Harrah’s Cherokee casino bought nearly half a million dollars of liquor over the past year, netting almost $50,000 in profits each for the ABC stores in Sylva and Bryson City — which had the privileges of being the casino’s suppliers.

But despite the numbers on paper, it is hasn’t proved quite the windfall the two towns hoped.

“It was nothing like they said it was going to be,” said Monty Clampitt, chairman of the Bryson City ABC board.

“People thought there would be a world of money flowing in all of a sudden if we did this,” said Kevin Pennington, chairman of the Sylva ABC board. “I think it was a little surprising that there was not near as much money coming in.”

The casino began serving alcohol to customers last year. The Cherokee reservation was — and still mostly is — dry. The tribe made an exception for the casino, but lacked an ABC store of its own. So it turned to the ABC stores in neighboring Sylva and Bryson City to buy from.

Since the reservation lies partly in Jackson and partly in Swain counties, figuring out which store had dibs on being the casino’s alcohol supplier got complicated. Ultimately, the stores in Bryson and Sylva launched a joint venture with the sole mission of filling bulk liquor orders for Harrah’s and decided to split any profits 50-50.

Both towns hoped it would be a lucrative deal for them, since profits from the ABC stores go straight to town coffers.

But neither town has seen a penny yet, despite being more than a year into the operation.

“We haven’t gotten any of it yet. None,” said Pennington.

The joint venture has cleared $100,000 in profit so far, so at first blush it’s not clear why that money hasn’t been meted out to the towns along with the regular ABC dividends.

But Clampitt and Pennington said the profits to date have been used to build up working capital and inventory.

Roughly half the profits are tied up in inventory — $50,000 in liquor is stacked on pallets and shelves in the back storeroom of the Bryson City ABC store, ready and waiting to fill the weekly orders coming from Harrah’s.

Another $50,000 is sitting in the checking account, a cushion to ensure smooth cash flow, Clampitt said.

Since the state warehouse will only ship to local ABC stores once a month, they have to buy the liquor up front.

Harrah’s makes out a shopping list of what it will probably need, but its actual order may vary, so it could be weeks before the inventory moves off the shelves.

“You can’t tell a customer what to buy,” Clampitt said.

But with inventory and reserves now built up, profits made from here on out will be paid out quarterly. Sylva and Bryson City can each expect checks for $11,600 to arrive any day, a payout from the second quarter, Clampitt said.

Cherokee forays into ABC store of its own

No sooner than Bryson and Sylva’s joint venture has started paying off, however, and the end is in sight. Cherokee is well on its way to an ABC enterprise of its own and within the year will stop buying from its neighbors.

From the beginning, Cherokee has wanted to setup its own ABC store, selling the liquor to Harrah’s itself and keeping the profits for the tribe rather than sending them down the road to Bryson and Sylva.

The logistics of starting one haven’t been easy. The tribe ultimately needed a special bill passed by the General Assembly allowing it to start its own ABC venture, so it can order directly from the state warehouse without going through the Sylva or Bryson stores as middlemen.

The Sylva and Bryson stores weren’t planning on riding the casino’s liquor gravy train forever.

“I figured it wouldn’t be long before the tribe got it worked out,” said Larry Callicut, town manager of Bryson City.

“I was not at all surprised when the Cherokee said they can just buy stuff directly from the state,” Pennington added.

Delayed gratification

It will be several more months, and possibly even a year, before the new Cherokee ABC board is up and running, however. There’s a complicated computer system to set up, a staff to hire and a place needed to hold all those waiting pallets of liquor.

“They’ve got some organizing planning and what not to do,” Clampitt said.

Once that’s done the Sylva and Bryson joint venture will become obsolete. It would make sense to shut down the operation and close out the books, liquidating all that inventory and cashing out the checking account.

At that point, the two towns could expect a final payout of $50,000 each.

That’s a good chunk of change for small, cash-strapped, recession-burdened towns to clear. It’s better than nothing, Clampitt supposed, but it wasn’t exactly free money.

“It’s been a whole lot of work,” Clampitt said.

The Bryson ABC store lends its staff to the joint venture serving the casino. It takes labor to manage the inventory: keep up with what’s running low, place monthly orders with the state, parcel out weekly shipments to the casino and all the related bookkeeping.

They also personally deliver weekly orders to the casino — a perk afforded to their special customer. (Run-of-the-mill bars and restaurants have to do their own pick-up.)

The Bryson ABC store gets compensated for some of those hours. In June, for example, the store billed the joint operation for $607 worth of its employees’ time.

