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Starbucks decision a done deal

City council will not reverse its decision to open a Starbucks coffee shop at Servus Credit Union Place. The idea died earlier this week in a closed-door council meeting, said Coun.
The city’s controversial decision to locate a Starbucks at Servus Credit Union Place will proceed.
The city’s controversial decision to locate a Starbucks at Servus Credit Union Place will proceed.

City council will not reverse its decision to open a Starbucks coffee shop at Servus Credit Union Place. The idea died earlier this week in a closed-door council meeting, said Coun. Malcolm Parker, who said he tried to convince council to revisit the issue. “Because there had been a significant response from the community opposing this, I felt that council owed it to these people to listen and take another look at it,” Parker said. Council’s July 4 decision sparked the ire of many residents and business owners, particularly since it came after two private meetings and led to contracts being signed within days. Parker has felt from the beginning that the city shouldn’t be involved in a private sector business. He said his attempt to revisit the issue had to be done in camera “because of some of the confidentiality around the agreement.” He wanted council to direct administration to approach Starbucks to see if the company would let the city off the hook for the contract it signed. “I could not get a majority of councillors to agree,” Parker said. “They didn’t want to revisit the situation. I was disappointed but I recognize how democracy works.” He said a vote took place but wouldn’t say how councillors lined up. Asked whether anyone had changed their vote from the July 4 decision and he simply said: “No.” “I guess it’s a done deal,” he later added. On July 4, council voted 4-2 in favour of the Starbucks deal, which will see the city invest $280,000 in a Starbucks license and renovations to the leisure centre kiosk. Parker and Coun. Cam MacKay were the two who opposed the decision. Coun. Roger Lemieux was absent for that vote but not the one on Monday. He declined to discuss the private meeting but did say the Starbucks deal is a good one for the city. “I’ve been approving business plans for 40 years, since I’ve been in business,” he said. “This is a good business plan.” The deal is projected to earn the city net annual revenue of $90,000 on an investment of $280,000, which is an attractive return, Lemieux said. “How many memberships do you think we’ve got to sell to make another $90,000 a year? A ton,” he said. He added that the city is in the concession business in other facilities and no one complains about those. During the week following the initial decision, Mayor Nolan Crouse and city manager Bill Holtby both said the process could have been more open. Holtby estimated that pulling out could expose the city to a liability of around $1 million, the total value of 10-year agreements the city has with Starbucks and Skybox Grill, which holds the lease on the leisure centre kiosk space. Crouse wouldn’t discuss Monday’s in camera meeting. He only said that nothing has changed since council made its original decision in July, so city staff are proceeding with the plan to open the shop. “I think they’re still on target for a Nov. 1 opening,” he said.

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