"Not So
Fast" Local Restaurants Say
February 29, 2008
By some estimates $14.5
million per year of Arab money is spent in restaurants in
surrounding cities. It was a portion of that money that
the Arab CDA and City officials were trying to keep in Arab with
the Applebee's deal according to Mayor Frank Lee Cox. "We
would never knowingly hurt any local business whatsoever," Cox
said Thursday afternoon. "We have great businesses, great
restaurants....restaurants that I eat in all of the time." he
added.
Representatives from the restaurants
as well as several retail business owners expressed concern at
the plan that calls for the CDA to issue bonds to purchase land
and construct a building for lease by Quality Restaurant
Concepts, LLC of Birmingham. The plan would also commit the city
to possibly subsidize the bond repayment (See
earlier article) by earmarking two of every four cents of
the tax revenue generated by the Applebee's restaurant until
predetermined profitability levels are met by the restaurant.
While the local restaurant representatives
expressed concerns that the local economy cannot support
additional restaurants, the biggest concern was the financial
assistance that the Applebee's deal would provide to QRC.
Financial assistance that they say is not available to them and
would provide an unfair advantage.
Tim Talley, owner of Mink Creek Outfitters -
Cafe and Coffee House, said, "I think it is very unfair to
bring Applebee's in at less than we have to pay when there is a
limited amount of dining dollars to divide." Talley said
that he has personally invested somewhere in the same range as
the Applebee's proposal in order to build his business.
Arby's manager, Ken Moore, said the claims of
adding 150 jobs will turn out to be a job swap because some
current restaurants will close. He also questioned the
staffing numbers in the proposal. "I think the number of
staff will be more like 80-85." Moore told the group. "It
will do good for the first year and begin to tail off, but by
then two or three restaurants will be gone." he added. The
Guntersville Applebee's and O'Charley's Restaurants each
employee 58 employees according to a survey done by a member of
the retail group. Those restaurants serve a larger market
and include alcohol sales according to the report. Moore
said Arab is geographically isolated and the market area is
limited with customers going to other cities past certain
points. "The city needs to bring in more dollars through
industrial jobs instead of cutting up the pie." Moore added.
Keith Meade, one of the owners of Three Guys
Grill, questioned the cost of the project. Meade said the
1.7 to 2 million dollar price tag for the Applebee's project is
too high. He said the proposed 5,000 square foot building
and land deal could be done for 1.2 to 1.5 million dollars.
Tommy "T-Bone" Ellenburg, also a Three Guys Grill owner,
asked about the makeup of the CDA Board. Ellenburg pointed
out that, "None of the CDA members are restaurant or retail
business owners."
A common theme among those speaking at the
meeting was that QRC is trying to position themselves in Arab
ahead of an expected alcohol referendum in November.
Sierra's Mexicanisimo owner Alex Sierra said they are betting on
the legalization of alcohol sales in November. "If they
come in with fair play, then welcome...more than welcome,"
Sierra told the group.
According to stats provided by the Guntersville
Applebee's and O'Charley's restaurants in the previously
mentioned survey, their percentage of sales attributed to
alcohol are 4% and 12% respectively.
Arab City Councilwoman Diane Prestridge, who
attended the meeting, fielded questions about the proposal by
those in attendance. After hearing their concerns,
Prestridge suggested the group schedule a meeting with the CDA
Board to discuss their concerns and to allow the CDA Board to
explain what they see as positive about the proposal.
Prestridge told the group that she has some reservations about
the proposal and still has several unanswered questions.
Prestridge said, "We want to grow but we want to keep the
businesses that we have. Applebee's is a large chain with
a lot of backup but local restaurants have no backup." She
said she is also concerned the deal would hurt the City's
ability to borrow money in the future. Prestridge told the
group that she is still uncomfortable with the proposal and
plans to ask the council to table the measure until she can get
answers to her questions.
The group agreed to send a letter to the council
and to local media outlets asking the council to delay a
decision on the proposal until they meet with the CDA and their
concerns are heard.
There was at least one lighter moment during the
meeting. When asked if anyone could see a positive aspect
to the plan, Ellenburg said, "Yea, they have a $9 half
pound cheeseburger and we have a $6 half pound
cheeseburger with a lot more fixings."
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