But the Bryson board also donates some of the labor and overhead to the joint venture. It doesn’t pro-rate a portion of its utilities to the Cherokee operation, for example. Nor does it bill for the labor of unloading the truckload of orders coming from the Raleigh warehouse each month.

The two stores have finally paid themselves back for start-up loans taken from their own bank accounts to get things up and running — namely building up the necessary inventory.

The stores also had to purchase a $15,000 computer system for the joint Cherokee venture. The state ABC system is particular about the software used by all the stores, requiring a certain type of program that interfaces directly to the state warehouse, not only for placing orders but also allowing the state to track the whereabouts of every bottle of liquor.

The state wouldn’t let Bryson’s ABC store use its existing computer system, since the Cherokee venture was technically considered a new standalone enterprise, Clampitt said. So both stores dipped into their own funds to buy the computer system, cutting into profits they would have made otherwise.

Pennington said he was skeptical from the start.

“It was such shall we say a unique situation to start that combined store, I personally never felt like it was done for the best interest of the people of Jackson County to begin with,” Pennington said.

Pennington said he actually advocated against it, but the state ABC people made them do it.

“It wasn’t our idea at all,” Pennington said.

As for the $15,000 computer system? Bryson and Sylva ABC boards have already written that off and deducted it from the Harrah’s profits. But it would be nice to get a little something back for it when the joint venture is shut down,  Clampitt said. He hopes they could sell it to the new Cherokee ABC board.

Coincidentally, a countywide alcohol referendum on the ballot in Jackson County next year could lead to a new ABC store in Cashiers, which if passed, might just need a computer system as well.

Why so complicated?

Liquor sales in North Carolina are a tightly regimented affair. All liquor coming in to the state makes its first stop at warehouse in Raleigh. Local ABC stores in turn order from the state warehouse, a means of controlling the sale and distribution of liquor to the public.

Local stores act as middlemen. They get the liquor at wholesale prices, then mark it up to resell to customers, both to the general public and to bar and restaurant owners. The state dictates how much of a markup is allowed, about 25 percent.

After covering overhead and salaries, local ABC stores turn the remaining profits over to the local government, either the town or county, or in some cases both.

Western Carolina University and the Cullowhee area could prove the decisive battleground in the coming debate about whether alcohol sales should be legal countywide in Jackson, and not just confined to the towns of Sylva and Dillsboro.

Ikran Mohamed, hurrying to class one day last week, said that when it comes to whether she believes the sale of alcoholic beverages would hurt or help Cullowhee and student life in general at Western Carolina University, she might be speaking while under the influence of the history paper she was carrying to class.

Her paper was on the history of drug addiction and trafficking in the U.S., including alcohol — and Mohamed’s findings weren’t positive. Only a light drinker herself, the Charlotte native said she believes (at least this morning, the paper in hand and fresh on her mind) that it might well be best if the sale of alcoholic beverages remains confined to neighboring Sylva.

“If it’s closer to campus, it’s easier to get,” the rising junior said, adding that she has particular concerns about underage drinking escalating on campus if beer and wine could be purchased at package stores, bars and restaurants in Cullowhee.

Next year, Jackson County voters will get to decide on the issue of countywide alcohol sales. Only two counties in the mountains, Buncombe and Clay, currently allow the sale of beer, wine or liquor outside town limits. Henderson County voters, like Jackson residents, get to vote on the issue next year.

A majority of Jackson County commissioners confirmed last week that they plan to put the question to voters on the ballot next year, either during the May primary or the November election.

The area of the county most likely to experience profound changes if the referendum passes is Cullowhee. Before his retirement earlier this summer, then Chancellor John Bardo pushed for the neighboring Village of Forest Hills to annex part of campus, vote in the sale of alcoholic beverages, and help him create an actual college town where students could find more to do at night than get a tattoo.

Because these days, unless they head up the road to Sylva, a tattoo parlor is about the only thing open near campus past 9 p.m.

“Exactly — that’s it,” said Philip Price, a nursing student from Raleigh and a rising junior. “But I don’t really care. I’m not too much of a drinker.”

Neither is Perry Fotopoulos, an environmental health major with a concentration in pre-med, who hails from nearby Franklin. In fact, Fotopoulos doesn’t drink at all. But he believes that it’s unrealistic to think most students won’t drink, because most do — “and it would be a little safer” if they didn’t have to drive to imbibe at a bar, Fotopoulos said.

That’s important to Eileen Calvert, too, who for the last 15 years or so has been busy giving students and faculty at WCU haircuts at her Cullowhee salon, Hairport.

