002 Sales Projection. / Secondly, we generate a "Range" to which we are statistically 85% "confidenP' this 2002 Sales Projection will fall. / Thirdly, we compare Our Sales Projections to the Market Share, the Population Base, and the Consumption per Household Statistics (derived from the Bureau of Labor Statistics). This not only allows us to generate a "second Opinion on our 2002 Sales Projection - it will also allow us to generate a 2002 to 2010 Sales Projection. Sales Projections -- DEFINITIONS The Variable Functions of Sales Volume at any liquor store arc Marketing, Management, Pricing, etc. "1'he Fixed Functions of Sales Volume aze Demographics (and the degree of disposable income), Other Retail Operations (pulling customers into the immediate area), Exposure, Parking, and Accessibility (into and out of the parking lot and the store). Our Sales Projection Formula (developed over 25 years of Liquor Store Consulting) analyzes these. • Fixed Functions -- requires us to analyze Demographics, Competition, Retail Commercialization [of the marketing area], Exposure, Traffic Flow [bath volume and type of traffc], Convenience [parking, exposure, accessibility] of a location(s) under consideration, and Growth [both demographically & commercially]. This all must be included in our formula. • • Variable Functions -require us to make assumptions regarding the operation of the stare(s). Usually these assumptions am made in the fornn of Marketing, Management, and Financial Controls and Recommendations. • We always try to keep our Sales Projects at a Conservative Level - so that we may say "with a high degree of confidence" that "these projections are achievable". • When we project a specific Sales Volume -- we also generate a "RANGE" into which we can feel confident that the actual 1st or 2nd year sales will fall. The "RANGE" of the locations under consideration on the southside of Hutchinson will be larger in this Phase One Report -because: 1. we are not evaluating a specific location(s) -but rather general concepts. 2. we are not making the "specific operational recommendations". Our Phase Two Report -will analyze specific locations -and sizes. This will allow us to refine our projection to a much smaller Range in Phase 1'wo. We have nvo general locations to which we need to apply our Sales Projection Formula. A) to a location on the southside of Hutchinson, that will support a single larger Liquor Hutch store. E) to a location on the southside of Hutchinson, that will support a second Liquor Hutch store. In (f3) -the second stare should not be considered to be a "Satellite Stare" -because it must be large enough to draw customers primarily from the southside of Hutchinson and from the "Out 017own Customer" (who is shoppinglworWng in Hutchinson), We are confident [here will be no extraordinary negative locatienal consideration or any problems in Management. Therefore, we cannot envision any conditions in which the locations under consideration will . NOT achieve its potential Sales Volume. Prepared by Grinstead 6 Assodates 9 ~ ~~ THE SALE5 ANALYSIS & PROJECTIONS Page # $ OUR TOTAL SALES PROTECTION -- Continued Our Basic Assumptions: • A 2.5+ million dollar (in sales) retail liquor store is the exception -not the rule. There are not "many" stores with this sales volume in Minnesota or in the country. The City of Hutchinson has one. • Your present customer base = 50.35% fmm the City of Hutchinson; 14.69% from outside of the city -and in the 55350 zip code (basically 2 to 10 miles); 29.36% from l0 to 30 miles; and 5.6% Snm over 30 miles. The Chamber of Commerce says: "we used to say 'the Hutchinson Market' was 25 miles". b Note that this makes up 94.4% of the customers that shop in the Liquor Hutch b This includes 44,000 to 50,000 people. The Chamber of Commerce says: "now, we would use a wider radius of about 35 miles -skewed to 45 miles in the Southwest ". Vi Mayer says now a 6U,000 customer base is not out of the question. b A Liquor Stare(s) in Hutchinson will have a very hard time drawing from this EXPANDED radius -- because of the lack of convenience and increase competitive pressure. b Note that 88.1 % of all Liquor Hutch Customers say they shopped the store because of Convenience. 'this is consistent to all other clients of G&A- b This same rationale would apply to the supermarket industry (who is also very dependant on the Convenience Factor). The Cub stare built a 57,000 square foot stare (smaller than its usual 75,000 square foot store -but they did have plans to expand from the 57,000 square feet). We believe (in addition to customer concerns with the layout and strong customer approval o(the Cash Wise store) Coborn's Management saw that the new Cub store was not going to generate the business from the expanded tustomer area radius [hat Oflice Max and Target had experienced. We know that the emphasis is focused on the Southside -because that is the commercial growth area. Ilewever, customers from the City of Hutchinson (defined by G&A as 0 to 2 miles from the Liquor Butch) come from: E O r ~~s From the Northwest 22x2% From the Southwest 30.6% From the Northeast 22.2% From the Southeast 25.0% We just do not want to de-emphasize that North of the Liquor Hutch there is a substantial percentage of customers in the City, This percentage gets even larger when we look at all customers from zip code 55350. From the Nnrihwed From the Northeast • ~~i~ Esc, ;na°u, a 23.7% 24.7%a From the Southeast 18.4% '* Again, 88.1 % of Liquor Hutch customers shop because of the "Convenience of the Location". Compare this to other stores' customer questionnaires: % of customers shopping because of Convenience 4 Richfield Municipal Liquor Stores 81.5% 2 Privately Owned Stores -• 1 in Minneapolis and 1 in St. Paul. 84.4% 2 Savage Municipal Ligor Stores 88,0% Liquor Hutch - 1999 Customer Questionnaires 88.1 % 3 Brookl n CenterMu y ncipal Liquor Stores 89.0% 13 stores, a high volume Liquor Store Chain in Indiana 89.7% 2 Apple Valley Municipal Liquor Stores 97.3% • Rather than estimate the effect of inflation as it relates to increases in Liquor Hutch Cost of Goods (and corresponding pricing increases) and in order to illustrate "real growth" in Sales and Profits) -- wc will illustrate all of our SALES PROJECTIONS in present 1999 Dollars. Prepared by Grinstead & Ass°ci tcs G ~a~ THE SALE5 ANALYSIS & PRbIELTI0N5 Page # 9 C~ C~ OIIR TOTAL SALES PROTECTION -- Continued # 1) IF THERE ARE NO CHANGES in the # of stores or locations: IN 2002 =The Liquor Hutch should achieve Sales of STORE SALES 2002 Sales of Alcoholic Beverages $3,283,256 2Q02-,Splgic of All Other Items $247.127 2002 Liquor Hutch Downtown Total Sales $3,530,383 TOTALANNOALSALES 1999 Liquor Hutch Dovmtown Total Sales $2,925,637 2000 Liquor Hutch Oowntovm Total Sales $3,099,614 2001 Liquor Hutch Downtown Total Sales $3,309,789 2002 Liquor Hutch Downtown Total Sales $3,530,383 2003 $3,632,671 2004 $3,747,234 2005 $3,871,344 2D06 $3,993,796 2D07 $4,126,453 2008 $4,253,158 2009 $4,395,068 2010 $A,548,803 Assumes non-alcoholic beverage Sales o} 7% of the total Sales Volume. # 2) SALES PRQTECTIONS on a 8,500 to 1 D,SOD square foot retail liquor store in a location on the southside of Hutchinson, that will supporc a single larger Liquor Hutch store, and that the Liquor Hutch will close and relocate in a location with good exposure and accessibility to Highway 15, South, The Sales Projection was generated for 20D2 -using 1999 Dollars. We would assume that 20D2 would be the first year of Operation. IN 2002 =The southside liquor Hutch should achieve Sales of Firstly, we apply [he demographic, competition, logistical, and location factors to all locations to be analyeed to generate a 2002 Sales Projection. The G&A Sales Formula projects that 2002 Sales at this store (in 1999 Dollars) will be Total Sales Projection The New, Enlarged, Relocated $3,748,800 Assumes non-alcoholic beverage Southside Liquor Hutch Sales o17%of Total Sales Volume. Secondly, we generate a "Range" in which we are statistically 85% "confident" this 2D02 Sales Projection will fall. LOWER RANGE $3,477,DD0 To UPPER RANGE $4,030,000 Thirdly, we compare Our Sales Projections to the Market Share, the Population Base, and the Consumption per Household Statistics (derived from the Bureau of tabor Statistics). This not only allows us to generate a "Second Opinion on our ZOOZ Sales Projection", it will also allow us to generate a 1999 to 2010 Sales Projection. WE WILL ASSDME THAT THE SECOND STORE OPENS IN IANUARY OF ZOOZ. 2002 Liquor Hutch Southside Total Sales $3,811,055 2003 $3,921,476 2004 $4,045,147 2005 $4,179,124 2006 $4,311,311 2007 $4,454,514 2008 $4,591,293 2009 $4,744,484 2010 $4,910,442 - BeerlLiquor~ne Only --_ Cd 7% of total sales - All other Sales @ 3.93% of the Total - All other Sales @ 4.75°)0 of the Total -- NI other Sales @ 6AD% of the Total Assumes non-alcoholic beverage Sales of 7% of the total Sales Volume. Prepared 6y Grinstead & Assoc les r~.1 THE SALES ANALY515 & PROIECTIONS Page # 10 OUR TOTAL SALES PROIELTION -- Continued # 3) SALES PROJECTIONS on a 4,800 to 5,400 square foot retail liquor store in a location on the southside of Hutchinson, that will support a second Liquor Hutch store. Note that • the existing Liquor Hutch is 6,630 square feet (approximately 57 feet wide by 116 feet deep). Again, this is not intended to be just a satellite store - it is intended to be afull-scale liquor store with its own unique inventory, customers, and product demand. • The location is assumed to have a good exposure and accessibility to Highway ]5, South. • The Sales Projection was generated in 2002 -using 1999 Dollars. We would assume that 2002 would be the first year of Operation. 1N 2002 =The southside Liquor Hutch # 2 --should achieve Sales of Firstly, we apply the demographic, competition, logistical, and location factors to all laations to he analyzed to generate a 2002 Sales Projection. The G&A Sales Formula projects that 2002 Sales at this store (in 1999 Dollars) will be 2002 Sales Projection Liquor Hutch # 2 -- Southside $1,748,500 Assumes non-alcotlolic Beverage Sales of 7%of Total Sales Volume. However, we project that this store will have a 21.7% (negative) effect on the Liquor Hutch # 1 -Downtown. The eHeCl of this is shown in the chart shown below. Secondly, we generate a "Range" in which we are statistically 85% "CONFIDENT" this 2002 Sales Projection will fall. LOWER RANGE $1,652,500 Thirdly, we compare Our Sales Projections to the Market Share, the Population Base, and the Consumption per Household Statistics (derived from the Bureau of Labor Statislir,5). This no[ only allows us to generate a "Second Opinion on our 2002 Sales ProjeIXion", it will also allow us to generate a 1999 to ZO10 Sales Projection. WE WILL ASSUME THAT THE SECOND STORE OPENS IN TUNE OF 2001 To UPPER RANGE $1,897,10D Liquor Hutch # 1 Liquor Hutch # 2 Downtown's Southside's Sales Sales Actual 1999 Liquor Hutch Sales 2000 Downtown Total Sales Only 2001 Downtown Total Sales and Store # 2 for Seven (7) Months 2002 -Two Stores 2003 -Two Stores 2D04 -Two Stores 2005 -Two Stores 2006 -Two Stores 2007 -Two Stores 2008 -Two Stores 2009 -Two Stores 2010 -Two Stores $2,925,637 $3,099,61 A $z,896,065 $z,778,411 $2,858,912 $2,949,073 $3,046,748 $3,143,117 83,247,519 $3,347,235 83,458,919 $3,579,908 $D $D $1,154,100" $1,715,054 $1,764,746 $1,azo,apl 81,880,693 51,940,181 $2,004,624 $2,066,178 $2,135,117 $2,2D9,ap2 The Sum of BOTH STDRES' SALES $2,925,637 $3,099,614 $4,050,165 $4,493,466 $4,623,659 $4,769,475 $4,927,441 $5,083,298 $5,252,143 $5,413,413 $5,594,035 $5,789,71 D ' We assumed that this smaller, second store would be opened six months earlier than a New, Relocated, Enlarged Liquor Hutch - because of its sire and smaller financial commitment. " Includes Seven Months of Dperation in 20D1 Plus a Grand Opening Sellebration. Prepared 6y Grinstead & Assn 'at n ~~~`~ C~ LIQUOR HUTCH EXPANSION AND OPERATIONAL REVIEW PHASE ONE REPORT Section Four PRODUCT SALES AND OPERATIONAL OVERVIEW • prepared by Grinstead & Assonalcs ~1 ~~~~ • ~~ ~ ~i Liquor Hutch Expansion and Operational Review Phase One Report PRODUCT SALES and OPERATIONAL OYERVIEW PRODUCT SALES Our couunents regarding Product Category Sales are: LIQUOR -Liquor produced 30.513'° of total sales. We would like to see the Gross Margin of Liquor increase by at least one percentage point; and we would like to see the Liquor Tumover Ratio at (at least) 7 X. BEER -Beer produced 53.16% of total sales. This is a very high percentage. We would like to see Gross Margin of Beer increase to a range of 22.75 to 23.5%; increase Beer Inventory so that the Beer Turnover Ratie approaches 28 X; and put more emphasis on Micro and Imported Beers (these will be priced at a higher margin). WINE -Wine only produces 12.40. This can be increased by merchandising, f ne-tuning selection, and by increased emphasis among store employees/direct selling. The Wine Inventory turnover needs to be increased to generate a 4.25 X to 4.5 X Wine Tumover Ratio. This will become even more of a challenge as we will recommend a more premium oriented wine selection -and less of a table wine emphasis. We are a proponent of wine information cards (to act as silent salesmen). T08A000 - We understand the philosophy of pricing and non-promotion of cigarettes. However, this is an opportunity which we recommend you re-evaluate. "Dut of Line" pricing of toba[[o will reflect on your overall pricing image. a We also will strongly recommend a goad seleRion and a humidor for merchandising cigars. a In 1999, Tobacco Inventory Ratio was 4.99%. This must be increased to 12 X Turn. "SUBTOTAL -ALL NON ALCOHOLIC BEVERAGES (i.e. 3.93% of total sales) is too low. This subtotal should be at least 7.5% of Total Sales. • The Fallowing chart shows the 1999 Annual Sales -broken out by Product Categories. Product(ategory Sales %ofTotal Orvss Cross Ending Turnover Totals Sales Profit Margin Inventory Ratio Liquor $892,56D 30.51% $196,080 ZZ.D% $116,628 5.97 Beer I~ , $1,555,378 53.16% $336,D68 21.6% $19,432 62.75 Wine $362,642 12.40% $120,852 33.3°k $75,786 3.19 Subtotal- $2,810,580 9607% $653,000 23.2% $211,846 10.18 All Ncoholic Beverages ri,~~ ~~~~ Tobacco $46,629 1.59%a $12,796 27.4% $6,777 4.99 MiscTaxable(Pop) $41,763 1.43% $12,485 Z9.9%a ~ $3,363 8.71 Miscellaneous Items $26,664 0.91°k $17,826 66.9 $1,053 8.39 SAbt ( ~' $115,057 3.93% $43,107 37.5°k $11,193 6.43 NON-Ncoholic Beverages ~, ~,..~~a.~~»,.~aMq ~~, ~ ~ ~v~A,~~~ TOTAL -- ALL ITEMS $2,925,637 100.0% ~ $696,106 23.8% $223,D39 10.00 The following seven pages show product growth and analysis from 1995 to 1999 - on the fallowing product categories: ~ LIQUOR Page # 2 b BEER Page # 3 page # 9 shows the Operational Overview b WINE Page # 4 b T08A000 Page # 5 required for this Phase One Report. a MISC. TAXABLE (POP) Page # 6 . b IS L IT M Pale #k 7 a TOTAL ALL PRODUCTS Page # 8 Prepared 6y Grinstead ~ ~at~~ LIQUOR REPORT First 10 November December months Only Only LIQUDR SALES 1999 1998 1997 1996 1995 Increase fort year Increase over 4 years $698,642 $73,454 $12D,465 $652,681 $67,756 $111,346 $612,361 $69,553 $106,218 $565,235 $69,773 $96,201 $535,687 $62,551 $94,251 7.0°~ 8.4% 8.2°k 30.4% 17.4% 27.8% uQuoR ANNUAL SAIES $892,560 $831,783 $788,132 $731,208 $692,489 7.3% 28.9°h Page # 2 LIQuoR sALEs % aT Total Sales 30.5% 31.0°h 31.6% 31.2°/, 32.5°h LIQUOR CROSS PROFITS First 10 November December ANNUAL %of months Only Only PROFITS Total Profits uquDR Gross 1999 $153,610 $16,075 $26,395 $196,080 28.2ry° Profts 1998 $143,238 $14,838 $24,675 $182,751 28.8% 1997 $133,220 $15,22D $23,047 $171,488 29.2% 1996 $123,521 $15,459 $21,330 $160,310 29.1% 1995 $114,216 $13,109 $20,223 $147,548 29.9% Increase for 1 year 7.2% 8.3% 7.0°~ 7.3% Increase over 4 years 34.5% 22.6°~ 30.5% 32.9% LIQUORINYENiORY Annual Coat Total Liquor Annual as % of Goods Liquor Inventory of Total Sald Inventory Turnover Ratlo Inventory LIQUOR Inventory 1999 $696,480 $116,628 5.97 52.3% Analysis 1998 $649,032 $105,359 6.16 50.6N° 1997 $616,644 $98,989 6.23 52.3% 1996 $570,898 $91,527 6.24 53.0% 1995 $544,940 $80,826 6.74 51.6°k Chan prepared by Grinstead & Associates LIQUOR HUTCH PRODUCT ANALYSIS 1995 to 1999 1 ~. 1 C~ BEER REPORT BEF7i SALES 1999 1998 1997 1996 1995 Increase far 1 year Increase over 4 years LIQUOR HUTCH PRODUCT pHAtYSIS 1995 to 1999 First 10 November December months Only Only $1,282,971 $119,574 $152,833 $1,177,916 $99,757 $13p,646 $1,p72,754 $95,714 $118,903 $1,042,757 $93,354 $105,554 $925,544 $84,859 $107,146 8.9°h 19.9% 17.D°k 38.6°k 40.9% 42.6% BEER ANNDAL SALES $1,555,378 $1,408,319 $1,287,372 $1,241,666 $1,117,549 Page # S BEER SALES °/a of Total Sales 10.4°h 39.2% 532% 52.8% 51.6% 53.0% 52.5% BEER GROSS PROFITS Firat 10 November December ARNUAL ~ of months Dnly Only PROFITS Ta1a1 Profits BEER Gross 1999 $277,322 $26,576 $32,171 $336,p68 48.3°k Profts 1998 $252,349 $21,435 $27,776 $301,561 47.5% 1997 $228,862 $20,449 $25,557 $274,868 46.9°k 1996 $222,327 $20,D82 $22,607 $265,017 48.1% 1995 $197,D05 $17,663 $22,773 $237,442 acs°r° Increase for 1 year 9.9% 24.0°k 15.8% 11.4°k Increase over 4 years 40.8% 50.5°k 41.3% 41.5% BEERINYENTORT AnnuulCost Tatul Beer Annual as % of Goods Beer Inventory of Total Sold Inventory Turnover Ratio Inventory BEER Inventory 1999 $1,219,310 $19,432 62.75 0.7% Analysis 1998 $1,106,758 $19,434 56.95 9.3% 1997 $1,012,503 $20,182 50.17 tD.7% 1996 $976,649 $17,544 55.67 10.3% 1995 $88D,107 $32,795 26.84 20.9% • Chart prepared by Grinstead & Assodates l ~~~ ~ ~ LJ WIRE REPORT wwE SALES 1999 1998 1997 1996 1995 Increase for 1 year Increase aver 4 years LIQUOR HUTCH PRODUCT ANALYSIS 1995 to 1999 First 10 November December months Only Only $240,759 $38,097 $83,786 $219,502 $32,542 $60,827 $2D8,239 $32,785 $56,406 $188,038 $29,165 $49,258 $156,963 $25,870 $45,341 9.7% 17.1°h 37.7°h 53.4% 47.3°h 84.8% WINE ANNUAL SALES $362,642 $312,870 $297,410 $266,460 $228,174 15.9°k 58.9°h Page # 4 WINE SALES % of Total Sales 12.4% 11.7% 11 s% 11.4°k 10.7% WINF 6ROS5 PROFITS First f0 November December ANNUAL %of months Only Only pROp1YS Total Prafitu WINE Gross 1999 $80,421 $12,543 $27,888 $120,852 17.4°/° Profits 1998 $73,237 $10,842 $20,499 $104,579 16.5% 1997 $69,209 $10,712 $18,019 $97,94D 16.7% • 1996 $62,D73 $9,756 $16,545 $88,374 15.1% 1995 $51,155 $8,468 $15,075 $74,719 15.2% Increase for 1 year 9.83'° 15.7% 36.0% 15.6°/a Increase over 4 years 57.2°k 47.83'0 85.0°k 61.7% WINE INYENTORT Annual [ost Total Wlne Annual a6 °7° of Goods Wine Inventory of Total Sold Inventory Turnover Ratlo Inventory wINE Inventory 1999 $241,791 $75,788 3.19 3a.a% Analysis 1996 $208,291 $71,826 2.90 34.5°~ 1997 $199,471 $57,199 3.49 30.2% 1996 $178,086 $50,295 3.54 29.6% 1995 $153,455 $35,199 4.36 22.53'° r1 LJ Lhart prepared 6y Grinstead 6 Associates /G`~ C~ LIQUOR HUTCH PROOU(T ANALYSIS 1995 to 1999 Page # 5 TOBA[(0 REPORT First 10 November Oeeember montha Dnly Only TDBACCO SALES 1999 1998 1997 1996 1995 Increase far 1 year Increase over 4 years $38,486 $3,122 $5,021 $52,657 $3,796 $5,804 $50,947 $4,592 $8,129 $40,470 $4,363 $4,376 $30,396 $2,803 $3,288 -26.9% -17.7°~ -13.5°,6 26.6°h 11.4yo 52.7°k roNACCD ANNUAL SALES $46,629 $62,256 $51,868 $49,208 $36,487 -25.1 % z7.e~° raeACCO sALEs % of Total Sales 1.6% 2.3% 2.5% 2.1°/° 1.7% First 10 November December months Only Only TDBACCO Gross 1999 Profits 1998 . 