COON RAPIDS, Minn. - Law enforcement officials hail the city
ordinance that requires prepayment at gasoline station pumps, but some
retailers have found a drop in sales because of it, the Minneapolis Star Tribune
reports.
The city enacted the ordinance six months ago to help stop
drive-offs, which police said rose to close to 500 annually. However, gasoline
station owners have experienced a significant decline in sales both at the pump
and in the store, and are now lobbying the council to look into the ordinance.
The Coon Rapids ordinance is the first prepay one in
Minnesota. "The ordinance has been pretty devastating," said Stephen Linn, CEO
of the Linn Companies, which runs a Holiday station. "It's been devastating to
our customers. It's been a significant inconvenience to them. ...We've seen a
significant percentage decrease [double-digits] in customer counts, gasoline
sales volume and inside sales volume."
While more than 80% of his customers pay by credit card for
gasoline, 40% went inside the store to pay for that fuel, and picked up other
items. While some still come inside the store, it costs him more money because
he has to process two transaction fees. "If you have two transactions, you pay
two transaction fees," Linn said.
The City Council will review the ordinance during a March 20
council workshop. "It sounds like there is momentum to take a look at it and
revise it or repeal it," said Lori Higgins, president of the MetroNorth Chamber
of Commerce. The chamber is against the ordinance.