Published: July 03, 2008 04:25 pm            

ALCOHOL SERIES: Economy needs boost

ASHEBORO — Could Asheboro’s economy dry up without legal alcohol sales?

Many proponents of the July 29 referendum believe that to be the case. A coalition of local citizens induced the Asheboro City Council last month to hold a referendum for on- and off-premises sale of beer and wine, ABC stores and mixed beverages. The Randolph County Economic Development Corporation and the Asheboro/Randolph Chamber of Commerce both supported the referendum and urged citizens to vote “yes.” The Randolph County Tourism Development Authority (TDA) came out for the referendum.

Steve Schmidly, with daughter and law partner Brooke Schmidly, first called for the vote and head up the Committee For the Future of Asheboro, comprised of a number of local business and civic leaders who want legal sales of alcohol.

“We can’t afford to wait,” said Steve Schmidly when asked, “Why now?” He cited Montgomery County’s recent referendum approving alcohol as well as a possible vote on liquor-by-the-drink in Randleman next year.

“If we fail to take advantage of this, we could lose out on our economic opportunities,” he said. “We are uniquely situated” with the Asheboro’s central location and good highway system, the North Carolina Zoo (which drew 750,000 visitors last year), the Seagrove potters, downtown antique stores, the Richard Petty Museum, Randleman Lake and other local attractions.

“We need to take advantage of tourism with what’s going on with the economy,” Schmidly said. “We need to do this for our citizens.”

He said Randolph County’s median household income had dropped from $38,348 in 2000 to $36,824 in 2005. “It’s probably lower now with the continuation of bleeding of manufacturing.” Schmidly added that the percentage of the county population at or below the poverty level has increased during that time period from 9.1 percent to 14.6 percent.

“Statistically, we’ve lost thousands of manufacturing jobs,” he said. “We’ve got to be more competitive to thrive.”

But how can alcohol sales help? Schmidly and his colleagues believe it’s essential to draw quality hotels/convention centers and restaurants to Asheboro. It could also be a factor in drawing industry to the area.

“We believe Asheboro can be deeply competitive in conventions,” Schmidly said, “and hotels and restaurants will look at locating here with (legal) alcohol. We can’t compete for them now.”

Schmidly said the State Volunteer Directors Association had looked at holding a convention here to last several days. Selling points were the Zoo, the potters and downtown shops. “Then they found out they couldn’t drink wine with their meals and voted to go to Southern Pines,” he said.



Make or break issue

Bonnie Renfro, president of the EDC, said available alcohol is an amenity widely available that most businesses expect when considering a new location. For manufacturing, she said, the top criteria are location, workforce and the cost of doing business. After that, incentives such as quality of life are often looked at, including alcohol.

“For service-based businesses or people moving here or recruiting people to move here, that’s when quality of life can be a more important part of the decision,” Renfro said. “The part of the economy that’s growing the fastest is service. We can’t afford not to go after that.”

When considering a move, she said, businesses “have the expectation of places to entertain clients and hold meetings. It’s just part of the business world to generate sales, create relationships. ... Those amenities are available at most other places. As a transition economy, (amenities such as alcohol sales) will become more important. We want to be part of that growth.”

George Gusler, who heads up the Chamber of Commerce, said he’s had contacts with several hotel and restaurant chains over the years.

“Each time (the lack of alcohol) has been a stumbling block,” he said. “Several major chains have turned Asheboro down. If alcohol is approved, we’ll get back in touch with them. Some (restaurants) are relatively large investments and employ 30 or 40, plus part-time workers.”

Russ Williams, executive director of the North Carolina Zoo Society, said he’s been told by consultants that to get a four- or five-star hotel in the area, there must be alcohol.

“A four- or five-star is not possible without it,” he said.

Williams said the Society has purchased 273 acres next to the Zoo and was seeking advice on how to develop it to its potential. The possibility of attracting a “very nice hotel” with the theme of a “Zoo experience” and multi-night stays was discussed during conversations with the experts, he said. When the topic of alcohol came up, he said, the experts said it was a “make-or-break issue.”

Tammy O’Kelley, executive director of the TDA, said her board voted to support having the referendum but didn’t want to advise people how to vote.

“We’ll continue to market and promote Randolph County,” she said. “It will either change the landscape of Asheboro or it will stay the same.”

However, O’Kelley said alcohol sales could help attract hotels to the area. She said she knew of a potential half-million-dollar investment that was lost because of a combination of infrastructure and alcohol.