1997 1996 1995 Increase for 1 year Increase over4 years $10,745 $791 $1,260 $13,930 $1,198 $1,864 $13,592 $1,222 $1,826 $10,301 $1,064 $1,189 $7,667 $708 $836 -22.9% -34.D°k -32.4°k 40.1% 11.7% 50.7°k rOBA[[0 GROSS PROFITS ANNUAL °7° of PROFITS 7o1a1 Proflta $12,796 t8% $16,992 2.7°k $16,641 2.8% $12,554 2.3% $9,211 1.9% -24.7% 38.9% Annual Coat of Goods Sold TOBACCO Inventory 1999 $33,833 Analysis 1998 $45,264 1997 $45,027 1996 $36,654 1995 $27,276 • TONACCDINYENTORY Total Tobacco Anneal as % Tobacco Inventory of Total Inventory Turnover Ratio Inventory $6,777 4.99 3.0% $7,a58 6.07 3.6% $7,745 5.81 4.1% $4,865 7.53 2.9% $2,219 12,29 1.4°,b Chart prepared 6y Grinstead & Associates ~ ~~~ LIQUOR HUTCH PRODUCT ANALYSIS . 1995 to 1999 Page # 6 MISC. TA%ABLE REPORT MIS(. TAXABLE MISC TAXABLE SALES First 10 November December ANNDAL °h of months Only Only SALES Tatnl Sales MISC. TAXABLE SALES 1999 $33,228 $2,659 $5,878 $41,763 1.4% 1998 $32,033 $2,846 $4,458 $39,338 1.5% 1997 $30,790 $2,573 $4,557 $37,921 1.5% 1996 $30,687 $2,848 $3,498 $37,034 1.6°k 1995 $34,939 $2,967 $4,290 $42,195 2.0°k Increase for 1 year 3.7°k -6.6°k 31.8°k 6.2% Increase over 4 years -4,9% -1 D.4W° 37.0% -1.0% MISC TAXABLE ITEMS' GRO55 PROFITS First 10 November December AMABAI ~ of months Only Only PROFITS Total Prpfits MISC. TAXABLE Gross 1999 $9,826 $782 $1,876 $12,485 1.B% Profits 1998 $9,425 $890 $1,348 $11,663 1.8°k 1997 $8,673 $798 $1,342 $10,813 1.6°k 1996 $8,768 $859 $1,042 $10,669 1.9% 1995 $9,939 $988 $1,362 $12,270 2.5% Increase for 1 year 4.3% -12.1 % 392% 7.0% Increase over 4 years -1.1 °h -19.2°h 37.7°~ 1.7°/a MISC. TAXABLE ITEMS' INVENTORY Annusl Cost Taxable Miee-Teeu6lu as Ot GOOdS Mi6C. Annual Inrunt°ry Ot Total Sold Inventory Turnarrr Raelo Inventory MISC. TAXABLE Inventory 1999 $29,279 $3,363 8.71 1.5% Analysis 1998 $27,675 $3,039 9.11 1.5°~ 1997 $27,108 $3,940 6.88 2.1°k 1996 $26,3fi5 $4,872 5.41 2.s% 1995 $29,925 $5,749 5.21 3.7% Charc prepared by Grinstead & Associates ~~ CJ MISCELLANEOUS REPORT First 10 November December months Drily Only MISC. ITEMS SALES 1999 1999 1997 1996 1995 Increase for 1 year Increase over 4 years $23,fi66 $1,172 $1,826 $22,131 $892 $1,488 $18,708 $890 $1,394 $16,902 $711 $999 $12,514 $354 $468 6.9% 31.5°k 22.7% 89.1% 231.4% 290.2% MISC. ITEMS ANNUAL SALES $28,864 $24,511 $20,992 $18,611 $13,338 8.8°k 99.9% Page # 7 ALL OTHERS' SALES % of Total Sales 0.9% 0.9°~ a.s% 0.8% 0.6% ALL OTHER ITEMS' GROSS PROFITS First 10 November December ANNOAL %af monibs Only Only PROFITS ToWI Profits MISC. ffEMS Gross 1999 $16,166 $663 $997 $17,826 2.6% Profits 1998 $15,643 $508 $831 $16,961 2.7% 1997 $13,389 $503 $796 $14,687 2.5°k . 1996 $12,571 $430 $540 $13,541 2.5% 1995 $11,016 $317 $415 $11,748 2.4°/, Increase for 1 year 3.3°h 30.5% 2D.0% 5.0% Increase over 4 years 46.7°h 109.4% 140.4% 51.7°h ALL OTHERS'INYENTORT Annual Cost Total pll plhnrs' as ~ OT GOOdS MISC. Annunl Imentery of Total Sold Inventory Turnorar Retie Inventory MISC. TIEMS Inventory 1999 $8,838 $1,053 8.39 a.5% Analysis 1998 $7,529 $1,121 6.72 0.5% 1997 $6,304 $1,134 5.5fi 06% 1996 $5,069 $923 5.49 0.5% 1995 $1,588 $0 D.0% C~ Chart prepared by Grinstead & Associates LIQUOR HUTCH PRODUCT ANALYSIS 1995 to 1999 C11.~~ LIQUOR HUTLH PRODUCT ANALY515 1995 to 1999 Page # 8 "TOTAL ALLITEMS" REPORT ALL ITEMS First 10 November December months Only Only ANNUAL SALES ALL ITEMS SALES 1999 $2,317,752 $238,078 $369,8D8 $2,925,637 1998 $2,156,919 $207,589 $314,569 $2,679,077 1997 $1,993,800 $206,087 $293,807 $2,493,494 1996 $1,884,089 $200,213 $259,886 $2,344,187 1995 $1,696,043 $179,404 $254,783 $2,130,230 Increase for 1 year 7.5% 14.7°~ 17.8% 9.2% Increase over 4 years 36.7°h 32.7°k 45.1 % 37.3°k ANNUAL First 10 November December GROSS months Only Only PROFITS ALL ITEMS Gross 1999 $548,091 $57,430 $90,585 $696,106 Profits 1998 $507,822 $49,712 $76,993 $634,527 • 1997 $466,945 $48,904 $70,588 $586,437 1996 $439,561 $47,650 $63,254 $550,465 1995 $390,999 $41,254 $60,685 $492,938 Increase for 1 year 7.9°k 15.5% 17.7% 9.7°~ Increase over 4 years 40.2°b 39.2% 49.3q° 41.23'° Annual [ost Total Annnal of Goods Total Inventory Sold Inventory Turnover Ratio ALL REMS Inventory 1999 $2,229,531 $223,039 10.00 Analysis 1998 $2,044,549 $208,237 9.82 1997 $1,907,058 $189,191 1D.08 1996 $1,793,722 $170,026 10.55 1995 $1,637,292 $156,787 10.44 • than prepared by Grinstead & Associates ~1 ~0. 1 PRODUCT SALES and OPERATIONAL pVERVIk1N Page # 9 . OPERATIONAL REVIEW 1. Regarding Marketing The store aggressively pursues customers by advertising both in the Leader and on the radio, Our only comment is that we need to evaluate the effeBiveness of this advertising (possibly ad expenditures can be reduced) and Liquor Hutch's Low Prices are not immediately made obvious to the customer. Compared to other Minnesota Municipal Liquor Clients -the Liquor Hutch is a marketing dynamo. 2. Evaluate Store Size and Layout Even with the two entrances/egresses ([hat make it hard to control traffic flow) -the Liquor Hutch has maintained an excellent Store Layout, use of equipment, and in-stare traffic flow -which has allowed for good impulse sales. This is important, because -- over 60% of all your customers have not made up their mind about exactly what they plan to purchase. There is some question as to whether the store can increase its sales volume to 3.5 (and to 4.5 million) in sales in the existing facility. We believe it can, but the store layout must be fine-tuned -- to increase wine and liquor inventory tumover and increase beer inventory. This is easier said than done, considering the location of the wholesalers and their delivery schedules. Nevertheless, this size store in this market area tan achieve a 3.5 to 4.5 million dollar sales volume. 3. Evaluate Merchandising We will be making several recommendations to the Liquor Hutch in the Phase Two Report regarding use of case cards, shelf talkers, and stare flyers. These will be presented to illustrate how we can simultaneously: 4r INCREASE IMPULSE SALES ANp THE SALES VOLUME; b INCREASE THE LEVEL OF CUSTOMER PERCEIVEb LOW PRICES, ANb b INCREASE GRO55 MARGINS. • We have never seen customers so pleased with a client's selection. We will recommend a "Top Shelf" Concept of Merchandising -that will allow us to take advantage of the Liquor Hutch's selection image - to increase the Gross Margins (primarily in [he Liquor Category). One of the reasons that the Liquor Hutch is so close to its POTENTIAL Sales - is its full time commitment to Merchandising. Tony's job function (in charge of merchandising) has had a major effect on the liquor Hutch's Sales & Profits. 4. Evaluate Management Policies In our first trip to Hutchinson (for this Phase One Report), we did not see any Management Policies, Customer Service, or Store Controls (Security) that were "Out of Line". Our only comment was the Customer Service in Wine and Micro Beer could be increased -- although steps are being taken in this direction (example =the "field trip' to the lames Page Brewery). Nevertheless, employee training is an on-going process. 5. Evaluate Seleaion, Inventory, & Purchasing - as they relate to Gross Profits. As we stated on page # t - we believe b Gross Margins of Beer and Liquor can be increased slightly; ~? the Liquor and Wine inventory turnover ratios can be increased; and a the Beer Inventory needs to be increased and the Beer Inventory Turnover Ratio should be reduced to 28 X; b the Tobacco Inventory must be increased (from 4,99 X in 1999 to about 1 Z X). We observed that the store management has the ideal relationship with your suppliers (friendly but very controlled). C~ Prepared by Grinstead & As(sao les r' ~ c`~ February 16, 2001 Mr. Neil Wegner, Manager Liquor Hutch 245 Washington Avenue East Hutchinson. MN 55350 Dear Mr. Wegner: • Kornglebel Architecture a5 Washington Avenue East Hutchinson, MN 55350 PhanO 320/587.2483 Fax 320/597.6336 Korngiebel Architecture is sincerely interested in working with you and the City on a feasibility study for the expansion of your facility. We understand that at this point you are interested in verifying a fair price for the purchase of land and buildings far possible expansion of your present store. We propose to engage the services of Jim Robinson to do an appraisal of the subject properties. We would recommend that we provide preliminary sketches and a rough estimate of construction costs to verify that this expansion will meet your needs. The cost for this work, we estimate, will be $1500-$2000 for the appraisal and $1250 for preliminary sketches. Should the project proceed, we estimate Architectural and Engineering fees to be in the range of 7-8% of the construction cost. Please let us know if we can be of service. Sincerely, C7 KGRfNGI~IEE ~~""' - y Jchn W. Ki ~~R~1~ R to ~o~~~~ ~, F~E 2a~1 ~~ ~~ r q { f (1 1 r ~t.l t / \ 1• r9s~F~. ,~ ~~ l~l ~AS~ ~iNCH COMPANY EXEGrfTIVE OFFICES January 2, 2D01 76oD FRANCE AVENUE SOUTH P,O, 6pX 355 MINNEAPOLIS, MINNESOTA 5544p-0355 51 2/8 3 2 05 34 CENTRAL FAX ND. 61710441239 Phone: 32x587-2782 Fax: 32D-234-4240 Mr. Neil Wegner Liquor Hutch Ciry of Hutchinson 245 Washington Avenue East Hutchinson, MN 55350-2612 RE: Expansion of Liquor Store Dear Neil: The following are terms that we would consider submitting for senior management consideration for the sale of the property adjacent to the Liquor Hutch that was formerly occupied by a video store. • Size: Approximately 3,360 sq. ft. building and land area approximately 20' x 160' adjacent tp existing liquor store and video store building Price: $255,DOD Earnest Money: $8,5DD Refundable if sale does not close due to contingencies Condition: As Is Closing Date: February 28, 2001 (or after all contingency deadlines have been satisfied) Contingences: Buyer: 34day inspection period Physical, including all structural, mechanical, soil, environmental, engineering, zoning, etc. issues Financing, acceptable tD buyer at buyer's sole discretion P:Vd P Fp11wtl R D UD LE ViNchinsonLOl. dac Customer Satisfaction is ALWAYS First!. (~~) Wegner • January 2, 2009 Page 2 Seller: Approval of sale price by senior management • Approval of site plan Approval of expansion snd its impact an roof, structure, parking, etc Buyer participation in pro-rata share of operating expenses for common area • Approval by lender, if any Title Commitment: order by seller, cast split 5Dl5t) between buyer and seller Title Company acceptable to both parties; Seller typically uses First American Title in Minneapolis Survey: Buyer's expense, if it chooses to have one Environmental: Buyers expense, it if chooses to pursue Closing Costs: 5~l50 buyer and seller Commission: No brokers have been involved in the transaction • Please review the above proposal with the city and let me know if the terms are acceptable. I will then have our legal department draw up the document for signature. If you have any questions, I may be reached at (892)844-9138, FAX (612) (3449234. Sincerely, ~.,t.~ Sandra Hunten Real Estate Manager The submission of these terms for examination and negotiation does not constifuteu til otter to enter into an agreement, and these terms shall not be bindin oohese terrns a pun:hase agneement is executed and delivered by each party L p:VrIPr011W OR PV ALE W utC7iinedtl4Dl.doc ~G>~") i y~.y/o~ ~~~~~ ,~-/U1cf~ - ~baJ.cJ~~/.ti.J - ~~I tr /~/ri~,d~~ ~ 1~ ;gyp'/s~.v~ ~rb~ 1i9~~vr 1~~~~z. ~ ~~~ S~ ~~G39s~ ~aL,~ w. O rr~z >o, 959 s, . r ~Y ~o~ y5 9 sf ~~ ~,v~ z~ x zo~~ = ~1~8, Sao /~'3, ~ o ~sr. ~ ''~~ ~ .. (z~ /yrlSvGL s -~ ,~ar~N~ C~oG,~ c ,gc~rY C .~'~~~5/0~ /~r~ ~~- fro/.~S ~ ~~' ~i~~r~ ~ s. ~r;~-~L 79'zs -t- zl7a = 9GD3~f 9/ a ~.vc~,a~s~ ~~~ ~-~%l3 S ' ; /f3 00 _ f_.- ~.__ ~~~ - - ~,~~ C.vs77~, ~ ~) ~~ ~/s , = 174, ~d a ,u,E~ Cati~ G®~ W~ ~ SO Sj~ ' Sl 3~0 ~_ _ ~ _-- r~ J~ ~ ~0 9, ~a°d ~~ ~~~ s~.rrd> /~ dOd ~,~ .; C' 7~~ ,~ y~ I, 0~0, 000 µ -_-__ -- c~ (~~ $ectlon 4 -- b~tlonaf Recommendations Page # 18 LIQUQR HUTCH -- DOWNTOWN Existing Store Layout 1" -26' ~ 0.. ~~oo~R ^.a..f-< --.. peisRNMa. f - ieOk Whsa - {III i Premium Wines ) f Premium WNes Chem es ~~ O Fiuuor Gondola - Whtte Geede ll uorGOnede - Bmrn Goods ~~ V m 9 0 ~~ ! b g q >6 r, u y/a-1'lef rl~ &~,-~,.~ _~•~ Cep '/ P~ ~ N ~ si~N+Y Py~:i~ h7r. Movies Prepared ay Gdestaad & Associate i • ~ Section 4 •• Oneratlonal Recommenda#ions Page # 20 LIQUOR HUTCH -- DOWNTOLYN Recommenda#ians farthe Stare Layout ->with 1=xpansion into Mr. Movies 1°•xG~ i ~ ~G ~ in Caddaas Poo S 5wee! Wlnes. Mlrmllmowl Beer v, ~ P2mlum Wines Taek YAnes ~ ° 5 ~' Ch~thw[ ~ ~ ~ v ® W f # 1 ~ Acmium Wlnes ~ BnaYGaes ~ m E a f Premium Wlnea ~ Chem nes ~ a g r+i Chic keu! ~ ® c ~ ~y N Jt L .~ ~y~~~~ N f ~ n ~ y ® 1TRTi N~OYNII$ ' ~ ~ m Chackeul 'j N ~~~=IIOrGOndde-Y/A11E~~5 a #3 ~ ua Gondola-Brews Goods ~ office ! ~ z ~ lJOUOr Stadd oats BdeorWMe Bdow Beer Caakr n~' Theold 6erk-wap !' `/ Prepared Dy Gdns[ead & Associate _ _. _.._ _ Section 4 - Oneratlanal Recommsndatians Page # 22 LIQUOR HUTCH -- DDWNTDWN Recommendations forthe Store Layout -with Expansion into Mr. Movies and 20 feet to the south Exlstlrg OO Back Wel! !n ~ Srropping CaAS ~-Sf+H~fsNG ~ GHY.IWr yr R 1 ~ ~ Caddn3k. Poo a SextYBnes. Allvollmoort Be Premium Wines Tehk Wines ~ 9 er ~ ~1 • j Wk12.~ddnPE p8 . ee U >6 UU Checkout ~ ~ 2 ~ ~ y Pnsmfum Wines ~ flgi'd'Ipffi ~ P2mfem Wines ~ Chemoer(n ~ ~ ~ es F #~ ~ eo i ! ~ 8 C6~ 3 r H x ® ~ e00~e s ^ ~ ~ ~ ^ Checkout y i -- LLLJJ y ~paor GOneoie-Wh6e CEpds uarGondek-Bmxn Loads ~n F Offlce BdaarWMe Cooler 6daa BeerCaaler 6orStacldn Drl~away S Parking Parking DeEfrery Parking ~~p a ~~ a .¢ a m C~ Datr 21:2/G17:3GAM Sub)ect; Hutcllirtson, MN Liquor Store Expansion Neil.1 Head to respond to our senior management as to whether or not this i5 a feasible project. 1 have had an interaS't to lease it, which 1 may have lost now, as I was putting your needs first. If you will nqt he purchasing it, I should ha actively pursuing outer options. I wquld appreciate a written response to my latter of January 2, 201 to you. Please outline your infant and the data you will have a yes or no. While you indicated January 30 that you wars still interested. I have had no further response sutra than and my management is Innktng for action fdy intent is to enter Into an agreement with a broker by tdarch 8 altar sexing It my leasing opportunity is still available. HopafuBy you will gat this a-mail. I didn't have your a-mail address, but assumed It would ha the same as Kannath IAarrill's. IF that was not the case, I --" wquld appreciate it, Kanndth, if you can forward this a-mail to Nail. Thanks. GC' ~lcmarrillcaci.hutchinsen.mn.us? C~ l ~~J .,,,/, .~}LITG}}11~501J Qj~G~ ~~~~a~ .~~ e.n r OEXTE ~IOR~INTERIgR PIPE 90LLARD 1st AVENUE N.E. W aeo.'A r,n~Y].~ a.3aa r' If ~~ ,. .... .,yyua, : ' 1 I H W W G: h N a y 4 S . ~ ~ ~ giwN ~,.~. ~~~-_;- ~ .,.tiy . .- ~.. .,d ~.,,, : ~= ~ ..; - I • r-._ -__.- ...m nL. I al ..•~-.-i .a. wa I sf~„r ~..,,.. .r I •}- 4L N'lh g"1 +Mi, M~ie n~ a }K1- •Y•Y M, p OINK RIeOR PIPE BOLLARD Illl~~~~~~i~l~il~ ~II~!II~!~~~~'^illl o~~ O C KRB~ ETAIL :. K,r"' ~, sry: rwe an ~~r O SIDE WALK CONTROL JDINT .. I lilliliilll3~~~l 1!iil~~~~ ~ a }.}. ~ .I.L -.-~- I ~.I I~~IIII{I I I I II is II I II ~I I ~I ~I i~ ~~ i ~ , .~ rr nn CC I I -rr I f j i I I I I 'a'° i i r M i ` I r I ~ 1. I I i n 1 ..x"~:n" IIi b' ~ i ~... I I ~" I I I _~._ I it ' :t. i .a . ~ I i w.u ll I . 'I'i I. ~ l l I ~ W~ C Y :~_~~___ i . FESTIVAL FOgg5 & i SD6 x1. Y 8:~ °r~,'A° aen"a i d,9 .i... i l Ll ~..~ Ia I I I I i ~' I ~ !I I I l I I .. I nm.n w... 1 ,, f.. I I I .aw , I ...un n...a n u - __ • nw .e vs..r - A r.., ~ ~..-1S WASHINGTON AVENUE W S xa3.73: 9YE AREA gt){,pING AR[A 52,77: '~ 6uRpMIC TOQ~= RAT• ~ \ ~` SW J (..~~,. ~ ~.. ~..- l ~ FIRST I __ l_ i AVE . I SE h 0 a L ~~~ 1 n 1 C~~ I- ~• DAKOTA Hutchinson, Minnesota I~ Prepared for: City of Hutehinsop By: Aakota Worldwide Corporation becember 2003 CDH001 4801 81st Street, Suite 105 • Minneapolis, MN 55437 Telephone 952.835.4505 • Fax 952.835.4461 Internet= www dakotaww com E-mail: dakotaww@dakotaww.com ~ ~~~ i Hnrc&insun, Mlnntsa+a Mark¢+S+udy (COH007 -Aecmber 2003) Page 7 ~~ Table of Contents ' Page Executive Summary ......................• ..1 ' .......................... Decision Matrices ..................... .................................................................... ••4 Trade Area Delineation ....................................... ......................................................................6 Population/17emographics ................................... ......................................................................6 Competition ........................................................ ......................................................................7 Market Shares by Pacilities ................................ ..............................................:.......................8 Site Evaluation/Analysis ..................................... ....................................................................21 Analysis ..................................................................... ....................................................................31 Assumptions ....................................................... ....................................................................31 ' Methodo]ogy ....................................................... ....................................................................32 Competitor Information &Evaluation ................ ....................................................................33 Trade Area Data by Sector ................................. ....................................................................35 Correlation Reports ............................................. ....................................................................37 I • Appendix ................................................................... Current Market Reports ...................................... ....................................................................38 ....................................................................38 Market Change Reports ...................................... ....................................................................43 I Scenario/Projections ........................................... ....................................................................45 Definitions .......................................................... ....................................................................61 .................. Qualifier ........................................... ..62 ................................................................... Source Data .................................................................................................:...........................63 I• Dakota worldwide Corp. 48D1 81° Street, Suitc 105 -Minneapolis, MN 33437 I Tclcphone 800.475.4505 Fax 952.835.4461 ~ ~~~ ' Y Hafchlasan, Minnesota Marker Study (CON9B1 ~ Atcpaber 1003) Pole i 1 '~ Executive Summary The purpose of this study is to determine the feasibility of relocating and expanding the Liquor Hutch to a new location in the Central Business District or open a second facility on the south ' side with the existing Liquor Hutch remaining open. A total of four new locations are evaluated, and they are as follows: ' • Site 1000 at the northwest quadrant of 181 Avenue Northwest and Main Street South in the Central Business District with a total of 12,696 total square feet and a sales area of 6,700 sales area square feet. • Site 2000 is located at the Southwest quadrant of Denver Avenue and Highway 15 (between Oflice Max and the vacant Cub Foods). It will have a total of 10,000 square ' feet with the best site criteria of the three south side locations. Therefore, this location is tested at multiple sizes (sales azeas of 5,000, 6,000 and 7,000 square feet) to determine the most feasible size for a second Liquor Hutch stare. ' • Site 3000 is just north of Super Menards at the Northeast quadrant of Airport Raad and Highway 15 and is tested with 5,000 sales azea square feet. ~. • Site 4000 is the field property at the Southeast quadrant of Denver Avenue and Highway 15 just south of Applebee's and is tested with 5,000 sales azea square feet. Liquor Hutch's trade azea includes McLeod County and parts of Renville, Sibley, and Meeker counties. At Sts widest points, the trade area extends approximately 34 miles north to south and 31 miles east to west. Liquor Hutch obtains 85% of its business from this trade area and approximately 65% of its business from the city of Hutchinson. The current population in the trade azea is 4Q783 people, with an average annual P.C.E. of $150.00. The 2000 median income for the trade area is $51,070, with an average family size of 2.58 people. Its demographic makeup is 96.7% white, with 27.7% are under the age of 1$ and 14.0% are over the age of 65. Overall, population growth in the trade area is positive with an increase of 3.4% since the last Census and new population increases projected at approximately .9% per annum. Most of the population and new housing growth in McLeod County is expected to occur in eastern McLeod and the cities of Hutchinson and Glencoe. Hutchinson is experiencing good population growth, over 6% since the Census in 2000, and the growth rate is projected to continue at virtually the same rate thru 2008. Most of this growth is due to new housing projects, primarily in Sectors 7-10 and 24-26. Annual growth is based on approximately 100 new homesconstructed per year. Glencoe also has had population increases and new housing growth is expected to continue. I• Worldwide Co 4801 81° 5trcet, Suite 105 Minneapolis, MN 55437 ~ 7'eleph°ne 800.475.4303 -Fax 952.835.4461 q ~a) Hatc6ias°n, Mtanesata Marke! Stady (COH00! _ De°daber 5003) Pege 1 ~~ Hutchinson's economy is sound with both its major employers, Hutchinson Technology and 3M, now considered in good condifion. These two employers account for aver 3,SOD employees and 80% of Hutchinson's non-retail employment base. Hutchinson's total potential is $6,117,533, and Liquor Hutch, is the market share leader with a 51.69% market share. Glencoe follows with a 14.71 % market share and the remaining nine competitors combined have an 11.9% market share. Total float, which consists of minor facilities and leakage, is $1,327,783 or 21.7%. Other competitors have a market share over 3%. There are four known competitive market changes that will occur in the market place: South Shore Liquors in Howard Lake remodels and expands, Cedar Mills Liquor improve theirimage after remerchandising, and Dassel will open a municipal liquor store. An additional market change being considered is an expansion of the Darwin Municipal Liquor store. Should such a change actually occur, it would decrease the combined sales in Hutchinson by less than 1 %. I Rvad construction is scheduled io begin in the spring of 2006 on a two year reconstruction of Highway 7 from School Road to 5th Avenue Northwest. This project is scheduled to occur ' approximately two years after liquor store construction is complete and will be one block from Site ] 000. Additional road construction is scheduled in five years with a new west by-pass. This project should not have a major effect on any of the sites, but this project could certainly cause congestion in the Central Business District with some effect on-sales for either the existing location or Site 1000. It is also possible during the construction phase of this project that a south side store would have a temporary sales increase. I Liquor Hutch's existing location at Map Key 1 has been successful for a number of years, but a Liquor Hutch at this location in the future will have to depend more on its own reputation with ' less help from its major adjacent retailers Shopko, Ace Hardware, and Econo Foods. All these stores did well enough in the past, but increased competition from Cash Wise, Target, Super Menards, and Wal-Mart Supercenter will divert much of the retail expenditures in Hutchinson to the shopping area on the south side, which becomes more of a destination for shoppers in 1 Hutcherson. Site 100D is a good stand alone location in Hutchinson's Centro] Business District. It is also the closest of the sites, except for the existing store, to the two major employers in Hutchinson, Hutchinson Technology and 3M. This location will also benefit from any redevelopment in the now heavily traveled Central Business District that will strengthen that area's retail position. Projections for any of the south side locations will be similar based on the available potential, but each site's projection is also dependent on its visibility, ingress/egress, accessibility, parking availability, and adjacent retailers. Site 2000 is located in the hear[ ofthe major shopping district of Hutchinson. This area is served by Target, Office Max, Super Menards, Wal-Mart 5upercenter, 7C Penny, Cash Wise, and numerous shops and services. This site is the best location of the south side sites since it is in the care area of the shopping district and on the same side of Highway 15 as most of the major retailers. bakata Worldwide Corn. 4801 81"Street, Suite 105 • Minneapolis, MN 55437 Telephone 80D.475.4505 Fax 952.835.4461 ~ (~-~ ~• Hutchinson, Minnesota Markel Study (CaN007 .. Dewnbn 2D03) pa88 3 '~ Site 3000 is located at the southern end of the south side shopping area and where the traffic counts begin to diminish rapidly. This site's overall acceptance rating will improve as the land develops between Menards and the rest of the retail on the south side. Menard's is and will ' remain a strong draw and for this reason, this site tests out slightly better than the other alternative location (Site 4000) by Applebee's. $ite 4000 is the least attractive alternative to the other south side locations since the flow of traffic in the south side shopping area is primarily to ' the west side of Highway 15. The test as to which location will provide the best long term return on investment will depend on the cost of operations, development, and construction. The most profitable scenario can best be deternnined by a profit and loss analysis and break-even pro forma comparing each location's cost of operations against their respective sales projections. ' All the first year sales for Liquor Hutch are shown in the following Decision Matrix. Based on these projections, is a basis for consideration of a new liquor facility in Hutchinson and in particular a second location on the south side, preferably at Site 2000. Sales for Site 2000 with 000 sales area square feet are $2,823,235 or $403.32 per square foot and the existing unit will 7 , have sales of $1,827,90] or $401.21 per square foot. This gives Liquor Hutch combined sales of f $4,651,136 or $402.49 with a market share of 61.2] %. These sales will grow.io approximately 299 or $425.78 per square foot in the third year of operation. 920 $4 , , '~. • Dakota Worldwide Coro. 480] 81° Street, Suite 105 -Minneapolis, MN 55437 Telephone 800.875.4505 Fax 932.835.4461 a ~a~ ~ ~~~ ~ ~ i ~ ~ f, ~ ~ ~ ~ is ~ i .i ~ HalcAtasoa, Minaesara Market Si+rdy (COHOOI -1)eceea6rr 2003) ~ Page 4 Map Key = Current Market iocatioA . Market Chs Map Key 1 $3,720,000 $3,682,203 3effersonlWashington $816.S11SF $808.211SF Site io00 NIA NIA 1'~114tain Table i IYecision Matrix Lignnr Hutch Scenario 1 Scenario 2 Scenario 2A Scenario 2B Scenario 3 Scenario 4 NIA 52,075,774 $1,942,303 $1,827,901 52,240,1b0 52,149,889 5455.611SF $426.3215F $401.211SF 5491.691SF $471.88ISF $3,992,830 NIA NIA NIA NIA N!A $595.941SF Site 2000 NIA NIA NIA $2,384,173 $2,620,064 $2,823,235 NIA NIA iDeoverlilighway 15 5476,831SF $43b.58lSF $403.321SF i i Site 3000 NIA NIA NIA NIA NIA NIA $2,129,318 NIA AirporflHighway 15 $425.86lSF Safe 4000 NIA NIA NIA NIA NIA NIA N!A $2,178,724 Denver/Highway 15 $435.741SF Total $3,720,000 $3,b82,203 $3,992,830 $4,459,947 $4,562,367 $4,b51,13b $4,369,477 54,328,b13 $lsquarefeet $816.51 $808.21 $595,94 5466.72 $432.21 $402.49 5457.25 $452.97 ° Market share 51.69°h 50.25% 54.49% 58.95% 60.16% 61.21% 57.92% 57.32 /a ~ 1lakatf WorldwldeCorn. ~~- 4801 81' Street, Suite 105 • Minneapolis, MN 55437 Telephone 800.475.4505 • Fax 952.835.4461 , '' Hutchinson, Minnesota Market Study (COHB97 _ December S003J Pam S t Market Changes: ' Howard Lake Liquor at Map Key 4 remodels and expands its Off-Sale and is tested with 1,200 sales area square feet (2,000 total square feet). Cedar Mills Liquor reopened and remodeled at Map Key 5. ' Dassel opens a 1,800 sales area square foot (3,000 total square foot) Municipal Liquor Store at Map Key 100. ' Scenarios: Scenario 1: The market changes are in effect. Liquor Hutch relocates to a new 6,700 sales ' area square foot (12,696 total square foot) facility at Site 1000 on the northwest quadrant of 1st Avenue Northwest and Main Street South. The existing location is redeveloped for another use. Scenario 2: The market changes arern effect. The Liquor Hutch opens a second location with 5,000 sales area square feet (10,000 total square feet) at Site 2000 on the ' south side of Hutchinson at the southwest quadrant of Aenver Avenue and Highway 15. Map Key 1 remains open. Scenario 2A: The market changes are in effect The Liquor Hutch opens a second location with 6,000 sales area square feet (]D,000 total square feet) at Site 2000 on the south side of Hutchinson at the southwest quadrant of Denver Avenue and ' Highway 15. Map Key 1 remains open. Scenario 2B: The market changes are in effect. The Liquor Hutch opens a second location ' with 7,000 sales area square feet (10,000 toial square feet) at Site 2000 on the south side of Hutchinson at the southwest quadrant of Denver Avenue and Highway 15. Map Key 1 remains open. ~ Scenario 3: The mazket changes are in effect. The Liquor Hutch opens a second location with 5,000 sales area square Feet (10,000 ivtal square feet) at Site 3000 on the south side of Hutchinson at the northeast quadrant of Airport Road and Highway 15. Map Key 1 remains open. I Scenario 4: The market changes are in effect. The Liquor Hutch opens a second location with 5,000 sales area square feet (10,000 total square feet) at Site 4000 on the south side of Hutchinson at the southeast quadrant of Denver Avenue and ' Highway 15. Map Key 1 remains open. k a worldwide C 4801 81" Street' Suite 105 Minneapolis, MN 55437 ~ Telephone SD0.475.4503 -Fax 952.$35.4461 ~ L~~ Hu[chlnsan, Minnesota Market Stady (COM007 ~ December 3003) Page 6 1 '• Trade Area Delineation Geographic barriers, the existing road network, traffic volumes, the site's relationship to competition, and results from the customer spotting determined the trade area boundaries. It is made up of McLeod County and parts of Renville, Sibley, and Meeker Counties. Besides the city of Hutchinson, it includes Glencoe, Silver bake, Cedar Mills, Biscay, Buffalo Lake, Stewart, Browntvn, Plato, New Aubum, Lester Prairie, Winsted, and the surrounding townships. At its widest points, the trade area extends 33.7 miles north to south and 31 miles east to west. Approximately 85% of the existing Liquor Hutch business is from this trade area, and 65% from the city of Hutchinson. Population/Demographics ~~ Ta61c 2 Population & Potential Summary 17ecember 2003 Potential off--Sale $6,117,533 P.C.E. $150.00 2000 Census Population 39,459 2003 Estimated Population 40,783 2008 Estimated Po ulation 42,631 ~ The current population in the trade area is 40,783 people and the average P.C.E. is $150.00, ranging from a high of $156.09 in Sector 27 to a low of $140.74 in Sector 1. The total potential is $6,117,533, and the 11 facilities identified are receiving $4,789,750 or a 78.30% market share. Total float, which consists of minor Facilities and leakage, is $1,327,783 or 21.70%. The 2000 median income for the trade area is $51,070, with an average family size of 2.58 people. Its demographic makeup is 96.7% white, 0.2% black, 3.6% Hispanic and 0.6% Asian, with 27.7% under the age of ] 8, 14.0% over the age of 65, 0.0% college, and 0.0% military. Hutchinson is experiencing good population growth (6.3% since 2000) and the growth rate is projected to continue thru 2008. Most of ibis growth is due to new housing projects primarily in Sectors 7-10 and 24-26. The two major employers, Hutchinson Technology and 3M, are considered stable and in sound economic condition. Annual gowth is based on approximately 100 new homes consirucied per year. Glencoe also has and will experience some new growth. The remainder of the growth in the trade area is and can be expected to occur in eastern McLeod and near the lakes, Overal] population in the trade area has increased 3.4% since 2000, and new population increases are projected at approximately .9% per annum. • Oak°tr Worldwide Coro. 4801 81" Street, Suite 105 Minneapolis, MN 33437 ~ Telephone 800.475.4303 Paz 952.835.4461 ~ ~Q~ Murcl6inson, Minnesota Macke! Study (COMOOI ~ Deceixbw 2003) Page 7 Competition Ta61e 3 Facility Proflle December 2003 Number of Facilities -Total 11 Total Trade Area Potential $6,117,533 Facility Sales Within Trade Area $4,789,750 Percent of Sales from Trade Area 78.30% Float $1,327,783 Percent Float 21.7% Highest Volume Facility Liquor Hutch (Map Key 1) $3,720,000 Largest Facility -Sales Area Liquor Hutch (Map Key 1) 4,556/SSF Sales Per Sales Area Square Foot -Average $692.03 High (Darwin Liquor -Map Key 3) $2,000.00 Low Covered Brid e - Ma Ke 2 $43.48 I. I • Combined, the 11 facilities contain a total of 12,261 square feet with total sales of $8,485,000. The facilities average 1,115 square feet and $771,364 in sales. The average sales per square foot are $692.03. Contributing to the float dollars are 3.2 beer sales in grocery stores, off-sale in numerous bars in the small towns throughout the trade area and stores outside the study area that may capture business within the trade area. Liquor Hutch is the overwhelming market share leader at 51.69%, which means it captures over half the available potential even with ] 0 other competitors and numerous other small stores located throughout the trade area. Glencoe is second at 14.71%, but is not near as effective within its own city (80 plus percent market share versus a 50 plus percent market share). The other remaining competitors have a combined 11.89% market share with no one competitor having a market share over 2.8 %. Aakota Worldwide Coro. 4801 Sl" Strcd, Suite 103 Minneapolis, MN 55437 Telephone 800.475.4505 Fax 932.833.4461 ~(~~ ~• I I. I I I I I I I~ 7lufcbinsnn, Minnemla MarNef Study (G'OHDDI -December 1003) Market Shares by Facility Other 11.90Y° Glencoe Liquor 14 Float 21.70% Liquor Hutch 51.69°k OTHER: Silver Lake Liyuor - 2.80"/n Biscay T,iyuor - 2.13% Brownton Bar & Gril] - l.$3% Litchfield Liquor - 1.39% Cactus Jack's - 1.33% 13uffalo Lakc Liquor - Q.78"/° Cedar Mills Liyuor - 0.65% Darwin Liyuor 0.49'% Howard Lake Liquor - 0.49% Dakn[a Worldwide ('pep. 4801 8]" Street, Suile 105 Minneapolis, MN 55437 Trltphrnie 81111.47,5.4505 fax Y52.R35.44G1 Page 8 ~:~ j ~, ~ LI 1 1• i Hatcl~insvn, Minnesota MarAet Study (COH007 _ December 7003) 'Page 9 Liquor Hutch (Hutchinson) 1 Facility 4,556 square feet 51.69"/0 11~Turket Shsre The annual sales for the store are 53,720,000 or 581(1.51 per square foot. This is the largest and hest merchandised store in the trade arcs, although it can he cluttered after sleek is received since its backroom is too small for the inventory carried. Liquor Hutch, Glencoe and Litchfield Liquor sue the only stores to offer a thll and diversified inventory of wines, liquors and specialty items. T'he Liquor Hutch also beneFts from 1lutchinson being the largest employment center acid major retail center in a8 miles. The closest retail hub is Willmar, the county scat of Kandyiohi Comity. Dakota WarlJ~riAe (.'ar°• 4801 81° Street, Suite IUS Minncspolis, MN 55437 Ttlephnnc 800.475.4505 Pax 952.835,4461 y f fut[hius°n, M1finnrs°ta Murk¢t Study (COfq'001 -- Oerember 2003) Pagt 70 I +.7 ~' y( N -:-~, . ~"~ y~-.G~~~~ r`~ ~ '" S~ ~y ",~pr~ ~ ~, ~a~'''F';~wRa~ I ^ I I I Glencoe Liquor 1 Facility I 2,000 syuare feet 14.71% Market Share The almual sales far the store arc $1,125,000 or $562.50 per syuare foot. This is a decent liyuor I store with average conditions and inventory. Merchandising is basic to bland. The municipal liyuor shares its building with city hall and it is virtually another city department versus being a retail store. I I llakota WorlAwide ('nrg 4801 81" 9lreet, Suite 705 Minneapolis, MN 55437 'telephone 800.475.45US Fax 952.835.4461 ~~~l~n~ ~' 1 I~ Hutchinson, Minnesota Market Study (COH00l _ December 20031 Page ll Silver Lakc i.iquors 1 Facility 630 square feet 2.80% Market Share The annual sales for the store are $180,000 or $285.7] per syuarc foot. There is a game room and the city auditonum ~s offered as a banquet and meeting room. phis store had a number of I rrtanagement changes in recent years, and had shown surne inaprovemcnl in overall sales until nearby Biscay built a new facility. nak°ta WurlJwidc CnrP• 48D1 81" tilreet, S~ritn 1115 Minneapolis, MN 55437 I "Cclcphonc 800.475.ASD5 Pox y52.R35.4461 ~1 (Ct~ t . I • I . ~• //utchinsnn, Minnesota Muriiet Study (C'OH00I -- Aecember 20D3) Pn);e /2 -~~'~Ai';,eF <~~j:i'••,. ~~,a, ~;7ii'h,~i%e,; °la,,.na;, `-.y,~,.py` .(.'j_. ~ ~ ~ ~''~'r'., (~!_...(~y: a.re l^ iA:~y.; "kT~)wzz~ j.