Economic Impact of Ending Sunday Blue Law Pell City, Alabama

Transcription

1 Economic Impact of Ending Sunday Blue Law Pell City, Alabama Prepared by: Mr. Jeffery G. Hooie Research Analyst Jacksonville State University Jacksonville, Alabama Prepared Through: Center for Economic Development and Business Research Jacksonville State University 700 Pelham Road North Jacksonville, Alabama July 9, 2015

2 Economic Impact: End of Sunday Blue Law Introduction...1 Economic Impact of Blue Laws...2 Chart 1 Deadweight Loss to Society...2 Productive Efficiency...3 Chart 2 Productive Efficiency...3 Pell City Statistics/Potential for Expansion...3 Retail Goals and Services Expenditures...3 Retail Market Place Profile...3 Restaurant Market Potential (MPI)...4 Statistical Analysis...4 Total Impact...4 Tax Revenues...4 Job Benefits...4 Increase in Income in Pell City...4 Table 1 Annual Economic Impact Resulting from Sunday Sale of Alcohol in Pell City...5 Table 2 Alcohol Tax Increase (Sunday Sales)...6 Table 3 Impact of Sunday Alcohol Sales on Retail Expenditures...6 Restaurants and Zoning Criteria...7 Conclusion...7 References Exhibits i

3 Introduction On Monday, May 11, 2015, the Pell City City Council approved a resolution to allow the citizens the right to vote on whether to allow seven-day alcohol sales. In order to attract certain restaurants a city s commercial and retail zoning ordinance is required to include the sales of beer, wine, and liquor seven-days-per week. These chains and franchises also require certain location, trade area, traffic generators, and traffic counts in order to locate in a specific geographic area. The Pell City Market meets these requirements with the exception of Sunday liquor sales. Currently, the city of Pell City does not have this stipulation in their zoning of businesses and restaurants. At present alcohol in any form is only sold sixdays-per week until 2:00 am on Sunday morning. Some chains and franchises that do request seven-day-per-week sales are: Bagger Dave s, Buffalo Wild Wings, The Distillery, and Ker s Wing House Bar & Grill. There are also a number of restaurant s (both chain and franchise) that do not require sevenday-sales, but would be more favorable if a location has this within their zoning ordinance. These establishments include: Mellow Mushroom, Hooters, Olive Garden, Dave and Buster s, O Charley s, Outback Steakhouse, and Joe s Crab Shack. On average, these larger restaurant chains and franchises employ an average of employees per restaurant. Given this information, if Pell City was able to attract at least three of these, there could be an increase of new jobs created in the restaurant industry. When you look at the retail aspect of new development that usually is accompanied by these larger chains for example, Target and Sam s Club, they have an average of between employees per store. If Pell City was able to attract at least two of these, there would be an increase of new jobs created. According to the Bureau of Labor Statistics, both restaurant and retail industries will see a steady increase in employment and jobs within the next ten years. In the restaurant industry there will be an average increase of 11.5 percent. In the non-restaurant category that takes into account bars, nightclubs, and other entertainment related establishments will increase by 20.1 percent. In the retail industry there will be an average increase of 3.85 percent. A market retail analysis of Pell City shows that there is a surplus factor in the Industry Group of Drinking Places that serve alcoholic beverages of -2.5 percent. This translates into slightly higher in-shopping from outside Pell City (see Esri Retail Market Place Profile). On the flip side, there is a leakage in the Industry Group of Beer, Wine, and Liquor stores of percent (adjusted for information supplied by Pell City). This indicates that consumers are going outside the city limits of Pell City to purchase and/or consume the majority of alcoholic beverages. It also shows that the average household in Pell City spends $ per year on alcoholic beverages. 1

4 In the state of Alabama, municipalities are classified by population size. The city of Pell City falls within the Class 6 category. Similar cities to Pell City in size and make up have passed the sale of alcohol on Sunday (i.e., Anniston, Northport, Scottsboro, and Selma). Economic Impact of Blue Laws Regulation of hours or days of operation necessarily results in a reduced choice set for consumers, and thus lowers societal welfare for several reasons. First, there is a positive value placed on the ability to choose from alternative uses of one s time. Second, competition forces producers to operate efficiently. Sellers must pay attention to the needs and wants of consumers. Third, the market place insulated from competition due to regulation invariably results in higher prices and lower output. These higher prices and lower output are deadweight loss to society. P ~ Chart 1 ~ Deadweight Loss to Society S r p r S * p * D 0 Q r Q * Q S * is the unrestricted supply of activities and goods available to consumers on any day of the week. If this supply is restricted by the introduction of Blue Laws the supply curve is shifted back from S * to S r. Price is increased to p r and quantity is reduced from Q * to Q r resulting in a loss of wealth to society. Business revenue is also curtailed. 2