“It’s ridiculous they don’t have beer here,” Calvert said, who lived for a time in Athens, Ga., where there is an active and vibrant campus nightlife for students at the University of Georgia to experience. “And, it’s inconvenient you can’t buy it here. There would be a lot less leaving this community to party if there were beer, and it would keep money here in our own town.”

Alcohol has historically been slow to come to the mountains — much slower than the rest of the state.

Only two counties in Western North Carolina allow alcohol sales outside town limits.

Statewide, 60 counties allow some form of alcohol sales, even if just beer and wine, throughout the county. Of those, most date back to 1933 — the year prohibition ended. Across the state, dozens of counties and towns held votes in April 1933 to usher in alcohol.

In the mountains, Buncombe County, along with Asheville and Black Mountain, jumped on the post-prohibition bandwagon, as did Hickory.

But the rest of rural WNC stayed dry. Decades would pass before towns warmed up to the idea, voters here and there voting in beer and wine, then later ABC stores, and eventually, in recent years, liquor drinks at bars and restaurants.

Counties, however, remained steadfast. Politics at the county level still bent to the agrarian voting block, likely more conservative and traditional in their ways, compared to more liberal town dwellers. And the business lobby was absent, satisfied with alcohol at the town level where the stores and restaurants were all located anyway.

With one exception: a rash of alcohol votes after WWII. In the late 1940s and early ‘50s, a dozen or more mountain counties — Haywood, Jackson, Macon and Swain among them — held alcohol referendums. All failed and have not been revisited since.

Some towns, driven by business interests, were formed with alcohol as their goal, such as ski resort towns like Seven Devils, Sugar Mountain and Beech Mountain. Maggie Valley’s push to become a town in the late 1970s was inextricably wrapped up in wanting alcohol for its tourist trade. Town limits were narrowly drawn to take in the roadside strip of restaurants and motels, paving the way for alcohol for its commercial district.

Graham remains the only totally dry county — not even the town of Robbinsville has legalized alcohol sales. Yancey was in the same boat until last year, when Burnsville voted in alcohol sales.

Clay County, another tiny county with only one town to speak of, broke the mold in 2009. The county leapfrogged past the still-dry county seat of Hayesville and voted in alcohol at the county level.

It’s the only mountain county besides Buncombe to have alcohol, and the only one in WNC to have a successful alcohol referendum since 1933.

Jackson isn’t alone in its foray toward an alcohol vote. Henderson County commissioners just last week decided to put alcohol to a vote of the people there next year during the May primary.

Whether you’re a college student in Cullowhee or a socialite in Cashiers, stocking up on beer, wine and spirits requires a trip into town — a trip most would apparently rather not make.

A majority of Jackson County residents support countywide alcohol sales, according to a telephone poll of 600 registered voters.

The alcohol question was one of 20 on local politics and issues posed to a random sample of Jackson County’s voting public last summer in a joint public affairs project by the WCU Public Policy Institute and The Smoky Mountain News.

The poll showed 56 percent of voters in Jackson County support alcohol sales countywide compared to 39 percent against it.

Only 5 percent of those polled were undecided, a very small number compared to most other questions.

The poll revealed some trends about who favors countywide alcohol sales the most.

• Cashiers residents are more likely to support it than Sylva residents.

• Those with a college degree are more likely to support it. Among those with college degrees, 66 percent were in favor compared to 47 percent of those with less than a college degree.

• Men are stronger supporters of countywide alcohol, with 65 percent of men compared to 54 percent of women supporting the measure.

• Liberals were more supportive, with 72 percent of self-described liberals in favor of countywide alcohol compared to 50 percent among self-described conservatives.

• Younger people support the idea more.

Voters in Jackson County will get to decide next year whether to allow alcohol sales countywide.

Four of the county’s five commissioners told The Smoky Mountain News this week they would support an alcohol referendum. The commissioners have not publicly discussed the issue yet, nor formally voted to put the measure on the ballot, but have confirmed their intention to do so.

“To me personally, alcohol sales mean nothing at all,” said Debnam, the driving force on the board behind the upcoming referendum. “But we’re going to give the people a choice.”

Still to be decided is whether the vote will be held in conjunction with the May primary or during November’s general election.

In Western North Carolina, only Buncombe and Clay counties currently allow alcohol sales countywide. Henderson County residents will vote on the issue in the May primary.