~._~ ~. fir, x4`ra y. l'~ ~ „A`N ~. [bgi3 ,J.v~ne: Nod .. .:>t ... ~ ~ ~ ' Biscay Liquors 1 Facility 650 square feet 2.13"/0 1Vlarket Share The annual sales for the store arc $145,DUU or $223.08 pct square foot. 11iis new facility has unproved its overall sales considerably, and the ofl=sale p:ut has had modest increases because of a small increase in sales area compared to the size of the overall facility. Dakota Worldwide C'"ro. 4801 81" Street, Suite 105 MindenFxdis, MN 55437 T'clcph"ne 800.47,5.4505 Fax 952.835.4461 ~~~~~-~ 1 1 1 a Hurchinsa+a INinnewfn Marker Study ((:O//007 -- December 1003) Page 13 I 13rownton Bar & Grill ' I hacility 325 square Icet 1.83% Market Share The alnnfal sales for the store arc $160,000 or $492.31 per square foot. The off-sales portion is a small area sel off the main entrance and is maintained as a convenience to regular patrons. Overall sales and off sales have increased under the new ownership who purehased the facility a ' year and a half ago. The addition of food has increased the draw of the overall facility since there is a limited offering of food services in Brownton. Daknta Worldwide Corti. 48D1 81° Strce~, Suile IDS Minneapolis, MN $,5437 I 'telephone R(10.475.45D5 Pax 952.835.4461 ~~ ~~~ llatcbiasaa, Miaaesota Market Study (COH001 - December 2003) Page !4 '• I . I C~ Litchfield Liquors 1 Facility 1,R00 square feet 1.39% Market Share The annual sales for the store are $1,700,000 or $9A4.44 per square foot. This store, wlrile small, often a good selection of wine and specialty items plus the basic beer and liquor inventory. The staff is knowledgeahle of anti recommends products for varying occasions, This store, like Darwin and lloward Lake, is located outside the trade arcs boundaries, but affects Hutchinson's trade area. Dnkot:+ WorlJwiJe Coro. 48111 81" Stree[, Suite 1113 Minne;+pplis, MN 53437 Telephone 800.473,4505 Fax 932.835.4461 ~; ~~~ //utrhinson, Minnesota Markrt Study ((:plflllll - Os~~ember ,2003) I Page !5 Caclus .Tack's i T' acility 250 square feet 1.33% Market Share The tu)nual sales for the store are $125,000 or 5500.00 per syuare foot. This is a rclocalion of Nicson's in Stew3rt's Central Business District In a new enlarged facility. The building has been completely redone inside, arrd the attractive off-sale area serves as a convenience to the on-sale and restaurant patrons. • nakata ~V°rldwidr Corp. 4801 Sl° Slnet, Suite 105 Minncapnlis, MN 55A37 •I'rirpLrnie 8f1UA75A5U5 Pius J52.835.A46] (~(~,a I• I. Hutchinson, Minnesota hrarkM 5'rady (COH00r _ Perembrr 2I1U3) Page 76 )3uffaln l.akc i,iquor I 1 1~'acility 150 square feet 0.7R% Market Share I The arunlal salts for the slate arc $80,1.100 or $533.33 per square foot. This n)ul)icipal on-salt has a small olf=sale area located iv tl)e rear of the building with access £ran the hack or by Walking t1u'ougl) the hat area. ]t serves as a convenience to patrons. i Dakota WorlJwideC'anl- 48(Il SI" Strcel. Suilr 105 Mmncapolis, MN 55437 Telephone 81111.475.4505 Fax `)52.835.44(1 (.~ ~ ~ / '• Hutchinson, Minnesota Marku Srudr (COHOOI - Decwnher 2003) Page ]7 NO FICTURE AVAILABLE '• i Cedar Mills Liquur 1 1~ acility 1,150 square feet 0.65°/a Market Share The annual sales for the store are $50,000 or $43.48 per square foot. This store was hit hard by this summer's tornado and has slowly been rebuilding. It is tested as improved due to increased inventory but time will tell if this marginal operation will succeed long term. ppk°ta W°rLdwide Corp. 4601 81" 5trcet, Suite 103 Minneapolis, MN 33437 Tclcphone 800.475.4303 Pax 952.833.4461 q ~~) '~ I • llutchin.wn, Minnesota Market Study (COII007 -- Drcemfier 2003) Page l8 Darwin Liquors 1 Facility 300 square feet 0.49°/,~ Market Share The atumai sales for the store arc $GOU,00(.1 or $2,000.UO per square foot This store like Lilchl7cld and llvward i.,ake is located outside the trade area hou))daries, hu1 affects Huichinson's trade area. it ol'I'crs the basic items, and is priu)arily a hoer store. Its sales area is also yuite small in relaiinn to the total size of the huil(ling. Dakma Worldwide C'urv. 4R(Il K1" Strcet, Suilr 1(15 Minneapolis, MN 55437 7clcphune 8(10.475.4505 Fax 952.835,4461 [t`(~1 1 flutchinson, Minnesota Mnrdet StuJy (CpIf001 _ 1)ecrmber 2003) .., . . I1 1 '~ Page 19 South Shore Liquors -Howard Lakc ' 1 Facility 450 square feet 0.49% Market Share The annual sales for the store are $600,000 nr $1,333.3;1 per syuarc fooi. This is currently a small facility that will he expanded when the city offices relocate to the ol(1 hank building- I3nth I the on an(i ut]=sale areas will he remodeled. '17ris store offers a good beer inventory has a hasie liyuor offering, and a modest offering of wines. This unit's current succoss, as is the case m Darwin, is due to bath Dassel and Cnkato currently tieing without off-sale liyuor facilities. I~ llakota Worldwide Coro. 4801 81" Street, Suite IUS Mimieaipulis, MN 55437 I 'I clcphanc R0U.475.45t15 Far H52.R35.44(il ~'4 ~ G. ) Hutchinson, Minnesota Market Study (COHBi1l _ December 1D03) Page 10 Future Considerations An additional market change is being considered, but has not been finalized, is a passible expansion of the Darwin Liquor store at Map Key 3. if such a change should occur, combined sales in Hutchinson would be decrease by less than 1%. Road construction is scheduled to begin in the spring of 2006 on a two year reconstruction of Highway 7 from School Road to 5th Avenue Northwest. This project includes a new bridge and dam just south of Highway 7 and a 6-lane roadway with median. There will be a detour to the Central Business District via Bluff to Washington. This construction should start within two years of the new stores opening, and the construction zone will be one block from Site 1000. Additional road construction is scheduled in five years with a new west bypass. 't'his project should not have a major effect on any of the sites, but the Highway 7 project will probably have some effect on the sales of either the existing location or Site 100D. '• I I• Dakota Worldwide Coro. 4801 81° strcet, Suitc 105 Minneapoli& MN 55437 t Telephone $00.475.4505 Fax 952.833.4461 ~a) 1 1 I I ~. I~ I Ilutr:kinxmr, Minnesota Markr! Study (COB001 -- Oecrmher 2003) Map Key 1 NI+:Q of Washington Avenue and .Tefferson Avenue Llutchinsun, MN Oakata WorlAwide ('orp. 4801 8]" tilrerl, 9uiic 1U5 Minneapolis, MN 55437 'I elephnne li(IU.475,45U5 Pax !157..835,4461 Page 2I (l~ ~~~ 1 I• I • Hurchinsax, Minnesota Markel Stxdy (CONBOI ~ Decemher 200,3) Page 22 'Igble 4 Site Evaluation NEQ of Washington Avenue and Jefferson Avenne Ma K 1 Total Area 6,649 square feet Sales Area 4,556 square feet Proposed Parking 90 parking spaces Co-Tenants Econo Foods, Shopko, and Ace Hardware Grade of Lot Level Current Land Use Retail Adjacent Land Use Central Business District Street Conditions Washington Avenue: 2-]ane city street with parking (30 MPH) Jefferson Avenue: 2-lane city street (30 ]vll'H) Traffic Controls Stap sign TrafTic Flow North/South Traffic Counts ,Washington at Highwayl5/Main Street: 13,000 vehicles 2002 ADT Visibility Good Accessibility Good Ingress/Egress Good Transient Exposure Good in the Central Business District Anglysis This is a good location in the Central Business District of Hutchinson. It is part of the shopping center with Econo Foods, Shopko, and Ace Hardware. It is also the closest site except for Site 1000, to the two major employers in Hutchinson. Any redevelopment in the Central Business District will benefit this location since the major adjacent retailers in this location's shopping center aze meeting strong competition from stores in the south side shopping area. Dakota WorltlryldeCaro. 4801 81"Street, Suitc 105 Minneapolis, MN 55437 Telephone 800.475.4505 Fax 952.835.4461 ~ ~ ~-) ~' ~• 1 '~ Hulchinson~ Minnesota ,Murkrl.Stydy (CO!/0U/ -- Decrmher 211 U3) Site a00D NWQ of rgc Avenue NW and Main Street S liutehinson, MN I7aknta Worldwide Curs. 4H01 81" titrcct, Suitc 105 MinnZapnlis, MN 55437 Trlcphunr BUOA 75.4505 - F'aY 952.835.4461 I'ugr Z-3 -,\ t ~; ~ f I I~ Hutchinson, Minnesota Market Study (COM001 _ December 2003) Page Z4 I~ I• Table 4 Site Evaluation Site 1000 NW of 1°~ Avenue Northwest and Main Street South Total Area 12,69fi square feet Sales Area fi,7O0 square feet Proposed Parking Assumed Ample Co-Tenants Stand alone building in the Central $usiness District Grade of Lot Level Current Land Use Retaillcommercial Adjacent Land Use Central Business District Street Conditions Main Street: 2-lane city street with two parking lanes (30 MPH) 1st Avenue: 2-lane city street with parking (30 MPH) Traffic Controls Stop sign at Main Street Traffic Flow Narth/South Traffic Counts Crow River Bridge at I3ighwayl S/Main Street: 12,500 vehicles 2002 AAT Washington at Highwayl5/Main Street: 13,000 vehicles Visibility Good Accessibility Good Ingress/Egress Good Transient Exposure Good in the Central Business District Analysis This is a good location in the Central Business District of Hutchinson. It is near the shopping center occupied by Econo Foods, Shopko, and Ace Hardware. It is also the closest of the sites except the existing store, to the two major employers in Hutchinson. This location will benefit from any redevelopment in the Centre] Business District which is currently the most heavily traveled area in the city. pakota Worldwide Corp. 48D1 81" 5acet, Suite 103 Minneapolis, MN 33437 Telephone 800.495.4503 Fax 932.833.4461 a Cam) 1 1 1 1 I~ I I• I Hatc%in~~a++, Minnesota Murkee .Study (CON00l -- Uerember2G03) S1tC 2()QD SWQ ot'Denver Avenue and Highway 15 Hutchinson, MN Dakota ~VOrldwiJr Curu. 4801 81° Strcct, Suitc 105 Minneapolis, MN 55437 '1~rlrphunr 800.475.4505 Far 952.835.4461 Page 2S c~~~,) ,' , -. I• I• Hutchinson, Mlnnesole Marled SIwAy (COHO87 _ December 2083) Page 26 Tahle 4 Site Evaluation Site 2000 SW of Deaver Avenue and Hl Ewa IS Total Area 10,000 square feet Sales Area 5,000, 6,000 and 7,000 square feet Proposed Parking Assumed Ample Co-Tenants Office Max, Target, and whatever occupies the now vacant Cub Foods Grade of Lot Leve] Current Land Use Retail Adjacent band Use Agricultural use Street Conditions MN Highway 15: 2-lane with median and turn lanes (45 MPH) Traffic Controls Semaphore with turn arrows Traffic Flow North/South Traffic Counts Century Avenue at Highway 15: 8,400 vehicles 2002 ADT Visibility Good Accessibility Good Ingress/Egress Good Transient Exposure Excellent. The south side is the primary shopping area in Hutchinson ~ Analysis I This site is located in the heart of the major shopping district of Hutchinson. While there is a good Central Business District with a number of shops and services, this area is served by Target, Office Max, Super Menards, Wal-Mart Supercenter, JC Penny, Cash Wise, and I numerous shops and services. This site has the hest location of the south side sites since it is in the core area of the shopping district and on the same side of Highway 15 as most of the major retailers. • I?~kota Worldwide Corp, 4801 81" Strect, Suitc 105 Minneapolis, MN 33437 Telephone 800.475.4505 Faz 952.835.4461 ~ ~~) 1 1 1 1 1 1 1 Hutchinson, hli+u+e.~nm Markrt Study (C'OH00! - Drcrmber 1003) Site 3000 NEQ of Airport Koad and Highway 15 J~atchinson, MN Ilakata '1Vorldwhle CUfO- 4801 81" Street, Suilr 105 Minneapolis, MN 55437 7~rlephnne 8(111.475.4505 Fax 952.835,4461 Pugr 27 (,~ ~~~ ~ • Hntchinsen, Mtnnr!•ota Marks Study (COH001 - Decanber2dd3J Page 28 Site Evalnatiou Site 3000 NEO of Airport Road and Hiahwav 15 I~ I~ Total Area 10,000 square feet Sales Area 5,000 square feet Proposed Parking Assumed Ample Co-Tenants Menards Grade of Lot Level Current Lapd Use Retail AdJacent Land Use Vacant and developable Street Conditions MN Highway 15: 2-lane with median and tum lanes (45 MPITJ Traffic Controls Semaphore with turn arrows Traft3c Flow North/South Traffic Counts Century Avenue at Highway 15: 8,400 vehicles 2002 AbT South of Airport Road at ldighway 15: 4,500 vehicies Visibility Good Accessibility Good Ingress/Egress Good Transient Exposure Good Analysis This site is at the Far south end of the south side shopping area and where the traffic counts begin to diminish rapidly. This sites overall acceptability and rating will improve as the land between Menards and the rest of the retail on the south side develops. Menard's is and will remain a strong draw and for this reason this site tests out slightly better Site 4000. Dakota Worldwld~Cor°• 4801 81 ° Street, Suite 105 Minneapolis, MN 55437 Telephone SOD.473.4303 Fax 952.835.4461 q L~~ I~ 1~ 1 1 1 1 1 y ffutchlnsan, Minnesota Markel Stuffy (COHDOf - bece+nber2003) Pags 29 Site 4000 SEQ of Denver Avenue and Highway X5 Hutchinson, MN Dakota Worldwide Corp. 4801 81" Street, Suite 103 Minneapolis, MN 55437 Telephone 800.475.4505 Fax 932.835.44b1 ~c~) '• ~. I ~~ Hafcbinsen, Minnesota Markel Sfady (CO.N001 ~Dernnber 1003 Page 30 Tahle 4 Site Evaluation Site 400D SE of Denver Avenue and Hi bwa 15 Total Ares 10,000 square feet Sales Area S,OOD square feet Proposed Parking Assumed Ample Co-Tenants None, but will be adjacent to Applebee's Grade of Lot Level Current Land Use Agricultural use Adjacent Land Use Retai] Street Conditions MN Highway 15: 2-lane with median and turn lanes (45 MPH) Traffic Controls Semaphore with turn arrows Traffic Flow North/South Traffic Counts Century Avenue at Highway IS: 8,400 vehicles 2002 ADT Visibility .Good Accessibility Good Ingress/Egress Good Transient Exposure Good Analysis This site is the ]east attractive side location. Iis detriment is that the flow of traffic in the south side shopping area is primarily to the west side of Highway 15. Dakota worldwide Corn. 4801 81" Street, Suite I03 Minneapolis, MN 33437 't'elephone $00.473.4505 Fax 932.833.4461 ~~~~ NphAixs9p, MinnauGa M•rkd Srp{y (CpiY007 ~peeembet 1903 Page 31 Analysis ' Assumptions The sales projections presented in this study are based on the following key assumptions: • Sites 1000 will be 12,696 total square feet with 6,700 sales area square feet. Site 2000 will be 10,000 square feet and since it is perceived to be the best south side site, it is tested to determine the most feasible sales area size at 5000, 6,000 and 7,000 square feet. Sites 3000 and 4000 are tested at only 5,000 square feet. I Population in the trade area will be at or near levels predicted by the local governments and Synergos Technologies, Inc. • The sales projections are expressed in constant 2003 dollars, with no adjustments made for inflation. • The new store design and layout will be consistent with the existing plans, and have operations and merchandising that mirror the existing Liquor Hutch. • Sales projections are relative to an opening in November or December of 2004. • • Pricing will continue to be competitive. D ota W Idwi •r . 4801 81" Street' Suite 103 Minneapolis, MN 33437 Telephone 800.473.4303 Fax 932.833.4461 ~ (c~) Hurcklnaon, Minnesota Market SYn~y (COH001-December 1003 Page 3Z ' ~ Methodology ' The sales Forecasts generated in this report For the Liquor Hutch are based on the use of the gravity model (LOCUS"" 2002). This is done via a market simulation of a site's primary trade area using important demand and supply information. Once a simulation is created, changes to equilibrium can be introduced for redistributing sales, forming the basis of a sales forecast. Demand information includes determining retail potential by defining where consumers live and ' what they spend for liquor-at-home purchases. Trade area boundaries are determined by the existing road network, geographic boundaries, the placement of competition, and in this case, data from the customer spotting for the existing Liquor Hutch. Population sectors (combinations of census block groups) form the basic grouping of population, and normally range in size between 1,000 and 3,500 people. Sector boundaries fall within the boundaries of census tracts block groups and usually fallow geographic features such as major roads, rivers, city ~ limits, and the like. Each population sector is assigned an off-sale liquor expenditure level and adjusted by major determinants, including family sizes and household incomes. Combining a sector's population with its expenditure level yield's liquor potential formulated here on an annual basis. The supply components of the gravity mode] are store sales and an estimate of how much business a particular store generates from inside the trade area. Based on a store's location, relative to an identified trade area and store size or format, the unit will receive a certain I percentage of its business, or draw from this defined area. As determined by the customer spotting information, a draw of 85 was used to represent Liquor Hutch's liquor business from the trade area. The gravity model distributes store sales throughout the trade area based on certain parameters assigned to the store. These include store size (based on-sales area), annual volume, draw (business inside the trade area), pulling power and image. Larger units such as the Liquor Hutch have "flatter" market shares over distance than smaller units such as Biscay Liquors. I Store image is based on customer acceptance of a unit as exhibited by store performance. This value is fairly subjective and relates heavily to the strength of other competitors in the area, their distances to one another and their distances to the various population sectors. An image of 100 ' represents an average image. Stores with above average images are attracting mare business than average, and those with below average images exhibit a weakness in consumer acceptance. Liquor Hutch has the highest image in the trade area at 140, which reflects the store's ' performance, uniqueness, its central location in the trade area, and acceptance in the community. I ~ Dakota Worldwide Corp. 4801 81° Street, Suite IDS Minneapolis, MN 33437 ~ Telcphanc 800.475.4505 Fax 932.835.4461 Q ~ ~~ flnscleinsap, Mm+resera Marke[Sfsrdy (COf7001-D[c[eei5er2t103 - p~ t Competitor Iofarmatioo & E~alustian Map Name Total Sales Wxkly Check Prim F.xt Inc Key Address Area Area Volume Outs Park Ops Coed Coed Beer Wine Liquor Mist Adjacent Retail Store Hass 1 Liquor Hutch 6,b49 4,556 53,720,OOD 2 90 5 4 4 4 5 4 4 Ecano-Foods, 8-]0 trfon-Sat, Iefferson/Washingtoa Ace Hard ware, Shapko 9,30 Sat 2 Litchfield Liquor 3,700 1,800 51,700,000 2 k2 4 3 3 4 4 3 3 Family Do11ar 8-9 M-Th bthlHighway 12 9-10 FriSat 3 Darwin Liquor 1,200 300 5600,D00 I b 3 2 2 3 1 2 1 Freestanding $A M-Th, Co14lHighway 12 9-10 Sat 4 [-Iowazd Lake Liquor 1,9W 450 Sb06,000 l 14 3 2 2 3 2 2 1 Cental Business DistriU 9:30-]0 M-11~, 8ihhlighway 12 10-]0 Sat 5 Cedar Mills Liquor 2,900 1,150 550,000 1 0 1 2 2 2 i 1 1 Freestaroding 8-10 Mon-Sat Highway 71Cedar Mills 6 Silver Lake Liquor 2,100 630 5180,000 1 35 2 2 3 3 2 2 1 Central Business District 9-10 MortSat '17tomaslMain 7 BiscayLiquars 1,000 650 Sf45,000 1 30 4 4 4 3 2 2 3 Freestanding 9-lOMon-Sat DorandslMain 8 Glencoe Liquor 2,806 2,000 51,125,000 I 20 3 3 3 3 3 3 3 City Hall, 9-10 Maat~at Greetey110th Dubb's Club 9 Buffalo Lske Liquor 2,235 150 580,000 l 0 2 2 2 2 2 2 1 Central Business District 8-]0 Mear-Sat Main15'eliawstone Evaluation Ratings: 0-NIA; 1-Poor, 2-Below Average; 3-Average; 4-Above Average; 5-Excellent DakMa Wur]dxide Caro. { (" 4801 8f ° Scree, Suite 105 • Minneapolis, MN 55437 Telephone 800.475.4505 • Fax 952.835.4461 ~ ~/ Hatehiasen, Mrwner9fs MerkeSYe~dy (COM991-Iletendber 