5 Productive Efficiency A business forced to close early or on particular days suffers from excess capacity. Fixed assets such as floor space, inventory, checkout counters and cash are not fully utilized resulting in an economic loss to the owners and increased cost to consumers who may pay higher prices and to workers why may be underemployed. Other costs include inconvenience to consumers due to lost opportunities for shopping. Cost ~ Chart 2 ~ Average Fixed Cost O Output/hours By operating more hours a business may lower its average fixed cost with resulting gains for both business and consumers (example large retailers like Wal-Mart). In a major study, Blue Laws, The History, Economics, and Politics of Sunday-Closing Laws by David N. Laband, the author suggests that the total amount of economic activity one engages in per week is a positive function of the number of legitimate days for selling. If the total of retail sales increases when Sunday sales are permitted, all businesses large and small may benefit from repeal of Sunday Blue Laws. Laband s research shows that businesses experience 10.1 percent greater sales per outlet in non-blue law states. Pell City Statistics/Potential for Expansion Retail Goals and Services Expenditures The Spending Potential Index (SPI) represents the amount spent for a product or service relative to the national average of 100. Pell City s SPI for food away from home is 86, slightly less than average (100). This shows potential for growth. Pell City s SPI for alcoholic beverages is 84, slightly less than the average (100). Sunday sales of alcohol should increase these averages. See Exhibit 1. Retail Market Place Profile Pell City s profile indicates that Pell City is an in-shopping area meaning more shopping money coming in than going out of the city. The profile is a supply (retail sales) and demand (retail 3

6 potential) analysis. Supply (retail sales) estimates sales to consumers by business establishments. Demand (retail potential) estimates the expected amount spent by consumers at retail establishments. The Leakage/Surplus Factor presents an estimate of retail opportunity. A +100 measures total leakage. All sales leave the locality. A -100 is a measure of total surplus, customers are drawn from outside the trade area (city). The retail gap is the difference between retail potential and retail sales. The Leakage/Surplus Factor (LSF) for the city as a whole is -37.9, indicating inshopping. For drinking places (alcohol) the LSF is a -2.5 indicating slight in-shopping from outside the Pell City area. For Beer, Wine & Liquor stores the LSF is a indicating a very substantial potential for growth in these types of service stores. Full service restaurants have a LSF of -21.6, indicating moderate in-shopping. However, this LSF of is less than for the city as a whole, a LSF of -37.9, indicating potential for growth in full service restaurants. See Exhibit 2. Restaurant Market Potential (MPI) The MPI for Pell City measures the relative likelihood of the adults in the trade area following purchasing patterns compared to the U.S. as a whole. An MPI of 100 is the U.S. average. Pell City has an MPI of 105, which indicates that consumers are more likely to purchase goods or services in this trade area. See Exhibit 3. Statistical Analysis Total Impact The total net expenditure impact from the Sunday sale of alcohol in Pell City is approximately $6.8 million dollars. This total is made up of a direct impact of $2.83 million and multiple spending and re-spending within the local economy, resulting in $6.8 million of impact (see Table 1 & 3). This analysis is consistent with expenditure increases documented in The Perryman Group study for Texas. See Exhibit 4. See Economic Impact of Legalizing Retail Alcohol Sales in Benton County, See Exhibit 7, Center for Business and Economic Research, University of Arkansas. Tax Revenues Retail sales are expected to increase by $2.72 million and alcohol by $110,061 resulting in increased tax collections of $145,129 thousand annually. Beer sales are expected to increase by $66,977 thousand, tax receipts by $6,698 thousand per year; liquor by approximately $42,821 and tax receipts by $2,141 per year (see Table 1). (Exhibit of City of Pell City Retail and Alcohol Sales, see Exhibit 5), National Tax Journal with individual states listed (See Exhibit 6.) Job Benefits Sunday sales of alcohol are expected to generate up to one hundred jobs. The $6.8 million increase in expenditures will create approximately 35 jobs per million of expenditures resulting in 98 new jobs for Pell City economy. See Table 1. Increase in Income in Pell City There are 98 new jobs in Pell City and median worker income is $32,060. Therefore, income in the city should increase by at least $3.1 million. See Table 1. 4

