DRAFT – These minutes are not official until approved at the next regular City Council meeting.

City of Bigfork

Special Meeting April 18, 2006

Members Present: Mayor Amy Tendrup, Jean Lexvold, Amy Pifher, Dick Salmi and Lonnie Kacon Absent: none Also Present: David Asher, Gene Collins, Dan Infante, Public Works Superintendent Mark Maki, Gus David, Fred Tanner, Roger Logdahl, Warren & Caroline Welch, Gus David, Bob Zimmer, Jay Porter and Robert Johnson

Mayor Tendrup called the special meeting to order at 6:00 p.m. and stated that the purpose of the meeting was to review proposals for the liquor store building. Tendrup noted that two sealed bids were received before the due date and a third proposal had come in after the due date.

Tendrup opened the two sealed bids that were received and requested that Storlie make copies for the Council and City Attorney Andy Shaw. Tendrup then requested that each bidder speak to their offer.

The first offer was from Fred Tanner who stated that he has much experience in the operation of both on- and off-sale liquor facilities. He has purchased municipal liquor stores in the past. He currently operates The Wilderness Pub located on Highway 38 near Grand Rapids. Tanner explained that his offer was $135,000 on a contract for deed. He proposed a $10,000 down payment, monthly payments of about $970 and an additional $2,500 per year for four years with a balloon payment of $83,000 at the end of ten years. The total amount that the City would receive would be $145,000 and it would take ten years to collect this. Tanner stated that his facilities cater to all age groups and he runs clean liquor establishments. Offensive language is kept to a minimum, drugs of any kind are not allowed and the facility is kept clean, inside and out. All of their employees are trained in liquor dispensing. Tanner stated that his operations participate in charitable gambling and he is very supportive of community events and needs. He noted that he would not be interested in pursuing Sunday liquor at this time. Shaw reviewed that the Council had voted at their meeting on April 11th to require a thirty percent down payment on a contract for deed. As Tanner was unaware of this change in the requirements, Shaw asked if he would be willing to revise his proposal to accommodate this. Tanner stated that it was a possibility that he would do so. Tendrup asked what kind of timeframe Tanner would be looking at if his offer were accepted. Tanner responded that he would like to move as quickly as possible to be open for business by fishing season. He acknowledged that the liquor licensing process takes time and this goal may not be possible to meet. Shaw questioned if Tanner’s offer was contingent upon him being granted a liquor license and Tanner stated that he would like it to be, adding that he has never had a problem in the past receiving licenses from either city or county governments. Pifher asked if Tanner would be interested in purchasing the remaining liquor inventory and Tanner indicated that he would probably not be. Tanner thanked the Council for the opportunity to submit his offer and Storlie for her help during the process.

Dan Infante was next to speak to his offer. He plans on opening the facility as an off-sale and on-sale operation. He is offering $165,000 cash for the building and inventory, contingent upon being able to obtain a liquor license. Infante spelled out a few other requirements including survey work to clearly delineate property lines, start up of all refrigeration equipment to ensure it is in working order, a one month guarantee on all mechanical equipment, and a warranty that the roof currently does not leak and that all plumbing is currently in working order. Infante stated that he plans to bring people and revenue into the City. He plans on keeping employment here in the City of Bigfork rather than bringing in outside labor. He noted that he would run a clean liquor establishment. They will have music and events as often as possible. Children will be allowed until 9:00 pm as long as they are accompanied by an adult. He would like to be open seven days a week. A sports bar type atmosphere is planned. Infante indicated that he would like to eventually expand and have a fireplace/lounge area for relaxing. Salmi asked about inventory and Infante repeated that his offer of $165,000 includes the inventory. Tendrup asked Infante if he was aware that Sunday liquor would be up to a vote of the residents of the City and he responded that he was aware of this. Zimmer asked if not being able to have Sunday liquor would be a detriment. Infante answered that, while he would certainly like to be open seven days a week, it would not break him financially if the residents of the City voted against allowing Sunday liquor sales. David asked if Infante would be willing to wait for a general election to present this question to the voters, as a special election can be costly and Infante responded that he would be willing to wait. Gene Collins asked Infante to clarify if his offer was for cash and Infante answered that it was, adding that he had submitted his earnest money tonight and the balance would be due at closing. David Asher stated that he liked the idea of a sports bar and felt it would be a good addition to the City. Shaw noted that Infante’s offer asks that the City guarantee all mechanical equipment in working order for a period of one month from closing. Shaw felt it was more appropriate for the City to guarantee it in working order as of the date of closing. David asked if there had been problems with a compressor and Public Works Superintendent Mark Maki answered that one compressor had been replaced recently. Shaw asked if the roof leaked and Maki answered that he had repaired one leak last fall near a vent stack and that was the only problem he was aware of. Shaw questioned if there were any plumbing problems and Maki responded that, to the best of his knowledge, all plumbing was in working order. Pifher wanted to know Infante’s timeline if his offer were to be accepted. Infante answered that he would like to be open by fishing season. Shaw questioned if Infante had begun the liquor licensing process. He has not yet as there is no need to if his proposal is not accepted.

David asked if we would be eligible for grants if we had a lump sum of money like this in the bank. Shaw did not feel this was an issue.

David questioned if the remaining inventory could legally be sold to someone else if the Council were to accept Tanner’s offer. Shaw has researched this and believes that the liquor can be sold to anyone holding a valid retailer’s card from the State.

Tanner asked if the Council would be granting any other off or on-sale licenses. Tendrup explained that the City has the authority to issue up to three licenses, and could not state at this time if they, or a future Council would grant them or not. Tanner stated that Infante’s offer was a good one both for him and the City and congratulated him on it.

Shaw noted that the Council must determine if either of these are offers they are interested in pursuing. Tendrup asked the Council if either offer was one they would like to consider further or accept. Salmi asked about the third proposal. Shaw noted that unless the Council voted at this time to change the guidelines they had set forth at the previous meeting, they should not consider the proposal as it was received after the established due date. He further stated that the two proposals on the table were very comparable offers. When considering potential interest received, the amount the City would realize from each offer was virtually the same. The question for the Council is whether they want the money up front or if they want a contract for deed.

Pifher made a motion to accept Infante’s offer of $165,000 cash and to require Infante to enter into the form of purchase agreement previously prescribed by the Council, seconded by Salmi, motion carried unanimously.

Mayor Tendrup adjourned the meeting at 6:44 p.m.

Angie Storlie City Clerk

These minutes are available on the City website at www.cityofbigfork.com. To sign up to receive the minutes by email, send your email address to ctyclerk@bigfork.net.