Gary Sain, President, SMP Investments

Invest: spoke with Gary Sain, president of SMP Investments, about the evolution of Bethlehem’s commercial landscape, the impact of residential growth, and the importance of infrastructure and community-focused development. “Attracting companies from outside the state may be difficult, so I hope some of the future investment comes from local residents,” Sain said.

How has Bethlehem’s business environment evolved during your career?

My career has primarily been in retail pharmacy. After graduating from the UNC Chapel Hill School of Pharmacy in 1972, I worked in the Hickory area for three years. In 1975, I had an opportunity to go into business with two other gentlemen, and we opened Bethlehem Pharmacy.

We initially operated from a temporary building while one of my business partners and several other investors developed a small shopping center in Bethlehem. The center was completed in 1978, and the pharmacy was the first tenant to move in. It had five tenant spaces, including the pharmacy and a Winn-Dixie grocery store. The entire complex was only about 36,000 square feet.

I practiced at the pharmacy for 47 years and saw significant change in Bethlehem. When I started working there, it was still a rural, unincorporated community with a post office, a hardware store, a restaurant, and limited retail.

In 1997, two other gentlemen and I purchased the shopping center. Later, Lowe’s Foods approached us about opening a grocery store there. The former grocery space was incorporated into the new Lowe’s Foods, which is approximately 47,000 square feet.

In 2017, we built a new Ace Hardware within the shopping center complex. Today, we have nine tenants and a good mix of businesses, including a general merchandise store, Village Inn Pizza, a nail salon, the pharmacy, a fitness center, and an ABC store.

What impact did Alexander County’s alcohol referendum have on the local economy?

Alexander County was dry, although the town of Taylorsville had an ABC store and permitted off-premise beer and wine sales. Bethlehem is north of Hickory’s city limits, and many residents were traveling into Hickory to buy groceries, visit restaurants, and make other purchases.

That affected our location and the county’s sales tax collections because so much purchasing occurred outside Alexander County. With the cooperation of Lowe’s Foods, we began working toward an alcohol referendum.

The first referendum was held in 2013 as a stand-alone election. I was heavily involved in running the campaign in favor of alcohol sales, but we lost by about 4%. We went back to work, and in 2016, during the general election, the referendum passed by a margin of approximately 20%.

Alexander County can now have ABC stores, beer and wine sales, and mixed drinks. One of the biggest impacts has been on Lowe’s Foods, which is doing well and continues to renew its lease. We have also added restaurants in the area. The referendum has had a significant impact on the shopping center and the community.

How will new residential development affect Bethlehem’s commercial growth?

Four new residential developments have been approved, and two are underway. Within the next year and a half to two years, we could have as many as 800 new homes within approximately a mile and a half of the shopping center and Bethlehem’s other core businesses.

That growth should be beneficial for the business community, particularly the shopping center. It could also support additional commercial development.

SMP Investments owns property adjacent to the shopping center. Over the past two years, we have sold three vacant lots. Two were purchased for restaurants, and one was purchased for a medical facility. Construction has not started, but I believe the housing growth will help stimulate those projects.

We also own another six and a half acres next to the shopping center that remain vacant. We may undertake a project ourselves, or we may sell the property to the right developer.

What makes Bethlehem and Alexander County attractive for growth?

The county has a reasonable tax rate. Before the alcohol referendum, the property tax rate was $0.79 per $100 of assessed value. Even with the state-required revaluation, the county has been able to reduce the rate by approximately 10 cents.

We also have a considerable amount of available residential and commercial property. I believe that will be significant for this part of the county during the next 20 years.

Bethlehem is adjacent to Hickory and is somewhat of a bedroom community. I grew up in Hickory, so I have seen the prosperous times and some challenging times. The area lost textile operations, and parts of the furniture industry went through challenges, but I believe Hickory is currently in a good place.

What commercial development is emerging in the community?

Of the three vacant lots we sold, two are intended for restaurants, while the third is planned for medical use.

Bethlehem already has eye care and family medicine services. The eye care practice is in a newer building, and my understanding is that the medical practice plans to relocate from its current facility. I think that would be positive for its growth. The practice is associated with Catawba Valley Medical Center in Hickory.

I believe the additional housing will help stimulate these investments and encourage the businesses to move forward.

How could transportation improvements support future development?

North Carolina Highway 127 is the primary highway serving Bethlehem. The North Carolina Department of Transportation was supposed to begin improvements that would create a divided highway and add a southbound bridge across Lake Hickory. Currently, there is only one bridge crossing the lake.

The project would bring four lanes through the Bethlehem business area and past the elementary school. Unfortunately, because of the damage the department has had to address following Hurricane Helene, the project has been placed on hold. Still, those improvements would be positive.

The project was also expected to include a 10-foot multiuse path for cycling and walking. It would extend from Hickory, cross one of the bridges in a protected lane, and continue toward the elementary school.

I recently served on a committee that developed a multimodal transportation plan for cycling and walking throughout Alexander County. The county commissioners approved that plan. It may not all happen in my lifetime, but it could be significant for the county.

My wife and I are active cyclists, so this is personally important to us. Cycling and recreation are also economic engines. These improvements could provide health and economic benefits as they develop.

How does Bethlehem’s business community address shared concerns?

Bethlehem has a business association that has worked to address issues and concerns within the community. I do not remember the exact number of businesses involved, but the association meets every other month. I think it has been positive for us.

Our group of county commissioners is pro-business. Attracting companies from outside the state may be difficult, so I hope some of the future investment comes from local residents.

What is needed to encourage more local commercial investment?

The biggest factor is making commercial property available. The six and a half acres of unimproved land we own is a good example. I have received many inquiries about the property, but they have not involved businesses that I believe would have a positive impact on the community. I am cautious about that.

If a good business or a quality developer came along, I would be receptive to selling the property. However, I would not want something that would become a competitor for our current tenants. It has to complement the community.

What gives you the most optimism about Alexander County’s future?

The county’s leadership is positive, and Alexander County has a great deal of potential. It has beautiful land, including the Brushy Mountains on the northern side of the county and Lake Hickory on the south side.

I also see considerable potential in Taylorsville. The town has a great downtown core of buildings. Some are vacant, but I think there is a lot of potential.

The county also includes Hiddenite and Stony Point on the eastern side and Bethlehem in the southwest.