7 ~ Table 1 ~ Annual Economic Impact Resulting from Sunday Sale of Alcohol in Pell City A. DIRECT IMPACT FROM SUNDAY ALCOHOL SALES Dollar value of goods and services purchased in Pell City 1. Direct impact a) retail $2,723,088 (See Table 3) b) alcohol 110,061 $2,833, Estimated Indirect and Induced Expenditure MULTIPLIER Calculate TOTAL IMPACT FROM Sunday Alcohol Sales $6,799,558 B. TAX REVENUE BENEFITS FROM SUNDAY ALCOHOL SALES 1. Enter TOTAL EXPENDITURES from 3A above. $6,799, Retail $2,723,088 x.05 = Beer $66,977 x.10 = Liquor $42,821 x.05 = $136,154 $6,698 $2, Calculate: TAX REVENUES. Add figures in 2B (See Table 2) $145, Enter the number of additional jobs (Sunday Sales) Increase in income. Median worker income for Pell City is $32,060. To determine the increase in income multiply worker income by 98 jobs. $3,141,880 JOB BENEFITS FROM Sunday Sales 1. TOTAL EXPENDITURES from 3A, expressed in millions $ Estimate multiplier for JOBS CREATED PER MILLION DOLLARS OF TOTAL SALES. (Range is 10-50; average = 30) 35 C. 3. JOBS CREATED BY Sunday Sales 98 5

8 ~ Table 2 ~ Alcohol Tax Increase (Sunday Sales) Pell City FY13 Percentage Beer Sales $798,070 61% Liquor Sales $515,305 39% Total Alcohol $1,313, % Alcohol Sales increase due to Sunday Sales. $1,313,375 x.0838 * = $110,061 increase Beer sales $66,977 x.10 = $6,698 Liquor Sales $42,821 x.05 = $2,141 ~ Table 3 ~ Impact of Sunday Alcohol Sales on Retail Expenditures Annual Figures Total Retail Sales Average Weekly Retail Sales 2013 Retail Sales Data $139,246,600 $2,250,486 Average Daily Retail Sales $321,498 Expected direct increase in expenditures for Pell City $2.72 million, adjusted for days of week and Sunday sales volume * National Tax Journal with individual states listed. (Exhibit 6) (Exhibit 7) Pell City City Government. (Exhibit 5) Average Daily Retail Sales x 7 days = $2.25 million. In Pell City, only one day of the week, (Sunday) is subject to change. Thus 2.25 million is the appropriate weekly retail sales for Pell City. However, Sunday has a 21% greater expenditure volume than the weekly average. ** Thus, the $2.25 million must be adjusted by.21 resulting in an increase to $2.72 million. ** Sunday Sales and Georgia, Heartland Institute. Sunday Basket has 21% more than other days of the week. 6

9 Restaurants and Zoning Criteria Today s restaurant climate is more competitive than ever and alcohol sales, in some cases, are a big part of their operating, strategic planning, and sales budgeting. In order to attract certain restaurants, franchises, chains, and even bars a city s commercial and retail zoning ordinance is required to include the sales of beer, wine, and liquor seven-days-per-week. These chains and franchises also require certain location, trade area, traffic generators, and traffic counts in order to locate in a specific geographic area. Pell City meets these requirements with the exception of Sunday liquor sales. At present alcohol, in any form, is only sold six-days-per-week until 2:00 am on Sunday morning. Some establishments that do require seven-day-per-week sales in their search criteria are: Bagger Dave s, Buffalo Wild Wings, The Distillery, and Ker s Wing House Bar & Grill. (Examples of this criteria can be seen in Exhibit 8A & 8B) There are also restaurants that do not require the sales of alcohol on Sunday, but find it more appeasable if the zoning will allow for such sales within the market area they express interest in. Examples of these establishments include: Mellow Mushroom, Hooters, Olive Garden, Dave and Buster s, O Charley s, Outback Steakhouse, and Joe s Crab Shack. Overall, according to these industry specific criteria, the potential to attract these restaurants and bars can be increased by allowing Sunday sales because it helps to put your location on their radar. Conclusion There is no apparent economic rationale for banning the sale of alcohol on any particular day of the week. The rise in sales of alcohol when Sunday bans are eliminated strongly suggests that consumers are inconvenienced by Blue Laws. Sunday alcohol bans do create deadweight losses for society, because of increased prices and reduced output of goods and services. In addition, businesses may have substantial productivity losses due to limitation of hours/days of operation. Businesses cannot lower their average fixed cost to the optimal level. This analysis provides evidence that lifting the ban on Sunday alcohol sales in Pell City will increase retail sales and other expenditures and result in increased tax collections. Also, there will be an increase in employment within the city and a substantial increase in local income. 7