1@93 Page 3e Map Name Total Sales Weekly Check Prim Ex[ Int " Key Address Area Area Volume Outs Perk Ops Cond Card Beer Wine Liquor Misc Adjacent Retail Score Hours ]0 Cactus lack's 8,900 250 Si25,000 l 0 3 4 4 3 2 .2 1 Freestanding 4-SOMon-Sat Co Road 711-iighway 2 i 2 1l Brownton Bar & Grill 675 325 5160,000 l ]0 3 2 1 3 2 2 1 Central Business District 4-16 Mon-Sat 2nd14th Totals: 34,054 12,261 f8,485,00D Averages: 3,996 1,115 SlSquare feet: 5249.13 (692.03 Total Stores = l l Evaluation Ratings: 0-NIA; i-Poor; LBelow Average; 3-Average; 4-Above Average; 5-Excellent 4 Dakota Worldwide Coro. ~~ ~ 4801 81" Stre~, Suite 105 Minneapolis, MN 55437 `~ Telephone 800.475.4505 • Fax 952.833,4461 Hafdeinsen, Mraaeaofe Marhd Sf+rdy fCOHB01-Daceerber 20A3 Page 35 e Trade Area Data by Sector r~ ~~ Fst. Pst. 2003 2003 2003 2003 2003 2043 2003 2003 2003 2403 2003 Census 2400 2003 %Gmwth 2008 95 Growth °/, % Y. % °/. °h °10 % 9t Avg. Hhld Median Sector Tract Pop. Pop. 2000-2003 Pop. 2003-2008 College Military White Black Asian Other Hisp. ~ 18 > 65 Sive Income 1 9742.00 304 282 -7.2 29l 2 9901.40 737 764 3.7 807 3 9901.00 670 671 D.1 678 4 9505.00 644 645 D2 659 5 9602.00 719 742 3.2 793 6 9502.00 1,152 1,215 5.5 1,291 7 9544.40 2,569 2,822 9.8 2,993 8 9544.00 2,758 2,923 6.0 3,000 9 9543.40 1,674 1,583 0.5 1,698 14 9543.40 1,159 1,245 7.4 1,480 l i 4502.00 1,089 1,118 2.7 1,165 l2 9505.00 883 888 0.6 901 i3 9505.00 587 587 4.0 595 14 9505.00 663 663 0.0 664 15 9505.00 872 866 •0.7 862 16 9701.98 1,245 1,186 d.7 1,I93 17 9506.00 1,038 1,046 0.8 1,052 l8 9507.00 1,769 1,757 -4.7 1,795 19 9507.00 1,193 1,267 62 1,329 20 9507.00 2,523 2,630 4.2 2,742 2l 9506.40 967 983 l.7 1,003 22 4502.00 229 227 -0.9 241 23 9502.00 386 382 -1.0 407 24 9503.00 1,421 1,654 i6.1 1,900 25 9503.OD 1,336 1,407 5.3 1,450 26 9504.00 1,972 1,966 -0.3 1,980 3.2 0.0 0.0 98.0 0.0 0.0 5.6 0.0 0.0 92.7 0.0 D.2 1.0 0.0 0.0 97.5 0.0 0.9 2.2 0.0 0.0 98.2 0.0 0.6 6.9 0.0 0.0 99.3 O.D 0.4 6.3 0.0 D.0 96.9 0.7 0.4 b.l 0.0 D.D 94.5 0.4 l.3 2.6 0.0 O.D 97.8 0.2 0.6 D.9 O.D 0.0 97.4 0.2 D.4 18.9 0.0 0.0 97.8 0.2 0.9 4.2 0.0 0.0 97.7 O.I 0.6 1.5 0.0 0.4 96.2 0.8 D.2 1.4 0.4 0.0 98.6 0.0 4.2 0.2 0.0 0.0 97.6 0.0 0.3 -0.5 0.0 0.0 95.2 0.0 0.9 D.6 0.0 0.0 95.4 0.2 0.0 0.6 0.0 0.0 98.9 O.k 0.6 22 0.4 0.0 92.0 0.4 1.0 4.9 0.0 0.0 95.8 0.0 0.2 4.3 0.0 D.0 93.2 O.l 0.8 2.0 0.0 0.0 98.6 0.1 0.4 6.2 O.D 0.0 93.0 D.0 3.9 65 0.0 0.0 99.5 0.2 0.0 152 0.0 0.4 95.7 0.2 1.5 3.1 0.0 O.D 96.3 0.2 1.1 0.7 0.0 0.0 965 0.7 0.4 . Dakota Worldwide Car o. 4801 81° Street, Suite 105 Mittneapalis, MN 55437 Telephone 800 .475.4505 • Fax 952.835.4461 13 2.6 33.5 11.2 2.92 544,164 6.6 9.4 24.6 25.9 2.42 544,394 1.6 l.6 24.b 17.6 2.fi2 $47,134 D.9 l.2 26.2 i5.4 2.63 549,749 0.0 0.3 25.2 135 2.6B 556,313 1.9 1.5 28.5 7.1 2.72 554,195 3.6 4.6 29.0 10.8 2.SD 550,2.62 13 0.9 31.4 8.4 2.74 565,451 1.7 1.2 25.5 165 2.23 536,262 1.0 0.9 24.2 16.6 2.35 547,257 1.5 0.6 32.0 10.6 2.94 S6Q056 2.8 42 27.0 10.9 2.85 559,343 1.2 1.7 26.9 16.0 2.34 541,891 2.1 l.5 24.6 14.9 2.51 548,248 3.9 3.4 28.5 i6.8 2.60 542,209 3.9 5.9 29.7 12.8 2.83 549,341 0.4 0.7 25.6 10.7 2.61 559,9?A 6.4 13.7 27.0 14.6 2.47 552,534 3.6 10.5 26.8 19.1 254 545,456 5.7 12.8 29.I 18.0 2.60 553,470 0.8 0.7 25.9 133 2.69 555,090 3.i 5.7 28.4 6.6 2.83 556,882 0.2 0.2 25.2 19.1 2.78 556,882 2.0 1.8 26.9 15.1 2.47 551,547 2.1 1.7 23.6 16.5 2.i8 S40,i93 2.2 2.i 28.5 12.7 234 544,675 FlatckiRSOa, Miaatsera MarfrerSrudy {COHBBI -Deceaber2DB3 Page 36 Est. Est 2(103 2063 2003 2003 2003 2003 20D3 2003 2043 2003 2003 Census 2(100 2003 %Growth 2068 %Csmwih % % Y° % % % % % % Avg. Hhld Median Sector Tract Pop. Pap. 2006-2003 Pop. 2003-2008 College Military White Black Asian Other Hisp. ci8 ~b5 5iu ]ncome 27 9562.00 944 996 5.5 1,060 6.4 0.0 0.0 98.8 0.0 0.2 1.0 0.9 23.9 14.1 2.76 566,145 28 9b41.00 719 725 0.8 72l -0.6 0.6 0.0 99.4 0.6 6.1 0.4 O.b 27.7 11.8 2.83 562,500 29 9541.00 856 833 -2.7 920 10,4 0.4 0.0 98.7 D.5 0.0 D.7 0.0 26.4 13.6 2.88 555,125 30 9501.00 967 i,OlB 5.3 1,048 7.9 0.0 0.0 99.0 0.1 0.3 0.4 0.7 27.0 16.2 2.40 544,793 31 950LD0 1,173 i,2i3 3.4 1,258 3.7 0.0 0.0 98S 0.2 OA l.2 L4 30.9 10.7 2.86 552,370 32 9501.06 1,852 1,8b5 0.7 1,891 L4 0.4 0.0 98.6 O.I 0.5 0.7 0.6 25.7 17.1 2.47 547,488 33 9506.00 1,508 1,591 5.5 1,727 8.5 0.0 0.0 97.8 0.6 0.1 2.0 4.5 30.4 13.3 2.b9 549,086 34 9506.00 SS l 927 5.2 987 6.5 0.0 O.D 96.0 D.0 0.3 3.2 4.5 29.3 9.8 3.03 558,540 Totals: 39,459 40,783 42,631 Averages : 3.4 4.5 0.0 0.0 96.7 0.2 0.6 2.4 3.b 27.7 14.0 2.58 551,070 s] ~ Dakoln Worldwide Coro. Suite 1D5 • Mismeapolis, MN 55437 480I 81' Street ~ , ~/ Telephone 806.475.4505 • Fax 952.835.4461 '' 1 ~• 1 1 1 1. 1 Han'hlnson, M7nnes°fa Marker Study (COHOOI _ Decuaber 20@3). Correlation Page 37 Customer spotting data was prepared from interviews at the Liquor Hutch from 11/13/03 thru 11/18/03 and the wine club membership list (Wine Club 83% from the Trade Area). Fadlity Total Spots Total Used Ta T.A % Suslness from T.A. Draw Used Li uor Hutch 576 523 427 81.12% 85 This data was correlated with the LOCUS"" 2002 model to simulate the Liquor Hutch's market share distributions. An 80% correlation is acceptable and this correlation was 91 % mazket share and 96% for sales. CORRELATION REPORT Facility Map Key •~1 N°v 2003 Liquor Hutch Sector ----Market Share--- ----------Sales------ ---- Map Key Model Corr. Dif. Model Corr. Dif. Miles 2 14.02 13.20 .82 15,847 14,916 931 16.42 3 55.85 45.39 10.46 55,062 49,749 10,313 12.10 4 66.24 85.60 -19.36 63,483 82,040 -18,557 10.80 5 47.36 66.14 -18.79 53,399 74,582 -21,183 9.60 6 64.59 94.05 -29.46 117,806 171,538 -53,732 4.89 7 $3.14 80.58 Z. 56 353,975 343,077 10,898 1.41 8 83.12 98.11 -14.99 379,124 447,491 -60,360 1.61 9 83.19 95.44 -12.25 201,520 231,204 -29,684 .55 10 83.16 $3.24 -.08 156,462 156,622 -160 1.07 11 68.27 66.53 1.73 119,790 111,873 2,917 4.44 12 54.53 61.08 -6.55 73,237 82,040 -8,803 7.98 13 22.33 25.90 -3.58 19,286 22,375 -3,089 13.12 14 37.17 53.26 -16.09 36,435 52,207 -15,772 14.73 15 26.02 30.00 -3.98 32,344 37,291 -4,947 ~ 11.14 16 19.49 4.32 15.17 33,640 7,45$ 26,182 17.13 17 15.85 4.60 11.25 25,712 7,458 18,254 18.05 18 16.28 8.33 7.95 43,711 22,375 21,337 13.86 19 17.12 4.01 13.12 31,868 7,458 24,410 13.50 20 17.33 7.49 9.$4 fi9,DD8 29,833 39,175 13.26 21 35.30 35.15 .15 52,425 52,207 218 9.65 23 61.49 38.83 22.67 35,436 22,375 13,062 3.94 24 83.20 80.2D 3.00 208,909 201,371 7,538 .44 25~ 83.17 78.62 4.54 173,559 164,080 9,479 .92 26 83.20 78.73 4.46 244,308 231,204 13,104 .54 27 66.77 95.95 -29.18 103,SD5 149,164 -45,359 4.29 28 56.76 60.42 -3.67 63,051 67,129 -4,072 9.23 29 53.68 72.38 -18.69 66,383 89,498 -23,115 8.74 30 34.32 14.80 19.52 51,879 22,375 29,500. 8.26 31 42.01 12.54 29.47 74,937 ZZ,375 52,562 13.95 32 30.44 2.68 27.76 84,818 7,458 77,359 16.35 33 25.45 6.37 19.08 59,627 14,916 44,710 15.87 34 25.89 21.65 4.24 35,674 29,833 5,841 14.95 Totals 31.12 110,953 Coeffici ent .91 0.96 pakota WorldwldeC°ro. 4801 81° Street, Suite 103 Minneapolis, MN 33437 Telephone 800.475.4505 • Fax 932.833.4461 ~ ~~~ ' w. Hurchinsva, Minnesota Marled SYudy (COliD01- Dacun6er at1g3) Page 38 ' CURRENT MARKET SIMILATI011 TRADE AREA TOTALS ' Trade Area Nav 2003 Population 40,783 Potential 6,117,533 ' Facility Volume 4,789,750 Float Amount 1,321,783 Float Percent 21.7 ' P.C.E. 150.00 STORES IN OPERATION ' Facility ---Nov 2003 --- Sales Map Key Name Volume /SgFt Area Draw Image 1 Liquor Hutch 3,720,000 816.51 4,556 85 140 2 Litchfield Liq 1,700,000 944.44 1,800 5 117 3 Darwin Liq .6DO,DDD 2,000.OD 300 5 99 4 Howard Lake Liq 600,000 1,333.33 450 5 93 5 Cedar Mills Liq 50,OOD 43.48 1,150 $D 63 6 Silver Lake Liq 180,000 285.71 630 95 102 7 Biscay Liquors 145,000 223.08 650 90 102 8 Glencoe Liquor 1,125,000 562.50 2,000 80 124 '. 9 Buffalo Lake Ltq 80,000 533.33 000 500 00 ' 150 250 60 65 72 89 . s 125, 10 Cactus .tack 11 Brownton Bar & G 160,000 492.31 325 70 100 ' Total 8,485,000 12,261 Average 771,364 692.03 1,115 100 ' CHAIN SUMMARY Chain A of -------------------Chain Total-------- ---------- Yvl/ Avg Market ' Name Facs Volume Average Sixe Average 5gFt Image Share Liquor Hutch 1 3,720,000 3,720,000 4,556 4,556 816.51 140 51.69 Glencoe Liquor 1 1, 125,OD0 1,125,OD0 2,000 2,OOD 562.50 124 14.71 Silver Lake Liq 1 180,000 180,000 630 630 285.71 102 2.80 ' Biscay Liquors 1 145,000 145,000 650 650 223.08 102 2.13 Brownton Bar & G 1 160,DOD 160,000 325 325 492.31 300 1.83 Litchfield Liq 1 1,700,OOD 1,700,000 1,800 1,800 949.44 117 1.39 Cactus ,lack's 1 125,000 125,000 250 250 500.00 89 1.33 ' Buffalo Lake Ltq 1 80,000 80,000 150 150 533.33 72 .78 Cedar Mills Lip 1 50,000 50,000 1,150 1,150 43.48 63 .65 Darwin Liq 1 600,000 600,000 300 300 2,000.00 99 .49 Howard Lake Liq 1 600,000 600,000 450 450 1,333.33 93 .49 Totals 11 8,485,000 12,261 78.30 ' Averages 771,364 1,115 692. D3 • ' Dakot a Wvrldwl de CvrO. 4801 81" Strcct, Suite 105 Minneapolis, Iv1N 55437 Telcphane 800.475.4503 Fax 952.835. 4461 ' ~G) 1 '• • I• Hatcbinson, Minnesota MaHcG Study (Cd1Y007 •- Decnnbw 2003) raga 3s STORE YOLOIE BY SECTOR Facility Map Key y 1 Mov 2003 OraN 85 Market Share Cutoff = 1 Sector Sector Expected Household Household Map Key Share Volume Population Potential Float Miles Incpne Size 1 38.67 15,349 282 39,689 25.20 2D.70 44,169 2.92 2 14.02 15,847 764 112,994 35.76 20.51 44,394 2.42 3 55.85 55,062 671 98,583 21.57 15.15 47,114 2.62 4 66.24 63,483 645 95.837 19.73 14.64 49,749 2.63 5 47.36 53,399 742 112,756 19.50 10.19 56,313 2.68 6 64.59 117,806 1,215 1$2,394 18.53 5.94 54,195 2.72 7 83.14 353,975 2,822 425,743 16.85 1.93 50,262 ~ 2.50 8 83.12 379,124 2,923 456,098 16.87 2.19 65,451 2.74 9 83.19 201,52D 1,683 242,240 16.81 .63 ~ 36,262 2.23 10 83.16 156,462 1,245 188,153 16.84 1.30 47,257 2.35 11 68.27 114,790 1,118 168,152 18.78 5.70 ~ 60,D56 2.94 12 54.53 73,237 888 134,313 19.64 7.97 59,343 2.85 13 22.33 19,286 587 86,385 30.12 14.35 41,891 2.34 14 ~ 37.17 36,435 663 98,028 22.91 14.72 48,248 ~ 2.61 15 26.02 32,344 866 124,31D 26.67 11.15 42,209 2.60 16 19.49 33,64D 1,186 172,582 22.51 19.17 49,341 2.83 17 15.85 25,712 1,046 162,204 22.54 23.96 59,924 2.61 18 16.28 43,711 1,757 268,506 22.17 17.58 52,534 2.47 19 17.12 31,868 1,267 186,108 Z2.1D 17.19 45,456 2.54 20 17.33 69,008 2,630 ~ 398,251 21.71 16.71 53,470 2.60 21 35.30 52,425 983 148,523 19.24 12.70 55,090 2.69 22 44.39 15,131 227 34,085 22.12 7.72 56,882 2.83 23 61.49 35,436 382 57,626 18.5D 4.65 56,882 2.78 24 83.20 208,909 1,65D 251,098 16.80 .48 51,547 2.47 25 83.17 173,559 1,407 208,691 16.82 .93 40,193 2.18 26 83.20 244,308 1,966 293,652 16.80 .54 44,675 2.34 27 66.77 103,805 996 155,464 18.65 5.09 66,145 ~ 2.76 28 56.76 63,051 725 111,087 19.91 9.57 62,500 2.83 29 53.68 66,383 833 ~ 123,655 19.75 11.10 55,125 2.88 3D 34.32 51,879 1,018 151,184 21.28 11.56 44,793 2.40 31 42.01 74,937 1,213 178,372 21.88 19.20 52,370 2.86. 32 30.44 84,817 1,865 278,652 39.72 22.44 47,48$ 2.47 33 25.45 59,627 1,591 234,321 38.06 22.28 49,086 2.fi9 34 25.89 35.674 927 137,796 21.51 20.68 58,540 3.01 Suh Total 51.69 3,162,000 4D,783 6,117,533 21.70 Other Sectors .00 0 0 D .OD TA Total 51.69 3,162,000 40,783 6,117,533 21.70 Outside TA 558,000 Total Sales 3,72D,000 Dakota Worldr'ideCoru 4801 81" Street, Suite 105 • Minneapolis. MN 55437 Tclcphone 800.475.4505 Fex 932.833.4461 C~ `~~ 1 I • Hatchinson, Minnesota Merka Stariy (COH991- Decembcr 2903) ram a9 I . I • SECTpt 58MlNRY Sector -----Nov 2003----- -------Float------- Map Key Population PCE potential Percent Amount 1 282 140.74 39,689 25.20 10,002 2 76A 147.90 112,994 35.76 40,411 3 671 146.92 98,583 21.57 21,266 4 645. 148.58 95,837 19.73 18,910 5 742 151.96 112,756 19.50 21,984 6 1.215 150.12 182,394 18.53 33,189 7 2,822 150.87 425,743 16.85 71,756 S 2,923 156.04 a5fi,098 16.87 76,956 9 1,603 143.93 242,240 16.81 40,710 10 1,245 151.13 188,153 16.8A ~ 31,682 11 1,118 150.40 168,152 18.78 31,574 12 888 151.25 134,313 19.64 26,386 13 587 147.16 86,385 30.12 26,022 14 663 147.86 98,028 22.41 21,970 15 866 143.54 124,310 26.67 33,157 16 1,186 145.52 172,582 22.51 38,844 17 1,046 155.07 162,204 22.54 36,554 18 1,757 152.82 268,506 22.17 59,522 19 1,267 146.89 186,108 22.10 91,129 20 2,630 151.43 398,251 21.71 86,461 21 983 151.09 148,523 19.24 28,582 22 227 150.15 34,005 22.12 7,540 23 362 150.85 57,626 18.50 10,661 2R 1,650 152.18 251,098 16.80 42,173 25 1,407 148.32 208,691 16.82 35,112 26 1,966 149.37 293,652 16.80 49,337 Z7 996 156.09 155,464 18.fi5 29,001 28 725 153.22 111,087 19.91 22,123 29 833 148.45 123,655 19.75 24,416 30 1,018 148.51 151,184 21.28 41,295 31 1,213 147.05 178,372 21.88 39,020 32 1,865 149.41 278,652 39.72 110,680 33 1,591 147.28 230.,321 38.06 89,173 34 927 148.65 137,796 21.51 29,635 Total 40,783 6,117,533 1,327,783 Average 150.00 21.70 Dakota Worldwide Caru. 4801 81° Street. Suite 105 Minneapolis, MN 55437 7'elephonc 800.475.4505 Fax 952.835.4461 ~ ~~~ '• 1 ~~ 1 1 1 y 1 r Nurc6iason, Minnesam Marled Study (COF-OOl _ Decan6er 3003) page II FACILITY MARKET SHARES 9Y SECTOR Nov 2003 1 2 3 ~ 4 5 6 7 Facility Liquor N Litchfield Darwin. L Howard L Cedar M1 Silver L Biscay L Sector --M.S.-- --N.S.-- --M.S.-- --M.S.-- ~ --M.S.-- --M.S.-- --M.S.-- 1 38.67 1.32 .35 .00 .69 .15 1.40 2 14.02 .23 .07 .DO .30 .DO .12 3 55.85 2.4D .56 .00 2.84 .25 1.61 4 66.24 5.33 .83 .00 6.95 .08 .20 5 47.36 20.68 5.D2 .07 5.23 .59 .56 6 64.59 5.52 1.46 .03 6.21 .7Z 1.12 7 83.14 .00 .DO .00 .00 .00 .00 8 83.12 .OD .00 ~ .00 .OD .00 .00 9 83.19 .OD .00 .DO .00 .DO .00 10 83.16 .00 .00 .00 .00 .00 .00 11 b8.27 1.92 .54 .O1 2.95 .64 2.33 12 5A.53 .84 .30 .O1 .67 .91 6.08 13 22.33 .09 .04 .DO .13 .02 .71 1A 37.17 .60 .22 .00 .27 .49 4.02 15 26.02 .D4 .03 .00 .04 .13 4.20 . 16 19.49 .27 .13 .O1 .06 .78 3.60 17 15.85 .3Z .19 .01 .03 2.14 2.fi6 1$ 1b.Z8 .26 .13 .03 .05 1.80 3.71 19 17.12 .27 .lA .03 .05 1.96 3.94 20 17.33 .27 .1A .03 .O6 1.85 4.07 Z1 35.30 .59 .28 .07 .16 5.110 8.02 22 44.39 .06 .06 .00 .04 1.89 21.68 23 61.49 .98 .38 .03 .64 2.43 6.93 24 83.20 .00 .00 .00 .OD .00 .O1 25 83.17 .00 .OD .00 .DO .00 .O1 26 83.20 .00 .00 .00 .00 .00 .00 27 66.77 2.89 1.15 .14 1.18 3.43 2.45 28 56.76 11.32 4.49 .54 1.61 2.37 1.12 29 53.68 2.59 1.27 .87 .44 11.20 3.21 30 34.32 .16 .19 .D5 .03 30.07 3.26 31 A2.01 2.37 1.34 4.06 .1B 12.14 2.88 32 30.44 2.10 1.23 6.35 .11 7.70 1.84 33 25.45 .89 .53 .89 .07 7.09 2.77 34 25.89 .b4 ~ .37 .29 .01 6.15 3.93 Total 51.69 1.39 .49 .49 .65 2.80 2.13 Dakota Warldwlde Caro 4801 Bl° Strect, Suite 105 Minneapolis, MN 33437 Tdcphone $00.473.4503 Fax 932.835.4461 q Cam) I I • HuMAlason, Muraesota MarketSrudy (COHODI _ December 1003) Page 41 • I ~• FACILITY MARI(ET SHAMES BY SECTDR ~COMT'O] Nov 20D3 8 9 10 11 Facility Glencoe Buffalo Cactus .] Brownton Total Sector --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.-- 1 3.50 5.75 15.39 7.58 74.80 Z .11 34.98 12.52 1.89 64.24 3 2.12 3.02 6.21 3.57 78.43 4 .19 .06 .21 .17 80.27 5 .58 .02 .17 .23 80.50 6 .97 .05 .32 .94 81.47 7 .00 .00 .DO .00 83.15 8 .00 .00 .DD .00 83.13 9 .00 .00 .00 .00 83.19 10 .00 ..00 .00 .00 83.16 11 2.05 .16 1.00 1.36 81.22 12 8.86 .20 2.32 5.57 80.36 13 .82 1.95 34.33 9.46 69.88 14 14.96 .45 6.26 13.15 77.59 15 ~ 7.59 .06 4.38 30.84 73.33 16 47.3D .04 1.12 4.69 77.49 17 54.78 .O1 .24 1.17 77.46 18 53.84 .O1 .30 1.42 77.83 19 52.66 .O1 .30 1.0.1 77.90 20 52.72 .O1 .32 1.51 78.29 21 29.39 .D2 .37 1.55 80.76 22 8.30 .DO .19 1.32 77.88 23 6.60 .04 .53 1.45 81.5D Z4 .00 .DO .00 .00 83.20 25 .00 .00 .00 .00 83.18 26 .OD .OD .00 .00 83.20 27 2.64 .02 .21 .48 81.35 28 1.46 .O1 .14 .28 80.09 29 6.3D .O1 .17 .52 80.25 30 4.44 .00 .03 .19 72.72 31 12.43 .O1 .15 .55 78.12 32 1D.00 .DO .11 .40 60.28 33 23.47 .00 .15 .64 61.94 34 39.96 .O1 .22 .97 78.49 Total 14.71 .78 1.33 1.83 78.30 Dakota Worldwide Coro, 4801 81" Saect, Suite 105 Minneapolis, MN 55437 Telephone 800.475.4505 Fax 952.835.4461 a ~~~ 1 . 1 Hutchinson, Mlnncrofa Marker Srudy (COHDDI w peeembn 3963) Page 43 • PROJECTED MARKETPLACE ' PROJECTIONS ASSUME A NOYEMBER/OECEMBER 2004 OPENING TRADE AREA TOTALS ' Trade Area Nov 2DD3 Nov 2005 °: Change Papulatton 40,783 41,520 1.81 Patenttal 6,117,533 6,228,412 1.81 Facility Volume 4,789,750 4,877,283 1.83 Float Amount 1,327,783 1,351,128 1.7fi Float Percent 21.70 21.69 P.C.E. 150.00 150.01 .01 "0.01& change fn float reflective of poputatlon changes MARKET CHANGES HOMARD LAKE LIQUOR REMODELS AMD EXPANDS ITS OFF-SALE AND IS TESTEp MITH 1,200 SQUARE FEET OF SALES AREA (MAP KEY 4/A.10 CEDAR MILLS L1QWR REOPENED AND REMODELED (MAP KEY 5/8.1) ' DASSEL OPENS A MUNICIPAL L1000R (MAP KEY 100) TESTED MITN 1,800 SQUARE FEET OF SALE S AREA (3,000 SQUARE FEET TOTAL AREA) Forecast Current Fcst - Facilt~ty ---Nov 2005 -- - ---Nov -- 2DD3 -- T.A. k Sales Map Key Name Volume /SgFt Volume /SgFt Diff. Chg Area Oraw Image 1 Liquor Hutch 3,682,203 808.21 521 938.62 2 Litchfield Liq 1 689 3,720,000 1,700,000 816.51 944.44 -32,127 -10,479 -1 -1 4,556 1,800 85 5 140 117 , , 3 Darwin Liq 596,151 19$7.20 600,000 Z,OD0.00 -3,839 ~ -1 300 5 99 4 Howard Lake Liq ---closed--- 500,000 1,333.33 -30,OD0 5 93 4.1 Howard Lake Liq 870,503 725.42 0 0.00 43 48 69,640 40 000 0 1,200 8 80 98 63 5 Cedar Mills Liq ---closed--- 50,000 . , - 5.1 Cedar Mi115 Liq 51,819 53.76 0 0.00 49,455 0 1,150 80 83 5 Silver Lake Liq 170,456 270.57 180,OD0 285.71 -g,061 -5 530 95 102 7 Biscay Liquors 142,292 218.91 145,000 223.0$ -2,437 -2 650 90 102 8 Glencoe Liquor 1,117,557 558.83 1.125,000 562.50 -7,343 -1 2,000 80 129 9 Buffalo Lake Liq 80,828 538.85 80,000 533.33 828 1 150 50 72 10 Cactus Jack's 125,121 500.48 125,000 500.00 121 0 250 55 89 ' 11 Brownton Bar A G 159,338 490.27 150,OD0 492.31 -552 0 325 70 100 100 Dassel Liq 0 0.00 103,444 0 1,800 10 100 Totals 9,730,337 8,485,000 87,534 Averages 810,861 656.97 771,354 592.03 1,234 99 * Forecast total includes law draw stores whose volumes are not shown. ' Dakota Worldwide Caro. 4801 SI° Street, Suite 105 Minneapolis, MN 35437 ' Telephone 800.475.4505 F'ax 952.835.4461 9LG~ • Hutchinson, Minnesota Marks Sludy (COM997 - December 2903) Page !I ~~ I I• CHAIN SOMMARY Chain t af -----------------Chain Total------ Name Facs Yvlume Average Size liquor Hutch 1 3,682,203 3,682,203 4,556 Glencoe liquor 1 1,117,657 1,117,651 2,000 Silver Lake Liq 1 170,456 ' 170,456 630 Biscay Liquors 1 142,292 142,292 650 Browntan Bar & G 1 159,338 159,338 925 Dassel Liq 1 1,034,438 1,034,438 1,800 Cactus ,lack's 1 125,121 125,121 250 Litchfield liq 1 1,689,521 1,689,521 1,800 Howard Lake Liq 1 ~ 870,503 870,503 1,200 Cedar M111s Liq 1 61,819 61,819 1,150 euffaly Lake Liq 1 80,828 80,820 150 Darwin Liq 1 596,161 596,161 300 Totals 12 9,730,337 14,811 Averages 810,861 ------- Vvl/ Avg Market ~ -~--Change----- Average SgFt image Share Volume Mkt5hr 9,556 808.21 140 50.25 -32,127 -1.44 2,000 558.83 124 14.33 -7,343 -.38 630 270.57 102 2.60 -9,067 -.20 650 218.91 102 2.06 -2,437 -.OB 325 490.27 100 1.79 -662 -.04 1,800 574.69 100 1.66 103,444 1.66 250 500.48 89 1.31 121 -.02 1,800 938.62 117 1.20 -10,479 -.19 1,200 725.42 98 1.12 39,640 .63 1,150 53.76 83 .79 9,455 .14 150 538.86 72 .78 828 .00 300 1,987.20 49 .42 -3,839 -.07 