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Savage City Liquor History

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After prohibition, the MN State Legislature passed a law that allowed cities to sell liquor in on-sale and off-sale settings. On-sale refers to a bar or establishment where you can receive a drink "on" the premise.  Off-sale is an establishment where you purchase liquor and take it "off" the premises to consume.

 

1937

Right off the heels of prohibition, many believed the government would do a better job than the private sector in controlling the sale of alcohol to individuals.  Hence, in 1937, the City of Savage got into the liquor operation by opening its first on-sale and off-sale liquor establishment at the corner of 123rd St. and Ottawa Ave. in downtown Savage. 

 

'50s –'60s

In the mid-'50s, the liquor operation moved one block away to a  city-owned building and was called the Dan Patch Lounge. During the next decade, the City on- sale operation flourished. Bloomington at the time was relatively a rural community and did not have any liquor establishments. Many customers traveled from Bloomington to Savage across the old Dan Patch Rail swing bridge to purchase alcohol. In the '60s, the Dan Patch Lounge was so popular that at one point, it was the most profitable on-sale liquor operation in the state. Given its popularity, the Dan Patch Lounge became known as the "Powerhouse."

 

'70s-'80s

Both Bloomington and Burnsville grew into flourishing communities. Competition from private liquor establishments in those communities began to negatively impact the on-sale liquor operation in Savage.  

 

December 31, 1977

With on-sale liquor sales steadily declining due to competition and increasing insurance costs, it was no longer profitable, and the City closed the on-sale liquor portion of the Dan Patch Lounge.  

 

November 7, 1988

The City opened a second off-sale liquor outlet in leased space at the Southcross Shoppes Center, located at the northwest corner of CR 42 and Huntington Ave.  This 5,096 sq. ft. operation became known as Sunset Liquor.   


1994

During the '80s and '90s, residential development in Savage continued at a brisk pace, spilling into areas south of CR 42. The City began to look for space to open a third off- sale liquor facility along CR 42. The City hired a consultant to perform a market analysis on the potential revenue generated from liquor sales if new liquor outlets were developed. The study concluded that the  Highway 13/CR 42 intersection would become the predominant hub for commercial activity in the City in the future.  

 

1997

A new multi-tenant shopping center project began at the corner of Hwy 13 and County Road 42. The project included a Walgreen's, multi-tenant commercial building, free-standing restaurant, and a Rainbow grocery store to serve as primary anchors. In conjunction with the development approval process for this project, the City of Savage swapped the parcel of land at the northwest corner for the site now occupied by Marketplace Liquor.  

During this same year, the City was also completing a significant downtown redevelopment initiative. The Hamilton District Master Plan included infrastructure improvements in the downtown area, including new streets, sidewalks, street lighting, sewer and water services, and storm water. It also included targeting areas in the downtown for redevelopment. The City determined the Dan Patch Liquor building had outlived its useful purpose, and a new site at the corner of Lynn Ave. and 123rd St. would become became the new location for Dan Patch Liquors.

 

1998

Construction on both the new Marketplace Liquor and Dan Patch Liquor stores began. The original Dan Patch Liquor was permanently closed on December 31.

 

January 1, 1999

Both new stores were opened for business.

 

May 31, 2004

The Sunset Liquor location in the Southcross Shoppes Center was closed due to traffic changes and reduced traffic flow.

 

2009

Big-box liquor store MGM Liquor enters the market near Marketplace Liquor. This new competition had a significant impact on sales.

 

2014

Total Wine & More opened in Burnsville. The emergence of a big-box liquor retailer had a major impact on all public and private off-sale operations in the Twin Cities. Once again, annual liquor sales in Savage were impacted by competition in a neighboring community, and sales declined.  While sales were declining, the City liquor operation continued to generate an overall net profit to the City. 

 

2017

Hy-Vee opened at the busy intersection of County Road 42 and Dakota Ave. The City of Savage partnered with Hy-Vee to lease space and opened a new Savage Wine & Spirits municipal off-sale liquor operation. Around this same time, the City terminated its liquor operation at the Dan Patch Liquor site and sold the building. Coincidentally, around this time, the Minnesota State Legislature approved legislation that allowed for the sale of Sunday liquor sales in Minnesota.

 

2020

Today, the City of Savage is now strategically positioned to handle any downturn in the economy or other off-sale providers' entry in the marketplace. The future of the municipal liquor operation is largely dependent upon the desire of the City Council to continue to operate in an environment that in this day and age, is most often managed by the private sector.               

For many decades the City has adapted its liquor operation to reflect growth issues, competition, and economic factors. The future of municipal liquor operations in Savage is challenging to predict as both social and political factors seem to evolve over time. The one constant thing is the City's ability to respond in a manner that is in the community's overall best interest.