HomeMy WebLinkAboutItem 1City of Lakeville
Administration Department
Memorandum
To: Mayor and Members of the City Council
From: Allyn Kuennen, Assistant City Administrator
Copy: Justin Miller, City Administrator
Date: August 26, 2019
Agenda Item: Liquor Operations Market Study
Earlier this year the City Council hired the Shenehon Company to complete a liquor operations
market study to analyze the effects of adding a fourth municipal liquor store within the city.
The attached report from Shenehon includes a market analysis for the addition of the fourth
store including an examination of the Keokuk Avenue location, where the fourth store is
proposed to be constructed, the size and timing of construction, the potential impacts to the
existing three stores, the estimated sales for all four stores for five years post construction, and
a SWOT analysis of each location to optimize operations if a fourth store is constructed.
In addition, Shenehon specifically analyzed the Keokuk Avenue location to ensure full
utilization of the site including an evaluation of owning vs. leasing, standalone store vs.
attached to a multi-tenant retail center, and an analysis of optimal partners and retailers to
maximize profits.
The Liquor Committee reviewed the report with staff and representatives from the Shenehon
Company at their August 20th meeting and recommend the City Council move forward with
preparing the following information for further consideration:
• Prepare the necessary documents to obtain design, architectural and construction cost
estimates.
• Prepare an RFP to obtain proposals for the development of a possible multi-tenant retail
center adjacent to the liquor store.
The Liquor Committee also reviewed the tentative schedule for constructing the Keokuk Store
with the design and bidding process occurring in 2020, construction beginning early Spring of
2021, and the store operational by November.
Staff and representatives from the Shenehon Company will be available at the work session to
review the attached market study and to discuss the next steps. If you have any questions
before then, please contact me.