10 References Alabama Alcoholic Beverage Control Board. Annual Report. Montgomery, AL, Alabama Code Section 28-2A-1: Procedure for Wet or Dry Classification Option Elections. (Alcohol). Alabama Code Section 28-3A-25: Unlawful Acts and Offenses Penalties. (Alcohol). Atchison, David. Pell City inches closer to Sunday alcohol vote. The Daily Home. December Atchison, David. Pell City residents to get chance to vote on Sunday alcohol sales. The Daily Home. May Buxton IDentity Customers. Retail Leakage and Surplus Analysis. Retail Market Power (Claritas). December City of Pell City Finance and Revenue Department. Alcohol and Retail Sales Tax Data. Fiscal Years (Audited). City of Pell City Income and Careers. USA.com. June Edgemon, Erin. Bills to allow vote on Sunday alcohol sales in Shelby, St. Clair counties pass Legislature. AL.com. April Laband, David N.; Heinbuch, Deborah Henry. Blue Laws: The History, Economics, and Politics of Sunday-Closing Laws. Lexington Books, D.C. Heath and Company. (1987). Lovenheim, Michael F.; Steefel, Daniel P. Do Blue Laws Save Lives?: The Effect of Sunday Alcohol Sales Bans on Fatal Vehicle Accidents. May Perryman Group, The. The Economic and Fiscal Impact of Alcoholic Beverage Sales in Texas: An Analysis with Emphasis on Various Representative Communities. October 2008:

11 Restaurant Market Potential (Pell City, AL Market). Esri Business Analyst. June Retail Goods and Services Expenditures (Pell City, AL Market). Esri Business Analyst. June Retail MarketPlace Profile (Pell City, AL Market). Esri Business Analyst. June Stehr, Mark. The Effect of Sunday Sales Bans and Excise Taxes on Drinking and Cross-Border Shopping of Alcoholic Beverages. National Tax Journal Vol. LX, No. 1 (March 2007). Thompson, Jeff. Are Sunday alcohol sales right for your city? St. Clair News Aegis. April U.S. Census Bureau. Governments Individual State Descriptions (Alabama). January U.S. Bureau of Labor Statistics. Employment Projections for Restaurant and Retail Industries. (National and Pell City, AL Market). January U.S. Chamber of Commerce Foundation. Enterprising Cities: A Force for American Prosperity. September 2013: Walker, Willard J. Economic Impact of Legalizing Retail Alcohol Sales in Benton County. Center for Business and Economic Research. University of Arkansas Sam M. Walton College of Business. February

