Hy-Vee

liquor

application

tabled

By RON LARSEN

Journal Staff Writer

NEW ULM--The New Ulm City Council Tuesday awarded a $1,637,930 contract for this year's utility, street and alley improvements and tabled action on a request by Hy-Vee for an off-sale intoxicating liquor license.

The low bid for improvements was submitted by M R Paving & Excavating, Inc., of New Ulm. M R Paving's bid, one of three submitted, was nearly $200,000 below engineer's estimate.

The council was on the verge of denying Hy-Vee's application for its Hy-Vee Wine & Spirits store when the attorney for Hy-Vee, Inc., Dustan Cross of Gislason & Hunter in New Ulm, requested the matter be tabled until the firm could explore other options.

At issue was the liquor law violations at Hy-Vee stores in other states. An investigation by the City Attorney and city staff had turned up 31 violations involving Hy-Vee stores in the past five years.

In addition, Hy-Vee, Inc., headquartered in Cedar Rapids, Iowa, did not disclose these violations on its application for the license in New Ulm.

"That was simply a mistake," Cross said. "The employee filling out the form just didn't have that information."

Cross said a report that the firm did not properly disclose information on its earlier application for an off-sale non-intoxicating malt liquor license was incorrect. There was proper disclosure, he said.

"This is not pleasant for any of us," Council President Dan Beranek said, as the council began deliberation of the issue. "Hy-Vee is one of the finest corporate citizens in the community, but the state laws and our own ordinances are very specific so there's not much we can do."

"I respectfully disagree with it (City Attorney Hugh Nierengarten's recommendation to deny)," Cross said. "The New Ulm store has had a 3.2 license for a number of years, and there has never been a violation. Nor has there been one in selling tobacco."

Cross also noted there's not been a violation of liquor laws at any of the other Hy-Vee stores in Minnesota.

Councilor Clark Tuttle, an attorney, offered the suggestion that Hy-Vee might try forming a wholly owned subsidiary to apply for the license because that would have a "clean record."

Nierengarten was doubtful that would work; however, it was on the basis of exploring that option that Cross asked the council to table the request.

The council gave the Skate Park Group its change-order request for different equipment for the new Skate Park, and it agreed to pick up the tab for the $3,779 budget over-run as a result.

The Parents in Partnership learning day-care project off County State Aid Highway 27 and North Highland Avenue cleared its last zoning hurdle. The council approved its request to vacate Eighth North Street and its revised preliminary and final plat of Oak Bluffs Third Addition.

In other action, the council:

* Approved a garbage license for Kevin and Kathy Finstad, doing business as River View Sanitation, Inc., to provide residential garbage service, starting Wednesday.

* Approved agreements for New Ulm Public Utilities to provide specified natural gas services for the City of Morgan.

* Renewed a three-year lease with the Minnesota Department of Public Safety for its driver exam station at the Family Recreation Center in Vogel Arena.

* Established a council subcommittee to review the feasibility of the city participating in Martin Luther College's multi-use athletic field project.

* Received the comprehensive annual financial report for the New Ulm Fire Department Relief Association for year ending Dec. 31, 2000, showing about a 5 percent decline in investments. However, City Treasurer Gary Gleisner noted that decline also included pension pay-outs.

* Received notice from the Minnesota Department of Trade and Economic Development that the $250,000 "Small Cities Development Program" Palm Beach Marinecraft, Inc. project had met all requirements and has been given a "closed" status. When paid off, the development program loan will become a revolving loan program for the city.