City fine-tuning lease for new liquor store location

City fine-tuning lease for new liquor store location by David Lias The Vermillion City Council agreed Monday to fine-tune the wording of a lease that would eventually allow the city to move the municipal liquor store to more modern facilities.

The liquor store presently is located in a 1,900 square feet building at 25 Center Street in downtown Vermillion.

The city would like to move the store to a new strip mall that soon will be constructed near Jones� Food Market on the corner of Cottage and Duke Streets.

The city presently pays $250 per month to lease its liquor store space downtown. In the new strip mall, the lease will be substantially higher � $850 a month for the first five years � but city officials believe the new location�s benefits likely may outweigh those higher costs.

By being located in a strip mall off Cherry Street in a more visible location, city officials believe sales at the store would increase.

Jones� Food Store�s location in the vicinity also is expected to boost sales at the new site.

Fire insurance costs of the proposed liquor store would possibly be lower because it would be located in a newer building with fewer fire hazards.

Equipment repair and maintenance costs likely would be reduced with the new store, as no repairs are needed immediately on new equipment.

Electricity costs could be higher if more coolers are used. They could be reduced, however, if new coolers were installed in a more energy-efficient building.

To move the Vermillion Liquor Store, the city will need to continue to put money into the city�s revenue fund and general fund at its present rate, or an increased rate along with covering any additional expenses.

The main additional expense will be the increase of rent by $600 a month for the first five years.

�We are in the business of working with a staff member of the Small Business Development Center to construct some financial projections on this,� City Manager Jeff Pederson said.

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