78.31 1,234 656.97 Dakota Worldwide Coro. 4801 81" Street, Suite 105 Minneapolis. MN 33437 Telephone 800.473.4503 Fax 932.833.4461 q1 L~1 4 i 1 Hwrrh7naon, Aflnneaora Murkd Stady (COH0tl7 - Derembn T003J Page 43 SCENARIO 1 MARKET CHANGES IN EFFECT LIQUOR HU1CN RELOCATES TD Mu4 187 AVENUE MN AND MAIN STREET (SITE 1000) KITH 6.100 SpUARE FEET OF SALES AREA (12,696 SWARE FEET DF TOTAL AREA) THE EXISTING LOCATION IS REDEVELOPED FDR ANOTHER USE Forecast Cur rent Facility ~ ---Nov 2005 --- ----Nov 2003 ---- T.A. k Mep Key Name Volume /SgFt Yalume /SgFt Diff. Chg 1 Liquor Hutch ---closed--- 3,720,D00 816.51 -3,162,000 2 Litchfield Liq 1;677,357 931.87 1,700,000 944.44 -22,693 -1 3 Darwin Liq 591,256 1,970.85 600,000 2,000.00 -8,794 -1 q Howard Lake Liq ---closed--- 600,000 1,333.33 -30,000 q.l Howard Lake Liq 721,229 601.02 0 0.00 57,698 0 5 Ceder Mills Liq ---closed--- 50,000 43.48 -40,000 5.1 Cedar Mills Liq 55,687 48.42 0 0.00 44,550 0 6 Silver Lake Liq 140,622 223.21 180,000 285.71 -37,410 -22 7 Biscay Liquors 116,986 179.98 145,000 223.08 -25,212 -19 8 Glencoe Liquor 1,OD3,349 501.67 1,125,000 562.50 -121,651 -11 9 Buffalo Lake Liq 73,343 488.95 80,000 533.33 -6,657 -8 10 Cactus Jack's 109,5fi3 438.25 125,000 500.00 -15,437 -12 11 8rownton Bar A G 138,613 426.50 160,000 492.31 -21,387 -13 100 Oassel Liq 0 0.00 82,521 0 1000 Liquor Hutch 3,992,830 595.94 0 0.00 3,393,905 0 Totals 9,446,044 8,485,000 87,534 Averages 787,170 557.12 771,364 692.03 " Forecast total includes low draw stores whose volumes are not shown. THREE-YEAR 6ROYTH PATTERN - LIQUOR NOTCH (SITE 3000) Fcst Sales Area 1,800 30D 1,200 1,150 630 650 2,OD0 150 250 325 1,800 6,700 1,413 Forecast Forecast Forecast Facility ---Nov 2D05--- ---Nov 2006--- ---Nov 2007--- Map Keys Name Volume /SgFt Yclume /SgFt Volume /SgFt Draw Image 1000 Liquor Hutch 3,992,83D 595.94 4,062,698 606.37 4,132,206 616.75 85 150 infleticn is 0~ Dekote W orldwlde C°ru. 4801 81" Street, Suite 105 Minneapolis. IviN 53437 Tclephonc 800.473.4303 Fax 932.833.4461 Draw Image 85 140 5 117 5 99 5 93 8 98 80 63 BO 83 95 102 90 102 80 124 60 72 65 89 70 100 10 100 85 150 lOZ ~C~~ I • I~ I I • flulchinsaq, Mlquasotx MarketStxdy (C~f1007 - DecemksrY003) Page 46 CHAIN SUMMARY Chain Name Liquor Hutch Glencoe Liquor Silver Lake Liq Biscay Liquors 8rownton Bar A G passel Liq Cactus Jack's Litchfield Liq Howard Lake Liq Cedar Mills Liq Buffalo Lake Liq Darwin Liq Totals Averages # of ----------------Chain Total-------------- Vol/ Avg Market -----Change----- Facs Volume Average Size Average SgFt Image Share Yolume MktShr 1 3,992,830 3,992,83D 6,700 6,700 595.94 150 54.49 231,905 2.80 1 1,003,349 1,OD3,349 2,000 2,000 501.67 124 12.50 -121,651 -2.22 1 140,622 140,622 630 630 223.21 102 2.14 -37,410 -.65 1 116,986 116,986 650 650 179.98 102 1.69 -25,212 -.R4 1 138,613 138,613 325 325 926.50 1D0 1.45 -21,387 -.38 1 825,210 825,210 1,SD0 1,800 458.45 1D0 1.32 82,521 1.32 1 109,563 109,563 250 250 438.25 89 1.06 -15,437 -.27 1 1.677,357 1,611,357 1,800 1,800 931.87 117 1.D0 -22,693 -.39 1 721,229 721,229 1,200 1,200 601.02 98 .93 27,698 .44 1 55,687 55,687 1,150 1,150 48.42 83 .72 4,550 .O6 1 73,343 73,343 150 150 488.95 72 .66 -6,651 -.12 1 591,256 591,256 300 300 1,970.85 99 .34 -8,744 -.15~ 12 9,446,044 16,955 78.31 787,170 1,413 557.12 Uakata Worldwide 4801 81" Street, Suite 105 Minneapolis, MN 55437 Telephone 800.473.4303 • 'l'ax 952.833.4461 q L~~ Hatcklnsan, Minnesota Markel Study (CDM007 - Decanbsr 1003) ' • STORE YOLUME REPOIl7 BY SECTOR - LIgWR HUiCN lIpIOR (SITE lDDOj Facility Mep Key 1000 Hov 2005 Draw a 85 Market Share Cutoff • 1 Sector Sector Expected ' Mep Key Share Volume Population Potenttal Float 1 47.42 19,086 286 40,252 25.20 2 20.11 23,951 782 115,656 35.76 3 62.17 61,558 674 99,024 21.51 4 50.95 49,283 651 96,728 19.73 5 47.78 55,329 762 115,796 19.50 6 66.59 124,455 1,245 186,897 18.53 ' 7 83.14 362,509 2,890 436,002 16.85 8 $3.13 3$3,152 2,954 460,935 16.87 9 83.19 202,243 1,689 243,104 16.81 30 83.16 168,280 1,339 202,359 16.84 ' 11 71.57 122,282 1,136 170,860 18.78 1Z 61.57 83,262 894 135,221 19.64 13 30.76 26,705 590 86,826 30.12 14 46.05 45,140 663 98,028 22.41 ' 15 34.45 42,725 864 124,023 26.67 16 26.57 45,926 1,188 172,873 22.51 17 21.63 35,158 1,048 162,514 22.54 ' 18 22.34 60,502 1,172 270,799 22.17 • 19 23.37 44,349 1,292 189,780 22.10 20 23.66 95,806 2,674 404,913 21.71 21 43.37 64,943 991 149,731 19.24 ' 22 52.01 1$,197 233 34,986 22.12 23 66.62 39,397 392 59,135 18.50 24 83.20 221,576 1,750 266,316 16.80 25 83.17 175,664 1,424 211,213 16.82 26 83.20 245,055 1,972 294,548 16.80 27 67.60 107,836 1,022 154,523 1B.65 28 48.05 53,227 723 110,780 19.91 29 55.70 71,764 868 128,850 19.75 ' 30 40.68 63,431 1,050 155,937 27.28 31 43.39 78,545 1,231 181,019 21.88 32 29.56 82,801 1,875 280,146 39.72 33 30.26 73,321 1,645 242,274 38.06 34 32.85 46,445 951 141,364 21.51 Suh Total 54.49 3,393,905 41,520 6,228,412 21.69 ' Other Sectors .00 0 0 0 .00 to Total 54.99 3,393,905 41,520 6,228,412 21.69 Outside TA 598.924 Sales Forecast 3,992,829 Miles 1$.19 16.19 11.86 10.62 9.61 4.80 1.22 1.36 .35 .84 4.19 7.88 12.93 14.64 11.06 17.17 18.21 13.99 13.64 13.39 9.81 6.44 a.D2 .52 .83 .69 a.51 9.39 8.99 8.50 19.20 16.60 16.10 15.15 Household Income aa,lfi9 44,344 97,114 99,749 56,313 54,195 50,262 65,451 36,262 47,251 60,056 59,343 41,891 48,248 42,209 49,341 59,924 52,534 45,456 53,470 55,090 56,882 56,882 51,547 40,193 49,675 66,145 62,500 55,125 44,793 52,370 47,488 49,085 58,540 Pegs 47 Household Size 2.92 2.42 2.62 2.63 2.68 2.72 2.50 2.74 2.23 2.35 2.94 2.85 2.34 2.61 2.60 2.83 2.61 2.47 2.54 2.60 2.69 2.$3 2.78 2.47 2.18 2.34 2.76 2.83 2.88 2.40 2.86 2.47 2.69 3.01 Dako Worldwide 4801 SI" Street, Suite I03 Minneapolis, MN 33437 Telephone 800.473.4303 Pax 932.833.44b1 ~ ~~~ a I 1 I I~ AareAinson, Minnesota Marled Sfur(y (C0H001- Oecearber 2003) Page 48 SCENARIO 2 MARKET CHAM6E5 1N EFFECT THE LIQUOR HUTCH OPENS A SECOND LOCATION OF 10,000 SQUARE FEET TOTAL AREA AT THE 5MQ OF DENVER AVENUE AND NIGHNAY 15 (S1TE 2000) TESTED AT 5,000 SQUARE FEET OF SAL ES AREA THE EAIST1Nfi LOCATION REMAINS OPEN (IMP KEY 1) Forecast Current Fest Facility ---Nov 2005 --- ----Nov 2003 ---- T.A. ~ Sales Map Key Name Volume /SgFt Volume /SgFt Diff. Chg Area 1 Liquor Hutch 2,075,774 455.61 3,720,000 816.51 -1,397,592 -44 4,556 2 Litchfield Ltq 1,666,241 925.69 1,70D,ODD 949.44 -33,154 -2 1,800 3 Darwin Liq 588,265 1,960.88 60D,OOD 2,000.00 -11,735 -2 300 4 Howard Lake Liq ~ ---closed--- 60D,000 1,333.33 -30,000 4.1 Howard Lake Liq 583,425 486.19 D O.OD 46,674 0 1,200 5 Cedar Mills Liq ---closed--- 50,OOD 43.48 -40,000 5.1 Cedar Mills Liq 39,429 39.29 0 0.00 31,543 0 1,150 6 Silver Lake Liq 116,350 184.68 180,OD0 285.71 -60,467 -35 fi30 7 Biscay Liquors 94,726 145.73 145,000 223.08 -45,247 -35 650 8 Glencoe Liquor 856,764 428.38 1,125,000 562.50 -268,236 -24 2,ODD 9 Buffalo Lake Liq 64,030 426.87 80,000 533.33 -15,970 -20 150 10 Cactus Jack's 94,411 377.64 125,000 50D.00 -30,589 -24 250 11 Brownton Bar A G 119,213 366.81 160,000 492.31 -40,787 -25 325 1D0 Dassel Liq 0 0.00 76,360 D 1,8D0 2000 Liquor Hutch 2,384,173 476.83 0 O.OD 1,907,339 D 5,000 Tatdls~ 9,446,402 8,485,000 87,534 Averages 726,646 476.83 771,364 692.03 1,524 " Fareeast total includes low draw stores whose volumes are not shown. THREE-YEAR 6ROHTH PATTERN - LIQUOR WITCH (HAP KEY 1 AND SITE 2000) Draw Image 85 140 5 117 5 99 5 93 8 98 80 63 SD 83 95 102 90 102 80 124 60 72 65 89 7D 1D0 10 100 60 150 102 Forecast Forecast Forecast Facility ---Nov 2D05--- ---Nov 2006--- ---Nov 2007--- Nap Keys Name Volume /SgFt Yalume /SgFt Volume /SgFt Draw Image 1 Liquor Hutch 2,D15,774 455.61 2,136,716 468.49 2,197,618 482.36 85 140 2000 Liquor Hutch 2,384,173 476.83 2,456,555 491.31 2,528,163 505.63 80 150 Averages 2,229,973 466.72 2,296,636 480.67 2,362,891 494.54 145 Inflation is Ole llakota Worldwide Corp. 4801 81" Strcct, Suite 103 • Minneapolis. MN 55437 Tclcphone 800.A75.4505 Fax 952.833.4461 / ~1 ~i 1 Hutchinson, MfnnesaGa Marks Study (CD77007 - Decunbar 2003) J'age I9 CHAIN SUMMARY Chain Name Liquor Hutch Glencoe Liquor Silver Lake Liq Biscay Liquors Oassel L1q 8rawntan bar & G Litchfield Liq Cactus ,lack's Howard Lake Liq Buffalo Leke Liq Cedar Mills Liq Darwin Liq Tuta75 Averages ,f of -----------------Chain Total---------------- Vol/ Avg Market -----Change----- Facs Yolume Average 51ze Average SgFt Image Share Volume MktShr 2 4,459,947 2,229,973 9,556 4,778 466.72 145 58.95 509,746 7.26 1 856,764 856,764 2,DOD 2,DOD 428.38 124 1p.lA -268,236 -4.57 1 116,350 116,350 630 63D 1$4.68 102 1.77 -60,467 -1.OZ 1 94,726 94,726 650 650 145.73 102 1.37 -45,247 -.76 1 763,602 763,602 1,800 1,800 424.22 100 1.23 76,360 1.23 1 119,213 119,213 325 325 366.$1 100 1.14 -40,787 -.69 1 1,666,241 1,666,241 1,80D 1,800 425.69 117 .82 -33,759 -.57 1 94,411 94,411 250 250 377.64 89 .81 -30,589 -.51 1 583,425 583,425 1,2D0 ~ 1,2p0 486.19 98 .75 16,679 .26 1 64,030 64,03D 150. 15D 426.87 72 .51 -15,970 -.27 1 39,429 39,429 1,150 1,150 34.29 83 .51 -8,457 -.15 1 588,265 588,265 3D0 300 1,960.88 99 .29 -11,735 -.20 13 9,446,402 19,811 7$.31 726,646 1,524 476.83 Dakota Worldwide Corn. 480] 81" Streek Suite 105 Minneapolis, MN 35437 Tclephone 800.475.4505 Fax 932.835.4461 ~ ~~) '~ Hutchlnsan, Minnuera Market Srudy (COH007 ~ Decembu 1083) ragr so • I • L1WOR HBTCH MARKET SHMES 8T SEC'fDR Nov 2005 1 2000 Facility Liquor H Liquor H Total Sector --M.S.-- --M.S.-- --M.S.-- 1 .58 52.62 53.20 2 .04 30.66 30.70 3 3.30 61.15 64.45 4 48.64 18.86 67.50 5 25.34 21.94 53.28 6 33.13 36.56 69.69 7 48.58 34.56 83.14 8 32.64 50.49 83.13 9 51.64 31.55 83.19 10 31.24 51.92 83.16 11 20.68 52.62 73.30 12 9.11 55.34 64.45 13 .18 41.37 41.56 14 1.45 49.74 51.20 15 .50 43.64 44.15 16 13.02 25.62 38.63 17 11.71 19.89 31.59 18 12.10. 19.70 31.81 19 12.61 20.21 32.88 20 12.72 20.54 33.27 21 21.70 30.52 52.22 22 23.10 37.31 60.40 23 30.67 40.20 70.87 24 61.09 22.11 83.20 25 36.91 46.26 83.17 26 75.24 7.96 83.20 27 46.30 20.73 67.03 28 36.56 6.33 42.88 29 42.15 9.20 51.95 30 22.10 25.37 47.48 31 22.73 28.21 50.94 32 15.66 20.33 35.99 33 15.58 21.92 37.50 34 17.21 25.25 42.46 Total 28.33 30.62 58.95 Dakota Worldwide Corn. 4801 81 ° Street, Suite 105 Minncapolis• MN 33437 Tclcphone 800.473.4303 Fax 932.833.4461 ~C~~) '+ 1 '• t 1 1 1 1 „ , l,atehlasaa, Mrnneaata Markel Stxdy (COH001-.17rcwber 20031 Page S1 SCEMARItl YA MARKET CHANGES IN EFFECT THE LIQUOR HUTCH OPENS A SECOND LOCATION OF 10,000 SQUARE FEET TOTAL AREA AT THE SWq ~' DENVER AVENUE AND HIGHWAY 15 (51TE 2000) TESTED AT 6,000 SQUARE FEET OF SALES AREA THE EXISTING LOCATION REMAINS OFEM (MAP KEY 1) Forecast Current Fcst Facility ---Nnv 2005 --- ----Nov 2003 ---- T.A. & Sales Map Key Name Volume /SgFt Volume /SgFt Di ff. Chg Area i Liquor Hutch 1,942,303 426.32 3,720,000 816.51 -1,511,042 -48 4,556 2 Litchfield Liq 3,663,221 924.01 1,700,000 944.44 -36,779 -2 1,$00 3 Darwin Liq 581,240 1,957.47 600,000 2,000.00 -12,760 -2 300 4 Howard Lake Liq ---closed--- 600,000 1,333.33 -30,000 4.1 Howard Lake Liq 547,917 456.60 D O.DO 43,833 0 1,200 5 Cedar Mills Liq ---closed--- 50,000 43.48 -40,000 5.1 Cedar Mills Liq 36,517 31.75 0 0.00 29,214 0 1,150 6 Silver Lake Liq 109,526 173.85 180,000 285.71 -66,950 -39 630 7 Biscay Liquors 88,301 135.85 145,000 223.08 -51,030 -39 650 8 Glencoe Liquor 821,179 410.59 1,125,000 562.50 -303,821 -27 2,000 9 Buffalo Lake Liq 61,079 407.19 80,000 533.33 -18,921 -24 150 10 Cactus Jack's 99,281 357.13 125,000 500.00 -35,719 -29 250 11 Brown ton Bar 6 G 112,608 346.49 160,000 492.31 -47,392 -30 325 100 Oassel Liq 0 0.00 72,849 D 1,800 2000.1 Liquor Hutch 2,fi20,D64 436.68 ~ D 0.00 2,096,051 0 6,000 Totals 9,407,731 8,485,000 87,534 Averages 723,672 452.06 771,364 692.03 1.601 " Forecast total includes low draw stores whose volumes are not shown. THREE-YEAR OROifFH PATTERN -LIQUOR HUTCH (MAP KFY 1 AND SITE 2000) Draw Image 85 140. 5 117 5 99 5 93 8 98 SD 63 8D 83 95 '102 90 102 80 124 60 72 65 89 7D loD la loo 80 150 lOZ Forecast Forecast Forecast Facility ---Nov 2005--- ---Nov 2006--- ---Nov 2001--- Map Keys Name Volume /SgFt Volume /SgFt Volume /SgFt Draw Image 1 Liquor Hutch 1,942,303 426.32 2,001,126 439.23 2,059,962 452.14 BS 140 2000.1 Liquor Hutch 2,620,064 436.68 2,695,865 449.31 2,770,763 461.79 80 150 Averages 2,281,184 432.21 2,348,495 444.96 2,415,362 457.63 145 inflation is D~ D k W rldwide C b801 81" Strcct, Suile 105 Minncspolis, MN 35437 Telephone 800.475-4503 Fax 952.833.4461 .'1 ~C~~ ' Minnesota Mar Hutchinson, I ~• CHAIN 511lMAIlY Chain N of Name Facs Liquor Hutch 2 Glencoe Liquor 1 Silver Lake Liq 1 Biscay Liquors 1 Oassel Liq 1 8rowntan Bar 6 G 1 ' Litchfield Liq 1 Cactus Jack's 1 Howard Lake Lfq 1 Cedar Mills Liq 1 ' Buffalo Lake Liq 1 parwin Liq 1 Totals 13 Averages • kd SVudy (CO. ----Volume 4,562,367 821,179 109,526 88,301 728,a95 112.608 1,663,221 89,281 547,917 36,517 61,079 587,246 9,407,730 Y007 w Aecnwber 2003) ------Chain Total----- Average Size 2,281,184 10,556 821,179 2,000 109,526 630 88,301 650 728,495 1,800 112,608 325 1,663,221 1,800 $9,281 250 547,917 1,200 36,517 1,150 61,079 150 587,240 300 20,811 723,672 ------- Yol/ Average SgFt 5,278 432.21 2,000 410.59 630 173.85 650 135.85 1,800 404.72 325 346.49 1,800 924.01 250 357.13 1,200 456.60 1,150 31.75 150 407.19 300 1,957.47 1,fi01 452.06 ,., .Page 52 pvg Market -----Change----- image Share Yolume MktShr 145 60.16 585,009 8.47 124 9.57 -303,821 -5.14 102 1.67 -66,950 -1.12 102 1.28 -51,030 -.86 100 1.17 72,849 1.17 100 1.04 -47,392 -.79 117 .77 -36,779 -.62 89 .73 -35,719 -.60 98 .70 13,833 .21 83 .41 -10,786 -.18 72 .47 -18,921 -.32 . 99 .28 _12,760 -.21 78.31 1 I • Dakota Worldwide Coro. 4801 8l" Street, Suite 105 • Minneapolis, MN 55437 Tclcphone 800.475.4505 Fax 952.835-4461 ~ C~~ ,,~, . ~. ~• 1 1 1 r Hutchinson, Mlpnesota Market Study (COI1001 _ Aecembo 2003) rage S3 SCENARIO 2B MARKET CHANGES IN EFFECI THE LIQUOR NOTCH OPENS A SECOND LOCATION OF 1tl.000 SQUARE FEET TOTAL AREA AT THE SNQ OF DELAYER AVENUE ANO NIGHMAY I5 (SITE 2000) TESTED AT 7,000 SQUARE FEET OF SALES AREA THE EXISTING LOCATION REMAINS OPEN (MAP KEY 1) Forecast Current Fcst Facility ---Nov 2005 _-- ----Nov 2003 ---- T.A. ~ Sales Map Key Name Volume /SgFt Volume /SgFt DS ff. Chg Aree 1 Liquor Hutch 1,827,901 401.21 3,720,000 816.51 -1,608,284 -51 4,556 2 Litchfield Lfq 1,660,609 922.56 1,700,000 944.44 -39,391 -2 1,800 3 Darwin Liq 58fi,348 1,954.49 600,000 2,000.00 -13,652 -2 300 q Howard Lake Liq ---closed--- 600,000 1,333.33 -30,000 4.1 Howard Lake Liq 516,635 430.53 0 0.00 41,331 0 1,200 5 Cedar Mills Liq ---closed--- 50,000 43.48 -40,000 5.1 Cedar Mills Lfq 34,069 29.63 D O.OD 27,255 0 1,150 6 Sliver Lake Liq 103,515 164.31 180,000 285.71 -72,660 -42 630 7 Biscay Liquors 82,795 127.38 145,000 223.08 -55,985 -43 650 8 Glencoe Liquor 789,622 394.81 1,125,000 562.50 -335,378 -3D 2,000 9 Buffalo Lake Liq 58,634 390.90 80,000 533.33 -21,366 -27 150 10 Cactus .lack's 85,130 340.52 125,000 500.00 -39,870 -32 250 11 Brawnton Bar & G 807,207 329.87 160,000 492.31 -52,793 -33 325 100. Dassel Liq 0 0.00 69,740 0 1,800 2000.2 Liquor Hutch 2,823,235 403.32 D 0.00 2,258,588 0 7,000 Totals 9,373,094 8,485,1100 87,534 Averages 721,007 429.74 771,364 692.03 1,678 * Forecast total includes low draw stores whose volumes are not shown. THREE-YEAR 6RtlMTN PATTERN - L1QlXNi HUTCH (MAP KEY 1 ANO SITE 2000) Oraw image 85 140 5 117 5 99 5 93 8 98 80 53 80 83 95 102 9D lOZ 80 124 60 72 65 89 70 100 1D lOD 80 150 102 Forecast Forecast Forecast Facility ---Nov 2005--- ---Nov 2006--~ ---Nov~2007--- Map Keys Name Volume /SgFt Volume /SgFt Volume /SgFt prow Image 1 Liquor Hutch 1,821,901 401.21 1,884,679 413.67 1,941,514 426.14 85 140 2000.2 Liquor Hutch 2,823,235 403.32 2,901,515 414.50 2,978,785 425.54 80 150 Averages 2,325,568 402.99 2,393,097 414.11 2,460,150 425.78 145 inflation is D# Dakota W Idwide C 4801 81° Street. Suitc 105 Minncapolis, MN 55437 Telephanc 800.475.4505 Fax 952.835.4461 q ~~~ • p~ MuMh(nsan, Mumesofa Markel Seudy (COfI80l - DecdnberT083J Page 54 I • CNAIN 58MIARY Chain Name Liquor Hutch Glencoe Liquor Silver Lake Liq Biscay Liquors Oassel Liq 8rownton Bar 6 G Litchfield Liq I~ Cactus Jack's Howard Lake Liq Cedar Mills Liq Buffalo Lake Liq Darwin Liq Totals I Averages / af ----------------Chain Total------ Facs Volume Average Size 2 4,651,136 2,325,568 11,556 1 789,622 789,622 2,000 1 103,515 103,515 630 1 82,795 82,795 ~ 650 1 697,396 697,396 1,800 1 107,207 ID1,201 325 1 1,660,609 1,660,609 1,800 1 85,130 85,130 250 1 516,635 516,635 1,200 1 39,069 34,069 1,150 1 58,634 58,634 150 1 586,348 586,348 300 13 9,373,099 21,811 721,007 ----- Yal/ Avg Market -----Change----- Average SgFt Image Share 4olume MktBhr 5,778 402.49 145. 61.21 650,309 9.52 2,000 ~ 394.81 124 9.07 -335,378 -5.65 630 16A.31 1D2 1.5$ -72,fi60 -1.22 650 127.38 102 1.20 -55,985 -.94 1,8D0 387.44 IDD 1.12 69,740 1.12 325 329.81 100 .95 -52,793 -.88 1,800 922.56 117 .73 -39,391 =.66 Z50 34D.52 89 .6fi -39,870 -.66 1,200 430.53 98 .66 11,331 .17 1,150 29.63 83 .44 -12,745 -.22 150 39D.90 72 .43 -21,366 -.36 300 1,954.99 94 .26 -13,652 -.23 78.31 1,678 429.74 Aakota Worldwide Coro. 4801 81° Street, Suite 105 Minneapolis, MN 53437 Telephone 80D.475.4505 Fax 952.835.4461 `0.) 1 ~ MntcAlnsow, Minnesota Mark,a Study (COH001- Decanbtr 1003) ~• 5CENARIO 9 MARKET CHANGES 1M EFFECI THE LIQUOR HUTCH OPENS A SECOND LOCATION OF SD,ODO SQUARE FEET TOTAL AREA AT THE NEQ OF AIRPORT ROAD AND HIGFINAY.15 (SITE 3000) TESTED AT 5,000 SQUARE FEET OF SALES AREA THE EXISTING LOCATION REMAINS OPEN (NAP KET I) Forecast Current Fcst Facility ---Nov 2005 --- ----Nav 2003 ---- T.A. % Sates Map Key Name Yolume /SgFt Volume /SgFt Diff. Chg Area Page 33 Oraw Image 1 Liquor Hutch 2,240,160 991.69 3,720,OOD 816.51 -1,257,864 -40 4,556 85 140 ' 2 Litchfield Liq 1,673,268 929.59 1,700,000 944.44 -26,732 -2 1,800 5 117 3 Darwin Liq 590,198 1,967.33 600,000 2,OOD.00 -9,802 -2 300 5 99 4 Howard Lake Liq ---clos ed--- 600,000 1.333.33 -30,000 5 93 4 1 Howard Lake Liq 616,171 513.48 0 O.DO 49,294 0 1,200 8 98 ' . 