Wayzata will move its 'Muni' booze business

Cheers, Wayzata. The City Council decided this week to stay in the wine, spirits and bar business, voting 3-2 to build a combination liquor store and restaurant.

Although Wayzata has been selling booze for decades, the decision to remain in the business has been controversial.

The city has been wrestling with the issue for the past three years, setting up committees, a task force and holding public hearings on the issue as its current lease was winding to a close.

Proponents were pushing to build a city-owned building to spur development and avoid leasing costs.

Opponents urged the city to get out of the business so it is not competing with private businesses, and to avoid the financial risks it might face if the state eventually passed legislation allowing wine and liquor to be sold at grocery stores.

In the end, the council decided that the 60-year history of "The Muni," as the municipal liquor operation is known, is an integral part of Wayzata's character.

"If this were an easy decision, we would have made it a long time ago," said Mayor Ken Willcox. "I think we have no alternative but to build. ... The only question is where you put it."

"We can generate more money than by leasing," said Council Member Andrew Mullin, who sees the new building as a way to drive change. "It could become a catalyst to drive economic development on Mill Street."

Feeding city's general fund

The city got into the booze business back in 1947, as a way to help pay for municipal services and some special projects -- the same reasons the city has decided to remain in the liquor business now.

Wayzata officials estimate that the municipal liquor operations contribute $375,000 a year to the city's general fund. Willcox noted that this contribution is equivalent to the property taxes that would be paid on 231 homes valued at $750,000 each.

Around the state, Wayzata officials said, there are about 120 municipal liquor operations, although few of them also have a bar and restaurant as in Wayzata.

But opponents of the new building said the millions that the city will be investing could be in jeopardy in a weak commercial real estate market if the state Legislature moves to allow wine sales at grocery stores.

"This is a big decision and there are many, many questions," said Council Member Mary Bader, who voted against the proposal along with Council Member Tom Tanner. "I think the risk analysis we've had so far lacks a lot. ... It really bothers me," Bader said.

But the doubts were not enough to stop approval of the plan to build a new "Muni," which drew cheers from dozens of people at a City Council meeting on Tuesday.

"We should be in the business," said Council Member Jack Amdal, who also voted in favor of the new building. "It's one of the few things we're allowed to do to make money."