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However, the license holders did acknowledge that the local market <br />could support additional liquor stores. Indeed, if Coon Rapids had <br />not sold its two municipal liquor stores in 1987, the City itself pro- <br />bably would have opened additional outlets. <br /> <br />According to the results of a Municipal Liquor study in 1980, the Coon <br />Rapids market could support additional liquor stores. Since 1980, the <br />population of the City has increased from 35,826 to 44,599, a 24% <br />increase. <br /> <br />Current licensees understand that there were never any guarantees that <br />they would have a monopoly on the liquor business in Coon Rapids once <br />they assumed ownership of the municipal stores. Their advice, <br />however, is that the City should proceed cautiously when establishing <br />criteria for issuing new licenses. Specifically, they argue that <br />issuing too many licenses can have a detrimental effect on the com- <br />munity because: <br /> <br />- Numerous small operations are not profitable, have frequent <br /> ownership turnover and high failure rates. <br /> <br />Excessive competition among liquor stores increases pressure <br />to sell to minors in order to meet profit margins and would <br />require increased police surveillance and increased City <br />costs. <br /> <br />Having too many stores would affect community health and <br />aesthetics and, in extreme cases, could contribute to urban <br />blight as has occurred in other communities. <br /> <br />Limiting the number of licenses and requiring a larger ~ollar <br />investment would attract business people who view their <br />license opportunity as a long-term investment, rather than as <br />a get-rich-quick scheme. <br /> <br />Meeting with Potential License Applicants <br /> <br />On January 14,. 1988 Lyle Haney and Lee Mehrkens met with potential <br />license applicants. Twenty-one firms and individuals were invited who <br />were local business people, had bid on the municipal s~ores, or indi- <br />cated an interest in being considere~ for a new license. Seven of the <br />21 invitees attended the meeting. <br /> <br />The results of this meeting were mixed. Comments ranged from havi~g <br />no limits on licenses by allowing the rarketp!ace tc determine the <br />number, to allowing liquor stores only in specific commercial areas, <br />to creating zones in which only one license would be issued per zone. <br /> <br />-5- <br /> <br /> <br />