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Merger plan for ABC stores remains on ice
Tuesday, 16 October 2007 17:44

By JIM GENARO

WEAVERVILLE ó Negotiations over a possible merger between the townís Alcoholic Beverage Commission and the City of Ashevilleís board again dominated discussion at Weaverville Town Councilís meeting last Monday night.

Council did not take any action, but did move closer to negotiating a deal, as council members questioned Town Attorney Patsy Bryson and Asheville ABC Board Executive Director Curtis Canty about the proposed merger.
Under the proposal, the Asheville board would help Weaverville set up and manage its first liquor store under a profit-sharing agreement.

Councilman Don Hallingse recused himself from the discussion because of a potential conflict of interest.
Several council members raised contrasts between the planís projected revenues and those projected by the Woodfin ABC board for its first store, which opened this year. Woodfin officials have predicted that the store will bring in more than $250,000 in its first year.

ìIím not telling you weíll make $250,000 in distribution,î Town Manager Michael Morgan said.

However, he noted that the Asheville ABC board is the 11th most profitable board in the state.

Councilman Al Root asked when the Asheville board would have an opening on it that could be filled, as per the agreement, by a member of Weavervilleís board.

Canty replied that there will be a vacancy on the board next month, adding that ìthe timing of this couldnít be better.î

Vice Mayor Dottie Sherrill contested the notion that Weaverville would be less successful than its neighbor.

ìProbably in the back of my mind, I feel that if Woodfin can do it, Weaverville can do it,î she said.

Sherrill also asked whether the proposed merger would have a set expiration date.

ìIt runs until you terminate it,î Bryson said. Under the agreement, she said, either party can back out of the arrangement with 180 daysí written notice.

Root expressed concerns about a clause mandating that each store would pay into the systemís administrative costs based on a percentage of sales.

Canty responded that, ìyour share of the total administrative costs will be quite small.î

However, he added, by merging with Asheville, Weaverville will avoid numerous costs, including audit fees which would be required if it opened its own store.

Canty also elaborated on state requirements that ABC boards must donate at least seven percent of proceeds to alcohol treatment programs.

He noted that ìAsheville historically has donated moreî than the required percentage. Funds are administered through a ìvery regimentedî grant process, he said.

ìWe try to put the money where it can best be used to serve the general public.î

The agreement would also allocate a percentage of revenues from each store to pay for law enforcement.
Councilman Harold Payne asked about this clause. ìThe percentage that goes into law enforcement ó will that go directly to Weaverville?î

Canty said that the Asheville board has already allocated funds for one officer to work in Weaverville. That officer would have all police powers, he said, but will focus specifically on alcohol and drug offenses.

Bryson noted that there are still ìabout six outstanding questionsî that have not been resolved, including the percentage of capital reserve the system must retain and the arrangements for how assets would be divided in case the parties end the merger.

But Canty added, ìnone of those things weíve talked about are sticking points for us.î

In other action, the board:

ï Approved a $500 donation to the Weaverville Senior Citizen Meal Site.

Mayor Mary ìBettî Stroud told council that the donation had been requested by the organization, which serves food to low-income, elderly Weaverville residents as a stop-gap to avoid shutting down services.
ìThey will run out of money in two months if they do not get some donations,î she said.

The contribution was approved unanimously.

ï Heard public comment from resident Joan August, who urged council to reject the proposed deal with the Asheville ABC board.

ìI think the town of Asheville ó the board thatís governing the town ó at best is incompetent and at worst is corrupt,î August told council. ìIf weíre going to be friends with anyone, it should be Woodfin.î

ï Presented two plaques recognizing the service of Root and Payne, whose terms of service on council were ending.

 



 


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