5 Cedar Mills Liq ---closed--- 50,000 43.48 -40,000 80~ 63 5.1 Cedar Mills Ltq 43,096 37.47 0 0.00 34,476 0 1,150 BO 83 6 Silver Lake Liq 1Z 1,466 192.80 180,000 285.71 -55,608 -33 630 95 102 7 Biscay Liquors 98,184 151.05 145,OOD 223.08 -42,134 -32 650 90 102 ' 8 Glencoe Liquor 878,322 439.]6 1,125,040 562.50 -246,678 -22 2,000 8D 124 9 Buffalo Lake Ltq 68,299 955.32 80,000 533.33 -11,701 -15 ]50 60 72 10 Cactus Jack's 99,357 397.43 125,000 500.00 -25,643 -21 250 65 89 11 8rowntnn ear b G 123.509 380.03 160,000 492.31 -36,491 -23 325 70 100 ' 1DD Dassel Liq D 0.00 82,963 0 1,800 10 100 3000 Liquor Hutch 2,129,318 425.86 D 0.00 1,703,454 0 5,000 8D 150 Totals Averages 9,510,979 131,614 480.09 8,485,000 171,364 692.03 87,533 1,524 102 * Forecast total includes low draw stores whose volumes are not shown. ' THREE-YEAR GROiRH PATTERN - LIQOON HUTCH (MAP KEY 1 AND 51TE 3000) Forecast Forecast Forecast Facility ---Nov 2005--- ---Nov 2006-- ---Nav 2007 --- Map keys Name Volume /SgFt Volume /SgFt Yolume /SgFt Draw tmage ' 1 Liquor Hutch 2,240,160 491.69 2,302,727 505.43 2,365,229 519.15 85 140 3000 Liquor Hutch 2.129,318 425.86 2,196,427 439.29 2,262,846 452.57 80 150 Averages 2,184,739 457.25 2,249,577 470.82 2,314,037 484.31 145 Inflation is 0~ bekata Worl wide C 4801 81"Street, Suite 103 Minneapolis, MN 33437 I Telephonc 800.473.4305 Fax 932.833.4461 ~ z~~ ' Hwtchinson, INrnne: 1 ' ~ CNAIN 58MMR1' Chain ' Name Liquor Hutch Glencoe Liquor Silver Lake Liq Biscay Liquors Oassel Liq Brawnton Bar & G ' Litchfield Liq Cactus Jack's Howard Lake Liq Buffalo Lake Liq Cedar Mills Liq Darwin Liq Totals Averages • ota Harkef Study (COH06l .. December 1869) N of ----------------Chain Total---------------- Facs Volume Average Size Average 2 4,369,417 2,184,739 9,556 4,778 1 818,322 878,322 2,D00 2,000 1 121,466 121,466 630 630 1 98,184 98,184 650 650 1 829,634 829,634 1,800 1,800 1 123,509 123,5D9 325 325 1 1,673,268 1,673,268 1,800 1,800 1 99,357 99,357 250 250 1 616,171 616,171 1,200 1,200 1 68,299 68,299 150 150 1 43,096 43,096 1,150 1,150 1 59D,198 590,198 300 300 13 9,510,98D 19,811 731,614 1,524 Vol/ SgFt 457.25 439.16 192.80 151.D5 460.91 380.03 929.59 397.43 513.48 955.32 37.47 1,967.33 400.09 Avg Market Image Share 145 57.92 124 10.49 102 1.85 102 1.42 lOD 1.33 lDa l.zl 117 .94 89 .89 98 .79 72 .58 83 .55 99 .32 78.31 -----Chant Volume 445,590 -246,678 -55,608 -42,134 82,963 -36,491 -26,732 -25,643 19,294 -11,701 -5,524 -9,802 .,..~ Page S6 ie----- MktShr 6.23 -4.22 -.94 -.71 1.33 -.fi2 -.45 -.44 .30 -.20 -.10 -.17 • Dakota Worldwide Corp. 4801 81° Strect, Suite 103 Minneapolis, MN 55437 Telephone 800.475.4505 Fax 952.835.4461 I ~ L ~) I Nurchinsan~ Minnesam Markel Stnr(y (COM007 _ Decrmbtr 2003) Page 57 • LIOIIUR HUTCH MARKET SHMES BY SECTOR MOv 20p5 1 3000 facility Liquor H Liquor H Total ' Sector --M.S.-- --M.S.-- --M.S.-- 1 .66 49.78 50.43 2 .05 25.95 26.00 3 3.69 59.50 63.19 4 50.37 16.67 fi7.04 5 36.38 5.04 41.42 6 34.43 39.80 69.22 7 55.04 28.10 83.14 8 38.09 45.03 83.13 9 57.13 26.06 83.19 10 37.13 46.03 83.16 11 21.48 51.68 73.16 12 9.23 54.93 64.16 13 .20 38.15 38.35 14 1.55 47.82 49.37 . ' 15 .50. 41.64 42.18 16 13.58 23.35 36.94 17 12.18 17.55 29.73 18 12.42 18.20 30.62 19 12.93 18.79 31.72 20 13.04 19.11 32.15 21 22.19 24.39 51:57 ZZ 23.46 36.67 60.13 • 23 30.63 40.25 70.88 24 60..35 18.85 $3.20 25 39.42 43.75 83.17 26 78.19 5.01 83.20 27 47.73 18.85 66.5$ 28 37.35 4.73 42.08 29 43.63 7.73 51.36 30 23.18 23.06 46.2a 31 23.99 25.44 49.43 32 16.62 17.87 34.49 33 16.45 19.68 36.13 34 17.96 22.94 0.0.90 Total 30.57 27.35 57.92 ~• Dakvta Worldwide Caro. 4801 81° 8tree6 Suiie 103 Minneapolis, MN 33437 Telephone 800.475.4505 Fax 932.835.4461 1 C,~ ~ .« /larchinaon, Minnesota Marker Study (COHOOI - A7tcunber 1003) Page 58 • SCENARIO t ' MARKET CHANBES IN'EFFECi THE LIQUOR HUTCH OPENS A SECOND LOCATION OF lO,000 SQUARE FEET TOTAL AREA AT THE SEQ OF OENYER AVENUE AND HIGHNAY 15 (SITE A000) TESTED AT 5,OD0 SQUARE FEET OF SALES AREA THE EXISTING LOCATION REMAINS OPEM (MAP KEY 1) Forecast Current Fcst Facility ---Nov 2005 --- ----Nov 2003 ---- T.A. h Sales Map Key Name Volume /SgFt Volume /SgFt Diff. Chg Area 1 Liquor Hutch 2,149,889 471.88 3,720,000 816.51 -1,334,595 -42 4,556 2 Litchfield Liq 1,669,278 927.38 1,700,OOD 944.44 -30,722 -2 1,800 ~~ 3 parwin Liq 589,371 1,964.57 600,000 2,000.00 -10,629 -2 300 ^ 4 Howard Lake Liq ---closed--- 600,000 1,333.33 -30,DD0 4.1 Howard Lake Liq 633,972 528.31 0 0.00 50,718 0 1,200 5 Cedar Mills Liq ---closed--- 50,000 43.48 -40,DD0 ' 5.1 Cedar Mills Liq 41,817 36.36 0 O.DO 33,454 0 1,150 6 Silver Lake Liq 124,6A1 197.84 180,000 285.71 -52,591 -31 630 7 Biscay Liquors 101,794 156.61 145,000 223.08 -38,886 -30 650 8 Glencoe Liquor 900,590 450.30 1,125,000 562.50 -224,410 -20 2,000 I 9 Buffalo Lake Liq ~ 71,980 479.86 80,D00 533.33 -8,020 -10 150 10 Cactus Jack's 1D5,012 420.05 125,000 500.00 -19,988 -16 250 11 Brownton Bar A G 129,872 399.60 160,OD0 492.31 -30,128 -19 325 I 100 Dassel Liq 0 0.00 80,352 0 1.80D A000 Liquor Hutch 2,17$,724 435.74 0 0.00 1,742,979 0 5,000 Totals 9,500,456 8,485,000 87,534 ' Averages 730,804 479.55 771,364 692.03 1,524 * Forecast total includes low draw stores whose volumes are not shown. THREE-YEAR GROWTH PATTERN - LIQUOR NUTCN (MAP KEY 1 ANO SITE 4000) Forecast Forecast Facility ---Nov 2D05--- ---Nov 2006--- Map Keys Name Volume /SgFt Volume /SgFt 1 Liquor Hutch 2,149,889 471.88 2,212,027 485.52 4000 Liquor Hutch 2,178,724 A35.74 2,247,493 4A9.50 Averages 2,164,306 452.97 2,229,760 466.67 inflation 1s 04 Draw Image $5 140 5 117 5 99 5 43 8 98 80 63 80 83 95 102 90 102 80 124 60 72 85 89 70 100. 10 100 80 150 102 Forecast ---Nov 20D7--- Yolume /SgFt Draw Image 2,274,104 499.14 85 140 2,315,624 463.12 80 150 2,299,864 480.30 ~ 145 • Dakota Worldwide Corte. 4801 B1° Street, Suite 105 Minneapolis, MN 53437 Tclcphanc 800.473.4305 Far 932.835.4461 ~~~ ~~ - HgMAlnsan, Mi'nnesata MarkHStudy (COH00l -December 3003) Page 39 • CHAIN SDAINtY Chain ' Name Llquar Hutch Glencoe Liquor Silver Lake Liq Biscay Liquors Brownton ear 6 G Dassel Liq Cactus .lack's Litchfield Liq Howard Lake Liq Buffalo Lake Liq Cedar Mills Liq Derwin Liq Totals ' Averages I~ ~~ ! of ----------------Chain Total---- Facs Volume Average Size 2 4,328,613 2,164,306 9,556 1 900,590 900,590 2,000 1 124,fi41 124,641 630 1 101,794 101,794 650 1 129,872 129,872 325 1 803,516 803,516 1,800 1 105,012 105,012 250 1 1,669,278 1,669,278 1,800 1 633,972 633,972 1,200 1 71,980 71,980 150 1 41,$17 41,817 1,150 1 589,371 589,371 300 13 9,500,455 19,$11 730,804 ------- Vol/ Average SgFt 9,778 452.97 2,000 450.30 630 197.84 650 156.61 325 399.60 1,800 446.40 250 420.05 1,800 927.38 1,200 528.31 150 479.86 1,150 36.36 30D 1,964.57 1,524 479.55 Avg Image 145 124 102 102 lOD 100 89 117 98 72 83 99 pakota WarldwideCorn. 4801 81" Stnci, Suitc 103 Minneapolis, MN 35437 Telephone 800.475.4505 • Fax 932.835.4461 Market Share 57.32 10.85 1.90 1.47 1.31 1.29 .98 .B7 .81 .64 .54 .31 78.31 -----Change----- Volume MktShr 408,384 5.64 -224,410 -3.86 -52,591 -.89 -38,886 -.66 _30,128 -.5Z 80,352 1.29 -19,988 -.34 -30,722 -.52 20,718 .32 -8,020 -.14 -6,546 -.12 -10,629 -.18 Lam) T ~ I I • //nfchlnson, Minnesom Markel Study (COH007 .. Dueinber 2003) Poge 69 I • I LIQUOR HUTCH XRRIIE7 SNARES BY SECTOR Nov 2005 1 4000 Facility Liquor H Liquor H Total Sector --M.S.-- --N.S.-- --M.S.-- 1 .71 46.75 47.45 2 .05 22.05 22.10 3 3.87 58.03 61.89 4 50.91 15.99 66.90 5 26.92 24.67 51.59 6 34.38 34.86 69.24 7 51.86 31.29 83.19 8 35.48 47.65 83.13 9 51.05 32.14 83.19 10 30.99 SZ.17 83.16 11 21.38 51.58 72.96 12 9.52 53.64 63.16 13 .22 34.04 34.26 14 1.65 45.01 46.65 15 .57 37.72 38.29 16 14.25 ~ 20.69 34.94 17 12.60 15.48 28.08 18 12.77 16.49 29.27 19 13.30 17.10 30.40 ZO 13.41 17.41 3D.82 21 22.83 27.90 50.73 22 24.63 34.62 59.25 23 31.10 39.61 70.72 Z4 60.10 23.1D 83.20 25 34.19 48.98 83.17 26 76.44 6.76 83.20 27 47.93 18.60 66.52 2$ 37.50 4.41 41.92 29 44.10 6.96 51.05 30 23.81 21.72 45.53 31 24.69 23.90 48.59 32 17.16 16.50 33.66 33 17.07 18.10 35.16 34 18.58 21.03 39.60 Total 29.34 21.98 57.32 Tlakota Worldwide COI's. 4801 81" Street' Suite 103 Minneapolis, MN 33437 Telephone 800.475.4505 Fax 932.833.4461 ~~~ ~ .. 1 1 1 1 1 1 1 1 1 1 1 i 1 1 Bntchinsan, Mlnnssata Markel Stndq (CONOgl - Aecan6rr TB1lt) Page 61 Definitions Trade Area The area containing the majority of the population that could contribute to the sales of a store or stores located at a proposed site or sites, also referred to as the study area. Pulling Power The attraction a store exerts upon the population. Draw The portion of a store's total business that is derived from the trade area. Image Representations of stores' acceptance levels in the trade area. P.C.E. Per capita yearly expenditure for Liquor(off-sale). Float That portion of the potential within the trade area that is not captured by the identified stores. Barriers Physical or psychological obstacles that make it mare di>~icult to travel from one area to another. ADT Average Daily Traffic. Dakota WarldwldsCoro• 4801 81° Strcet, Suite 105 Minneapolis, MN 55437 Telephone 800.473.4503 Fax 952.833.4461 1 `4, r . , Hutebinaon, Minnesala Marker Study (COM007 .. December 2dd3) ~ Page 62 • Qualifier In the use of this market analysis, client acknowledges that while it believes the services to be performed hereunder by Dakota Worldwide Corporatiou will be a valuable tool in management decision-making, it also understands that an important part of said services involves subjective judgment, which is dependent upon the correctness of the information made available to Dakota Worldwide Corporatiou. Therefore, client Further acknowledges its understanding that Dakota Worldwide Corporation does not guarantee any result from the use of the analysis or other services performed hereunder, nor shall Dakota Worldwide Corporation be responsible for any loss incurred as a result of the use of said analysis or other services. Furthermore, these projections are based on the conditions identified in the survey. Any change within the trade azea, such as the opening or closing of a competitive store or changes in economic conditions, could cause significant variation between these projections and actual sales. The possibility of this occurring increases with time. C~ • Pnkota WorldwideCoID. 4801 81° Strcct, suite 105 Minneapolis, MN 33437 Telephone 800.475.4505 • Pax 952.835.4461 ~~ ~~~ '~... '~ L 1• //urehtesan, MinneaoM Markel Study (COH007 .. December 2003) Pnge 63 Souaree Data "Minnesota", Census 2000, U.S. Department of Commerce, Bureau of the Census. ",Area Statistics," Minnesota, 1997 Census of Retail Trade, U.S. Department of Commerce, Bureau of the Census. Editor & Publisher, Inc., 2003 Market Guide. Sales & Marketing Management, " 200D and 20D2 Survey of Auying Power". 2002 Population estimates, U.S. Department of Commerce, Bureau of the Census. Minnesota State Demographic Center, 2002 estimates, and 2020/2030 population projections. "PopStats", Synergos Technology. City Offices: Hutchinson and Glencoe. County Offices: McLeod County. Department of Transportation: State of Minnesota. bakota worldwide Corp. 4801 81" Strcct, 5uife ]OS Minneapolis, MN 35437 Telephone 800.475.4505 • Fax 932.835.4461 ~ ~~~ _~r ~ ~~ ,; ..__...._ m_.._..._n. _..~ ~ , . . .~ -~ .: ~, ''" /~ " Wit, ~~- e ~~ ~ ~F -~ - ~ ~ _~ ~= 16 ~ ~ ~ I s~ ~~. - _.._ .. .~ n °% _ ~~ ~._~... ~_ _ E LI x ~~ i Hutchinson _ ~~, x ~ a -, a~ N `~ M HEN r Ca 1'~1 T3 ' ~Y. s Y ~ ~ R ~ Fi I R' . ~ ~ ~ ~, i ~ ~f ry ~~ i Y J t - / ~ - `~,~t b ~~ . ~'._ ;, ,.,. r i 1.~ ~ P .~~. w. -_ --, ~ ' ' ~. ~ I ~ ~ ~ ~ a ~_• ~ .. ~ °; ~C11~ 30U ~~ ", ~ ,i+ l~+ L~ ~e a ..,,..,..._. 1"KM.h 5k ~ ~ q~ ~~ .,.' ~' ~ ~~ 1PACh Sk '~q ~. i:c hi r7 ._. ~ ~'~~ Y. v '-- ti~ ;, wJr--° ~ u~ch~c~sv~t, ~:inr~esa~ ~~~~ 1 _~lyuc~rIIralc~ °~-~uT'f~laLuk~L~gar ,~~ ~. m I..i~tcl~~ Ba~uati~ °~ - C~rtuffi Jacks _ ~ ~~ 13r~t~w~d~rl 3 _ ~l~r~wlan Iaga~aar '11- ~rawnr~lan Bar ~ C~~r11M ~l d ~vws~xrol L~ak~; laquur 111110 - 5itt: ~ _ catltl~ ~ kn~erstates '~ - ~~u' Mile Li uur prv~duc~d by Lh~lkuta Wye y Z+C~UO ~ Site _ ust~m~rs mm M~~a~d ~letrY~ ~ ~a s-, s~~t~ ~+ llw~r ~..al~e Liquor ~ _ +~~~ Ia~~sa~~, tin,+ S543i 7 LL 11'i~+ca~r Ligr~ars ~ ~ ,.....~..~~ ~, Rallrada ~~a5-a~ ~~~ ~ _.8 1~ ~~.._....... .... ~ .. _ ~ ._ ~ m. _..__ m _.._.~., ~_. .~__ _-----w~_... __ ~.. ~.~ _...~ . ~ _ ... ......... .. ..._~ _ ..~._..m.. _.... _ _.-- ......... ~ ~ ~..~.... ~ ..~.~ ~~.. ~ .. ~m~.~_. ,.r a ~ ~,...._ Gary Plotr - Li uor store - 30 foot expansion in front width inside Econo Foods a e Frvm: Gary Plotr . To: Jim Haugen Date: 5128/04 3:07PM Subject: Liquor store - 30 foot expansion in front width inside Econo Fvvds Jim, Thanks for your e-mail.. I did hear back from Tim Vogel of Nasch Flnch yesterday. The answer was $300-350,000 for the remodeling and reconstruction of the 30 feet (2,700 Square feet), plus approximately another $150,000 for the land....so his total was $450,000...that is $767 per square foot. I agree with you....that is an outrageous number! CC: Bill Arndt; Candice Woods; Council Member Casey Stotts; Kay Peterson; Ken Merrill; Mayor Marlin Torgerson; Miles Seppelt • C~ ~ ~~~ ... ,' ^ ~" barrel A. Farr ~ . DEvElt7PMEN7CD'RPDRA710N , May2g,•2004 Mr. Gary,Plvtz ' City Administrator' , City of Hutchinson ' 111 Hassan Street 5$ Hutchinson MN SS950 VIA k'ACSIMILE 320-?34-4240 1te:.Liquvr Store Prciperty - 17ear Nlr. Piatz~ , This letter shall serve as a letter of intent regarding the sale of ptop4rty by Farr Development to the• City of Hutchinson far the purpose of constructing a new munieipel ` liquor store. The property shall be +/- 1 acre in size and is located as depicted on the ~: anached Exhibit A. Farr Development will sell the propery to the City of Hutchinson at a price of three htutdred thousand dollars (5300,000AR). ,The price shall include any assessments relative to the installation of Montreal Street and providing utility stubs tc dtb prapertY ]qnt;. A, purchase agrgement shall be drafted wiihia a few'weeks with a projected closirrg date svtnetime in July. It,is understood that therewvill be cross easements among the foul ptoperties included in the new commercial development regarding the use and upkeep of driveways end parking ., areas. It is also understood that the new liquor store and the auYiounding buildings will be designed'to be in harmony with nne another. i believe that this accurately represents our previous dl§cuisions regarding this transaction. I assume that if the terms are' acceptable you will direct the city attorney to draft the necessary pwchasgagreement. hook forward to working with you and the test • of the city staff on this development. ' Si~ncerel Hwlamin Sclvnidt - ' Vicc President ' - ,''y ~ _. ^'~ - .. ' ~x(~~ ~,~ ~4' MoNrRtM.. ~CREET ~ [i !~ ' IYYY- -. _ r i '~~~, ~ ' ~ , 4 { ~ L I ~ ........_... _.__... , , ,~ ~~i j i _.._...1 g RESOLUTION NO. 12435 • RESOLUTION COMMITTING TO A DOWNTOWN LIQUOR STORE & REMODEI.TNG PR07ECT AND ACQUIRING A SECOND STORE SITE WHEREAS, the City of Hutchinson is committed to having a liquor store in downtown Hutchinson for the foreseeable future and to implement store entrance and interior improvements in 2004-2005; and WHEREAS, several communities in Minnesota have implemented atwo-store concept to preserve their downtown and maximize their "regional" market share of sales with a second store: and WHEREAS, the City's liquor store consultant, liquor store manager, city financial director and city administrator have studied the financial impact of the iwo-store concept and recommend approval; THERF,FORE BE IT RESDLVED I3Y THE CITY COUNCIL OI' TI-IE CITY OF HUTCHINSON THAT: The City Council directs city staff to: . 1) Solicit services for remodeling the downtown store and solicit public bids for such remodeling (not to exceed $100,000) to be completed in the 2004-2005 time period, and 2) Authorize purchase o1'a south store site for $300,000 (including street assessments) according to the attached agreement, subject to satisfactory platting, subdivision and cross parking design that will return to the Council for final consideration. Approved by the City Council this day of , 2004.. ATTEST: Marlin Torgerson, Mayor Gary D. Ploiz, City Administrator -l`~~ ~ CITY DF HUTCHINSON MEMO Finance Department June 4, 20D9 TO: MAYOR & CITY COUNCIL FROM: ICEN MERRILL, FINANCE DIRECTOR SUBJECT: 2005 BUDGET SCHEDULE In preparation for the 2005 budget process I would like to review with the council certain required dates and a proposed schedule. k~: \~oC\City council memo 3.doc L c [ li~ r~ ~~ CITY OF HUTCHLNSON SCHEDULE BUDGET 2005 May 30 l]PDATLD 5 Year Capital Improvement Plan due May Wage Committee begins meeting Tune 1 Budget worksheets to directors and department heads to he returned by July 15. July 15, Budget worksheets prepared and returned to finance department for fund summary of expenses and revenues 1'or preliminary budget prescntativn July -August City Council member meets with director to review department request August Directors review budget and propose adjustments to balance revenues and expenditures. preliminary numbers presented to city council. Scptcmbcr 15, City Council selects Truth ln'I'axation hearing date -City may select first or second Monday of December for first hearing date November 29, 2004 nor later than December 20, 2004. City Council sets preliminary tax levy for 2005. Certified levy can be reduced but cannot be increased fir 2005 after public hearing, (Must be certified by Scptcmbcr 15, 2004) r~ Scptcmbcr through November City council reviews budget -general fund, other gnvernmeni and enterprise funds of the City. Schedule as determined by City Council. November 10 - 24 Parcel specific notices mailed to taxpayers indicating preliminary taxes payable. Notice gives date and time of hearings by taxing district. November/ December Printed Notice not more than 6 business days prior but not less than 2 days prior to Truth-In-Hearing date established in Scptcmbcr. q(6~ • CITY OF HUTCHINSON SCiiIC!~,llULJE; BiIDCET 200.5 Page 2 December (tbd) Not less than 2 business days or more than 6 busincss days advertisement of public hearing. Dcccmber (tbd) Public Hearing December 26 Or at least 1 day alter public hearing city council adopts final 2005 tax levy and ecrtifics the amount to the McLeod County Auditor's Office & Minnesota Department of Revenue C~ (~ ~~~ CJ C Hutchinson City Center ..,,, - 111 Hassan Street sE Hutchinson, MN 35350.2522 320.387.5151/Fax 320-2344240 1'. l W.1~. 1t~ 1'11. 1.