This is Beyond Unbelievable!

October 22, 2015 at 3:58 pm Leave a comment

By Andrew Richter

Well, if you don’t think you’ve heard every excuse in the book by a mayor or city council for raising taxes, check out the idiot mayor of Edina;

The mayor of Edina says a proposed 7 percent property tax levy increase is partly due to mega liquor retailer Total Wine & More taking a bite out of municipal liquor store profits that help fund city services.

In a quarterly newsletter to residents, Mayor Jim Hovland said profits from the three Edina Liquor stores are projected to be $900,000 in 2016. That is about on par with profits recorded in 2014 and predicted for 2015, but down from 2013, when profits were $1.45 million.

“Revenues have dived since national retailer Total Wine opened next door in Bloomington late last year,” Hovland said, noting that the city has refreshed stores and lowered prices to stay competitive. “It’s clear we’ve lost some of our customers to the draw of Total Wine’s very low prices – prices we simply can’t match given our small size,” he wrote.

Prices you can’t match? Um these liquor stores are subsidized by the government aren’t they?

The Total Wine store at Interstate 494 and France Avenue opened in November, one of four Minnesota stores that the Maryland-based retailer has opened since last year. A fifth will open in Maple Grove on Nov. 5. Total Wine points out that Edina’s liquor store revenues were on the decline in 2013, before the Total Wine store opened, and in 2014, when it was only open for the last six weeks of the year.

Awe, that damn capitalism!

“When the city of Edina blames Total Wine & More for falling profits at its municipal liquor stores, the city is really blaming Edina residents and other consumers who are not spending enough money at its government-owned stores to meet the city’s profit projections,” Total Wine Vice President of Public Affairs Ed Cooper emailed.


Edina is proposing a total tax levy of $31.9 million, an increase of about $2.1 million. Hovland also said the general fund budget has increased with the hiring of four new employees to handle redevelopment demand.

How can they get by on so little?

Edina Liquor’s shrinking profits
2012: $1.5 million
2013: $1.45 million
2014: $1 million (Total Wine opened in mid-November)
2015: Under $1 million (projected)
2016: $900,000 (budgeted)

I can fix Edina’s problems; get out of the alcohol business and get a new mayor!



Entry filed under: City Government, Community, Taxation. Tags: , , .

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