5.3. SR 01-11-1999
rei ---\)
( )j
!li<
Item #5.3
MEMORANDUM
TO:
Mayor and City Council
FROM:
Sandra Peine, City Clerk
DATE:
January 11, 1999
SUBJECT: Request for Tobacco License Renewal
by Holiday Station Store
Holiday Station Stores, Inc. has submitted an application for
renewal of the tobacco license at 13445 Business Center Drive.
.
One of the grounds for denying the issuance or renewal of a license
under the City's ordinance is failure to have current property taxes
for the premises for which the license will be issued. Holiday is
presently leasing the building on Business Center Drive. According
to the auditor's office the 1998 property taxes for the building are in
arrears by approximately 80,000. A portion of Holiday's lease is
intended to be paid toward the property taxes. Holiday indicated
that they have just recently become aware that the Landlord has not
paid the taxes. Holiday has indicated that they are prepared to pay
their portion of the property taxes directly to Sherburne County.
(see attached letter from Holiday). .
Holiday Stationstores is requesting the City Council to allow Holiday
to pay a partial payment of the property taxes directly to Sherburne
County. Kerry Erickson, a representative of Holiday, will be
present at the Council meeting on Monday evening.
ACTION REQUESTED
Motion to either approve or deny the request by Holiday to renew
the tobacco license for 13445 Business Center Drive.
f: \shrdoc \council \holiday. doc
.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420. Fax: (612) 441-7425
Holiday Companies
.
GEN. OFFICE: 4\67 WEST BOth STREET / MAIL ADDRESS: P.O. BOX 1224 MINI'EAPOLlS, MI' 55440/ PH. 612,Rl0,!l70[) / FAX 612,830,8864
CREDIT OFFICE: 5501 W. OLD SHAKOPEE RD. / MAIL ADDRESS: P.O. BOX 1216 MINI'EAPOLlS, MI' 5\440/ PH. 612,921 ,5200 / FAX 612,921,5295
Direct Dial: 612/830-8836
Fax: 612/830-1681
E-mail: cerickso@holidayco.com
January 8, 1999
Mayor Stephanie Klinzing and City Council
City of Elk River
c/o Ms. Sandy Peine, City Clerk
13605 Orono Parkway
P.O. Box 490
Elk River, MN 55330
DELIVERED BY MESSENGER
Re: Holiday Stationstores, Inc./Elk River, MN/DMV Mall Corporation
Dear Mayor Klinzing and City Council of Elk River:
I am writing to you about Holiday's tobacco license renewal application for the Stationstore
located at 13445 Business Center Drive, Elk River, MN.
.
Holiday does not own the property at 13445 Business Center Drive. Holiday leases a
portion of the property from the landlord, DMV Mall Corporation ("DMV").
Under its lease with DMV, Holiday is responsible for payment of 20% of the real estate
taxes for the property. Holiday has paid these taxes to the landlord through July, 1998.
Since then, Holiday has paid its share of the taxes directly to Sherburne County. To date,
Holiday is current on all of its real estate tax obligations for the property. Accordingly, it
would be unfair to deny Holiday a tobacco license based on a failure to pay real estate
taxes.
Under Elk River City Ordinance 9708.08 (6), it is a basis for denial of a tobacco license
application if "property taxes for the premises for which the license will be issued are
delinquent." Although the property taxes for the entire parcel located at 13445 Business
Center Drive are presently delinquent, tax payments for the premises upon which the
Stationstore is located - the only portion of the property for which the tobacco license will
be issued - are paid in full.
Please consider the unfairness that would be involved with the denial of a license to
Holiday based on events beyond its control. Holiday is merely a tenant at the property in
question and has paid its share of property taxes in full according to the terms of its lease.
. Please do not unjustly punish Holiday for the actions of its landlord.
;;. -# WrI6_ ~~lltmuii~'
STATlONSTOAES
.
.
.
Mayor Stephanie Klinzing and City Council
January 8, 1999
Page Two
Thank you for your thoughtful consideration of this matter.
Very truly yours,
HOLIDAY COMPANIES
~
Carolyn A. Erickson
Legal Counsel
CAE/ap.5
.
.
.
HOliday Companies
(;fN. Of[lC[: 41(,7 WfST ROth STRHT / MAil ADDRfIS: P.O. ROX 1224 MINNfAPOUS, MN 11440 I PH. (, 12-R lO-1I71Xl I fAX (, 12-1I1O-IIIlI,4
CRWIT OfFICf: 1101 W. OLD IHAKOPH RD. I MAil ADDRfSI: P.o. BOX 121(, MINNfAP(lUS, MN 11440 I PH. (,12-'121-1200 I fAX (,12-'121-\2'1\
Direct Dial: 612/830-8836
Ms. Sue Richards
Sherburne County AuditorlTreasurer
Property Tax Division
13880 Highway 10
Elk River, MN 55330
Fax: 612/830-1681
E-mail: cerickso@holidayco.com
January 8, 1999
DELIVERED BY MESSENGER
Re: Holiday Stationstores, Inc.lElk River, MN/DMV Mall Corporation
Property Tax Identification Number: 75-575-0105
Dear Ms. Richards:
Enclosed please find a check in the amount of $7,563.40 to be paid towards taxes for the
above-referenced property. According to county tax records, the taxes payable in 1998
total $75,634.00, with the taxes owed in the second half of 1998 equaling $37,817.00.
Under its lease, Holiday is responsible for payment of 20% of the property taxes. The
enclosed check represents Holiday's portion of the taxes payable for the second half of
1998.
If you have any questions, please feel free to call me.
CAE/ap.6
Enclosure
cc: Sandy Peine, City of Elk River
l;;"
~5~_
STATIONSTOReS
Very truly yours,
HOLIDAY COMPANIES
~
Carolyn A. Erickson
Legal Counsel
~ q~iIroufttau..