246971 ORI�INAL TO CITY CLERK �Lj V���
CITY OF ST. PAUL FOENCIL NO.
, LIC:E:TTSE CONIMITTEE OFFICE OF THE CITY CLERK
UNCIL ES UTION—GENERAL FORM
PRESENTED BY �Ta,Ylt'18T'y 1�� 1970
COMMISSIONE DATF
RESOLVED: That �pplication L-298 for Off Sale Malt Bevera�E License, applied for
by the Superior "40C�" Oil Co. at 277 Ruth 5treet, be and the same is
hereby �anted.
NEW LOCATION
(Grocery-Gas Station Combination�
Informa.11y approved by Council
December 23, 1969
New
�a� �3 �97a
COUNCILMEN Adopted by the Council 19—
Yeas Nays JAIV 13 1�70
Carlson
Dalglish Approved 19—
Meredith � Tn Favor
Peterson
Sprafku � Mayor
A gainst
��' PUBLISHED JAN 17 i970
Mr. President, Byrne
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� • CITY OF SAINT PAUL �'� �'
� Capital of Minnesota
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�e a�ti�e�t o ablic c�a et ��b / /
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POLICE Tenth and Minnesota Streets HEALTH
FIRE PROTECTION WILLIAM E. CARLSON, Commissioner POLICE AND FIRE ALARM
ROGEB M. CONWAY, Dsputy CommLsioner
DANIEL P.Me LAUGHLIN, Lieense Inspeetor
December 16, 1969
Honorable Mayor and City Council
Saint Paul, Minnesota
Gentlemen:
The Superior 400 Oil Co. having received permission
fro*^ the City Cour.cil to establish a gasoline filiing station
at the intersection of Ruth Street and Suburb�.n �venue (reco.rds
in the Office of the City Clerk show such permit was granted on
Ju2ie ?0� 1969, under C. F. No. 24y.560�, m�e appiica,tion for
Grocery and�or �rozen Foods� Off Sale P�ia]_t Bevera�e, and Cigarette
licer.ses in connection �aith the �asoline filling station license
at this location, to operate what they term "Convenience Store."
Attached is a cop�� of their letter of application,
consistinJ of four pages in which they g•ive the exact address
as 277 Ruth Street. It was submitted by the firm�s riaxketing
Mana,ger� A. F. Berglove.
As of this date no ap�;lication ha:, been ma�d�p�to open
the stati�n with a �asoli�ze filling station license a� �.ny
supplemerit�,l licenses °or tnat type of bu�iness.
Ve�y txn:ly yours�
�� ��� .
Licen.�e Inspector
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���.j �,� �,� �E_�� DISTRIBUTORS OF
�_ _ __-� GULF PRODUCTS. . .
-
�'� _ ----� �i�C��ff�i�� -�400- O0 L. CO. -�'=
SU����+�O■i 720 WEST 94TH STREET • BLqOMINGTON, MINNESOTA ' 55420
-700- TELEPHONE (612) B89-4/43
November 2� , 1969
Mr. Dan McLa�.lyh 1 i n
license Inspector
City of St. Paul
202 Public Safety Building
Tentli and Minnesota
St. Paul , Minnesota
Dear Mr. McLaughlin:
Following the suggestion you made in our phone conversation last Wednesday,
I am submitting to you a resume' of pertinent information and logical arg-
uments in support of the application by our firm for an off-sale beer lic-
ense for the convenience store with attached gasoline dispensing facilities,
which we are about to open at 277 Ruth Street. I would appreciate it very
much if you would direct this mate�rial to the attention of the Licensing
Committee for reference in their consideration of our application.
First of all , it might be well to tell you something about our company.
Superior "400" Oil Co. is a partially-owned subsidiary of the Gulf Oil Corp-
oration, serving as a Gulf Distributor in the Twin City area. We are pre-
sently operating seventy-eight gasoline outtets in this area, seventy-two
of which are owned or controlled through leaseho)ds by Gulf or Superior.
Fifteen of these outlets are in St. Paul . The Ruth Street location involved
in this application proceeding is owned by Gulf and under lease to Superior.
Superior also has the responsibility of handling all of Gulf's service sta-
tion and real estate development in the Twin Cities metropolitan market. In
carrying out this assignment, for the past four years we �have been experi-
menting with a somewhat new concept in gasoline marketing, the "Station-
Store" which offers a selection of hard goods or other merchandise along
with gasoline.
During the past year or so we have been concentrating our study, for the
most part, on a type of store operation similar to what the grocery trade
calls a "convenience store". This is a store that specializes in high-con-
sumption food or home-use items and caters primarily to the quick-stop
shopper looking for a few fill-in items. Out of this experimentation we
have concluded that there is considerable potential i� the canbination of
a full-scale convenience store and a gasoline sales facility, and the Ruth
Street store is a pilot m�el for a number of stores of this size and type
we plan to develop in the next three years.
��
Mr. Dan McLauqhlin -2- November ?5, 1969
Up to now, bein� in an experimental stage an� dealing primarily with
smaller-size st��res , we have not made any concerted efforts to obtain
off-sale beer licenses for our cr.mpany-operated station-stores. How-
ever, we do fe�l it is quite evident that beer is an essential item in
the operation -,f a successful conv��nience st�re, particularly in a large-
size, large-irt -estment operation s+�-;h as we t�ave on Ruth Street. Nation-
ally, 87� of �Il convenience store�: handle beer, and statistics obtained
locally i�dicate that beer constitutes appr�ximately 5� of both the sales
and profits in the average convenienc� store. From casual observation, we
conclude that �iractically all of the c:o��venience stores in the Twin City
area are handling beer.
