Published: September 19, 2008 08:37 am         

And the pitch ...

AEDC ponders action that could set new precedent

The Athens Economic Development Corporation chose to table a request by Groom and Sons’ Hardware & Lumber Inc. on Thursday morning.

The AEDC board was to discuss — among other items — a request from the company for assistance.

AEDC Board Chairman David Daniels said the company is requesting $25,000. He said the request was submitted by Groom and Sons’ within the last two weeks.

Groom and Sons’ plans to open a new store in Athens in half of the old Winn-Dixie building on South Palestine Street.

The company is based in Mabank and has satellite stores in Dallas and McKinney.

Roger Groom, an owner of the company, said the store will be 14,500 square feet with a few “bells and whistles.”

He said the company has taken on the construction expense to the building.

“It’s a fixed asset,” Groom said. “These improvements will have to be made to make the building usable.”

He said the company will initially hire nine people, increasing the number between 12-15 within the next three years. The average pay rate will be about $12 an hour, according to Groom. The total wages paid in the first year is $230,000.

The store will be open from 7 a.m. to 6 p.m., seven days a week.

Groom said the goal is to open stores closer to the Mabank.

“We can do so much better supporting the stores with Mabank as a hub,” he said.

Groom said the company plans to open six to seven new stores in the near future. He said they chose Athens over Midlothian and Seagoville.

“We feel like we are going to bring some new retail business to Athens,” Groom said. “Keep some people that are leaving Athens now and going to other places. Keep them home.”

Mayor Pro-Tem Jerry Don Vaught said the people he has talked to want more retailers in Athens.

“I think we are at a stalemate,” Vaught said.

Daniels said AEDC has not historically extended direct assistance to retailers.

“I’m a little concerned that we are just moving money around,” he said.

Groom said the majority of business the store will target is business that is being lost. He said the studies the company has conducted have found Athens is losing business to Gun Barrel City and Tyler.

Eric Smith, owner of Smith Lumber, said he does not like the idea of the AEDC giving sales tax revenue to retailers.

“I think if the AEDC pursues this, it would set a bad precedent,” Smith said.

Daniels said the board needs time to study the issue.

“What we have not done is direct assistance for retail,” he said.

The AEDC had in past focused on bringing higher paying jobs to Athens and indirectly benefiting the retail industry, according to Daniels.

“If the rules are going to change, let’s make sure everyone knows about it,” board member W.P. “Rip” Drumgoole said.

He said the board had recently turned down a retailer from North Athens based on current board policy.

“They already feel disenfranchised,” Drumgoole said.

Daniels said if the AEDC approves incentive packages to retailers, business owners may re-submit their request.

The board approved a motion to table Groom and Sons’ request and conduct a workshop at a later date including the Athens City Council and community retailers.

“We are excited about coming to Athens,” Groom said. “Whatever y’all as a board and the city can do, we appreciate.”

     

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