12 Retail Goods and Services Expenditures Pell City, AL Pell City, AL ( ) Place Exhibit 1 Top Tapestry Segments Percent Demographic Summary Middleburg (4C) 23.8% Population 12,888 13,268 Front Porches (8E) 19.7% Households 5,263 5,426 Comfortable Empty Nesters (5A) 17.4% Families 3,623 3,708 Green Acres (6A) 14.3% Median Age Down the Road (10D) 9.4% Median Household Income $50,191 $54,946 Spending Potential Average Amount Index Spent Total Apparel and Services 85 $1, $10,370,742 Men's 85 $ $1,933,573 Women's 86 $ $3,635,765 Children's 85 $ $1,672,167 Footwear 85 $ $2,046,766 Watches & Jewelry 85 $ $647,245 Apparel Products and Services (1) 85 $82.70 $435,224 Computer Computers and Hardware for Home Use 84 $ $961,333 Portable Memory 85 $4.59 $24,159 Computer Software 82 $16.58 $87,238 Computer Accessories 86 $16.44 $86,528 Entertainment & Recreation 86 $2, $15,023,552 Fees and Admissions 84 $ $2,861,064 Membership Fees for Clubs (2) 84 $ $760,584 Fees for Participant Sports, excl. Trips 85 $ $540,678 Admission to Movie/Theatre/Opera/Ballet 83 $ $721,992 Admission to Sporting Events, excl. Trips 86 $57.57 $302,983 Fees for Recreational Lessons 82 $ $532,336 Dating Services 78 $0.47 $2,492 TV/Video/Audio 87 $1, $6,011,883 Cable and Satellite Television Services 88 $ $4,153,565 Televisions 87 $ $676,548 Satellite Dishes 87 $1.37 $7,226 VCRs, Video Cameras, and DVD Players 86 $9.43 $49,642 Miscellaneous Video Equipment 88 $9.49 $49,965 Video Cassettes and DVDs 86 $27.61 $145,311 Video Game Hardware/Accessories 86 $19.82 $104,291 Video Game Software 87 $23.96 $126,076 Streaming/Downloaded Video 82 $4.69 $24,662 Rental of Video Cassettes and DVDs 85 $20.07 $105,651 Installation of Televisions 85 $0.95 $5,013 Audio (3) 83 $ $540,511 Rental and Repair of TV/Radio/Sound Equipment 83 $4.45 $23,422 Pets 87 $ $2,619,750 Toys and Games (4) 86 $ $557,631 Recreational Vehicles and Fees (5) 84 $ $959,652 Sports/Recreation/Exercise Equipment (6) 86 $ $861,003 Photo Equipment and Supplies (7) 85 $69.30 $364,727 Reading (8) 86 $ $685,986 Catered Affairs (9) 81 $19.35 $101,857 Food 86 $7, $38,543,600 Food at Home 86 $4, $23,719,974 Bakery and Cereal Products 86 $ $3,313,288 Meats, Poultry, Fish, and Eggs 87 $ $5,234,545 Dairy Products 86 $ $2,546,055 Fruits and Vegetables 85 $ $4,431,807 Snacks and Other Food at Home (10) 87 $1, $8,194,280 Food Away from Home 86 $2, $14,823,626 Alcoholic Beverages 84 $ $2,461,315 Nonalcoholic Beverages at Home 87 $ $2,277,689 Data Note: The Spending Potential Index (SPI) is household-based, and represents the amount spent for a product or service relative to a national average of 100. Detail may not sum to totals due to rounding. Source: Esri forecasts for 2015 and 2020; Consumer Spending data are derived from the 2011 and 2012 Consumer Expenditure Surveys, Bureau of Labor Statistics. June 16, Esri Page 1 of 3