SEE ALSO: Poll results bode well for supporters of countywide alcohol sales in Jackson

Chairman Jack Debnam, and Commissioners Doug Cody, Charles Elders and Mark Jones said they would support the referendum. Joe Cowan did not return a phone message before press time seeking comment.

“We live in a democracy,” Cody said simply, on why he is throwing his support behind the referendum.

Currently, Sylva and Dillsboro have a corner on the market when it comes to alcohol. Given the long trek down twisty, narrow roads from Cashiers, its not surprising residents and businesses there are among the most eager to usher in countywide alcohol.

“I think it would be super for the economy of the Cashiers area,” said Sally Eason, owner of Canyon Kitchen restaurant at Lonesome Valley in Sapphire.

Restaurants could expect to see a boost to their bottom line — as will waitresses who get tipped based on a percentage of the bill — if alcohol hits the menus.

Diners will not only spend more, but will be more likely to go out in the first place, Eason said.

Now, people who want a glass of wine or a pint with their meal might opt to stay home and knock back a few while grilling out on the deck instead. But the absence of beer and wine from grocery store shelves is probably most irritating to those who don’t live close to Sylva — and even more so to second-home owners and vacationers bowled over by the concept of a dry county.

“A lot of our guests are from Atlanta, Charlotte or Knoxville. They have been a little a surprised at that. It is a turn off,” said George Ware, owner of The Chalet Inn bed and breakfast in Whittier.

Although Ware said he personally wouldn’t start serving up Mimosas with breakfast even if legally allowed to, Ware does believe a countywide vote is a good idea.

“I am happy to hear it is being considered. I think people should have the opportunity to vote on it,” Ware said.

Then there’s Cullowhee

A nod by voters to alcohol sales countywide could bring profound changes to Cullowhee, in particular. Western Carolina University lacks the typical array of bars and restaurants found in most college towns. But that’s because Cullowhee is not actually a town, and thus is dry like the rest of the county.

Curt Collins, who went to WCU and is now owner of Avant Garden, a community-based farm and event venue in Cullowhee, said alcohol is needed to spur economic development around campus, making Cullowhee a more vibrant community, and help create the college town other university’s take for granted.

“It would create a better atmosphere for new businesses and existing business who serve food and have entertainment,” Collins said. “There is so much evidence to show that will increase the local economy. It will create new business opportunities, and those will put people to work, and increase people moving their money around.”

To solve the problem of no alcohol, Former Chancellor John Bardo crafted a complex plan. He wanted the tiny nearby town of Forest Hills to first legalize alcohol sales and then expand its town limits to include parts of campus, hopefully paving the way for a vibrant college scene to spring up. He also wanted the Fine and Performing Arts Center and the sports stadium to be part of Forest Hills, so alcohol could be sold at events there as well.

Those plans have foundered with Bardo’s leaving, but are still percolating behind the scenes.

Countywide legal alcohol sales would likely make the issue moot, however.

SEE ALSO: The historical perspective: who’s dry, who’s wet

Jeannette Evans, owner of the Mad Batter Bakery & Café on “The Catwalk” near the center of WCU, said she strongly supports a referendum. But, ironically, she isn’t sure that she could, even if the referendum passes, legally sell alcoholic beverages at the popular Cullowhee establishment because the university owns the building.

“But it’s the right thing to let people vote on it,” Evans said.

Fears of chain restaurants flooding into Cullowhee if alcoholic beverage sales become legalized in the county are legitimate concerns for such buy-local proponents as Adam Bigelow. The recent WCU graduate and member of CuRvE, a group working to revitalize old Cullowhee, said that there were similar fears about Sylva when the sale of mixed drinks were legalized.

“But that really didn’t happen,” Bigelow said. “But, if they could go to Cullowhee and find a readymade thirsty market, that could be a problem.”

Still, overall, Bigelow supports the concept of legalizing alcohol sales throughout Jackson County as part of building the community’s economy.

Collins said it would just be more convenient if people didn’t have to drive to Sylva to buy a bottle of wine or a six-pack of beer.

“Students want to be able to walk or ride their bikes to the bar,” Collins said. It would be safer and reduce possible drunk driving between Sylva and Cullowhee by students.

Help everyone but Sylva?

Meanwhile, however, Haley Milner, co-owner of Soul Infusion Tea House and Bistro in Sylva, gets a lot of customers filtering down the road from Western College University. And on weekends, live bands clearly cater to that college crowd.

If new restaurants and bars opened in Cullowhee, Milner could lose some of that business, but said she would still support countywide alcohol sales. Besides, Soul Infusion might just move closer to campus.

“There is also the possibility that we could move out there ourselves,” Milner said.

