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An aggressively expanding, billion-dollar rent-to-own franchise is eyeing Grass Valley as an "ideal" place to locate.
"It's a jewel of a little town. We wouldn't want it to be missed," said Douglas Keane, regional franchise director for Aaron Rents Inc., who said he discovered Grass Valley after taking a wrong turn.
Aaron's has not contacted the City of Grass Valley to begin the permit application process to build an 8,000-square-foot store - Keane prefers two lots he has seen in the Highway 49 and McKnight Way area, he said. But he expressed confidence in the store's prospects.
"We'll be open there in six months, no doubt about it. We're never turned down," Keane said this week. "Usually, we like to go anywhere there is a Walmart, but I haven't found a Walmart."
But if Aaron's were to build from the ground up rather than move into an existing structure, the permitting process may take longer than Keane projects, city officials cautioned.
"If they're looking at an empty parcel, it could be lengthy," said Joe Heckel, community development director for Grass Valley. Engineering and design, environmental reviews, acquiring building permits and establishing utility service all can take time.
Yet a new business and jobs coming to town during an economic slowdown is "good news" for the county, Heckel added. Depending on the team the company brings to the project and their ability to meet all zoning standards, the time frame could be "compressed," Heckel said.
Those coming into the area need to do some homework, Mayor Mark Johnson suggested.
"It's really important to read through the general plan and design guidelines. Then the process can run very smoothly," Johnson said. Projects take longer when developers ignore city regulations he said.
And public support is a vital part of the equation, said Heckel.
"We have to make sure it's the right fit for our town," he said.
Growing company
Based in Atlanta, Ga., Aaron's is a 55-year-old company with more than 1,500 stores nationwide, including five in Sacramento. The store specializes in rental and lease ownership of furniture, consumer electronics and home appliances for people with credit problems.
After running the county demographics, Keane discovered a strong percentage of people living on incomes of $50,000 or less, fitting the profile of Aaron's customer base, he said.
The dip in California real estate means Aaron's can afford property it couldn't before.
"We're aggressively going into California. Every square inch is solid gold in pricing," Keane said.
Stock in Aaron's, billing itself as the "nation's leader" in the rent-to-own market, closed at $22.29 (RNT) on Thursday, up 21 cents a share, according to the company's Web site. Revenues for the first six months of the year were $747 million, with $1.3 billion in revenues for 2006, according to the Web site.
The company's goal for 2007 had been to open 250 new stores during the year, but officials now expect to complete 115 due to "construction delays," Chairman and CEO R. Charles Loudermilk, Sr. said in a company statement released last week.
ooo
To contact Staff Writer Laura Brown, e-mail laurab@theunion.com or call 477-4231.
"It's a jewel of a little town. We wouldn't want it to be missed," said Douglas Keane, regional franchise director for Aaron Rents Inc., who said he discovered Grass Valley after taking a wrong turn.
Aaron's has not contacted the City of Grass Valley to begin the permit application process to build an 8,000-square-foot store - Keane prefers two lots he has seen in the Highway 49 and McKnight Way area, he said. But he expressed confidence in the store's prospects.
"We'll be open there in six months, no doubt about it. We're never turned down," Keane said this week. "Usually, we like to go anywhere there is a Walmart, but I haven't found a Walmart."
But if Aaron's were to build from the ground up rather than move into an existing structure, the permitting process may take longer than Keane projects, city officials cautioned.
"If they're looking at an empty parcel, it could be lengthy," said Joe Heckel, community development director for Grass Valley. Engineering and design, environmental reviews, acquiring building permits and establishing utility service all can take time.
Yet a new business and jobs coming to town during an economic slowdown is "good news" for the county, Heckel added. Depending on the team the company brings to the project and their ability to meet all zoning standards, the time frame could be "compressed," Heckel said.
Those coming into the area need to do some homework, Mayor Mark Johnson suggested.
"It's really important to read through the general plan and design guidelines. Then the process can run very smoothly," Johnson said. Projects take longer when developers ignore city regulations he said.
And public support is a vital part of the equation, said Heckel.
"We have to make sure it's the right fit for our town," he said.
Growing company
Based in Atlanta, Ga., Aaron's is a 55-year-old company with more than 1,500 stores nationwide, including five in Sacramento. The store specializes in rental and lease ownership of furniture, consumer electronics and home appliances for people with credit problems.
After running the county demographics, Keane discovered a strong percentage of people living on incomes of $50,000 or less, fitting the profile of Aaron's customer base, he said.
The dip in California real estate means Aaron's can afford property it couldn't before.
"We're aggressively going into California. Every square inch is solid gold in pricing," Keane said.
Stock in Aaron's, billing itself as the "nation's leader" in the rent-to-own market, closed at $22.29 (RNT) on Thursday, up 21 cents a share, according to the company's Web site. Revenues for the first six months of the year were $747 million, with $1.3 billion in revenues for 2006, according to the Web site.
The company's goal for 2007 had been to open 250 new stores during the year, but officials now expect to complete 115 due to "construction delays," Chairman and CEO R. Charles Loudermilk, Sr. said in a company statement released last week.
ooo
To contact Staff Writer Laura Brown, e-mail laurab@theunion.com or call 477-4231.