13 Retail MarketPlace Profile Pell City, AL Pell City, AL ( ) Geography: Place Exhibit 2 Summary Demographics 2015 Population 12, Households 5, Median Disposable Income $40, Per Capita Income $26,305 NAICS Demand Supply Retail Gap Leakage/Surplus Number of Industry Summary (Retail Potential) (Retail Sales) Factor Businesses Total Retail Trade and Food & Drink 44-45,722 $140,154,163 $311,109,706 -$170,955, Total Retail Trade $125,869,844 $283,906,937 -$158,037, Total Food & Drink 722 $14,284,319 $27,202,769 -$12,918, NAICS Demand Supply Retail Gap Leakage/Surplus Number of Industry Group (Retail Potential) (Retail Sales) Factor Businesses Motor Vehicle & Parts Dealers 441 $26,803,875 $57,761,505 -$30,957, Automobile Dealers 4411 $23,155,882 $51,128,611 -$27,972, Other Motor Vehicle Dealers 4412 $1,652,517 $3,938,297 -$2,285, Auto Parts, Accessories & Tire Stores 4413 $1,995,476 $2,694,597 -$699, Furniture & Home Furnishings Stores 442 $2,959,624 $1,216,057 $1,743, Furniture Stores 4421 $1,676,793 $733,103 $943, Home Furnishings Stores 4422 $1,282,831 $482,954 $799, Electronics & Appliance Stores 443 $3,547,351 $629,157 $2,918, Bldg Materials, Garden Equip. & Supply Stores 444 $4,373,000 $26,396,159 -$22,023, Bldg Material & Supplies Dealers 4441 $3,610,058 $24,246,135 -$20,636, Lawn & Garden Equip & Supply Stores 4442 $762,942 $2,150,024 -$1,387, Food & Beverage Stores 445 $15,551,015 $64,065,130 -$48,514, Grocery Stores 4451 $14,641,743 $63,921,555 -$49,279, Specialty Food Stores 4452 $243,336 $143,575 $99, Beer, Wine & Liquor Stores 4453 $665,936 $0 $665, Health & Personal Care Stores 446,4461 $10,106,327 $20,432,056 -$10,325, Gasoline Stations 447,4471 $15,049,303 $62,586,553 -$47,537, Clothing & Clothing Accessories Stores 448 $7,521,723 $3,140,939 $4,380, Clothing Stores 4481 $5,494,185 $2,623,440 $2,870, Shoe Stores 4482 $931,942 $0 $931, Jewelry, Luggage & Leather Goods Stores 4483 $1,095,596 $517,499 $578, Sporting Goods, Hobby, Book & Music Stores 451 $2,838,153 $1,406,171 $1,431, Sporting Goods/Hobby/Musical Instr Stores 4511 $2,028,343 $1,236,795 $791, Book, Periodical & Music Stores 4512 $809,810 $169,376 $640, General Merchandise Stores 452 $27,820,385 $41,430,147 -$13,609, Department Stores Excluding Leased Depts $6,949,678 $4,512,626 $2,437, Other General Merchandise Stores 4529 $20,870,707 $36,917,521 -$16,046, Miscellaneous Store Retailers 453 $2,987,836 $3,056,217 -$68, Florists 4531 $177,806 $203,378 -$25, Office Supplies, Stationery & Gift Stores 4532 $1,154,111 $402,581 $751, Used Merchandise Stores 4533 $489,482 $440,238 $49, Other Miscellaneous Store Retailers 4539 $1,166,437 $2,010,020 -$843, Nonstore Retailers 454 $6,311,252 $1,786,846 $4,524, Electronic Shopping & Mail-Order Houses 4541 $5,306,939 $908,979 $4,397, Vending Machine Operators 4542 $172,343 $0 $172, Direct Selling Establishments 4543 $831,970 $877,867 -$45, Food Services & Drinking Places 722 $14,284,319 $27,202,769 -$12,918, Full-Service Restaurants 7221 $5,827,387 $9,034,051 -$3,206, Limited-Service Eating Places 7222 $7,511,273 $17,677,207 -$10,165, Special Food Services 7223 $520,958 $44,695 $476, Drinking Places - Alcoholic Beverages 7224 $424,701 $446,816 -$22, Data Note: Supply (retail sales) estimates sales to consumers by establishments. Sales to businesses are excluded. Demand (retail potential) estimates the expected amount spent by consumers at retail establishments. Supply and demand estimates are in current dollars. The Leakage/Surplus Factor presents a snapshot of retail opportunity. This is a measure of the relationship between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents 'leakage' of retail opportunity outside the trade area. A negative value represents a surplus of retail sales, a market where customers are drawn in from outside the trade area. The Retail Gap represents the difference between Retail Potential and Retail Sales. Esri uses the North American Industry Classification System (NAICS) to classify businesses by their primary type of economic activity. Retail establishments are classified into 27 industry groups in the Retail Trade sector, as well as four industry groups within the Food Services & Drinking Establishments subsector. For more information on the Retail MarketPlace data, please view the methodology statement at whitepapers/pdfs/esri-data-retail-marketplace.pdf. Source: Esri and Dun & Bradstreet. Copyright 2015 Dun & Bradstreet, Inc. All rights reserved. June 16, Esri Page 1 of 2

