Morris City Council approves $1.80M construction contract and $1.58M bond for new municipal liquor store amid public objections

The Morris City Council voted unanimously Tuesday to accept a $1,798,400 construction bid for a new municipal liquor store and to authorize the sale of up to $1,580,000 in general obligation abatement bonds (Series 2025A) tied to the project.

The action followed a public hearing in which multiple residents said the city should not use public funds to build or back a retail liquor business. Annette Watson told the council she "object[ed] to the city council members voting yes on the abatement because I believe they do not have either of the two needed factors" and argued the government should not be in the business of selling substances that can be abused. A written statement from Christopher Watson, read into the record, cited state health data and asked, "Should public funds ... be used in the purchase and sale of these products?"

Council members and staff defended the financing approach and the feasibility work behind the project. Council members cited four‑year gross profit figures from the liquor operation—gross profit of $591,574 in 2020, $525,795 in 2021, $595,535 in 2023 and $703,594 in 2024—and said those profits have historically been used for local capital projects and to support the general fund. A consultant presenting financing options said the debt service for the proposed bond would be paid from liquor‑store proceeds, not from general tax levies: "The note is not being paid with that. It's being paid with proceeds from the liquor store," the presenter stated.

Council members reviewed competitive bids; staff said seven firms submitted proposals and identified Project One Construction as the apparent low bidder at $1,798,400. During discussion members asked whether the bid included interior equipment (coolers and fixtures) and sought assurance about contingencies and estimated annual debt service. The council then moved and seconded a resolution to accept the bid and award the contract; a roll call vote was recorded as five yes votes and the motion carried. The council subsequently moved, seconded and approved a resolution to provide for the sale of the $1,580,000 general obligation abatement bonds (Series 2025A) and the related property tax abatements by the same roll call margin.

Opponents warned taxpayers could be left on the hook if the store underperforms. Speakers noted past municipal liquor‑store failures in other Minnesota cities and urged the council to postpone action until the city’s budget and market analysis were more thoroughly reviewed. Supporters and staff argued that renovating the existing 27‑year‑old facility would cost nearly as much as building new and that revenues from the liquor operation have been used for parks, fire equipment and other community needs.

The council also discussed project cost options submitted by bidders and the potential to use liquor‑store proceeds to pay bonded debt or accelerate paydown if sales grow. A few audience members asked whether a reserve would be maintained in the liquor fund; staff said they would follow up on that question.

With the contract award and bond authorization approved, the city will proceed with contractor engagement and bond market steps. Specific timelines for construction and equipment purchases were discussed but not finalized during the meeting.