As many of you know, I’ve been following Apple Valley Liquor Store #3 since its planning stages and I have never been a fan of the thing at all. In fact, I find it to be a complete and utter waste of time and money. While that is apparent without any evidence, I have given several examples which show, without a doubt, just how much of a waste this “mine is bigger than yours” liquor store is including the liquor store operations are not putting any additional money into the general fund, its expensive beer signs and the fact that it wasn’t performing all that well back in Feburary of 2009.
Well, it’s been about six months and it was time to revisit this topic. Last month I requested updated financial information from the city and was told that breakdowns by store were not yet available but that I would get a copy once the budget planning documents were created for the council. Today I received the document and found exactly what I expected, that Apple Valley Liquor Store #3 is still not performing anywhere up to what the city and its staff believe it should have been. In fact, it’s performing so poorly that city staff expects it to start generating a loss in 2010.
Take a look at the Apple Valley Liquor Store budget information here (PDF). I have extracted the pertinent part and pasted it below for you:
As you can see, Apple Valley Liquor Store #3 operated way under 2009′s adopted council numbers. Their estimates were 95% of the actual total ($12,381 vs $270,431)! This is such a poor showing that they are now estimating that in 2010 the store will actually lose over $10,000. Now, while a neighboring city has been blaming the failures of their large capital expenditures on the economy, Apple Valley has no such ability as their two other liquor stores performed extremely well with the city expecting Liquor Store #1 to best its estimates by nearly 8.5% while Liquor Store #2 is on track to bring in 120% more income than expected.
Now, I want the Apple Valley City Council to explain to the public why they decided to spend $5 million on a store which was unnecessary and why they continue to keep it open when it’s expected to begin losing money. It’s time for Goodwin to eat crow and sell the building, for a loss, as it’s doing nothing positive for the city. This is proof that municipalities should not be in the liquor business as they are unable to create effective budgets or properly plan operations for a new store.
What do you think about Apple Valley Liquor Store #3′s financial woes? Do you think it’s right for this to continue operating at a huge loss when the other stores are beating their estimates by large margins? Whatever you think about Apple Valley Liquor Store #3 go ahead and share as I’d love to hear what you have to say.