Attachment 16rM�Tt� R Attachment #1 6-r
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Chanha", S.S.16,". Proposal could shake up liquor
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Photo by Richard Crawford
Proposed site
Total Wine & More is proposed for a 2.7 -acre site located in the Village on the Ponds development just south of Houlihan's. The proposal
calls for a 19,909 -square -foot building with road and sidewalk improvements.
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Chanhassen liquor stores
(Df-maleintoxicating licenses)
Byerly'sWine & Spirits, 78OWest 78t
Century Wine & Spirits, 288QWest 78t
Cheers Wine & Spirits, 53OWest 79t
HaskaU's.108UOWest 78th
MGM Liquor Warehouse, 7856 Market Blvd.
The Vintage, 8Q71 Crossroads Blvd.
Wine and Spirits et7&41.24O1Highway 7
Posted: Wednesday, July 1.2O154:3Opm
By Richard Crawford
A proposal for a new liquor store in Chanhassen could have ripple effects beyond city borders. It
certainly caught the attention of Chaska liquor store owners earlier this week.
Developer Venture Pass Partners, which previously came before Chanhassen city officials with
a proposal for a specialty grocery stone in Village on the Ponds, is scheduled to be in front of the
Chanhassen Planning Commission July 7vvith a proposed 19.9O9-square-hootTotal Wine &
More store at the same location. The store would be more than twice the size of the largest
liquor store currently in the city. The site is a vacant lot at the northwest corner of Mein Street
and Lake Orive, which is immediately south of Highway 5.
The specialty grocery store — believed to be o Trader Joe's —did not move forward after it was
discovered that the specialty grocery wasn't allowed Onthe site due tOause restriction involving
the lease ofnearby LakewindsFoods.
Even before being heard at Chanhassen City Hall, the liquor proposal was a topic of
conversation atChaska City Hall June 29 during discussion ofapossible liquor store atthe
SuperTarget onHighway 41 in Chaska.
Chaska liquor store owners are not only worried about the effects a liquor store at Target could
have on their business, but also referenced the impact Total Wine could have if it opens in
Chanhassen.
"We'refacing some competitive pressures today with the advent ofTotal Wine and some Ofthe
big box retailers that really come into our market with the economic clout to make e mockery of
the three -he[ system of distribution that we all operate under, 11 said [)an KeVpOrt` of [}O|c8 Vita
Wine Shop in downtown Chaska.
"|`rnfearful for you guys'" said Chaska Councilor Chris Schulz. "Not oomuch for Target, but
Total Wine. No matter what we do. whether Target gets the liquor license or doesn't get it, |
think the handwriting might beonthe wall for everybody inthis area if/Chanhassen\allows
(Total Wine 0. More) to go in there.°
WHY THE CONCERN?
Total Wine & More, a national retailer that has opened four stores in Minnesota this past year,
was the subject of e front-page story in the 8tarTribune this pest Sunday.
Total Wine's arrival in the market has triggered price wars in the state 'a liquor industry and
forced some retailers toclose, according to the story.
Chanhassen M@VO[ Denny LaUfGnbUrge[ said he's received several inquiries about the proposal
and said he's looking forward to reviewing the building and liquor license proposal.
LaUfenbUrge[ said he couldn't predict hOVV the council will act and Said he'd reserve judgment
until he can fully review details.
According toChanhassen Senior Planner SharnleenAl-Jaff.there aren't any significant red
flags with the building that isbeing proposed. The 19.9O9 -square -foot store would beunder a
2O'ODO-mquare-foxotlimit for the site.
City staff isplanning torecommend approval because the proposal is aquality building that
meets city requirements. A minor amendment would be needed to allow signage that is
common near the Highway 5location, A|-Jaffsaid.
Assuming the proposal is approved by the Planning Commission, the City Council would likely
consider the building and aliquor license for Total Wine onJuly 27.
Currently, there are no restrictions on the number of licenses for liquor stores in Chanhassen.
WHAT'S THE LIMIT ON LIQUOR STORES?
How many liquor stores are allowed inChanhassen?
The current answer is there is no limit. But that wasn't a|vveya the case. Until 2005 there was a
cap onthe number ofliquor stores inthe city. But the cap was removed bythe City Council in
2005 with the prevailing thought that the market would regulate itself.
The cap on off -sale liquor licenses took effect in 1994. At the beginning of that year, two liquor
stores competodforbuaineasinChanhassen——MGMLiquorVVarehouoe and Cheers Wine &
Spirits.
City Council minutes show the approval of Byerly's Wine & Spirits at the March 28, 1994,
meeting. At the same time, the council adjusted the wording of the ordinance regulating liquor
store developments and imposed a cap on the number of off -sale liquor stores allowed in the
city. The cap e||ovved for the approval of four off -sale liquor |icensem, so with the Byer|y^s
approval there was room for one more.
Not for 11 years did another entity apply for an off -sale liquor license in Chanhassen.
That application was from Century Wine and Spirits, which would locate on the western side of
the town, whereas the other three were nestled around the city's center.
The council approved the application for Century, but wasn't content tostop there.
Under the guidance of former Mayor Tom Furlong, the council removed the cap on off -sale
liquor licenses permissible in the oitv, opening up the doors to potentially unlimited off -sale
liquor applications.
"Thena'anoneed torestrict cornpetition.'`Furlong said atthe time.
The city was not flooded with applications for off -sale liquor licenses. It was not until February
2010 that the City Council approved the application for a fifth liquor store.
An8.0OO-SqU8r8-fOOtH@Skell's,located on the eastern side OfChanhassen, was the first retail
development approved that year.
Since then, Wine and Spirits and The Vintage have opened inChanhassen. 8otoday there are
seven liquor stores inChanhassen with No. 8onthe docket this month.
Mollee Francisco contributed b7this report.