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January 11, 2007
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No link seen between alcohol and industrial development
By Arthur McLean

One of the reasons cited in many towns facing a wet vote, is improving economic development.

While there's clear evidence of alcohol sales taxes making a positive impact on the budgets of formerly dry towns, the link between alcohol sales and economic development overall appears slight at best.

Louanne Hayes, economic developer for Guntersville said alcohol has helped in attracting some of the chain sit-down restaurants.

"We've been able to recruit the Applebee's and O'Charlie's because of it," she said. The town has also landed new mid-tier motels since going wet.

But that seems to be as far as the impact of alcohol goes in luring businesses to town. "It hasn't seemed to be a deciding factor," Hayes said with regard to landing industrial businesses.

"We've had consultants from out of state and they look at us funny when alcohol is mentioned, they just assume it's everywhere," she said.

Clanton another town that voted wet in recent years has not seen the success of Guntersville from going wet. Similar to Thomasville, Clanton's a town of 8,000 and the trade center for a larger area. But that and legal alcohol sales have not swayed the name-brand sitdown restaurants to come yet, said developer Obie Littleton.

"We've not gotten any new restaurants or hotels yet, because we're not big enough," Littleton said. "It's a big trade area, but the restaurants are looking at population."

Like Clanton, no economic boom has come to Elba since voting wet, said its economic developer, Kay Whitworth. "To be honest, it's done nothing beyond sales tax. I don't think it's made any difference in our economic growth."

Also like Clanton, legal alcohol sales in Elba have not attracted any new restaurants or hotels, Whitworth said.

Jim Plott, a spokesman for the Alabama Department of Economic and Community Affairs said alcohol issues were not part of his organization's focus on economic development.

Plott said his conversations with tourism officials also revealed no interest in whether alcohol sales were legal in a town or not.

The links between economic development and wet-dry issues in other states show a similar pattern. A recent report by the Chattanooga Times Free Press showed that towns already growing or primed for growth tended to see growth after the legalization of alcohol sales while other towns saw little to no benefit beyond alcohol sales taxes.

In earlier reports by The Thomasville Times, major employers who have come to the area, like Louisiana-Pacific Corporation have publicly stated some of the prime interest in the are came from the abundance of natural resources needed for the mill and the access to high-quality workforce training through Alabama Southern Community College.

Transportation, utiltities availability and costs and of course, lucrative economic incentive packages also help to lure large manufacturers to an area.
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