SPRING LAKE PARK, Minn. – (Feb. 22, 2018) – The city of Spring Lake Park is getting ready to make some changes. They are getting out of the municipal liquor business, while welcoming their first large grocery store.
“Hy-Vee is coming to Spring Lake Park. It will be located here on top of the old Central Park Liquor property as well as vacant property to the north,” said Dan Buchholtz, Spring Lake Park city administrator.
Hy-Vee wanted all the land on the corner of 81st and central, so the city decided to sell the land that the liquor store sits on.
“We sold the property here for $1,150,000. We generally transfer about $75,000 a year from the profits from the store to city’s general fund,” said Buchholtz
The sale of the land netted the city more than 15 times the amount that the liquor store earns the city in a normal year, but the income doesn’t stop there.
“The big thing for us is looking at what the property taxes are generated from the Hy-Vee and the convenience store in comparison with the profits we have been generating from the liquor store,” said Buchholtz.
The property tax Hy-Vee will pay will be nearly $75,000 annually.
“Fairly equivalent to what we have been transferring,” said Buchholtz
But, beyond that, Hy-Vee will also be paying to make road upgrades in the area.
“We are going to get an extra turn lane on Highway 65 to head east. And, then we are also going to get 81st widened,” said Buchholtz.
Spring Lake Park sold to Hy-Vee already, and is leasing the property back from Hy-Vee for a few months.
“We will be in operation until March 31st,” said Buchholtz.
Prices in the store are discounted, and the shelves are starting to become empty. They are working on clearing out the store of all wine and spirits, and those items are seeing discounts. When they close their doors in April they are planning on selling all remaining products to a different liquor store. And then, at some point, Hy-Vee will start construction.