� Considering both the element of customer accomodation and the profit to
be derived from beer, it is quite obvious that anyone attempting to operate
without this product to be at a considerable competitive disadvantage. It
is only natural that we should hope to enjoy equal advantages with our com-
petitors in tt�is field, and we trust that licensing officials wilt give
keen consideration to this aspect of our position.
Indications are that these operations combining gasoline and convenience
food are becoming more and more prevalent. A number of our local petroleum
competitors have been engaged in variations of this type of operation for
some time, and, on the national level , thirteen per cent of all convenience
food stores are now handling gasoline. Since municipal licensing authorities
will undoubtedly be confronted with an increasing number of off-sale beer
applications from establishments of this type, it may be an appropriate
time to make a realistic analysis of this kind o,f operation, and, if necessary,
establish specific codes or standards upon which licenses can be granted.
From our casual inquiries and observations , we sense that some municipalities
do have a sort of pre-^disposition, if not .a policy, against issuing a beer
license to a location where gasoline is sold. No doubt one of the things
underlying this reluctance is the natural bias almost any person has toward
the association of automobiles with alcoholic beverages. This is an under-
standable feeling, but when you stop and think about it, practically all
the off-sale beer that is sold nowdays -- or hard liquor, too, for that
matter -- is purchased and transported home or to some other destination by
people driving their automobiles. The purchaser is no more, nor no less,
apt to misuse the beverage if he purchases it at the same location where
he buys his gasoline fihan if he gets it a block or a mile away.
We surmise that another prominent element in the municipal attitude toward
off-sale beer in gasoline locations is the apprehension over control . This
is unquestionably a valid concern. Since service stations�, generally speak-
ing, tend to hire a l�rge percentage of under-age employees, it is easy to
envision a host of problems ensuing from minors handling beer and, conceiv-
ably, selling tt to other minors.
nec. a3, 1969
Hon. William E. Carlaon,
Coaosr. oP Public 3afet�r,
lOth. and Minn. Sts. ,
St. Paul, Mtt�n.
Attn: Mr. Daniel P. McLe�ughlin
Dear Sir:
The City Cour�cil today informally approved the
applice.tion of Superiar� �+00 Oil Compst�y for Grxery and�or
Frozen Foods, OfP Sale Malt Beverage, and Cigarette licenses
in connection with gasoline filling station licenae at the
interesction of Ruth St. and Suburbe�n Ave. (277 Ruth �treet);
the permit far� the gaaolina filling station wae grsuted under
C. F. No. 2�560, adopted oa Juaa 20, 1969.
Will you please prepaxe the customary reaolution?
Very truly yours,
City Clerk
hp
. �
, November 25, 1969
Mr. Dan McLaughlin -3'
In designing our prototype store on Ruth Street, this control problem
was foremost in our minds. To overcome it, we have completely separated
the store operation from the gasoline sales facility and provided for a
separate group of employees to handle each phase of the operation. The
only function the gasoline attendants will have in connection with the
store will be exterior maintenance, i .e. , window washing and snow shovel-
ing, and, possibly some assistance with routine chores such as unloading
deliveries. Irregardless of the maturity of the gasoline attendant, at
all times there will be a manager or assistant manager in the store who
is at least twe,nty-one years of age and well indoctrinated in store op-
erating policy. At no time will store personnel be required or expected
to leave the store to wait on gasoline customers, and gasoline attendants ,
likewise, will not be expected to enter the store to wait on store cust-
omers.
To insure complete adherence to designated operating procedures and pract-
ices, this operation will be under direct company management, and will
be the personal responsibility of our Merchandising Manager, Mr. Ken Olson.
We are confident that the separation in the operation, coupted with close
supervision, will give us as effective a control over beer sales as is �
attainable in any competitive convenience store or super market.
I am enclosing a floor plan of the station-store, illustrating the above
described physical separation, and a copy of the elevation plan, showing
the external appearance. Also enclosed is a copy��of the site plan, show-
ing the location of the store building, the gasoline pump island, and the
adjacent Mr. Steak Restaurant, which is a part of the overall development.
The area surrounding this development is experiencing some rather rapid
population growth through extensive multiple-dwelling construction. We
believe that there is, even at present, a strong consumer demand for the �
combined services we are offering at this location, and indications are
that this demand will increase steadily through continued area development,
Beer for home consumption will no doubt be a prominent item in the needs
of many people, and we certainly hope we can accommodate this need.
Summing up our position, we feel our application request merits the sin-
cere consideration of the Licensing Committee for the following reasons:
1 . There is a strong demand for off-sale beer in the area, and the
demand will increase with the inevitable area population gravth.
2. Our firm is providing adequate safeguards for controlling the
sale of the product.
3. Denial of' the license would put our company at a competitive
disadvant�ge with other convenience store competitors.
,
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Mr. Dan McLaughlin -4- November 25, 1969
I thank you for this opportunity to present our case and I will
look forward to receiving your notice of the Licensing Committee
meeting. If you feel that there is any other information which
might be necessary or helpful to the proceedings, kindly let me
know.
Sincerely yours, �
1 ,
, � �:
�i�i / ) / j�.
`L-`_�-1;��! '�-� Z_.
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A. F. "Joe" Berglo e
Ma rket i ng Manag�t'�
AFB:j
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