Milner said her food is the top draw for clients, not beer and wine, but alcohol sales are important to the bottom line. And giving up that piece of revenue is a strike against moving to Cullowhee without it.

Although Sylva establishments might lose a little business if other restaurants serving alcohol cropped up around the county, the town of Sylva likewise would lose some of its ABC revenue.

The town runs the only liquor store in the county right now. Debnam said he would like to see a liquor store in Cashiers, another measure that would have to be included on the ballot and approved by voters.

“Obviously it would impact us greatly. We wouldn’t have the monopoly we have right now,” said Kevin Pennington, chairman of the Sylva ABC board. “If that’s what the commissioners want to do and what the people of Jackson County want to do, that is their total prerogative.”

Sylva’s ABC store netted $360,000 last year. The town split the proceeds with the county. Of the town’s share, a portion is reserved for the police department and the swimming pool, but the majority — about $130,000 a year — goes straight into the general budget to spend on whatever town leaders please.

Putting an ABC store in Cashiers might hurt Sylva’s sales some. But doing so would at least keep more of the money from liquor sales in Jackson County.

And Commissioner Mark Jones believes the amount gained could be substantial.

As it stands now, he said, Highlands in Macon County and Transylvania County capture a share of the Cashiers market, as does neighboring Georgia, draining both sales tax revenue and ABC profits away from Jackson. And many second-home owners have likely gotten in the habit of buying in their home state or town before they come to the mountains.

Jones is also bothered by what he considers the unfairness of certain private clubs in the area being able to legally sell alcohol while other establishments cannot. There are loopholes in the law for private clubs or restaurants tied to a golf course, development or resort.

Several in Cashiers have capitalized on the arrangement, but they still have to buy their liquor from the lone ABC store in Sylva, logging weekly trips down the mountain to get their stock.

“It is a two hour roundtrip, and you are putting that on top of the cost of the product,”

Time will tell

Ultimately, it’s simply up to the county’s just more than 40,000 residents to decide, the commissioners interviewed said, and to argue the pros and cons of their decision.

“Nobody can tell me the last time Jackson County had an opportunity to vote on the issue,” Jones said. “It’s only fair to put it out to the people.”

Commissioner Elders, arguably the most traditional member of the board, said he expects some backlash to his and the board’s decision from more conservative members of the community. But, like Jones, he said that he believes it’s important that citizens be allowed to make a decision.

“The fairest way of doing anything is to put it out there,” said Elders, who owns and manages a gasoline station near Whittier on U.S. 23/74. “And let the people decide.”

How the ballot would work

It might sound simple enough, but a vote over alcohol sales isn’t a plain yes or no question. At least not to the state of North Carolina.

Voters in Jackson County may face an arsenal of questions as they wade through exactly what form of imbibing should be allowed and where. Beer, wine, liquor — or all of the above? At grocery stores and gas stations, or only sit-down restaurants? And what about a liquor store?

“If they do everything at one time, it could be a very lengthy ballot,” said Lisa Lovedahl-Lehman, director of the Jackson County Board of Elections.

County voters will face a separate question for each type of alcohol and each way it could be sold.

Most towns that allow alcohol sales have warmed up to the idea gradually: first putting beer and wine to the test, later opening an ABC store for the public, but only recently voting in the sale of liquor drinks by bars and restaurants.

The mix of what’s allowed and what’s not can take many forms.

Dillsboro, for example, allows only beer and wine and only at restaurants. No mixed drinks, and no over-the-counter sales by gas stations or grocery stores.

The towns of Highlands and Franklin for years allowed wine, but not beer.

Meanwhile, Waynesville opened a liquor store for the public in 1967, but more than 40 years passed before you could buy a liquor drink at a bar or restaurant.

There are two ways to get an alcohol referendum on the ballot. One is a petition from 35 percent of the registered voters, a highly ambitious prospect.

The other is a vote by county commissioners to place it on the ballot.

Legislation that would bring alcohol regulation in Cherokee completely under tribal control is now working its way through the General Assembly.

The Eastern Band of Cherokee Indians established its own Alcoholic Beverage Commission in 2009 following a resolution to allow alcohol sales at Harrah’s Cherokee Casino, and now the tribe is lobbying for recognition by the state.

The Tribal ABC Board controls the permits it gives to Harrah’s as well as the sale and distribution of alcohol at the casino. Now, Harrah’s must get a permit from the state, in addition to the tribal permit. With these bills, the tribe is trying to change that.

