Council approves decision for ABC Store to create a reserve fund
COLUMBUS – The City of Columbus intends to stop renting a building for their ABC store.
The Columbus City Council recently met and passed a resolution allowing the ABC store to set up a reserve fund to save money on buying or building a building.
The city has rented a building in the Food Lion Mall on Mills Street for its ABC store for many years.
The resolution states that the ABC board wants to save money and improve the business’s financial health by planning future capital improvements and opportunities that may include moving through the purchase of land and construction of a detached business or purchase of an existing building .
The resolution waives the agreement between the city and the ABC business that the business will distribute profits to the city, and instead allows the ABC board of directors to save money on a new business.
Below is the resolution approved by the city:
Resolution on the waiver of distributions and the creation of a capital reserve fund for the Columbus ABC Board
Whereas the board of directors of Columbus ABC is looking to save money and improve the business’s financial health by planning future capital improvements and opportunities that include relocating through the purchase of land, construction of a detached business, or purchase of an existing building can that meet the needs of. corresponds to the store; and
CONSIDERING that the Columbus City Council understands the long-term value of this desire and agrees with the vision of the ABC Board of Directors; and
CONSIDERING that Columbus City Council understands that the goal of independence for the ABC business will be achieved more quickly if profit distributions to the city are temporarily withheld to contribute to a capital reserve fund;
THEREFORE, THE CITY OF COLUMBUS CITY COUNCIL NOW DECIDES That the Columbus ABC Board is hereby given express approval to set up a capital reserve fund in accordance with NCGS 18B-805 in order to save funds for future purchases or construction of a new ABC store.
FURTHER RESOLVED that the Columbus ABC Board is hereby granted a waiver of profit distributions to the City of Columbus for a period not exceeding 5 financial years, beginning with the financial year 2021/2022, with the express assumption that all funds necessary for the profit distribution allocated to the City of Columbus as contributions to the capital reserve fund that may not be used for any other purpose, except as directed by the City of Columbus City Council.