Bill would create competition
for municipal liquor stores
Posted: 2/11/03
by T.W. Budig
ECM capitol reporter
A philosophical aversion to closed markets has prompted Sen. Mark Ourada to change state liquor laws.
Ourada, R-Buffalo, seeks to remove the exclusivity granted municipal liquor stores ó to allow more retail competition into cities. Caledonia is among the cities with a municipal liquor store.
Ourada acknowledged the proposal will be attacked for putting a squeeze on city revenues.
But he believes larger issues are involved.
ìYou know what, the philosophy behind this is much more important than that (revenues),î said Ourada.
Paul Kaspszak, of the Minnesota Municipal Beverage Association, questions that assertion.
Kaspszak ó who expressed bafflement over Ouradaís proposed legislation ó said four municipal liquor stores in Ouradaís own district produced some $835,000 in revenues in 2000.
Municipal liquor stores, besides generating city revenues, provide a responsible outlet for liquor sales ó thatís why they were started in the first place, he said.
Municipal liquor many are often located within a short driving distance of private retail liquor stories, said Kaspszak.
Competition exists right now, he said.
ìItís very confusing to me why he wants to introduce this bill,î said Kaspszak, predicting the proposal wouldnít go anywhere because no one supported it.
Ourada is equally set in his outlook.
ìI donít see why any city would say, ëWeíre going to be the only game in town,íî said Ourada.
Besides seeking to open competition, Ourada proposes other changes in liquor law.
He is looking to rolled back Minnesotaís 1 a.m. closing time to 2 a.m.
ìI just think itís silly in the 21st Century to have a 1 a.m. closing time,î said Ourada.
Minnesota is one of only three states to require bars to close at 1 a.m., he said.
In is legislation, Ourada also proposes that the issuance of liquor licenses be handled on the local, instead of state level.
ìI just think itís a local call and the state shouldnít be included,î he said.
The senator considered addressing the issue of weak and strong beer. Thereís not many states left that continue to keep the two, said Ourada.
He originally proposed making Minnesota a one-beer state.
But pursuing this objective would draw him into the grocery store/liquor sales debate. And thatís one debate he doesnít want to enter, he said.
ìI still think itís a good idea. I think itís silly to have 3.2 and strong beer,î said Ourada.
According to the state auditorís office, municipal liquor stores saw an increase of 8.1 percent in profits between 2000 and 2001.
Some 230 cities have municipal liquor stores, said Kaspszak, with about the 260 stores generating some $20 million in revenues.
The net profits some local municipal stores generated in 2001 are: Anoka, $205,000; Apple Valley, $440,000; Buffalo, $280,000; Caledonia, $28,000; Cambridge, $271,000; Elk River, $519,000; Farmington, $202,000; Lakeville, $886,000; Milaca, $69,000; Monticello, $402,000; North Branch, $78,000; Princeton, $255,000; Spring Lake Park, $180,000; and St. Francis, $77,000.
©The Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com