“Right now, they don’t recognize any of the ordinances other than their own. They only recognize towns, counties and townships,” said Bob Blankenship, chairman of the Tribal ABC Board. “We want them to acknowledge our authority, and we want to eliminate dual permits.”

And the issue is not just permitting, but enforcement. The Eastern Band has its own task force for alcohol enforcement, with two full-time officers on duty.

Because Cherokee is a sovereign nation, the state can’t enforce its permits there; they don’t have the jurisdiction. So the tribe is already doing it for them.

Now, they’re asking for full control of it, legally, instead of just operating on an ad hoc basis.

For Sen. Jim Davis (R-Franklin), who introduced the bill, it’s a local issue.

“I signed onto it because I believe in local control,” said Davis.

Principal Chief Michell Hicks said that he’s on board with the bill for the same reason.

Currently, there is nothing in the North Carolina alcohol statutes which specifically addresses tribal sovereignty and this bill will correct that deficiency.”

The measure has the backing of the Tribal Council, as well. In reality, the law will do little more than formalize the procedures already in place, and get rid of redundant permits.

What it won’t do is expand alcohol sales on the reservation.

Currently, Tribal ABC can legally issue sale permits to one place: Harrah’s. They can give one-time permission to serve alcohol at special events and issue brown-bag permits that allow patrons to bring their own — the Holiday Inn in Cherokee has had one since 1984 — but they still can’t let anyone on the reservation sell alcohol outside Harrah’s.

This means that, not only can other restaurants and shops in Cherokee not sell to customers looking to buy, Harrah’s itself has to take its money elsewhere, too. So ABC stores in neighboring counties are raking in revenue keeping the casino well stocked.

To change that, said Blankenship, another referendum would be needed to broaden the scope of his board’s authority.  

The idea of sales elsewhere on the Qualla Boundary, however, has been bandied about before and it has recently resurfaced. The Cherokee Chamber of Commerce sent out an informal survey, asking members to weigh in on the issue, and Chamber Executive Matt Pegg said that many seemed to be in favor of letting other local businesses get in on the alcohol game.

For now, though, said Blankenship, his board will be happy just to be recognized by the state for what they already do, without raising the question of whether they should do more.

The absence of alcohol in Cherokee is hurting tourism, according to the business community. And that’s something the Cherokee Chamber of Commerce might like to change. Over the past month, the chamber has conducted an informal poll of businesses to see where they stand on the issue.

“More people want it than don’t want it,” said Matthew Pegg, executive director of the chamber. “It’d be nice if Cherokee had a little bit more opportunity economically to bring in some of the other dining options into the area.”

While casino patrons can get a drink after voters in 2009 approved alcohol sales for Harrah’s, the rest of the reservation is still bone dry.

As a result of the poll, the board of the Cherokee chamber is deciding whether, and if so how, it should officially push for a more permissive alcohol policy.

Pegg said that, while some people in this fairly traditional community are reluctant to talk about legalizing alcohol, many business owners are getting more vocal about allowing everyone to serve, not just Harrah’s.

“Essentially, they just want a level playing field,” said Pegg. “If you’re allowed to have it in one restaurant, why can’t you have it in all of them?”

That’s an argument that’s popped up on-and-off since the approval of drinks at Harrah’s two years ago. While alcohol has been a contentious issue in Cherokee, voters approved the idea of selling it at the casino by a surprisingly large majority of 59 to 41 percent.

Feeling slighted, however, the business community at the time circulated a petition lobbying for alcohol across the board. Pegg admits that a good number of business owners are just as passionate about keeping alcohol out.

Many restaurants in Cherokee already have a bring-your-own policy, though the percentage that take that opportunity is often much smaller than those who would buy drinks with their meal, especially given that the closest non-casino sales are a 30-minute round trip to nearby Bryson City.

When the referendum came around in 2009, much of the opposition centered around the social consequences it would bring and was steeped in the Christian religious tradition that runs deep in the area.

But Pegg maintains that, looking at other locales with alcohol sales, those concerns would likely prove unfounded.

“We are in a predominantly religious area where alcohol is not as acceptable,” he said. “The stigma is ‘Oh my goodness, you serve alcohol and the place is going to go crazy,’ but I think people are more worried about it becoming a booze town than they need to.”

Alcohol, he argues, would be heavily regulated. And with drinks offering higher profit margins than food alone, introducing beer, wine and mixed drinks might give some restaurants an extra few weeks on each end of the season. Some, he suggests, may even be able to stay open through the winter, where they currently shutter during the tourist off-season.