~V R._/ L.M[ • C~ TO: FROM: RE: DATE: Mayor and City Council john P. Rodeberg, Director of Engineering/Public Works Consideration of Adjusting Certain Cemetery Fees June 2, 200A As noted in John Olson's attached memorandum, maintenance needs ai the Cemetery are not being met within our current budget. More services are being demanded due to the number ofintemments, the number of weekend interments, the types of internments and grave markers requested, increased expenses, and higher labor costs. The higher labor costs are somewhat due to increased overtime pay for regular-hourly employees instead of part-lime wages related to the permanent employee laid off last year. Staffhas reviewed the rates and recommends cost increases in 5 areas that have created the majority of the extra work, or were not adjusted significantly in our last rate adjustment. As noted in the memorandum, these new rates would be proposed to start next month. Pnnmd on recycled pnper - ~ ~~~ C Phone (320) 2344219 Fax (320) 234-6971 C~ May lo, zoo4 City of Hutchinson Public Works Depatmrent Maintenance Operations 1400 Adams St SE Hutchinson, MN 55350 To: john Rodeberg, Dir. of Engr/Pub Wks From; John Olson, Asst. Pub Wks Dir. CC: Floyd Groehler, Cemetery Supv. Subject: Proposed Pee Increases -For City Council Action As part of last year's response to General Fund budget cuts, Cemetery rates were significantly increased, It has also been our practice to review our fee structure annually. This year I am recommending increases only to a few rates to be effective July 1, 2004. Floyd and I believe that with the increased rates proposed, Oakland Cemetery would be charging slightly more than average For a municipal cemetery. We believe that the services and options available at Oakland Cemetery and the high level of maintenance at the cemetery warrant above- average fees. I propose increasing Upright Memorial Grave Lots (per spare) from $600 to $700. Also, I recommend increasing interment fees (General Fund portion) for traditional interments by $50 per intermem. Interments of cremains or in the 13aby section of the Cemetery would not increase this year. These rate increases arc based on economics. Customers are demanding upright memorial grave lots; therefore additional developed upright sections will be required. The rusts oftraditivnal interments are increasing as fuel, and labor costs increase. Customers are also demanding more weekend services, which requue us to pay Overtime to employees. I recommend adopting the proposed increases to upright memorial grave lot spaces and to the traditional intcrmem fees as highlighted on the attached sheet. Should you have any questions, please contact me and/or Floyd. Thank you. R~~) Pro osed clay ~s for:240~. r~Ia~ ~; ~Q(>~ Effective Iuly 1, 2003, the Hutchinson City Council has approved the following price schedule at Oakland Cemetery. Please adjust your records accordingly. PWCE P~ Flush Marker Grave Lot -per space (Includes Perpetual Care) $30D.00 $25Q00 Upright Memorial Grave Lot -per space (Includes Perpetual Care) $600,90$700.Ob$99990$~50.00 2 Right of Imerment (sec. 3-L) $300.00 ~ $150.00 Grave Space in Baby Section (Includes Perpetual Care) $100.00 N~~,, $ 50.00 NBA Cremation Grave Space (Includes Perpetual Care) $300.00 $150.D0 Columbarium Niche Unit F (Upper 3 rows) $850.00 $850.00 (Lower 2 rows) $750.00 $750.00 Unit G (new unit) (Upper 3 rows) $1000,00 $750.00 (Lower 2 rows) $9D0.00 $675.00 Weekday Interment $560:90$550:00$100.00 Weekend and Holiday Interment $6419 U0$630.A0$100.00 Winter Weekday lntermem $t5U6:UU$650;00$100.OD Winter Weekend and Holiday Internment $766110$750-00$100A0 Weekday Baby Interment $200.00 NSN $100.00 Weekend and Holiday Baby Interment $300.00 $100.00 • Winter Weekday Baby Interment rrt Wi W k d d H lid I t $300.D0 $400 00 $100.00 $100 D0 ee en an o ay n crme nter . . WeekdayCremationIntermetrt $250.00 $]00.00 Weekend and Holiday Cremation hrterment $350.00 $100.00 Winter Weekday Cremation hnerment $350.00 $100.00 Winter Weekend and Holiday Cremation Interment $425.00 $100.00 Vaulted Cremains (additional charge) $150.00 $50.00 (May include large and/or unusual urns) Late Charge (Funerals amving after 4:00 p.m.) $100.00 •"(~To Funerals arriving after 4:3D p.m.) Disinterment $750.00 Winer Disinterment Not Allowed Weekend and Holiday Disinterment Not Allowed Holding Vault Fee (Free if Imerme~rt at Oakland Cemetery) $100.00 $100.00 Stone Setting Permit $40A0 $40.00 Cemetery Deed Transfer $15.00 $15.D0 Chapel Rental (Per''/z day -- morning or afternoon) $150.00 $SD.00 "Holidays: When a Holiday falls on a Sunday, the following day is a Holiday. When it falls on a Saturday, the preceding day is a Holiday. New Year's Day Labor Day Independence Day Martin Lusher King Day Columbus Day Thanksgiving Day President's Day Veterans Day Christmas Day Memorial Day ***Winter Rates effectivcNovember ]6`h through April 14th. q (c) r ~ L J ~~ R55APPYRV CITY OF HUTCHINSON B Check Number AP Pa ment Fie ister with Voids Check Dat 05/28/2004 Gk Date 7 e Check # Vendor Name Amount 05/28/20D4 PK 123075 " 101876 AE7NA VARIABLE LIFE ASS. CO. 935.D0 05/28/2004 PK 123076 101919 AMERICAN FAMILY INS CO. 118.16 05/28/2DOa PK 123077 101875 GREAT WEST LIFE INS. CO. 300.00 05/2$/2004 PK 123078 101872 H•R.L.A.P.R. 266.19 05/28/200a PK 123079 102633 HUTCHINSON, CITY OF 5,644.60 05/28/2D04 PK 123080 102635 HUTCHINSON, CITY OF 513.19 05/28/2004 PK 123081 101873 IGMA RETIREMENT TRUST 3,643.84 05/28/2004 PK 123082 102787 MCLEOD COUNTY TREASURER 1.65 05/28/2004 PK 123083 102x49 MINNESOTA CHILD SUPPORT PAYMEN 441.15 05/28/200a PK 123084 101914 NCPERS LIFE INS. 16.00 05/28/2004 PK 123085 101877 PRUDENTIAL 75.00 05/28/2004 PK 12308fi 102096 PRUDENTIAL MUTUAL FUNDS 30.00 11,984.78 Account N ### 11,saa.7s IMMEDIATE .PAYS ~J r1 u ~1 R55APPYRV CITY OF HUTCHINSON 13y Check Number AP Payment Register with Vvids Check ~at~ 06/04/2004 - Ck Date Type Check ~! Vendor Name Amount Void Amou O6/D4/2p04 PK 123087 " 119366 OAK CREEK RESOURCES 6,250.00 06/04/2004 PK 123088 102606 SCHMF=ZING OIL CO 8,749.13 14,999.13 Account Ni 9999.102 14,999.13 IMMEDIATE PAYS J AMOUNT $19,471.43 $iD,874.43 PAYROLL ACCOUNT -May 28, 2004 Period Ending' May 22, 2004 FOR COUNCIL LIST ONLY -ELECTRONIC TRANSFER TO STATE AND IRS DO NOT ISSUE CHECKS FOR THIS PAGE PEID ACCT# NAME 9995.2034 WITH. TAX ACCOUNT 9995.2240 8895.2242 DESCRIPTION Employee Conidbuticn -Federal Tax Employee Contributlon -Soc. Security Employee Contribution -Medicare $33,175.39 Sub-Total -Emplcyee Contributicn $10,674.43 9995.224D $3,029.53 9995.2242 $13,703.96 Sub-Total -Employer Contribution Emplcyer Contribution -Social Security Emplcyer Contribution -Medicare Grand Total -Withholding lax Account $8,642.27 8895.2035 MN DEPT OF REVENUE $iD,600.30 102615 9995.2241 PERA Emplcyee Contribution -Pension Plan $12,602.88 102615 ~ 9995.2241 Employer Contribution -Pension Plan $23,202.88 Sub-Total - PERA $15.86 102615 9995.2243 PERA-DCP Employee Contribulicn -Pension Plan $15.86 102615 9995.2241 Emplcyer Contribution -Pension Plan $31.72 Sub -Total -DCP $23,234.70 GRAND TOTAL -PERA Finance Director Approval MEMO 05127!04 TO; CITY STAFF & BANK OFFICIALS FROM: KEN MERRILL ,FINANCE DIRECTOR SUBJECT: JUNE WIRE TRANSFER The following funds need to be wired -interest payments 18, 602.50 Chase NYC ABA # 021-000-021 to credit the account of Cede & Co. c/o THE DEPOSITARY TRUST COMPANY for Dividend beposit Account # 056-026776 OBI FIELD - PA 50317950 DDA # 00503179 1992 Tax Increment Bonds 1994 Wastewater Refunding 2000 G O Temp Utility Bonds 2001 G O Temp Utility Bonds 2001C Capital Note 10.998.75 paid paid Wire from Wells Fargo 7,fi03.75 1 S,fi02.50 The following funds need to be wired - PRINGIPAL payments Chase NYC ABA # 021-000-021 to credit the account of Cede & Co. c/e THE DEP051TORY TRUST COMPANY for Redemption Deposit Account # 066-027-306 OBI FIELD - PA 50317950 1992 Tax Increment Bonds 35,000.00 1994 Wastewater Refunding paid 2000 G.D., Utility Bonds maid 35,000.00 (FAX of bond document must be made at same time for principal payment) r~ LJ • C~ R55APPYRV CITY OF H UTCHINSON B Check Number AP Pa men t Re ister with Voids Check Dat 06/08/2004 - Ck Date T e Check # Vendor Name Amcunt 06/08/2004 PK 123089 " 102202 ABDO, EICK & MEYERS 11,625.00 06/06/2004 PK 123090 102126 ACE HARDWARE 1,444.83 06/08/2004 PK 123091 102217 AEM MECHANICAL SERVICES, INC 541.89 08/08/2004 PK 123092 101827 AG SYSTEMS 83.98 06/06/2004 PK 123093 120301 ALCOPRO 1,200.00 06/08/2004 PK 123094 108765 ALEXANDRIA TECHNICAL COLLEGE 300.00 06/08/2004 PK 123095 101847 AMERICAN PAYMENT CENTERS 76.00 06/08/2004 PK 123096 102430 AMERIPRIDE LINEN & APPAREL 254.01 06/08/2004 PK 123097 120311 ANDERSON, MICHAEL 59.25 06/08/2004 PK 123098 108778 AOAC INTERNATIONAL 100.04 06/08/2004 PK 123099 111041 ARROW TERMINAL LLC 20.01 06/08/2004 PK 123100 102260 ASHBROOK 9,378.94 06/08/2004 PK 123101 103032 ASPEN EQUIPMENT CO 878.63 06/08/2004 PK 123102 102480 B. W. WELDING 798.00 06/08/2004 PK 123103 102207 BACHMAN'S 1,220.17 06/08/2004 PK 123104 120306 BAUER, SARA 200.00 06/08/2004 PK 1231 D5 102943 BAUERLYCOMPANIES 8.31 06/08/2004 PK 123106 102943 BAUERLY COMPANIES 235,699.34 06/08/2004 PK 123107 102039 BENNETT pFFICE TECHNOLOGIES 15.9$ 06/08/2004 PK 123108 101916 BERNICK COMPANIES, THE 711.05 06/08/2004 PK 123109 113020 eOCK, CINDY 21.99 06/08/2004 PK 12311 p 120309 BOLL, JAMES 20.00 06/08/2004 PK 123111 102729 BOLTON & MENK INC. 13,298.68 06/08/2004 PK 123112 101987 BRANDON TIRE CO 118.69 06/08/2004 PK 123113 114793 BRIEST, JERRY 250.00 06/08/2004 PK 123114 102136 BUSINESSWARE SOLUTIONS 131.25 06/08/2004 PK 123115 102456 C & L DISTRIBUTING 31,674.60 06/08/2004 PK 123116 120321 GALGPRO, INC 67.20 Ofi/08/2004 PK 123117 102083 CAMERA SHOP 5.50 06/08/2004 PK 123118 120293 CAREY, MICHAEL 8.75 06/08/2004 PK 123119 103100 CARTER, RON 49.83 O6/08/2004 PK 123120 103014 CDI OFFICE PRODUCTS LTD 220.40 06/08!2004 PK 123121 104391 CENTRAL HYDRAULICS 1,357.08 06/08/2004 PK 123122 104163 CHIEF SUPPLY GORP 202.87 06/08/2004 PK 123123 103642 CHRISTENSEN PIANO SERVICE 95.00 06/08/2004 PK 123124 105423 CINDY'S HOUSE pF FLORAL DESIGN 36.74 06/08/2004 PK 123125 102179 GLAREYS SAFETY EQUIP 181.49 Ofi/08/20D4 PK 123126 102741 COBORN'S INCORPORATED 572.58 06/08/2004 PK 123127 102213 COMMISSIONER OF TRANSPORTATION fi0.D0 06/08/2004 PK 123128 117879 CORNWELLTOOLS 63.90 06/08/2004 PK 123129 102464 CORPORATE EXPRESS 18.64 06/08/2004 PK 123130 103123 CRONATRON WELDING SYSTEMS INC 268.00 06/08/2004 PK 123131 103139 D2 SERVICES 742.25 06/08/2004 PK 123132 102836 DAIRY QUEEN 30.00 06/08/2004 PK 123133 102488 DAY DISTRIBUTING 4,208.95 O6/0$/2004 PK 123134 108852 DEAL, BOB 60.00 06/08/2004 PK 123135 102698 DEVRIES, RANDY 98.88 06/08/2004 PK 123136 119939 DEX MEDIA, INC 437.90 ~ ~ LJ r~ L J 06/08/2004 PK 123137 104084 DONOHUE & ASSOC 3,408.33 06/0$/2004 PK 123138 102275 DPC INDUSTRIES ING 532.74 06/08/2004 PK 123139 102236 DUININCK BROS INC. 1,417.57 06/08/2004 PK 123140 102647 DYNA SYSTEMS 328.36 06/08/2004 PK 123141 105467 EAGLE LEGAL SERVICE 94.00 06/08/2004 PK 123142 102354 ECONO FOODS 61.56 06/08/2004 PK 123143 102326 ELECTRIC MOTOR CO 432.39 06/08/2004 PK 123144 104085 ELECTRIC MOTOR SERVICE 430.26 06/08/2004 PK 123145 102356 ELECTRO WATCHMAN 300.34 06/08/2004 PK 123146 105535 ELEMENT K JOURNALS 174.00 Ofi/0$/2004 PK 123147 117095 EMSL ANALYTICAL INC 210.00 06/08/2004 PK 123148 102360 ERLANDSON, BEN 700.00 06/08/2004 PK 123149 102223 FARM-RITE EQUIPMENT 1,843.35 Ofi/p8/2004 PK 123150 104137 FASTENALCOMPANY 51.02 06/08/2004 PK 123151 102808 FOGG JR., MICHAEL 280.00 06/08/2004 PK 123152 102526 G & K SERVICES 2,007.95 06/08/2004 PK 123153 101945 GALL'S INC 233.22 06/08/2004 PK 123154 1202$4 GAVIN, OLSON, SAVRE ~ WINTERS, 2,800.00 06/08/2004 PK 123155 105021 GENERAL TRADING CO 149.58 06/08/2004 PK 123156 103029 GLENCOE ENTERPRISE 110.00 06/08/2004 PK 123157 109369 GOLDEN WEST INDUSTRIAL SUPPLY 191.41 06/08/2004 PK 123158 105159 GOODPOINT TECHNOLOGY 6,480A0 06/08/2004 PK 123159 102525 GOPHER STATE ONE-CALL INC 347.30 06/08/2004 PK 123160 101893 GRAHAM, MARION so.ao 06/08/2004 PK 123161 102087 GRAINGER PARTS OPERATIONS 37.70 06/08/2004 PK 123162 105562 GRANIT BRONZ 821.11 06/08/2004 PK 123163 102025 H&L MESABI 132.86 06/08/2004 PK 123164 702529 HACH COMPANY 191.75 06/08/2004 PK 123165 120322 HAMRE, ED 1,922.00 06/08/2004 PK 123166 114376 HAUGEN, JAKE 34.97 06/08/2004 PK 123167 103059 HEMMAH, LLOYD 220.00 06/08/2004 PK 123168 102531 HENRYS FOODS INC 907.61 Ofi/0$/2004 PK 123169 101915 HERMEL WHOLESALE 741.26 06/08/2004 PK 123170 102518 HILLYARD FLOOR GARE/HUTCHINSON 308.01 06/08/2004 PK 123171 105080 HIRSHFIELD'S DECORATING CENTER 151.16 06/08/2004 PK 123172 102119 HOLT MOTORS INC 1,025.0$ 06/08/2004 PK 123173 11492$ HOLT TOURS 81.00 06/08/2004 PK 723174 108389 HUTCHINSON AUTO CENTER 283.85 06/08/2004 PK 723775 102530 HUTCHINSON CO-OP 11,508.35 06/08/2004 PK 123176 102537 HUTCHINSON LEADER 3,907.71 Ofil08/2004 PK 123177 102539 HUTCHINSON MANUFACTURING 2,207.46 06/08/2004 PK 123178 102538 HUTCHINSON MEDICAL CENTER 240.00 06/08/2004 PK 123179 102541 HUTCHINSON TELEPHONE CO 8,470.84 06/08/2004 PK 123180 105161 HUTCHINSON UTILITIES 42,877.12 06/08/2004 PK 1231$1 102543 HUTCHINSON WHOLESALE 1,563.91 06/08/2004 PK 123182 101869 HUTCHINSON, CITY OF 61.80 06/0$12004 PK 123183 102038 HUTCHINSON, CITY OF 165,000.00 06/08/2004 PK 123184 103246 HUTCHINSON, GITY OF 9,126.63 06/08/2004 PK 123185 105160 HUTCHINSON, CITY OF 12,117.94 06/08/2004 PK 1231$fi 102549 ISCO INC 676.28 06/08/2004 PK 123187 102062 JACK'S UNIFORMS & EQUIPMENT 2,376.50 06/08/2004 PK 123188 111836 JACOBSEN, SEPTEMBER 19.25 ~J C~ • r 1 LJ 06/08/2004 P K 123189 115855 JEFF MEEHAN SALES INC. 16,035.44 06/08/2004 P K 123190 101938 JOHNSON BROTHERS LIQUOR CO. 1,621.05 06/08/2D04 P K 123191 102555 JUUL CONTRACTING CO 1,853.00 D6/08/20D4 P K 123192 102244 KALENBERG TRUCKING 5,240.00 O6/DS/2004 PK 123193 105154 KILIAN, ERIC 2DO.OD 06/08/2004 PK 123194 105521 KINNEY & LANCE 77.00 06/08/20D4 PK 123195 102466 KKLN 1,000.00 06/08/2004 PK 123196 102153 KOEHLER, ANNETTE 45.00 06/08/2004 PK 123197 120122 KOSEK, JEFF 436.08 OB/08/2004 PK 123198 iD5697 KQIC-01D2 626.00 06!08/2004 PK 123199 114382 L & G PRODUCTS 100.00 06/08/2004 PK 12320D 102561 L & P SUPPLY GO 818.12 06/08/2004 PK 123201 101976 LAKESIDE EQUIPMENT CORP 10,965.24 06/08/20D4 PK 123202 113892 LANDSCAPE CONCEPTS, INC 42.59 OB/D8/2004 PK 123203 105525 LANp EQUIPMENT OF NORWOOD 229.78 06/08/2004 PK 123204 101974 LENNEMAN BEVERAGE DIST. INC 2,579.25 06/08/2004 PK 123205 120314 LINGL, MARK 80.00 06/08/2004 PK 12320fi 1D1984 LOCHER BROTHERS INC 17,065.40 D6/OB/2004 PK 123207 102145 M-R SIGN 145.12 06/DS/20D4 PK 123208 102572 MANKATO M061LE RADIO 3,277.78 06/08/2004 PK 123209 118874 MCCLURE, LISA 97.50 06/08/2004 PK 123210 102995 MCLEOD COUNTY ATTORNEY 122.40 06/08/2004 PK 123211 102489 MCLEOD CDUN7Y COURT ADMINISTRA BO.OD 06/08/2004 PK 123212 102489 MCLEOD COUNTY COURT ADMINISTRA 6D.00 06/08/2004 PK 123213 102489 MCLEOD COUNTY COURT ADMINISTRA 60.00 08/08/2004 PK 123214 102489 MCLEOD COUNTY COURT ADMINISTRA 60.D0 D6/08/2004 PK 123215 102489 MCLEOD COUNTY COURT ADMINISTRA 60.D0 06/08/2004 PK 123216 102489 MCLEOD COUNTY CDURT ADMINISTRA 60.00 06/08/2004 PK 123217 118072 MCLEOD COUNTY TREASURER 620.00 D6/0$/2004 PK 123218 119507 MCMONAGLE, MILES 7,000.00 06/0$/2004 PK 123219 102064 MCRAITH, JOHN 270.41 Ofi/08/2004 PK 123220 116868 MD7 341.25 06/08/2004 PK 123221 104985 MEEKER COUNTY RECORDER 20.00 06/08/2004 PK 123222 112400 MENARDS - HUTCHIN50N 542.79 06/OS/2D04 PK 123223 101889 MID-MINNESOTA HOTMIX INC 418.39 06/08/2D04 PK 123224 104957 MIKE CRAVES TRUCKING 5,473.78 06/08/2004 PK 123225 120123 MILLER TRUCKING 273.00 06/08/2004 PK 123226 120308 MILLER, JOSH 60.00 06/0$/2004 PK 123227 102575 MINI 81FF 69.57 06/08/2004 PK 123228 108403 MINNCOR INDUSTRIES 537.95 06/08/2004 PK 123229 102668 MINNESOTA CHAPTER IAAI 25.00 06/D8/2004 PK 123230 119358 MINNESOTA DEPT OF ADMINISTRATI 37.00 DB/D8/20D4 PK 123231 113190 MINNESOTA PLANNING OFFICE OF B 40D.OD 06/08/2004 PK 123232 102583 MINNESOTA VALLEY TESTING LAB 890.50 06/08/2004 PK 123233 1203D4 MINNESOTA ZEPHYR 200.00 06/08/2004 PK 123234 120302 MUCHOW, CHAD 63.00 06/08/2004 PK 123235 103021 MUSCO SPORTS LIGHTING INC 16,313.67 06/08/2004 PK 123236 116399 NATIONAL WATERWORKS 1,551.56 06/08/2004 PK 123237 118653 NORTHERN BALANCE & SCALE 1,006.00 06/08/2004 PK 123238 102591 NORTHERN STATES SUPPLY INC 360.31 06!08/2004 PK 123239 120307 NORTHLAND BUSINESS SYSTEMS 699.62 06/08/2004 PK 123240 119452 NORTHLAND CHEMICAL CORP 16021 r 1 LJ ~ ~ LJ 06/08/2004 PK 123241 703596 OLSON, BRAM 134.00 Ofi/0$/2004 PK 123242 102463 DTTO ASSOCIATES 10,107.00 06/08/2004 PK 123243 104429 PALMBY, THOMAS 15.93 06/08/2004 PK 123244 10$859 PARTS ASSOCIATES INC 68.26 06/08/2004 PK 123245 102746 PAULSEN, CURT 44.99 06/0$/2004 PK 123246 101853 PHILLIPS WINE & SPIRITS 640.90 06!0812004 PK 123247 102656 PIONEER 969.15 06/0$/2004 PK 123248 105520 PONATH CONSTRUCTION 13,292.00 06/08/2004 PK 123249 102445 PDSTMASTinR 555.00 06/08/2004 PK 123250 102445 POSTMASTER 555.00 06/08/2004 PK 123251 120318 PRAIRIE WILD ENTERPRISES, INC 3,887.72 06/0$/2004 PK 123252 120297 PRICE ENVIRONMENTAL, LLG 3,796.80 Ofi/OB/2004 PK 123253 101862 PRINTS CHARMING 332.00 06/08/2004 PK 123254 103931 PUMP & METER SERVICE 1,598.0$ 06/08/2004 PK 123255 102052 QUALITY WINE & SPIRITS CO. 8,750.28 06/08/2004 PK 123256 1030fi1 DUEEN OF EXELSIOR 1,556.18 Ofi/08/2004 PK 123257 113326 RAININ INSTRUMENT, LLC 59.84 06/08/2004 PK 123258 102384 RDO EQUIPMENT 85.31 06/08/2004 PK 123259 120312 RENTAL LOCATORS OF MN 47.71 06/08/2004 PK 123260 105266 RESEFiVEACCOUNT 1,774.00 06/08/2004 PK 1232fi1 104149 RIVER VALLEY TRUCK CENTERS 237.53 06/08/2004 PK 123262 120131 ROLANDER, SUSAN 91.50 06/08/2004 PK 123263 102225 RUNNING'S SUPPLY 1,140.27 06/08/2004 PK 1232fi4 102600 RUTZ PLUMBING & HEATING 10.52 06/08/2004 PK 123265 102436 SARA LEE COFFEE & TEA 92.80 06/08/2004 PK 123266 104278 SCENIC HOMES 120.00 06/08/2004 PK 123267 102606 SCHMELING DIL CO 279.15 06/08/2004 PK 123268 109801 SCOTT'S WINDOWS 42.60 06/08/2004 PK 1232fi9 101892 SEH 62,841.18 06/08/2004 PK 123270 103037 SHAMROCK GROUP 908.50 06/08/2004 PK 123271 702719 SHAW, KAREN 160.00 06/08/2004 PK 123272 102609 SHOPKO 185.28 06/08/2004 PK 123273 102610 SIMONSON LUMBER CO 74,404.59 06/08/2004 PK 123274 120315 SIMPLOT PARTNERS 76.92 06/08/2004 PK 123275 101909 SNAP-ON INDUSTRIAL 113.34 06/08/2004 PK 723276 702611 SORENSEN'S SALES & RENTALS 522 06/08/2004 PK 123277 102242 SRF GONSULTING GROUP 2$,676.14 06/08/2004 PK 123278 102041 ST. CROIX RECREATION CO 16,821.68 06/08/2004 PK 123279 103949 ST. PAUL, CITY OF 400.Op 06/0$/2004 PK 123280 120310 STANDARD SIGNS INC 171.88 06/08/2004 PK 123281 110990 STARKE, MELISSA 35.01 06/08/2004 PK 123282 102744 STATE OF MINNESOTA 61.20 06/08/2004 PK 123283 103062 STEPP MFG CO INC 339.69 06/0$/2004 PK 123284 119799 STEVE'S OK SERVICES 2,259.88 06/08/2004 PK 1232$5 112262 STEWART ENERGY PRODUCTS 3,333.75 06/0$/2004 PK 123286 120303 STRAIGHT LINE DRAFTING & DE$IG 255.00 06/08/2004 PK 1232$7 118862 STRATEGIC EQUIPMENT 238.25 06/08/2004 PK 123288 105103 SUBWAY-SOUTH 20.45 06/08/2004 PK 123289 118343 SW METRO DRUG TASK FORCE 401.80 06/08/2004 PK 123290 102659 TEK MECHANICAL 50.48 06/08!2004 PK 123291 119545 TIBBITS ENGINEERING, P.A. 130.00 06/08/2004 PK 123292 101843 TKDA 3,711.61 ~ 1 ~J 06/08/2004 PK 123293 119159 TOTAL FIRE PROTECTION 37.28 06/08/2004 PK 123294 117924 TRAF-O-TERIA SYSTEM 125.71 06/08/2004 PK 123295 102620 TRI CO WATER 237.92 06/08/2004 PK 123296 102406 TRICK & SHEER CONSTRUCTION 15,337.50 06/08/2004 PK 123297 102619 TWO WAY COMM INC 159.59 06/08/2004 PK 123298 102824 UNITED BUILDING CENTERS 1fi7.24 06/08/2004 PK 123299 103210 USA BLUE 600K 844.80 06/08/2D04 PK 123300 120305 VANDESTEEG, SHANA 2D.00 D6/DB/2DD4 PK 123301 120313 VERGIN, TODD 54.00 06/08/2004 PK 123302 1D2132 VIKING COCA COLA 216.75 O6/08/20D4 PK 123303 101857 VIKING OFFICE PRODUCTS 25.91 06/08/2004 PK 123304 119479 VOLM BAG COMPANY, INC 22,179.06 06/OS/20D4 PK 123305 105122 WASTE MANAGEMENT 44,868.63 O6/08/20D4 PK 123306 120323 WENDOLEKTRUCKING 1.401.20 06/08/2004 PK 123307 102639 WEST PUBLISHING PAYMENT CTR 129A0 06/08/2004 PK 123308 120319 WINGRATECHNOLOGIES 1,080.00 06/08/2004 PK 123309 1D3450 WINZER CORP 124.30 06/08/2004 PK 123310 102640 WM MUELLER & SONS 6,949.13 06/08/2004 PK 123311 119211 WORK CONNECTION, THE 566.25 06/08/2004 PK 123312 102632 XEROX CDRP 652.48 06/08!2004 PK 123313 103849 YORK INTERNATIONAL CORP 1,465.00 06/08/2004 PK 123314 1D5571 ZEP MANUFACTURING CO 259.93 989,951.06 Account N # 989951.06 r, ~J L J