Businesses feeling effects of being ‘dry’

To those who say Asheboro already has nice restaurants and hotels, proponents argue that there could be more, especially in light of the tourism potential.

Brooke Schmidly said Asheboro High School is known statewide for its successful Mock Trial teams, having won several state titles. The championships are held each year at a Charlotte hotel with as many as 1,000 people participating.

“We have the perfect location but don’t have the facilities,” she said, adding that large hotels with conventions rooms won’t come to Asheboro because there’s no alcohol. “It’s a shame because Asheboro is so well-known for Mock Trial.”

Owners and managers of hotels and restaurants in town say they often hear visitors complain because they can’t have a glass of wine or beer with their meals, some vowing they’ll never come back.

Peggy McKenzie, general manager of Holiday Inn Express, said her staff often has to tell guests that they can’t get alcohol in Asheboro.

“We have a lot of people stay with us who are very disappointed that they can’t have alcohol – they can’t believe it,” she said. “We often give them directions to Greensboro or other cities where there are clubs and restaurants. Some we send to Randleman.”

McKenzie said work crews who stay in town for weeks or months are especially critical of Asheboro’s dry status. Some even stay in other cities where alcohol is available, she said.

“People making reservations don’t ask about alcohol, but are disappointed when they come that they can’t have wine or beer with their meals,” said McKenzie.

Even local companies often book hotels in Greensboro for their VIPs, she said. “I think we lose business that way.

“I think (alcohol sales) definitely will help us bring more tourists and businessmen into the area,” McKenzie said.

Reid Kearns, co-owner of the Hampton Inn, said the lack of alcohol affects his business.

“We have people to check in,” he said, “ask for a recommendation for a restaurant where they can have a glass of wine, and when they find out there aren’t any they turn around, check out and leave. Asheboro is losing a lot of business to Greensboro.”

Kearns, who is a member of the TDA Board of Directors, said tourism is something the city needs to be capitalizing on, and alcohol is a key component.

“Asheboro needs to realize we’re a tourist town,” he said. “It needs to be promoted as such.”

Kearns said he had talked to a restaurant chain about coming to Asheboro and he was told that they would consider it if they can sell alcohol.

“We’re surrounded now (by cities with legal sales),” he said. “To compete we have to offer the same things as the others. To get people to stay in Asheboro we have to offer them what they want. We’ve got to get in the 21st century or we’re going to dry up.”

Two couples, one from Charlotte and one from Raleigh, met here in Asheboro. They went into Timothy’s, an upscale restaurant in downtown Asheboro, before serving hours, but asked if they could sit at the bar while they waited. When they learned that there was no bar, they left and didn’t come back.

Timothy Barbrey, the owner, said he would “probably sell beer and wine” if the referendum passes. “We have a lot of people who tend to go to Greensboro” for nice restaurants, Barbrey said. But with higher gas prices some come to his restaurant and brown-bag their own beverages.

Out-of-towners, however, are often disappointed to find that they can’t buy their drinks on-premises, he said. “It would help me do more revenue if I could offer a glass of wine.”

Barbrey said offering an atmosphere for people to relax with a nice meal would be enhanced without the inconvenience of going somewhere else to buy beverages.



No ‘stealth campaign’ this time

Some say legal sales of alcohol will put more drunk drivers on Randolph County roads. To that Schmidly says statistics show otherwise. He cites a Kentucky study that indicates that county-level prohibition can be counter-productive in eliminating alcohol-related car crashes. On the contrary, drivers who have farther to go to get alcoholic beverages may have an increased exposure to crashes.

Schmidly adds that Randolph County’s DWI rates are higher than surrounding counties, and that the rate here is actually increasing.

Said Brooke Schmidly: “It’s a knee-jerk belief that we’re keeping DWI rates low. “We’re not being successful in preventing alcohol-related traffic deaths. Beliefs aren’t borne out by facts.”

Steve Schmidly said alcohol proponents have decided not to run a “stealth campaign” this time around.

“(The alcohol campaign) is much more transparent than it’s ever been,” he said. “Supporters have stepped forward. We’re going to work hard every day. Passage doesn’t force any individual to take a drink or go to an establishment that has drinks. There are plenty of places to go where there’s no alcohol.

“We’re talking about our citizens having the same rights to choices as others around us,” Schmidly said. “Our citizens don’t like the idea of government telling them what to do. “We can continue to use the bury-our-heads-in-the-sand policy. But it won’t make our roads safer and we won’t be competitive. That’s been our approach.”

The Committee For the Future of Asheboro has a Web site at http://forasheboro.org. Log on for information or call (336) 318-5794.

        

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