Right now, though, moral concerns aren’t the only obstacle standing in the way.

Elections for some council members and principal chief are ramping up, and it would be difficult to find a more hot-button topic in Cherokee than alcohol. In light of that, many have responded to chamber queries that this year might not be the time to bring it up.

But for Pegg and the 203 businesses that are members of the chamber, as the recession is still kicking, there is no better time than now.

Harrah’s alone pulled in more than $1 million in alcohol sales last year, and now the rest of the reservation is hungry for a slice of such a lucrative pie.

“It gives them an option to have more revenue,” said Pegg, “and that’s more jobs and more tax and more everything.”

With Gov. Beverly Perdue reversing her stance on her previous suggestion to privatize liquor sales, towns can rest assured they’ll probably not soon see this important revenue stream go dry.

In Waynesville, beneficiary of about $170,000 in annual profits from its ABC store, Perdue’s announcement might give the local ABC board the reassurance it needs to decide how to best handle cramped quarters. Should Waynesville build a new store as previously considered near the big, new Super Wal-Mart; or, should Waynesville simply expand its existing ABC store? said Town Manager Lee Galloway.

The state’s ABC commission in March approved Waynesville’s request to build a second store. Indecision over whether the state might privatize liquor sales put the plan into limbo, however.

Though, truthfully, Galloway wasn’t all that worried about this looming financial threat to the town’s coffers. He said he believes if the proposal moves forward, which seems highly doubtful now without Perdue’s backing, the state would find another method of reimbursing towns for the docked dollars.

Perdue made her I’m-now-against-privatization announcement last week at a meeting of county commissioners attending a legislative goals session in Durham. In the audience was Macon County Commissioner Ronnie Beale, whose primary concern centered on consumption, not revenue. In this, the local Democrat had an ally in the Christian Action League of North Carolina, which bills itself as having the largest networks of members, volunteers and churches of any Christian public-policy group in the state.

The Christian Action League opposed privatization on the grounds people might drink more if access wasn’t state controlled. Walter Harris, president of the Association of ABC Boards, flatly stated he, too, believed privatization would result in increased imbibing.

“I think it is a wise decision not to put liquor at every stop,” Beale said, adding that North Carolina’s less-than-happy experience with privatizing mental-health care raises serious questions about such initiatives.

Billed as “reform,” many critics — including Beale — have said the new mental-health care system in North Carolina fails to provide the state’s most vulnerable residents with basic, much less adequate, care.

Some highly placed Republicans in the now GOP-controlled legislature had expressed their concerns, too, about letting private business owners sell liquor out of grocery stores or other retail stops. North Carolina currently controls every aspect of the more than $5 billion business, but the governor was eyeing privatization as a means of generating dollars to help with the state’s $3.7 billion shortfall.

Adding fuel to the idea of letting vendors handle liquor sales were a number of lurid headline-generating stories about high times by, and high salaries of, some ABC board members downstate.

Such issues, Beale said, can best be handled through other means than simply handing off sales to private business owners.

Franklin Mayor Joe Collins said he believes the current system works, and that by confining liquor sales to (in Franklin’s case) a single store, “certain challenges” surrounding alcoholic beverage sales are more easily controlled. The mayor added he was pleased that, after study, the governor was willing to squelch her own idea.

Canton Town Manager Al Matthews said he isn’t so sure the matter is closed, however, and said the issue merits continued monitoring. Canton, particularly, might have been in a bit of a pickle if privatization had occurred — it has a relatively new ABC store, and sales revenue is being used to offset the building costs.

“Somebody was going to be stuck with a debt,” Matthews said.

2010 gross sales at area ABC stores

Canton    $964,474

Maggie Valley    $1,588,210

Waynesville    $2,107,992

Sylva    $2,610,265*

Franklin    $2,434,888

Highlands    $1,567,570

Bryson City    $1,751,508*

SOURCE: North Carolina ABC Commission

* Bryson City and Sylva sales include alcohol purchased by Harrah’s Cherokee Casino

By Patti Tiberi • Guest Columnist

“Alcohol is the most widely used substance of abuse among America’s youth. A higher percentage of young people between the ages of 12 and 20 use alcohol than use tobacco or illicit drugs. The physical consequences of underage alcohol use range from medical problems to death by alcohol poisoning, and alcohol plays a significant role in risky sexual behavior, physical and sexual assaults, various types of injuries, and suicide. Underage drinking also creates secondhand effects for others, drinkers and nondrinkers alike, including car crashes from drunk driving, that put every child at risk. Underage alcohol consumption is a major societal problem with enormous health and safety consequences and will demand the nation’s attention and committed efforts to solve.”

