HomeMy WebLinkAboutItem 06.h
Date: Item No.
LIQUOR OPERATIONS MARKET STUDY
Proposed Action
Staff recommends adoption of the following motion: Move to approve a contract with the Shenehon
Company to complete a liquor operations market study.
Overview
A request for proposals for a market study was publicly advertised and forwarded to six
market/financial analysis firms in February. Many of the firms indicated they were not familiar enough
with municipal liquor operations or not qualified to complete a market study. However, the City did
receive a proposal from Shenehon Companies, a very well-known company that has completed similar
studies for various cities and private retailers throughout the metro area.
The proposal from Shenehon includes a market analysis for the addition of a fourth liquor store
including an examination of the Keokuk Avenue location, size and timing of construction, the potential
impacts to the existing three stores, estimated sales for all four stores for three years post construction
and a SWOT analysis of each location to optimize operations if a fourth store is constructed.
In addition, Shenehon will specifically analyze the Keokuk Avenue location to insure full utilization of
the site including an evaluation of owning vs. leasing, standalone store vs. attached to a multi-tenant
center and an analysis of optimal partners and retailers to maximize profits.
The Liquor Committee at their April 22nd meeting reviewed the Shenehon proposal and recommended
moving forward with the market study. The fee to complete the study is proposed not to exceed
$46,500.
Primary Issues to Consider
What is the schedule to complete the study?
• A draft of the study is proposed to be completed for review by the City Council at the July work
session, followed by a final report presented to the City Council at a regular meeting in August.
Supporting Information
• Shenehon proposal and contract.
Financial Impact: $ Budgeted: Y☒ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Allyn G. Kuennen
May 6, 2019
46,500 Liquor Operations Fund