ALCO store to add jobs to Pine River economy

Pine River is getting a new 26,000-square-foot retail store and 20 to 30 jobs.

The dirt was moving for the project in the heart of Pine River shortly after the deal closed Wednesday afternoon. And real estate development officials confirmed the new store is an ALCO discount retail store, part of a regional chain with about 11 Minnesota stores.

ALCO runs through the nation's midsection with stores from Minnesota to Texas and stretching from Ohio to Idaho. It's taken a team effort to create this opportunity where a store is constructed on land left barren after a manufacturer closed its doors decades ago. The site is just off Highway 371 North on Barclay Avenue West near the Pine River Chamber of Commerce and the Pine River State Bank.

Years ago, a group of 10 Pine River area investors formed the Barclay West Group, officially known as BW Investments, and purchased the 23 acres that formerly housed the Durkee Manufacturing and later Baker Industries site. The manufacturer once produced giant wooden reels for heavy electrical cable and the closing of a major employer was a blow for Pine River.

About ALCO

- Duckwall-ALCO Stores Inc. is a self-described regional retailer with a wide variety of products aimed at smaller, underserved communities.

- The store offers clothing, housewares, jewelry, lawn and garden supplies, pet supplies, seasonal items, electronics and video, automotive, crafts, candy and food, shoes, sporting goods, fabrics, furniture, hardware, toys and health and beauty products.

- The company operates 258 stores under the names ALCO and Duckwall.

- With stores running the breadth of the nation's midsection from Minnesota to Texas, the company operates in 22 states.

- In 2004, the company, according to its Web site, had total sales of $433 million. The company's headquarters is in Abilene, Kan.

The Barclay West Group, with members of diverse business backgrounds, had a goal of bringing economic development to Pine River by attracting business. And they had the land in the heart of the city to make that happen. They knew it may take time to attract the companies they hoped to have. They focused on putting in the infrastructure, roads and city sewer and water. And then the chamber's information center, the Pine River State Bank and the post office were all attracted to the site. The Hunt Utilities Group also purchased land there. And ALCO is expected to act as an anchor bringing in more development. It's a coup for a small city when rural communities are more likely to talk about retail flight and struggling economies.

Earth moving on the site had the city buzzing Thursday, said Gary Moser, Barclay West Group investor and retired real estate broker. Moser said getting a regional retailer to build in the city in the present economy is a "pretty good stroke of business for Pine River."

"People will have a reason to come to Pine River that simply went to Brainerd previously," Moser said. "It will fill a hole in our retail that will be important to shopping and bring more people to Pine River. I think it will be a shot in the arm for the whole retail community."

ALCO took 3 acres of the land. The property was listed for sale at $299,000. Four retail lots remain between the ALCO store and the post office and bank. Moser said the trickle down effect is already visible as local people and companies are hired to do construction work at the site.

Representing the Barclay West Group, Close-Converse Commercial and Preferred Properties of Brainerd started working with ALCO in September 2006. A Power Point presentation on Pine River's assets and the community was shipped to ALCO in Kansas.

Rod Osterloh, Close-Converse, said Barclay West investors didn't just want to sell the property to the first person with a checkbook, but they wanted to find the right company that would fit. Osterloh contacted ALCO.

"It's not always easy to find regional and national companies looking to locate in communities the size of Pine River," Osterloh said. "To have them choose Pine River is a real blessing. They satisfy a real niche and need in the community."

Marv Greenberg, commercial real estate agent with Property Resources Group in Fargo, N.D. worked with ALCO for three years looking for a store site.

With favorable weather, Greenberg said the building may be ready for the store in March with 20 to 30 full- and part-time jobs. Choosing Pine River fits with ALCO's plan to find underserved communities, Greenberg said. Pine River offered a population center about 30 minutes away from other retail magnets. A nice piece of property, demographics and a family oriented community went into the decision to pick Pine River. Greenberg credited the friendly community including the mayor, chamber officials and Osterloh with the group effort to get the business.

Dan Meier, a Barclay West Group investor, said Pine River was in a unique situation for this economic development he described as a shot in the arm.

"Most small towns don't have 23 acres in the city limits," Meier said. "As a group we hope it will spawn additional economic development."

Meier said the community reaction has been positive.

John Wetrosky is Pine River Chamber executive director and, with his wife Jackie, owns Silbaugh's department store in the city. Silbaugh's has been part of the community for 60 years. Wetrosky said the ALCO addition will enhance Silbaugh's by drawing people to the city. And Wetrosky said Silbaugh's will be able to revise some products its struggled to keep at low profit margins as ALCO will be able to provide them to area residents.

"The business people I've talked to in town are all excited about this," Wetrosky said. "We are eager to see it. I think we are fortunate."

Neil Smith, Pine River State Bank vice president, serves as Pine River Area Economic Development Corp. president and is on the Cass County Economic Development Corp. board. Smith said the ALCO addition will be a tremendous boost for the community in jobs and retail access. It comes at a time when rising gas prices may make people think twice about the trip to Brainerd. Smith said this economic development is likely to promote more growth.

"I think it will roll into other things," Smith said. "There are more lots available here. We're encouraged that other things are going to happen."

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.