This is a direct quote from former Acting Surgeon General Rear Admiral Kenneth Moritsugu, from his “Call To Action” in 2007.  But one may wonder why there is all this fuss about underage drinking. Isn’t it just something that is “a rite of passage?” Don’t all kids do it?

Well, the answer is no. Many of us like to look back and say, “We survived it, they will too!” Truth be told, there are many that did not survive it and they are not here to tell their side of the story. Many of us ended up going through many years of grief as we struggled to manage our disease of alcoholism. Few people in recovery speak out in public about their struggles to manage their disease. There is still a very strong stigma attached to having alcoholism.

But the reality is that more young people in the U.S. drink alcohol every month than smoke cigarettes or use any illegal drug. Additionally, alcohol kills more young people per year than all illegal drugs combined!

Many studies show that media advertising of alcohol products is a major factor in decisions made by 12- to 20-year olds to start drinking or drink more heavily if they are already drinkers. In a recently released report, the Center for Alcohol Marketing and Youth (CAMY) noted that, since 2000, many alcohol companies have voluntarily reduced their advertising in markets with greater than 30 percent underage audiences.

However, the report stated that alcohol advertising in markets with more than a 15 percent youth population still results in overexposure. While the industry has made progress, more needs to be done to limit the amount of alcohol promotion our young people see on TV, movies and in magazines.

The availability of alcoholic drinks that have a sweet taste, like lemonade, is also a concern because they seem designed to appeal to young people. Plus, alcohol products like malt liquor can often cost less than soda. Even if it can’t be purchased legally by young people, the low cost makes it easier to pay someone to purchase it for them.

Children are beginning to drink at an earlier age in a day when we know much more about the impact that alcohol use has on the changing adolescent brain. Our science now reports that youth who begin drinking before the age of 15 are four times more likely to develop alcohol dependence. But every day in our country, 7,000 youth under the age of 16 take their first drink.

While we used to find that boys drank more heavily than girls, we now see that girls have caught up and are drinking just as heavily. (Institute of Medicine, National Research Council of the National Academics)

It is important that you help. First thing, please help to reduce the availability of alcohol to youth under 21. If you have alcohol at home, keep it in a secure place and monitor it. Second, help support law enforcement in targeting the underage drinking issue. This could be something as simple as getting to know the parents of your child’s friends and agreeing with them about not serving alcohol to youth under 21. Third, get involved locally to help change your community’s norms around alcohol use. Learn more about the issue by checking out the following websites: alcoholfreechildren.org, ncpud.org, faceproject.org, and drugfree.org.

(Patti Tiberi is the Regional Prevention Coordinator at Smoky Mountain Center and the Chair of Healthy Haywood’s Substance Abuse Action Team. For more information on how to get involved with a Health Action Team, go to www.healthyhaywood.org or call 828.452.6675. Healthy Haywood is a program of the Haywood County Health Department and certified Healthy Carolinians partnership.

When the Bryson City and Sylva ABC boards hammered out a profit-sharing agreement for liquor orders from Harrah’s Casino, there was widespread speculation the new revenue source would bring in big money.

But the reality, so far, has been different.

“It’s not doing anywhere near what people thought it was going to do,” said Bryson City ABC store manager David Maynard.

The Bryson City store does the ordering and records the revenue on its books, then passes along a share of profits to the Sylva ABC board since the Cherokee reservation lies in both Swain and Jackson.

Harrah’s Cherokee opened its first full service bar in May, placing a start-up order with the ABC store that bumped its monthly sales numbers up 50 percent from the year before.

But since then, mixed beverages sales to the casino have averaged between $6,000 and $8,000 per week.

“That sounds like a lot of money, but the state takes a good chunk of it. We thought it was going to be a whole lot more money as far as sales. I think everybody did,” said Maynard.

With the state, the Sylva ABC board, and the tribe all involved in the formula of alcohol sales to the casino, sales don’t exactly turn directly into profit.

“It has help us make an increase from last year as far as sales, but it hasn’t helped out the profits yet,” Maynard said.

By the numbers

A spike in the volume of liquor passing through the Bryson City ABC store is a direct reflection on the bottles of booze headed for Harrah’s Casino since alcohol was legalized there.

May 2010

Walk-in customers    $124,192

Sales to retail outlets    $91,857

Total Sales    $216,049

May 2009

Walk-in customers    $129,134

Sales to retail outlets    $11,965

Total Sales    $141,099