14 Exhibit 3 Restaurant Market Potential Pell City, AL Pell City, AL ( ) Place Demographic Summary Population 12,888 13,268 Population 18+ 9,952 10,201 Households 5,263 5,426 Median Household Income $50,191 $54,946 Expected Number of Product/Consumer Behavior Adults Percent MPI Went to family restaurant/steak house in last 6 mo 7, % 105 Went to family restaurant/steak house 4+ times/mo 3, % 111 Spent at family rest/steak hse last 6 months: <$ % 118 Spent at family rest/steak hse last 6 months: $ % 104 Spent at family rest/steak hse last 6 months: $ , % 107 Spent at family rest/steak hse last 6 months: $ , % 106 Spent at family rest/steak hse last 6 months: $ % 103 Spent at family rest/steak hse last 6 months: $ % 98 Family restaurant/steak house last 6 months: breakfast 1, % 101 Family restaurant/steak house last 6 months: lunch 2, % 104 Family restaurant/steak house last 6 months: dinner 5, % 109 Family restaurant/steak house last 6 months: snack % 88 Family restaurant/steak house last 6 months: weekday 3, % 111 Family restaurant/steak house last 6 months: weekend 4, % 107 Fam rest/steak hse/6 months: Applebee`s 2, % 112 Fam rest/steak hse/6 months: Bob Evans Farms % 125 Fam rest/steak hse/6 months: Buffalo Wild Wings % 102 Fam rest/steak hse/6 months: California Pizza Kitchen % 54 Fam rest/steak hse/6 months: Carrabba`s Italian Grill % 100 Fam rest/steak hse/6 months: The Cheesecake Factory % 74 Fam rest/steak hse/6 months: Chili`s Grill & Bar 1, % 101 Fam rest/steak hse/6 months: CiCi`s Pizza % 121 Fam rest/steak hse/6 months: Cracker Barrel 1, % 131 Fam rest/steak hse/6 months: Denny`s % 98 Fam rest/steak hse/6 months: Golden Corral 1, % 130 Fam rest/steak hse/6 months: IHOP 1, % 98 Fam rest/steak hse/6 months: Logan`s Roadhouse % 146 Fam rest/steak hse/6 months: LongHorn Steakhouse % 115 Fam rest/steak hse/6 months: Old Country Buffet % 112 Fam rest/steak hse/6 months: Olive Garden 1, % 110 Fam rest/steak hse/6 months: Outback Steakhouse 1, % 110 Fam rest/steak hse/6 months: Red Lobster 1, % 107 Fam rest/steak hse/6 months: Red Robin % 101 Fam rest/steak hse/6 months: Ruby Tuesday % 120 Fam rest/steak hse/6 months: Texas Roadhouse % 132 Fam rest/steak hse/6 months: T.G.I. Friday`s % 96 Fam rest/steak hse/6 months: Waffle House % 137 Went to fast food/drive-in restaurant in last 6 mo 9, % 102 Went to fast food/drive-in restaurant 9+ times/mo 4, % 108 Spent at fast food/drive-in last 6 months: <$ % 94 Spent at fast food/drive-in last 6 months: $11-$ % 105 Spent at fast food/drive-in last 6 months: $21-$40 1, % 101 Spent at fast food/drive-in last 6 months: $41-$ % 103 Spent at fast food/drive-in last 6 months: $51-$100 1, % 109 Spent at fast food/drive-in last 6 months: $101-$200 1, % 115 Spent at fast food/drive-in last 6 months: $201+ 1, % 107 Data Note: An MPI (Market Potential Index) measures the relative likelihood of the adults in the specified trade area to exhibit certain consumer behavior or purchasing patterns compared to the U.S. An MPI of 100 represents the U.S. average. Source: These data are based upon national propensities to use various products and services, applied to local demographic composition. Usage data were collected by GfK MRI in a nationally representative survey of U.S. households. Esri forecasts for 2015 and June 16, Esri Page 1 of 3

15 Exhibit 4

16 Exhibit 5 Pell City, AL ALCOHOL SALES TAX FY 09 FY10 FY11 FY12 FY13 TOTAL BEER $ 81, $ 72, $ 102, $ 97, $ 79, $ 433, WINE & LIQUOR $ 21, $ 29, $ 5, $ 9, $ 25, $ 91, TOTAL $ 103, $ 102, $ 107, $ 106, $ 105, $ 525, TOTAL RETAIL SALES & USE TAX $ 9,646, $ 10,875, $ 13,082, $ 13,819, $ 13,924, Pell City Tax Rates City: (4%) in 2009 thru May % Beer Tax: 10% *Taxed at regular sales tax rate State: 4% Wine & Liquor: 5% *Tax collected on gross sales Couny: 1% Total: 10% **Taxed at 9% in 2009 thru May 2010 Alcohol Type Fiscal Year 2009** 2010** Beer Sales $ 906, $ 806, $ 1,025, $ 973, $ 798, Liquor Sales $ 437, $ 591, $ 106, $ 188, $ 515, Total Sales Beer, Wine & Liquor $ 1,343, $ 1,398, $ 1,132, $ 1,162, $ 1,313, Retail Sales Fiscal Year Total Retail Sales $ 107,183, $ 120,836, $ 130,829, $ 138,199, $ 139,246, Total Sales Beer, Wine & Liquor $ 1,343, $ 1,398, $ 1,132, $ 1,162, $ 1,313, Overall Sales Total $ 108,527, $ 122,234, $ 131,962, $ 139,362, $ 140,559,975.20

17 Exhibit 6

18 Exhibit 7

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21 Exhibit 8A Restaurant/Franchise/Chain Location Criteria

22 Exhibit 8B

23