Powell awards last retail liquor license to Albertsons

Company says it will open a store next year, create up to 100 jobs

Posted 1/7/21

On Monday, the Powell City Council debated what to do with its one remaining retail liquor license. The city had two applicants: the Pit Stop No. 12 gas station   and convenience store on West …

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Powell awards last retail liquor license to Albertsons

Company says it will open a store next year, create up to 100 jobs

Posted

On Monday, the Powell City Council debated what to do with its one remaining retail liquor license. The city had two applicants: the Pit Stop No. 12 gas station  and convenience store on West Coulter Avenue and Albertsons, LLC, which is planning to open a new grocery store at the former Shopko location.

During the hearing, representatives for each company discussed plans for the license. Citing Albertsons’ larger potential for jobs, the council decided to grant the license to the grocery store conglomerate on a 5-2 vote.

    

Dueling plans

Eric Holzer, real estate manager for Albertsons, provided a presentation via teleconferencing on the company’s plans for the new grocery store.

The company purchased the former Shopko building this time last year. The new store will be part of the company’s intermountain west division, which Holzer said included 88 operating stores in eight western states. Holzer said the Powell Albertsons won’t open for another year.

“This project is currently in the design phase,” Holzer explained.

A store of this size, Holzer said, would generally support about 80 to 100 positions, about 60% of which will be full-time. He said the positions would include benefits and “competitive pay.”

The plans for the store include a pharmacy, Starbucks coffee shop and self checkout lines. They will also have a “drive up and go” module, which will allow customers to order groceries online and pick them up upon arrival.

Headquartered in Boise, Idaho, Albertsons says it has $60.8 billion worth of annual sales across some 2,260 retail food and drug stores — including one in Cody — with 1,732 pharmacies, 402 fuel centers, 23 distribution centers and 20 manufacturing facilities.

Mike Bailey, who owns Riverton-based Bailey Enterprises, Inc., spoke about the Pit Stop application. The company operates another Pit Stop location on East Coulter Avenue which already has a liquor license. Bailey Enterprises also owns Bailey Tire & Auto in Riverton and Lander, two Bailey Oil Fuel Depot locations in Cody and the Speedway Cafe in Riverton.

Bailey said the plan for Pit Stop No. 12 was to expand the existing store into the neighboring car wash service bays (which are currently not operational) to create a liquor department. The facility would include a drive-up window, as well as a food service offering. He said construction would begin in the summer and would likely be complete by fall.

Bailey Enterprises purchased the Pit Stop gas stations in Powell at the end of 2012.

“We’ve had a very successful operation here in Powell,” Bailey said. “It’s been a great town to work in. We love the people and serving the people of the community.”

Responding to questions from the council, Bailey said store No. 12 currently employs about five people, and would add up to 10 more employees with the expansion.

He added that the company has a zero-tolerance policy, so employees violating liquor laws, such as selling to a minor, are immediately terminated.

“Our employees are very motivated to make sure they sell alcohol properly and legally,” Bailey said.

   

Three grocery stores?

Kami Scott, manager of The Market at Powell — formerly Mr. D’s Food Center — asked the council to grant the license to Pit Stop. She argued that Powell, which has The Market and Blair’s Supermarket, couldn’t support three grocery stores.

“There’s only so much of a pie for a town this size,” Scott stated.

She estimates about 45% of grocery business already goes to Walmart and Albertsons in Cody.

However, Holzer said that, according to discussions company representatives have had with people in the community, another grocery option is warranted.

“We’ve studied the market. We’ve done the research. The opportunity is there, and it works,” Holzer said.

Tranyelle Harshman, who manages Mr. D’s Liquor Store, argued the license should go to the Pit Stop — to a business that is already established in Powell and to help protect small businesses.

“I have nothing against big, corporate businesses, but especially in a small town like this, it would be nice to see us to support the smaller businesses,” Harshman said.

    

The impact of a license

Councilor Steve Lensegrav asked Holzer if Albertsons would move forward with opening the grocery store if it did not get the license.

“Our plans are to move forward,” Holzer said, adding that the new store wasn’t dependent on the license. He said Albertsons was pursuing the license now because it would be “very, very expensive” to add on a liquor department later.

Councilor Geoff Hovivian asked Bailey the same question — about whether his expansion plans were contingent on the license. Bailey said the project would be delayed without the license. Getting the license “would definitely spur us into moving forward quicker than we would normally,” he said.

Lenesgrav argued that, since Albertsons planned to open with or without the license, Powell could still benefit from the jobs. While some of the projected 80 to 100 jobs would be lost, it would be only the positions attached to the liquor store; those jobs would then be created at Pit Stop.

   

A question of timing

Mayor John Wetzel signaled he was more in favor of issuing the license to Pit Stop, because Bailey had indicated the business would use it by the fall, whereas Holzer said Albertsons wouldn’t open until next year.

“The last one we extended out for a long period of time, and it came back to haunt us,” Wetzel said.

The mayor was referring to the last time the city had multiple contenders for the license. In late 2018, the developer of the proposed Powell Clocktower Inn, Steve Wahrlich, argued a liquor license was vital to the hotel and conference center’s success. At the time, Club Dauntless owner Stacy Bair also sought the license, planning to build a complex that would include not only a gym, but also a high-end “Dauntless Club” sports bar.

Councilors awarded the license to the Clocktower Inn, by a 4-2 vote. Wahrlich held the license for two years, but notified city officials last fall that he did not intend to renew it, as the project still had not broken ground. Bair, meanwhile, moved forward with the fitness center and opened the Club Dauntless location in late 2019.

“Personally, I’d like to see the Pit Stop grow,” Wetzel said.

Councilor Lesli Spencer pointed out to the financial struggles at Northwest College — one of the area’s largest employers. The college’s board of trustees has indicated last month layoffs are possible this year. Spencer said that possibility would mean Powell would need the jobs Albertsons says it’s going to create.

“That’s a huge plus … in the times we have now,” Spencer said.

Councilor Tim Sapp made the motion to issue the license to Albertsons, and Councilor Floyd Young seconded the motion. The motion passed, with Lensegrav and Wetzel voting against it.

Cities and counties are awarded a set number of retail liquor licenses from the state, based on population. Sapp asked if the Wyoming Liquor Division will issue more licenses to Powell following the 2020 Census.

City Clerk Tiffany Brando said the division won’t have census figures until the first quarter of this year. The 2010 population count came close to qualifying Powell for another retail license, Brando said — but the number of licenses could also drop, depending on where the city’s population sat as of last April.

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