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Liquor store issue not settled yet

Jason Ferguson
Published: Wednesday, November 4th, 2009

 

The City of Custer’s liquor store was put back on the chopping block at Monday night’s regular meeting of the Custer City Council, when alderman Ed Starr requested a vote that would once again close the liquor store by the end of this year.

Before calling for the vote, Starr gave each council member and those in the audience a handout in which he reiterated his belief that the city could make more money if it were to sell the property and get out of the liquor business.

“I still come to the conclusion we can replace revenue and sell assets,” he said. “I’m comfortable saying it’s the right idea. We can make more by closing the liquor store.”

Starr’s handout laid out a plan for closure of the store, which he said could eventually help lower taxes in the city, while making more than the current liquor store profit of $30,000 a year through increased sales tax, while cutting expenses associated with the store.

“The selling of the store solution guarantees the city big income annually, and follows our belief of smaller government,”â��the letter said.

Mayor Harold Stickney said he objected to the vote, saying he still had a desire to hear from the public as to what it wants the city to do, whether it be through a survey or vote. Starr said he has heard from only two people in his ward who wanted the store to stay as is. Stickney said he has heard from many who want the store to remain in place.

“I object to this. We still don’t know what the people want,”â��Stickney said.

Alderman Terry Reetz sided with Starr, saying in looking at the liquor store figures, he believes the store only clears about $1,000 in profit.

“We can do so much more if we get out of (the business),” he said.

Stickney disputed Reetz’s claim the store only makes $1,000, saying an audited financial report shows the store made a profit of $27,000 in 2007.

When the vote was taken, Starr, Reetz and Patty Ressler voted to close the store, while Steve Pischke, Duane Murphey and Karen Schleining voted against it. Before the vote, Schleining said she was not comfortable with voting to close the store because a vote to close the store was not on the agenda. Stickney broke the tie with a no vote.

“Tell me why I’m wrong,” Starr said. “No one ever tells me that.”

“I want the public to get adequate notice,”â��Murphey said.

The council agreed to take up closing the liquor store at its next regular meeting, Nov. 16. Doing so will allow the public time to come to the meeting to speak on the issue should they choose to do so.

In other news, the council tabled the second reading of an ordinance that would regulate taxis in the city while city attorney Chris Beesley gathers information on the wording of background checks for potential drivers.

Starr also requested that Beesley see if a part of the proposed ordinance that requires all drivers to be able to read and write in English is legal. Beesley said it was, and urged the council to keep that language in any ordinance. He used a scenario in which someone who was picked up needed to go to the hospital and told what street the hospital was on, but if the person could not read the street signs, it could be an issue in which the city could eventually incur some liability.

Starr agreed that could be an issue, but still felt it might be illegal to discriminate in that way.

“I’m not talking about common sense,”â��he said.â��“I’m talking about the law.”

In other news, the council:

• Passed a resolution asking for the partnership of the South Dakota Department of Transporation on replacing the current downtown lighting with the antique lighting the city plans to do as part of the downtown Tax Increment Finance (TIF)â��improvements. The resolution offers to pay 50 percent of the cost of the new lighting.

Although the DOT�does not have any money at the present time to help with the project, passing the resolution could help get money if any is freed up at the state level. If the DOT�does not help with the lighting, it will still proceed as planned under the proposed TIF.

The rest of Monday’s council meeting will be covered in next week’s issue of the Custer County Chronicle.

 



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Current Comments

6 comments so far (post your own)
Ashley
November 5th, 2009 at 10:04am

Selling the liquor store is not a good idea. Starr seems to think that selling it will do the trick. Well lets think about this people, how many buildings in Custer are still abandon? Also, this isn't the time that people are going to be buying property. So lets say we sell it, thats one more building that is going to be abandon and not make ANY profit. We should leave good enough alone.

Former Resident
November 5th, 2009 at 10:58am

It sounds like Starr and Reetz, like to pick fights a these meetings. the Store not only makes a profit, but it also collects the city sales tax. So to say they would make more in sales tax by selling the store is wrong. I am not a fan of municipals competing with local businesses, but Mr. Starr's comments are wrong.

Custer Resident
November 14th, 2009 at 21:03pm

I know Custer is a bit backward at times, but how would the local restaurateurs feel if the city decided to open a restaurant? How would the local gas station owners feel if the city decided to open a gas station? The local city government should not be in the business of competing with local businesses. Government should not be a for-profit enterprise. It doesn't matter which option makes the city more money. What should matter is which option preserves the "for the people" requirement of government. Close the city-owned store and let the free market run its course.

Grace
November 20th, 2009 at 00:15am

The city has no business competing with other local businesses, particularly while they make the rules to be followed to thier advantage.

A Full Time Custer Resident
November 20th, 2009 at 10:31am

I have a hard time believing that the residents of Custer would want to give up over $100,000 in liquor fees and replace it with property taxes. The City is the wholesale distributor for all the liquor sold in Custer, with a 10% markup. If the City gives up it's liquor license, they would be out of the wholesale business and would only collect sales tax (which they already do) on liquor sold in the City. If they keep the license and close the store, the two remaining off site license holders would need to increase sales by around $600,000 just for the City to breakeven. Lynns sells about 100,000 a year and County Market is around 10,000 a year. Because the City marksup all liquor by 10% there is no disadvantage for any on site or off site license holders. The City is in a number of businesses hospital, nursing home, water, sewer, and construction that could be done by private businesses. If it in the best interest of the community they should stay in the liquor business

Not a wealthy snowbird
December 18th, 2009 at 12:41pm

Why is a group of part time Custer residents so convinced that the liquor store should close? Why do they have Ed Starr in their pockets? Check into it.

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