Utah officials rally on behalf of American Stores staff

BOISE, Idaho -- While the approximately 2,000 Salt Lake, City, Utah-based employees of American Stores Co. await news about their jobs, the governor of Utah and mayor of Salt Lake City have been preaching their merits to management at ASC and Albertson's.

In August, American and Albertson' s announced plans to merge, leaving the future employment prospects for American's. Utah-based corporate staff hanging in the balance. On Sept. 4, Salt Lake City Mayor Deedee Corradini and Utah Governor Michael Leavitt flew to Albertson's Boise, Idaho, headquarters to meet with the leaders of American Stores and Albertson's and convey the importance of keeping as many American Stores employees in Salt Lake City as possible.

Vic Lund, chairman of American Stores, Teresa Beck, president of American Stores, Gary Michael, chairman of Albertson's and Tom Saldin, executive vice president of administration and general counsel for Albertson's, met with the government leaders to open a dialogue about plans for American's new office tower in Salt Lake City and the approximately 2,000 workers who are employed there.

"I wanted to hear directly from [Gary Michael] his thoughts on the merger and Salt Lake City's role in their future; and to offer our assistance," Corradini told Drug Store News. "I told him the building is the premier building in Salt Lake City. It is a jewel to us."

ASC is one of Salt Lake's largest employers, and its corporate facility, which has been open only a few months, includes an upscale gourmet supermarket, health club and restaurant.

Too early to tell

So what was the, outcome of the meeting? "No decisions have been made as to how things are going to shakeout," Corradini said. "They are still in the preliminary stages of deciding how to put both companies together and get the best of both. There will be some folks that will leave because of redundancies, but [Gary Michael] understands the significance of the building to Salt Lake City, and he will recognize that value in whatever decision he makes," she said.

Albertson's spokesman, Michael Read, declined to discuss the focus of the meeting except to say it was upbeat and positive. He said that. any announcements about plans for the Salt Lake City-based staff or the facility would be premature and that at both companies "it is business as usual."

Albertson's officials have stated that they intend to run the new company from its existing headquarters in Boise and have, for the time being, only committed to maintaining a divisional office in Salt Lake City.

Should Albertson's vacate Salt Lake City entirely, the city and state would face the loss of thousands of jobs and revenues from payroll taxes and products and services that employees now pay. On average, American's employees earn $51,000 per year, according to the Utah Department of Community and Economic Development, and American is one of the largest employers in Salt Lake city.

American Stores and Albertson's could face the loss of a $5.5 million tax abatement if it leases more than 30 percent of its Salt Lake office tower to. companies not affiliated with American Stores. Its office tower has four entrances. To keep city streets free for pedestrian traffic, the city asked American Stores to build all loading docks underground. The cost to do this was $5.5 million, and the city's Redevelopment Agency agreed to reimburse American Stores for this amount plus interest, as long as the ASC or tenants providing services to the company occupy at least 70 percent of the facility, according to Alice Steiner, executive director of the RDA. Steiner said that the first payment to American, for $850,000, is scheduled to be mailed in early October.

American Stores officials did not return calls from Drug Store News.

COPYRIGHT 1998 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning